Many people become empty nesters at a time in life when their incomes are high. All of a sudden, they have a lot more money available. One study showed that people 50 and older could have an extra $5,000 to $10,000 yearly after the kids leave home.
With proper planning, you can put that extra money to good use to create a better life for yourself. You can buy items you couldn’t afford before, and start saving more for when you retire.
How will my costs change? Get ready to add it up.
Follow these two steps to see how your finances will change once you become an empty nester:
- Review your financial goals and plans.
- Based on what you see, decide how you want to use your extra money.
Do you want to spend, save, or pay down debt? Now is the time to redo your budget. Having an up-to-date budget will help you stay on track to reach your financial goals.
Remember: You may find you have quite a lot of extra money after the kids leave home.
With proper planning, you can use it to enjoy today and make yourself more secure after you retire.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.