3. Build an Emergency Fund
While saving for retirement might be priority number one as a younger boomer or an older boomer preparing to retire, don’t completely neglect an emergency fund. These funds are crucial regardless of age, with financial experts recommending a minimum of three to six months’ worth of income in reserves.
Maintaining an emergency fund in retirement provides liquidity for unexpected expenses. These include home repairs, auto repairs or medical expenses. Because some retirees don’t work part-time after retiring from their careers, they live on fixed incomes and don’t have much extra cash.
If you lack disposable cash after monthly expenses, it only takes one emergency to drive you into debt. An emergency fund, however, can soften this blow and help you avoid credit card debt. There are easy ways to make saving for an emergency fund a regular habit.
