Retiring is hard. You go from a routine that you have had for many many years to something completely different. You don’t see your co-workers, or have water cooler chats. Instead, maybe you go to the “club” and see the other retirees to chat. No more bonus checks, no more changing income. You are set on a budget. If you have done so well, then you have monies set aside for your fixed expenses like a mortgage. Maybe, just maybe you are the smart one and are debt free going into retirement and have a bit of “disposable” income. That doesn’t mean you shouldn’t still be saving. In fact, an emergency fund is something that is overlooked entirely.
You probably have your check direct deposited in your checking account every month. Instead of the full amount deposited in your checking, go back to the payroll office and fill out a form to have a portion of your money automatically deposited in a high interest savings account. Perhaps you can only have $50 or $100 put in your savings account, but that is a start.
If you pay for most of your expenses with cash, save every $5 bill that you receive and set those aside for your savings account. I did this for 3 months last year and ended up with over $300 in $5 bills. This is a nice way to quickly bolster your savings account.
If you are on a tight budget, saving money can be very difficult. However, if you want to get ahead financially, having an emergency fund to use when you run into financial difficulties is a necessity. It’s also smart to put some of your tax returns into your savings account after you file your taxes.