Ten BONE-Head Mistakes to make when Planning Your Retirement

Are you thinking about your retirement or headed full steam ahead into your golden years? For people who didnt save millions of dollars, it's even more important to have a plan before you take the retirement plunge. But just as important as having a plan is knowing what mistakes to avoid. These are some of the worst mistakes you can make when heading into retirement.

Failing to have a budget

Not having a budget is one of the worst mistakes you can do when planning out your retirement. This is especially true when living on a fixed income without millions stashed away. Without a budget, you don't have a disciplined approach to managing your expenses. Without a plan to go by, it's much harder to save for specific financial goals and much easier to overspend or take on unnecessary debt.

Failing to reflect on your most important values and goals

Your most important values and lifelong dreams and goals will shape your newfound time when you don't have to punch in and work for a boss. Your core values will help shape your top priorities which should help you decide how you want to spend your time in retirement.

Ignoring fundamental retirement principals

Ok, we know this stuff isn't the most exciting topic in the world, but overlooking the most fundamental retirement principals can really do some damage on your retirement goals. Considerations regarding your asset allocation, social security, insurance, and healthcare expenses should be front and center when planning your retirement. Seeking the help of professionals or from reputable institutions is never a bad idea.

Not budgeting your time

Our most valuable currency in life is our time and how we spend it. Just like we should have a budget for our money, it's very important to think about how you want to spend your time. Having no plan for your time might leave you feeling bored and lost which might lead to excess spending in attempt to fill the void.

Overlooking your creative side

Developing or tapping into your creative side is an overlooked source of wealth. Thinking creatively and using creative methods to approach problems can enrich your life in many ways. Anything from DIY projects within your skill set and artistic and creative ideas for upcycling and recycling can be rewarding and valuable ways to save money.

Carrying too much debt

This piece of advice is always true in everyone's situation, but especially important for someone heading into retirement. It's always a good idea to keep an eye on what your debt-to-income ratio looks like, the closer to zero the better.

Failing to develop healthy habits

Humans are very habit driven. This means if we don't form a habit of doing something, your most likely not going to do it. The trick to this is to form enough healthy habits that they will crowd out some or most of the bad habits. For example, having an exercise routine and cooking wholesome and fresh foods keeps you busy and decreases health expenses by lowering yur risk from common medical conditions.

Losing track of what your passionate about

Think back to when you were growing up. Perhaps it was something you learned about in school, something you did with your friends, or even something you did alone. Whatever made you lose track of time itself and made you feel connected to something that's hard to explain. That is what passion is all about. What a great use of your time to keep you happy and ward off depression. Some people can even turn their passions into small businesses or side hustles to bring in additional income.

Not saving enough

Easier said than done, right? But this list would not be complete without mentioning. Maximize IRA and 401K contributions, funding an individual brokerage account, staying diversified with your investments, and staying out of unnecessary debt are all great ways to save more.

Forgetting about gratitude

Gratitude is such a powerful concept and feeling. There is no doubt we all go through a lot and many face challenges that seem impossible to overcome. But keeping your attention on what your grateful for in your life keeps you grounded from a position of strength. This position of strength keeps what is most important and valuable to you top of mind and in your highest priorities. This keeps us from making decisions out of desperation, which usually ends up as a costly mistake.

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