Transitioning into retirement life should not be about financial restrictions or constraints.

Planned right, this exciting phase of life will be filled with enjoyment and new opportunities with less time spent worrying about finances.

To make the most of this next life chapter, we compiled a list of dos and don’ts on how to identify expenses that are expendable and ones that can further your financial goals.

Retirement savings (Do)

Individuals should save between three-to-six months in living expenses in the event they lose their job. Similarly, those getting ready to enter the ranks of retirement should have some cash set aside, too.

Designate a savings account for the first year of retirement, which can be used to pay off your regular expenses, such as credit card bills.

By earmarking these expenses for the entire year, retirees can accurately track their expenses and have a clear picture of the first year of retirement living.

Track spending each day (Do)

With a smartphone app for everything and bank information readily available, it’s wise to track your expenses every day.

Getting a detailed view of your finances can help you identify where cuts can be made and where overspending is occurring.

Invest in health (Do)

Retirement life is meant to be enjoyed – and good health is a big piece of the equation.

Realize your exercising needs and invest in a health club membership or athletic equipment that you can use every day of the week to feel your very best.

The attention to your wellbeing can translate into thousands of dollars in health cost savings each year.

Over-support adult children (Don’t)

The reality is that extending support to your adult children cannot build good habits for either of you.

By over supporting your adult children, you may deter them from saving and investing in their own future. It will also slow down your trajectory of full financial freedom as a retiree.

Neglect to save for one-time events (Don’t)

Life will not stop now that you’re no longer on a nine-to-five schedule.

Big events and once-in-a-lifetime affairs such as your children’s wedding will still occur. And of course, you want to contribute and fully enjoy life’s most precious moments.

If you don’t plan ahead for these larger events, you can set yourself back as you scramble to come up with the money to pitch in for the big day.

Buy an expensive car (Don’t)

A new vehicle is exciting, but it’s also one of the most unwise investments because of how quickly it depreciates. If having a vehicle is necessary for your new life as a retiree, think about practicality instead of being glitzy.

A Home Equity Conversion Mortgage (HECM)* may also work well with your retirement planning. If you have retired at the age of 62 or older, you can begin to explore the benefits of this mortgage program.

For new retirees, it’s a great way to double buying power, help retain liquidity and take full advantage of financial resources. This type of loan generally requires a 50 percent commitment and in return, the borrower will no longer make monthly payments as long as they live within the home. The homeowner will still be responsible for taxes, insurance and home maintenance.

Also, keep in mind that this program does not mean retirees must sign over their homes or equity. Instead, retirees and their heirs are entitled to sell the home and retain whatever equity remains.

Please contact us today to learn more about this opportunity to boost your income, eliminate monthly mortgage payments and enjoy the new freedoms of retirement life.

*(1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.