5 tips to make your money last for the rest of your life

No one likes to think about the end, but when it comes to money, it's important to plan for retirement with a long-term view. Making money last is something all retirees and those planning for retirement need to think about. After all, no one wants to run out of money before they die. The good news is that there are ways to make your money last longer, which anyone can accomplish with a little patience, discipline, and self-control.

In the following post you will find a list of the top five tips to make money last for the rest of your life and even longer.

Table of Contents

Tip #1: Save, save, save.

The most important thing you can do to make your money last is to start saving as soon as possible. The sooner you start saving, the more time your money has to grow. If you're already retired, it's not too late to start saving. Even if you only have a few years left before retirement, every little bit counts.

The key to effective saving is to live below your means. While this may seem like obvious advice, that doesn't mean it's any less relevant. Living below your means means spending less than you earn and investing the difference. If you can do this consistently, you'll accumulate a big nest egg that can last for decades.

How to know how much you need to save

There are several different approaches to knowing how much to save each month. As a general rule, you should do your best to save as much as possible after taking into account all necessary living expenses like housing, food, transportation, and healthcare. However, saving "as much as possible" may not be enough, and you may need to take extra steps to ensure your money will last long enough.

But how do you know if you're saving enough or not? You still need a specific number to aim for, which is where the following approach comes in.

You need to estimate the size of your nest egg when you retire to provide enough income to pay for the lifestyle you want in retirement. It is done in two steps. First you need to know how long your money should last. This involves deciding when you plan to retire and knowing how long you are likely to live, which you can find in life expectancy charts online.

Once you have this information, you can set up a monthly, quarterly, or annual withdrawal plan that provides enough income to pay for the lifestyle you want. You can then use an online calculator to determine the value of your nest egg so that it will last the number of years you will likely have left.

Once you get that number, you can use the same calculator to figure out exactly how much you need to set aside each month, starting today, for your savings to reach the nest egg you just calculated.

Tip #2: Maximize pensions and social security

Pensions and social security are two of the main sources of retirement income for many retirees. If you have access to any of these perks, be sure to max them out.

Pensions are a type of retirement plan offered by many employers. They generally provide a fixed income for life, making them an ideal source of retirement income. If you have a pension, find out how much income it will provide and when you can start receiving payments.

Social Security, on the other hand, is a retirement benefit provided by the government and available to all retirees. The amount you receive from Social Security is based on your income history and the age at which you retire. You can start receiving Social Security benefits as early as age 62, but if you wait until full retirement age, you'll receive a higher benefit.

How to Maximize Your Social Security Benefits

If you're still working, maximizing your Social Security benefits means continuing to work and contributing to the system for as long as possible. The longer you work, the higher your benefits will be. If your employer offers to match your 401(k) contributions, be sure to contribute all you can to get the full match. It's free money that can ensure your nest egg lasts as long as you need, especially after several decades of compounding.

In addition, if you're married, you can also maximize your benefits by making sure you and your spouse are working and contributing to Social Security. This will allow you to receive two benefits when you retire, which can significantly increase your retirement income.

This will also allow you to take advantage of spousal and survivor benefits. Survivor benefits provide...