One thing that popped into my mind after our last conversation was that most retirees really need to get clear on when those non-monthly expenses will hit and how they will manage their cash flow to manage those. Then there are the expected but unplanned expenses like car or home repairs and other one time bills.
What approach do you use to manage your cash flow? Transferring money in and out of a savings account? Sinking funds? Cash envelopes? Credit card debt or installment payments? Live on last month's income so you are always a month ahead with cash flow? I'm sure there are other approaches that aren't coming to my mind right now.
Now that we are in our 3rd year of living on retirement income and savings with the ongoing expenses of our new home, I am really seeing our own financial pattern. First quarter of each year has predictable large annual and quarterly expenses. Then there are some other months that have extra expanses that are unpredictable like car repairs. Plus the one time expenses we choose such as home improvements or travel.
We are extremely fortunate to have the end each so far with additional money to put our savings, but there are many months we would be in the red if we didn't have savings to transfer into our checking account. I've set up a table by month to show when irregular expenses are due so I can plan the next month's cash flow once I know the actual amount of each as they do change each year.
Something for those not yet retired or changing their living situation to consider.