Will a “Spending Freeze” help plan for retirement?
Will shutting your Spending Window for a week before retirement help you during retirement?
Author Dan Wendol addresses this concept on his retirement focused podcast. The concept is for pre-retirees to use a week long spending fast to help determine their baseline income need during retirement.
You can listen to that podcast here:
Spending Freeze for Retirees Key Points:
- Retirees need to know their baseline income need
- Uses a set time of not spending to determine baseline income
- Critical expenses during a spending freeze are documented
- Spending freeze documentation added to a broader budgeting template
- Goal is to become mindful or more aware of expenses
- Great for those who have never created a budget or don’t want to engage in traditional budgeting tactics.