The most frequent questions asked by my clients are on the topic of financial planning for retirement or semi-retirement. As the large numbers of the Baby Boomer generation move into this stage, their attention automatically turns to the critical necessity for financial management. For many this is unknown territory and, as a society, we are now faced with a new arena for financial focus. The Fifties-Plus generation are more inclined to feel younger, healthier and live longer than previous generations.

However, with potentially less income to fulfill their still active lifestyles, retirees and those planning for pending retirement need to develop new habits and financial management routines that are crucial to sustaining a fulfilling lifestyle.

Retirees and those planning for retirement need to focus on the three main areas of financial management:

• Budgeting,
• Debt Management and
• Investments.

Although each of these topics can be complex within themselves, from my former System Accounting background, I know the only practical and reliable practice is to always keep things simple. In the next three articles, I will tackle each of these topics individually and provide the simple rules that ensure that anyone can live within their means and still enjoy the pleasures of the freedom of choices that retirement provides.

Before we progress, however, they are some important considerations to understand before launching into the more specific areas. Although retirement usually forces people to finally start taking their financial matters more seriously, many have largely ignored this important part of daily life management in the past. So let's look at some basic fundamentals first.

The two key traits of people who do not become financially secure are, firstly, they tend to spend all of the money they have and, secondly, they do not know what they spend their money on. The lack of goals is the main culprit. Without goals, we live unconsciously from moment to moment, never plan for the future, spend all of our money, and as a result, are unlikely to ever become wealthy.

"Unconscious spending" is more prevalent in our society than we realise. I would estimate approximately 80% to 90% of the population do this. With the exception of one or two people, the vast majority of my clients had no idea what they spent their money on until I asked them to prepare a list of their total expenditure and outgoings before our first session. In fact, many were too frightened to do the initial exercise and waited until they arrived at my office, so I could help them through the ordeal. Money matters simply scare people. They are terrified to know how out of control their finances are. Yet, this is precisely what needs to be done before we can start working on a solution.

Whilst it is important to become relaxed and carefree with our financial matters, this does not mean careless. We become carefree with money when we invest a little time on a regular basis to plan and review our finances, and we work within the basic rules of safe, sound financial management. We are careless with money when we don't keep track of what we are spending and squander money on things that are wasteful, extravagant and simply not needed.

Does this sound familiar? Yes, I must admit we all have a tendency to do this. However, with a little planning and forethought, effective changes can be made.