4) Earmark Guaranteed Income
Once you've itemized and grouped expenses and resources, you're ready to match them up and identify any gaps. Consider these steps:
- Earmark guaranteed income to pay for basic needs.
- Income generated by your other savings can cover any basic needs gap, as well as your discretionary expenses.
- Temporary income can fund short term or one-time expenses.
Remember, the greater the percentage of income that's guaranteed, the less stress and more security you may have throughout retirement.