Retirees And Holiday Prep: Why Planning Ahead Pays Off

Holidays are often ushered in with high expectations. From travel to hosting family, elaborate decorations and dinners to thoughtful gifts, the end of the year can also cater in large debts.

Particularly for recent retirees making the transition between a steady paycheck and living off pensions/savings, the first few holiday seasons can come as an economic shock.

While retirement is often touted as a time of rest and relaxation, granted to those in our society who have worked hard and deserve to spend the latter portion of their life carefree, that is not always the reality. Budgets need to be readjusted and expectations may need to change substantially.

Related Link: Can You Afford To Retire?

However, it is possible to still have a fulfilling, meaningful holiday season even with drastic changes in income situations. It may not be easy at first; stresses may rise and disappointments may loom on the horizon. But in most cases, these disappointments can be sidestepped through proper planning and budgeting.

Talk To Loved Ones

First of all, it is necessary to outline what expectations are being held by those you regularly involve in holiday activities. What may seem paltry to you may be the thing that makes or breaks a family member's holiday experience.

Once everyone has discussed and made clear what they would like to happen as the year comes to an end, a plan can be drafted based around these key elements.

Set A Plan

By sharing family members' expectations, you can start to collaborate and make a plan for the holiday season. Keep the lines of communication open and let everyone voice their hopes and concerns. Validate the opinion of each person in the family by letting them share and help plan.

Elaborate On The Plan By Drafting A Budget

Once you have a detailed document spelling out what you want to accomplish over the holidays, you can begin attaching costs associated with each item.

Budgeting can be approached one of two ways, and most beneficially through a back and forth check combining both approaches. You can begin with how much you are willing to spend and then prioritize the items on your to-do list based on those amounts; or, you can begin research each item's cost and sum up the total expenses, finally checking them against your larger budget.

Early retirement can be a time of high stress, but through communication and support, those stresses can be relieved. Take the time to talk with your loved ones about how your retirement will inevitably influence others. Share and remember to listen. Finances do not need to negatively impact your holiday cheer.

If you are struggling with post-retirement stress and personal finance concerns, reach out to a professional advisor, a trusted friend or partner or financial consultant. Don't be consumed by monetary stresses. You have the capability to control your life. Act today.