11 Steps I Took to Avoid Running Out of Money in Retirement
I made sure my retirement savings lasted by making smart financial choices.
- Daisy Montero
- 5 min read
A few months after I retired, I sat down one evening and looked over our bills. Everything seemed fine at first, but as I totaled up healthcare costs, home maintenance, and day-to-day living expenses, it dawned on me—if I didn’t manage things carefully, my savings might not stretch as far as I’d hoped. It was a wake-up call I’m grateful I had early.
Maybe you’re nearing retirement or already there and wondering how to make sure your money lasts. I’ve been in that same spot. Today, I’m sharing the key steps I took to keep my finances stable, so you can feel confident about your future too.
1. Figured Out My True Monthly Costs
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I used to assume my expenses would drop in retirement, but I quickly learned that was not true. Writing down every cost, including medical bills and home repairs, gave me a clear picture of what I actually needed. Planning around real numbers kept me from running out of money too soon.
2. Cleared My Biggest Financial Burdens
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I did not want my retirement savings going toward old debts. Paying off my mortgage and credit cards meant I could use my money for things that actually mattered. Without those payments, I had more freedom to enjoy life.
3. Set Up Different Ways to Earn Money
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Relying only on savings made me nervous, so I found other ways to earn. Small investments, rental income, and part-time projects gave me extra money without too much effort. Having multiple sources of income kept me from feeling stuck.
4. Delayed Social Security to Get Bigger Checks
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I could have taken Social Security early, but I waited. By holding off, I got larger monthly payments that helped cover my bills. It was one of the smartest financial decisions I made.
5. Protected My Savings From Market Swings
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I did not want my retirement money disappearing in a bad market year. Moving some savings into safer investments helped me avoid big losses. My money still grew, but I did not have to panic when the stock market dropped.
6. Kept a Fund Just for Emergencies
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Unexpected expenses happen no matter how well I plan. Keeping an emergency fund meant I did not have to dip into my main savings when something went wrong. It gave me peace of mind knowing I had money set aside for surprises.
7. Moved to a Home That Fit My Budget
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My old home was too big and too expensive to maintain. Downsizing to a smaller place lowered my bills and made life easier. Less space meant less stress and more money for things I enjoyed.
8. Took Care of My Healthcare Costs Early
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Medical bills can drain savings fast, so I planned ahead. Choosing the right insurance and setting money aside for health costs saved me from financial stress. Taking care of my health early also helped me avoid costly treatments later.
9. Stuck to a Smart Withdrawal Plan
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Spending too fast would have drained my savings, so I made a plan. I withdrew just enough each year to cover my needs while keeping the rest invested. This kept my money growing while making sure it lasted.
10. Checked My Finances Every Year
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Retirement finances are not something I could set and forget. Every year, I looked over my spending, savings, and investments to make sure everything stayed on track. Small adjustments helped me avoid big financial problems.
11. Made Time for Enjoyment Without Overspending
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I wanted to enjoy retirement, but I had to be smart about spending. Instead of expensive trips and big purchases, I focused on meaningful experiences that fit my budget. Finding joy in simple things kept me happy without draining my savings.
Planning ahead and staying disciplined made all the difference. These steps gave me control over my finances, helped me avoid unnecessary stress, and allowed me to focus on enjoying retirement. Here’s how you can get started today:
Create a retirement budget: Write down all fixed and variable expenses. I kept mine taped to the fridge so I could check it each month before making any big purchases.
Delay claiming Social Security: I held off until age 67 to maximize my monthly benefits, which added a reliable cushion to my income.
Downsize your home: A few years into retirement, Mary and I sold our larger house and moved to a smaller place. It reduced both property taxes and utility bills, freeing up extra cash.
Limit big-ticket purchases: Instead of splurging on a brand-new car, I bought a reliable used sedan with low mileage. It cost much less and still gets me where I need to go.
Build an emergency fund: I set aside enough to cover six months of expenses. When our roof needed repairs last year, I didn’t have to touch my retirement savings to pay for it.
Making small, thoughtful adjustments like these helped me stay on track. Start applying even one or two of these steps today, and you’ll be in a stronger position tomorrow.