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And, likely, theyll still need abudget.
If that sounds like you, consider the followingbudgetingideas from financial experts.
Savings Rate
Good budgets start with the target savings rate first, not last.
This will reduce the reliance on Social Security and employer pensions.
Consider splitting your direct deposit so part of each paycheck goes into a savings account.
A significant portion of the budget goes to taxes, for someone earning $200,000 a year.
Thats where a high savings rate helps.
you might also take advantage of tax-efficient investments such asreal estate syndications orinvestment properties to reduce your tax bill.
In their later years, they dont have any long-term obligations, she said.
Haywood explained that those costs include more than just car payments, however.
Car payments, insurance, maintenance and fuel costs all add up.
Healthcare
Most Americans in their 50s retain good health and modest annual medical bills.
But that wont last forever, and Kullberg recommended planning for future costs now.
With age, healthcare costs rise substantially and its important to budget for higher medical expenses and insurance premiums.
That means saving and investing for higher healthcare costs in retirement.
Consider treating HSAs as asecondary retirement account with even better tax advantages.
Discretionary
Some people object that groceries are necessary, not discretionary.
Kullberg recommended spending 25% on lifestyle expenses such as groceries, meals out and other discretionary expenses.
Travel, clothes, accessories, entertainment, spa treatments and shopping all fall under this category as well.
Haywood added another discretionary expense that many older budgeters forget: helping their adult children.
Dont let these expenses sneak up on you.
I dont fundamentally approach budgeting any differently based on income.
He added, If you have enough to spend liberally then great.
Of course, planning to tighten the belt and actually doing it are two different things.
Budgeting is simple on paper.
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