The kids have finally left the house and it’s time to bask in the accomplishment.  Before you get too deep in empty nest bliss, it’s time to look at how to readjust your budget for this next stage in your life. While every parents’ budget will be different after their kids leave home, here are some effective tips to help you make the most financially of your empty nest.

Set a new budget for yourself

From groceries to utilities, an empty nest affects every aspect of your budget. Don’t forget to budget for other big life expenses like college tuition, weddings, and grandchildren. You and your spouse should make sure you include in your budget any type of financial help you plan on giving your adult children.

Eliminate unnecessary spending

This goes hand-in-hand with creating a budget. Now that you’ve planned for your necessities each month you can determine what can be trimmed down. For instance, it may be time to cut the cord on pricey cable packages and switch to cheaper streaming options. You may even decide to downsize your home entirely now that you don’t need all that space for the kids.

Pay off debts

Eliminating old debts will make your golden years much easier. Look to use newly freed-up funds to pay off credit cards, personal loans or other financial liabilities and enjoy the freedom of being debt free. Whether you work with a financial advisor or put together your own payment plan, paying off previous debts will give you the peace of mind you need to truly enjoy retirement.  

Focus on retirement and health care

Between summer camp and fundraisers, your retirement savings may have been slightly neglected. Now that your kids have grown chances are your retirement could benefit from a boost. Consider your children’s costs and use that as a jumping off point for your retirement. 

Since your kids are supporting themselves, your life insurance needs have more than likely changed as well. You can simplify your coverage and remove your children as dependents on your life insurance policy.

Prepare your children

Being financially responsible for your adult children hurts you both. Have a candid discussion with your children about what you’re comfortable with contributing. Teaching your kids to be financially self-sufficient early and often will allow them to become more independent and maybe reduce the likeliness of them requiring help later in life. As a parent you’ll always care for the well-being of your children, but don’t forget to take care of yourself as well.

Declutter and sell

Use some of your free time to finally clean out your closets, attic, basement and garage. Discover all the things you no longer need or want and sell them for extra cash. Now that you’ve freed up some space you can dedicate that spare room to a potentially income-generating hobby or business.   

Evaluate your hobbies

Empty nesters are generally left with a lot more free time than they had before. Before you take that dream trip or start that home renovation project remember to be realistic with your budgeting. Make sure to evaluate your short and long-term finances so these activities won’t hurt your quality of life later on.