Write about your approach to budgeting. Is it necessary or not?

You would think in retirement you wouldn’t need to budget your money anymore. Not true!

Budgeting is necessary when you don’t have money or when you have plenty of money. It’s called being a good steward of your resources. When I keep track of what I spend I find I’m less likely to spend it unnecessarily. And in retirement that is important.

One question I ask myself all the time is “where can I spend less?” Some expenses you can’t change (like taxes) but others can be adjusted. The answer will be different from each of us but it helps me prioritize my expenses.

There are many ways to budget. Some people use the envelope system with cash (a great way to get used to budgeting). I use Quicken to plan my expenses in advance.

Whatever you use, you will find that paying attention to where your money goes turns into having more money in your savings account or your pocket.

And that’s a good enough reason to budget!