Frugal Retirement: Are You Mentally Prepared?

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Economic reports for the future predict more tough times. Tightening your belt and learning to live frugally are more important than ever, but are you psychologically ready for a truly frugal retirement?

One of the first things that you will need to do to live frugally is prepare yourself psychologically. Ask yourself if you are really ready to change your lifestyle. Are you willing to commit to a whole new way of living? A change in lifestyle doesn't always come easily, but working through some of the psychological issues will definitely go a long way to ensuring your success. Let's take a long look at what you want to accomplish.

Your first priority is to get rational – define your goals. Is your goal to trim your budget by some set amount or are you completely revamping your lifestyle? Do you have a set amount in mind to save? It's important to think rationally rather than emotionally when you need to plan this type of change. Factors like, sudden unemployment or a catastrophic drop in your retirement fund just before you retire will require much greater changes than just trying to shave a couple of hundred dollars off your monthly expenses because you are saving up for large purchase. Firming up your goals will help you gain a sense of mastery and control over your plans and increase the likelihood of your success.

Another factor to consider when defining your goals is the time frame for your lifestyle change. Are you gearing up for a drop in income because you know you are retiring in two years so you have the time to slowly shape your behavior towards a frugal retirement? If you just got a notice of a forced early retirement next month, then you're looking at a need to make sudden radical changes. Long slow changes can be much easier to accept psychologically, than sudden radical changes. Knowing this should help spur you to make the changes now, rather than wait until catastrophe strikes because small changes are easier to make into new habits.

Second – overcome your pre-conceived notions. Are you picturing yourself darning socks by candlelight under a mountain of blankets because you've decided to be so frugal that you don't pay for heat or light anymore? Many people get stalled because they actually fear what it means to be frugal. There are ways though to be frugal without feeling like you have become miserly. You do not have to become miserly and cheap in order to be frugal. Think of frugal as being more economical – less wasteful and you will feel less put upon while adopting your new frugal lifestyle.

A frugal retirement isn't as difficult as you may imagine. Careful planning and discarding of pre-conceived ideas will help get you on the road to living frugally.