Consider how your expenses may change in retirement. You might find that certain costs decrease, such as your daily commute or work-related expenses, while others may increase, such as healthcare or leisure activities. Here are some key factors to consider:
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Housing: Will you downsize or relocate? Your housing costs may decrease if you choose a smaller or more affordable location.
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Transportation: Commuting expenses may reduce, especially if you no longer need to drive to work. You may still need a car for personal use or rely more on public เที่ยว มาเลเซีย ด้วย ตัว เอง transportation.
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Healthcare: Healthcare costs tend to rise with age. Plan for increased medical expenses and consider long-term care insurance.
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Leisure and Travel: Many retirees want to explore new activities and travel more. Allocate a budget for leisure and adventure.
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Social Security and Pensions: Factor in any expected income from Social Security or pensions.
Step 3: Identify Expenses That Will Cease in Retirement
As you prepare for retirement, you can exclude certain expenses that will no longer be relevant. A common example is debt that will be paid off after retirement, such as car payments.
For instance, let's say you are currently 30 years old and have a car loan that requires monthly payments of 6,000 baht for a period of 8 years. By the time you retire, this debt will be fully paid off. Hence, you can subtract this 6,000 baht per month from your retirement expenses.
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