10 Common Financial Pitfalls Empty Nesters Fall Into

Now that the kids are out of the house, this is not the time to go on a spending spree like you're having a mid-life crisis. You don't need that new Mustang or Harley, and you don't need that six-bedroom home with a pool. You don't need the expensive membership at the local country club either. When empty nesters make these kinds of decisions, they only get into trouble.

Instead, manage your finances, save for retirement, and be cautious of your spending.

It is extremely important to keep your financial documents up to date. When your family is growing quickly with children getting married, grandchildren, and maybe even great-grandchildren being born, it's important to make sure your wishes and desires stay updated.

The last thing you want is for your family to fight over your possessions and assets when you're gone; you want to make sure the things you intend to leave for certain people stay that way. So sit down and update your financial documents at least once a year if needed. When you're gone, everyone will be glad that you did.

Many empty nesters don't have a solid grasp of the issues regarding their nest egg accounts. Knowing the tax implications, risks, and fees from the get-go is important. If you aren't sure about these things, contact your financial advisor and set up a meeting. You need to know about the pros and cons of any changes that you make. So, if your financial accounts are on auto-pilot, you need to check in with your advisor to discuss how things are going and any changes that may need to be made.

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We all know that if you cannot plan, you plan to fail. You know the day your kids move out is coming and that your expenses will decrease. You need to sit down beforehand and make a solid plan for your decreased spending.

Where will the money you are saving not raising your kids go? Will you put it in savings? Pay off debt? Figure out what the best use will be for this extra cash together.

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This goes hand in hand with updating your financial documents. At least two people should know the location of your important documents and how to access them. This does not mean you have to put everything out in the open, but even if it's only your lawyer, someone needs to know where your will is and what your wishes and desires are ahead of time.

I recommend letting two people know where your papers are because if someone is out of town or on vacation when that day comes, someone at home can access them quickly.

If you plan to downsize, it's tempting to bring all of your possessions with you when you move. Unfortunately, this is not good for your mental health or your next home. Too much stuff can be mentally, physically, and emotionally taxing.

Instead, take some time to look at your life and see what fits and what doesn't. Sure, we clean out closets, bookshelves, and garages when we move. What about the two motorcycles you have? Do you ride both of them, or should you let one go? How often do you go kayaking? You should let that go, too.

If you're moving to an apartment, you won't have room or need all the tools you have collected. You can sell those for good money. My best friend's ex-husband used to be a mechanic. He sold all his tools and made some good money off of them. It's easy to go through the little things, but don't forget to take stock of the big things too.

To help with this, consider where you spend the most time in your home, which items you use regularly, and what you consider clutter. Getting rid of the clutter will lead to a more peaceful life and free your mind to focus on more important things.

Lending Money

Even though we mean well when we lend money to family and friends, it's not a good idea. Especially when you're older and on a fixed income. If someone says a bank refused their loan application, consider that a warning sign not to lend them money. Does this mean you can't help them at all?

Nope. Instead of giving them a loan, give them a gift, but only half of it. If they need $500, give them only $250 and see how they handle it. Also, watch and see how and if they get the rest of the money they need. This will help you determine whether to gift them money again.

However, before you do anything, you need to make sure you are on solid financial ground. You can't help others if you can't help yourself. If you're not sure, consult with a professional to understand if you can lend money with no issues.

Impulse buying is never good at any age. Getting caught in a "stuffitis trap" is damaging no matter what your financial situation. However, it is especially harmful to empty nesters who are retired and on a fixed income. You need to think about extra expenses that come with getting older, especially medical bills.

Am I saying you can't enjoy fun things and hobbies? No, not at all, but look for coupons and creative ways to get the things you want. Love ice cream? Look online for a free cone on national ice cream day. Do you love e-books? You can find all kinds of free books on sites like The Fussy Librarian, BookDoggy, Free Booksy, and more. These sites list books every day that are free and you can even subscribe to their newsletters to get alerts in your email daily. This is one of my favorite ways to indulge in my book addiction. Love other kinds of entertainment? Check out Thriftbooks where you can find used books, cds, and movies. Of course, the library is another great place to find free entertainment as well.

Now that the kids are out of the house, you can buy less food. If you continue to buy the same amount, that is money down the drain. Not sure how to cut down on your cooking or how to cook cheaper meals? No worries.

You can find all kinds of budget recipes on the website Pinterest. I also like the sites The Lazy Dish, Spend with Pennies, and That Low Carb Life as well. You can also find cookbooks with recipes for one or two people or even with x amount of ingredients. Don't know what to cook with what you have on hand? Check out the app SuperCook. You can put in the ingredients you have in your fridge and it will come up with a list of recipes you can make. Talk about a lifesaver.

We all know that kids are an awesome source of entertainment. They always want to tell you something or show you something they've done. Sometimes, they can say some pretty funny things. I have several memories from daycare I will never forget.

Still, when the kids leave the house, most empty nesters fill their time with expensive entertainment, which adds up. But it doesn't have to be this way.

Let's start with TV. You don't have to pay for five or six streaming services to find superb entertainment. We watch a lot of free streaming services like Tubi, Roku Channel, Freevee (even though it's phasing out), and Pluto. When you belong to Walmart Plus you get a basic Paramount subscription and we watch a lot of it too. The only service we pay for is Friendly TV, which has channels we love like History, Great American Family, Hallmark, Hallmark Mysteries, and Hallmark Drama that we can't get on the free stations.

Love movies? Join a movie club at one of the movie theater chains. This will help you save money on movies while still enjoying the latest blockbusters.

Live entertainment? Check out local clubs or your local community theater to find some great live entertainment.

There are all kinds of ways to save money on grand entertainment.

There are many mistakes that empty nesters fall into if they don't plan. Take the time to assess your needs and make adjustments so you can live a happy, healthy, financially stable life now or in the future when your kids are gone.