Retirement is the one thing that most people look forward to after years of the work-a-day world. Yet, few give much thought on how to avoid the most common mistakes of the newly retired.
One serious mistake that many people make is underestimating the cost of living. Failure to work out a good budget can cause this problem so even though it is somewhat tedious and annoying, budgeting is a must. You will want to keep careful track of all your incoming and outgoing monies for at least one month. The longer period of time you track all your expenses the more accurate your budget will be in the long run.
A second mistake that people make is not planning for the unexpected. Allow a certain amount for emergencies. An accident leading to extra health care costs, a blown furnace or a major car repair bill are all things that can happen at any time. And though it is difficult to anticipate, you should allow an extra amount to cover inflationary costs or other unforeseen costs.