Reflect on your plans -
Once your children move away, leaving you with more time in hand, you can reflect on what’s next for you. Since retirement is most likely to be on the horizon, you can think about what your life will be like after you enter retirement.
There are several questions that you can consider like - How much longer do I need to continue working? How much longer do I want to continue working? How will I find fulfilment once I finally retire? Etc.
If you are not immediately ready for retirement, you can also consider a emotions
, you can look up positive quotes for empty nesters that will not only help you look at the brighter side of things but also provide ideas on things you can do to get through those feelings.
Review your budget -
Your household finances can also look a lot different once your kids leave home. Several expenses may go down like monthly grocery, utility bills, cable TV charges etc. That is why you can use the time to review your budget and make changes wherever necessary so that it reflects your current situation in a better manner.
Your budget will also enable you to make informed decisions and plans for yourself like spending more on travel etc. Also, just because your children have left home may not mean that you will not need to provide them with financial assistance when needed. So, your financial plan and budget should get made or reviewed keeping these factors in mind.
Pay off debt -
All that saving and budgeting that you do can also allow you to pay off your debts. You can make the most of your surplus cash by eliminating debt that has been bothering you for a while. It can also give you more flexibility as you approach retirement.
You can start by tackling high-interest debt such as credit cards, private student loans
and then move on to repay other debts such as auto loans or credit cards with low-interest rates. Along with paying off debt, you can use the extra money to create an emergency saving fund for yourself for unprecedented events in life.
Focus on retirement -
Use your extra time and money to focus on retirement plans and funnelling more cash towards retirement savings
. The larger the contributions you make at this stage of your life, the higher the amount of savings you can generate for future use.
Consider housing options for empty nesters -
Downsizing tips for empty nesters is a crucial aspect that cannot get skipped when talking about other practical steps that you take. You can use the time available to think about housing options for empty nesters where you might spend a large chunk of your life post-retirement and one that may encompass several different kinds of living situations.
You can even consider the most practical downsizing tip for empty nesters that includes moving from a large and high-maintenance house to a smaller one. Your old home can get used by you as a family destination when your children come to meet you or other similar purposes.
Some people may refer to this as ‘right-sizing’ instead of downsizing. That is because the decision to move gets based on a variety of factors such as maintenance costs, living expenses, real estate taxes, distance from medical facilities etc. It is crucial to find a place where you can live comfortably, and also one that does not involve unnecessarily high maintenance charges.Review your plan
No financial planning is ever complete without incorporating regular reviewing sessions. Your financial situation and life, ten years before may not be the same as now. Therefore, creating a plan that aligns with your needs or future goals and reviewing it at intervals becomes a necessity.