Do you become apprehensive – or perhaps a little guilty – every time you take money out of your retirement account? It can be not easy to transition from saving to spending mode, whether you have recently retired or have been spending for a while. Here are some tips to help you feel more at ease with this adjustment.

Keep in mind how you got here and where you’re heading.

You’ve probably been preparing for this for years. Saving, You are making personal sacrifices. Your perseverance has paid off, and you have finally arrived. It’s time to make all of your dreams come true, and guilt has no place in the process. It’s time to relax and enjoy your retirement.

Create a monthly budget if you don’t already have one by calculating your monthly spending. This will help you in estimating how much income you will require each month to cover them.

Next, think about generating a retirement “paycheck.”

You received a paycheck while working. That doesn’t have to end when you retire. You’re no longer relying on a job to pay you; instead, you’re paying yourself. Here’s how to go about it:

1. Consider opening a separate account for retirement expenses. This makes it easier to maintain these funds distinct from your other investments and allows you to understand just how much money is available for spending.

2. Set aside a year’s worth of income needs in the account, paid by outside sources (Social Security, pensions, etc.), annuity payments (if applicable), and the amount you require from your portfolio. This sum should be kept apart from any emergency funds you have set aside.

3. Maintain the sum indefinitely so that you always have a year’s worth of cash in the account.

The accounts and assets you use to “refill” the account balance may vary from year to year based on your investment and tax considerations, but the following sequence might serve as a guide:

• Other sources of income, such as Provident funds and pension funds
• Annuity withdrawals and lifetime income (if applicable)
• RMDs (required minimum distributions) from retirement accounts (if applicable)
• Dividends and interest earned on taxable accounts (including debt funds interest)
• Sales from your investments, beginning with taxable accounts and progressing to traditional retirement accounts, Roth retirement funds, and so on.