How to Make Happy Retirement life .....

How you spend your money in retirement will determine your happiness

How you can maximise your happiness through your spending patterns are:

* Instead of buying one big luxury item once, you will derive more satisfaction if you spend on small luxuries more often.

* Regularly spend small amounts on people such as your grandchildren, instead of buying them expensive gifts only once or twice a year.

* Take advantage of experiences that cost very little or nothing, such as hiking or going on a picnic with your grandchildren. Experiences are more satisfying than things, because the memories last longer and have more meaning.

* Delay purchases. The anticipation will increase the enjoyment and postpone spending.

How To Spend : Hierarchy of need

People do not live according to Hierarchy of needs, because living in an unequal society has a psychological impact on spending habits. For example, retirees may not eat nutritious food, but they avidly watch television or spend money on things that satisfy higher-level needs. Ideally, they should focus on meeting their lower-level needs first.

1 Physical needs: Your first priority is to have food, accommodation and access to basic health care.

2. Safety: You must be able to protect yourself, your assets and your income. This requires spending on, among other things, homeowner’s insurance and medical scheme cover, and having enough savings to provide a basic level of income if you live longer than expected.

3. Belonging: We have a need to belong to a social group, such as a family or a community that shares our beliefs or interests. At this level of the hierarchy, you spend on other people, such as your family, and on entertainment and luxuries.

4. Esteem: We want to be valued by others. This may involve spending on things that make you feel good about yourself, such as hobbies and sport.

5. Self-actualisation: This may require spending on philanthropic causes, to help those in need.