When it comes to balancing your income and expenses in retirement, a little common sense can go a long way. You cannot work forever, and you cannot outlive your money. So you should begin planning for the future as soon as possible to ensure that you have adequate cash flow for the remainder of your life.

This requires assessing your immediate retirement needs, determining how those needs will change over time, and setting a budget that will satisfy those needs. Given the complex nature of modern finance and the ups and downs of daily life, accomplishing these tasks is rarely easy.

Fortunately, you can better manage your retirement cash flow by following a few key guidelines. Read on for six essential strategies that can help you enjoy a fruitful retirement with the right cash flow.

Carefully Consider How Your Spending Will Change

As your wants and needs change, so will your cash demands. For this reason, your spending patterns are almost certain to shift during retirement. Most retirees experience a “U-shaped” curve in terms of spending over time. In other words, they spend more in the early years of retirement, while they are still physically active. During these years, retirees tend to sink significant funds into activities such as traveling and pursuing hobbies. As they get older and less active over time, spending generally declines. At the end of their lives, retirees often experience a greater need for cash once again to cover the elevated costs associated with medical care and assisted living.

Withdraw Funds Strategically

Retirees tend to have multiple accounts and investments to maximize their assets throughout retirement. Many of these accounts and investments come with stringent liquidity limitations and liabilities. To avoid tax penalties, financial advisors recommend withdrawing funds from taxable accounts before tax-advantaged accounts. This allows retirees to maintain adequate cash flow while reducing taxable assets and allowing tax-deferred assets to compound. Furthermore, tax-advantaged accounts typically come with strict terms that include significant cash penalties for early withdrawals. For all these reasons and more, effective retirement cash flow management requires significant strategic planning. By funding accounts with your evolving finaincial needs in mind, you can make the most out of each dollar while maintaining a consistent quality of life.

Manage Social Security Effectively

In his article “7 Strategies to Generate Sufficient Cash Flow in Retirement” Forbes contributor Jonathan I Shenkman stresses the considerable advantages of approaching social security strategically. Shenkman reports that decisions about how and when to claim your benefits can significantly impact your cash flow throughout your retirement. One key consideration is whether to wait until your full retirement age to claim social security benefits. Depending on your date of birth, this age will fall between 66 and 67 years. If you reach your full retirement age before beginning to draw social security, you can lock in higher payments for the rest of your life. However, there may also be good financial reasons to claim benefits when you are younger.

Utilize the Right Financial Tools

Managing retirement cash flow can be challenging, but you don’t have to face it alone. In addition to enlisting the help of one or more qualified financial professionals, you can access a variety of modern financial tools, many of which are quite inexpensive, if not entirely free. For instance, digital savings calculators and spending trackers can be extremely beneficial. Savings calculators serve as invaluable resources for retirees looking to use savings account interest as an income source. They can accurately estimate balances and interest earnings from a savings account, taking into account variables such as inflation rates and tax considerations. Spending trackers assist retirees in managing their expenditures by monitoring every dollar spent. These tools can adapt to changing net worth and evolve alongside your desired lifestyle and financial needs.

Conduct Regular Spending Reviews

No matter what management strategies and financial tools you choose to use, you must periodically review your cash flow demands and resources throughout your retirement. While more frequent reviews may become necessary under certain circumstances, most experts recommend reviewing their retirement plan at least once per year. You should also conduct a review before making any major life decisions. As Merrill/Bank of America puts it, “Check in regularly with your advisor to adjust for any changes — both in the markets and in your life — so that your investments can continue working toward your financial well-being, now and in the future.”

Control Expenses and Seek Cost Savings

Of course, cutting expenses is one of the best ways to optimize cash flow during retirement or at any other stage of life. With the right resources, you can sign up for federal assistance programs, find affordable housing options, and get discounts on everything from healthcare to food.