What is New MOney?
What does the term mean, to make “New Money”?
Several books and papers have been written about how to help a person manage their finances and save money after they retire. They advise you how to make better investments with your existing money or how to clip coupons to save, etc. That’s not what this book is about. It’s not about how to “save” money; it’s about making New Money!
After my father-in-law retired from banking, he said to me at one point, “Son, retirement is great but I don’t have any way to make new money”.
When I pressed him on his use of the term “new money” he went on to say, “I can manage my retirement funds, I can invest what I already have but I’m not bringing in any NEW money. Money that I don’t already have.”
At that moment, the idea of making New Money in retirement was borne. If in retirement, a person could make as little as $200 to $300 more per month of NEW money, it could make a huge difference. They could play a few more rounds of golf or go out to dinner just a little more often. They could buy gifts for the grandkids. Essentially, they could do all the normal things they would have done when they were working and earning a wage. Being retired on a fixed income will take its toll on your extracurricular activities but it doesn’t have to be that way. After all, you are retired, not dead!