Avoid costly mistakes by taking these smart, pre-retirement steps to boost your savings, cut waste, and build financial confidence.
These practical, expert-backed moves could save you thousands and supercharge your pre-retirement financial plan.
For many Americans, the final stretch before retirement is filled with more questions than answers:
- Am I saving enough?
- How much should I keep in cash?
- Am I missing something that could cost me later?
If that sounds familiar, you’re not alone – and you’re definitely in the right place. In this episode of Dollars & Sense financial podcast, Joel Garris, Certified Financial Planner™ and fiduciary at Nelson Financial Planning, breaks down five often-overlooked strategies that can help you maximize your savings, reduce unnecessary expenses, and enter retirement with confidence.
#1. Create (and Stick to) a Real Budget
You can’t fix what you can’t see – and when it comes to your money, visibility is power. That’s why budgeting is the foundation of any successful financial plan.
Budgeting is the cornerstone of every solid retirement plan, yet it’s one of the most underutilized tools for people approaching retirement. Many assume they’re doing “well enough” until they look under the hood and realize their spending habits are quietly undermining their long-term goals.
“The best place to figure out where you can find money to save is to look at how you’re spending money in the first place,” says Joel Garris, CFP®.
Why Budgeting Matters More Over 50
If you’re over 50, budgeting isn’t just about managing bills – it’s about preparing for a future where your income may be fixed. Without a clear plan, many pre-retirees end up either overspending their savings too early or underestimating the cost of essentials like healthcare, housing, or even leisure activities.
According to a 2024 Schwab Retirement Survey, nearly 40% of Americans in their 50s said they didn’t know how much they were spending each month – yet 70% claimed they were “on track” for retirement. That disconnect is a red flag.
Budgeting Doesn’t Have to be Restrictive – It’s Empowering
Forget the old idea of budgeting as a set of limitations. A well-designed budget gives you freedom – the freedom to travel, spend time with your grandkids, or pursue passions without constantly worrrying about money.
Joel often explains it like this:
“A budget doesn’t mean you can’t spend. It simply tells your money where to go instead of wondering where it went.”
Where to Begin (Even if You’ve Tried Before)
The goal isn’t to create a spreadsheet masterpiece. It’s to get clarity. Start by tracking your actual expenses for 30 days – not what you think you’ll spend.
Step-by-Step
- Track all transactions – include every coffee, utility bill, insurance premium, and subscription.
- Categorize expenses – break them into essentials (housing, food, insurance) vs discretionary (entertainment, dining out)
- Find the leaks – look for recurring costs you can trim (such as subscriptions) or impulse purchases that add up
- Set monthly targets – assign spending limits based on your financial goals, not just your income
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