Budgeting - Introduction

One item that is absolutely imperative that you complete as soon as possible is a budget.  I have used budgets over the years and didn't think much about how important this is in retirement until my financial counselor asked me to make one prior to meeting with him the first time to go over our finances.  If you really think about it, most of the money that you have is in the fixed category.  If it is social security any increase is dictated by what congress deems important.  Remember: "No Man's Life, Liberty, or Possessions are Safe while Congress is in Session".  I think that quote (in a different form) came from Gideon J. Tucker, a lawyer, who said in 1866, "No man's life, liberty, or property are safe while the Legislature is in session."  True that.  Any pension type income is also in the same boat.  Most pensions, if you can get them, are fixed forever; leaving Social Security to be the change for millions of Americans.

If you are beholdin to a fixed income, you will have to watch your pennies to keep maintaining an existence, even while the specter of inflation keeps creeping ever closer.  So a budget is a very key tool in the retiree's toolbox.  It needs to be constantly adhered to and at the same time changed as circumstances warrent.