Step 1: Run the Numbers (Even if It’s Uncomfortable)
If you haven’t done a fresh calculation in the last year, now is the time.
-
List your income sources: Social Security, pensions, annuities, part-time work, rental income.
-
List your expenses: essential (housing, food, health care, transportation) and discretionary (travel, dining out, hobbies).
-
Factor in inflation: costs creep up over time, so plan for at least 2–3% annual increases.
-
Check your “burn rate”: how much you’re spending compared to how much you actually have saved.
This might feel overwhelming, but it’s like checking your car’s fuel gauge before a long trip — you’d rather know upfront than run out halfway.
