Here are some thoughts from the wonderful book The Bogleheads' Guide to Investing
There are two simple ways to remain financially flexible and reduce the odds of running out of money [in retirement]. First, keep your fixed living expenses as low as possible. Retirement is not the time to have an enormous mortgage, expensive car payments, credit card debts, and the like. Low overhead comes in very handy when the stock market goes into the tank and bears are growling on Wall Street. You need to have the flexibility of spending less during bear markets and more during bull markets.
The second way to increase spending flexibility is to have a viable way to earn income if needed. We aren't suggesting going back to work full-time or becoming a Wal-mart greeter. Technology makes it possible to do many paid tasks from the comfort of your home.
A few thoughts here:
1. It's no surprise that the same steps that help you become wealthy and save for retirement in the first place will keep you on track during retirement. Spending less than you earn, in particular, is the key to becoming wealthy.
2. If you need/want additional thoughts on spending less than you earn, earning more money, and ways to accumulate savings for retirement, see these posts:
3. I'm hoping to be able to earn extra money in retirement using technology. Anyone think I'll still be writing Free Money Finance at that time? ;-)
Maybe you'll be writing a much needed "retirement" blog. But it will be waaaay to late for me.
Posted by: dianefromPA | December 14, 2006 at 05:17 PM
Your advice: "My Best Financial Advice: Spend Less Than You Earn" is confirmed by Stanley and Danko's "The Millionaire Next Door" in numerous examples. This is a key idea in securing financial independence.
Posted by: Greg R | December 14, 2006 at 10:10 PM