Community Chat

[smoochy]

DH and I are on a limited fixed retirement income. Its been more than sufficient to meet our needs with some modest extras. Until recently. As the cost of everything has skyrocketed from groceries to insurance to utilities to dental to auto expenses and everything in between, we are now feeling it. Our income is not keeping up. We had a serious discussion about the cuts we have to make, in order to keep our very modest lifestyle from tanking. And to be able to pay for the necessities. Here are some of our action items.

• Give up the regular weekly dinner out.

• cut the Amazon and other online ordering. When I added up our expenditures for one month, we were both in shock 😲 non essentials, random krap that catches our eye. 

•reduced our life insurance amounts because the premiums keep going up to where we cant afford them

• cut off the fun but frivolous streaming services for TV and radio 

•the big one, with the biggest impact on us, is when the lease is up on our suv (next spring) we will turn it in and use our older, small compact car. We can no longer afford two cars. Especially the one with the higher payment.  

My DH works a part time job. We will figure out the logistics of being a one car couple.

Any tips to share?

[faeriemoon]

Those are a lot of changes and sacrifices.  I'm sorry you find yourself in that position. I'm glad you have a plan; things work out well when you have a plan.  

[smoochy]

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@faeriemoon wrote:

Those are a lot of changes and sacrifices.  I'm sorry you find yourself in that position. I'm glad you have a plan; things work out well when you have a plan.  

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yes I do better with a plan. Panicking wasn't helping. Lol

Actually, once we get a grip on our online spending, we might find we have enough money to cover some of the other things.Like eating out once in a while. 

[sunshine45]

i think it would be fairly easy to give up the amazon and/or the streaming services to save some money.

it is easy for me to say though because i am not "retired" yet. not sure i will ever be?

it is not too late to talk to a financial advisor. highly recommend that everyone have one.

[kitcat51]

I can control spending on my wants, needs but thousands of $$$ every six months on property taxes is breaking me.

[Growing]

smoochy, it sounds like you and husband have come up with a good plan. I don't know if you did this step but making a written budget for each month is helpful. Put it in writing together as a team. Then when we feel like a splurge, we have it in writing and we can go back and recheck the budget and our expenses and decide yes or no. It might help to also designate a small amount of cash, maybe even $20 each to spend as you each individually want. So that the nose to the grindstone isn't constant and you don't feel always deprived.

I used to do this as a low income working mother with a teenager still in the house and would go to thrift stores and find bargain clothing. I will say that the thrift stores around me have high prices, just paid $10 for a pair of black jeans that used to would be $5. I also used to go to Estate Sales when I needed houseware items. 

I know some older folks that have decent health so they still work. Mostly the ones I know stop buying new clothes and other non-essential purchases, drive an older car, etc. I am about 10 years behind some of my friends and I pay attention to how others do life so I will be prepared myself when the times comes. Thank you for sharing your situation as I learned from it. 

Some people feel if you have good savings, good 401K money, etc. that life insurance is not necessary at an older age. It gets very expensive at an older age. If the surviving spouse can pay for the funeral expenses with savings money and not be crushed financially, you guys might not need life insurance. Just something to think about and do as you all feel best. 

We have one car but only one driver and my husband says using a ride share is much cheaper per month than having a car payment, insurance, gasoline, new tires or battery expenses. 

Lastly, don't know how dire things are but even middle class older adults are using food banks where I live. It helps a lot for them to cut back on food costs. Some are income based and some are not. 

[Growing]

I agree on the property taxes thing. I was thinking how much the property taxes are for us in my big city and tiny house, older lower class neighborhood bordering a poor neighborhood.  LIke sort of budgeting in my head for if my husband dies first and we still live here. It is scary honestly. 

[smoochy]

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@kitcat51 wrote:

I can control spending on my wants, needs but thousands of $$$ every six months on property taxes is breaking me.

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same here. In Florida we will be voting on an amendment to eliminate property taxes. 

[rockygems123]

@smoochy 

I cook because I enjoy it and like the challenge but also really like the cost savings.

Bought a $5 Sam's Club - sometimes Costco - depends on where I am or what is being delivered.

Made 4 servings of delicious soups had enough leftover chicken for 4 additional servings.  That's a lot of meals for $5 and a little more for pasta, onions celery carrots etc.

If you find you need a 2nd car you can always buy a used vehicle, not a lease.

Just finished a month of car shopping, it's not easy but was worth it. 

[smoochy]

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@Growing wrote:

smoochy, it sounds like you and husband have come up with a good plan. I don't know if you did this step but making a written budget for each month is helpful. Put it in writing together as a team. Then when we feel like a splurge, we have it in writing and we can go back and recheck the budget and our expenses and decide yes or no. It might help to also designate a small amount of cash, maybe even $20 each to spend as you each individually want. So that the nose to the grindstone isn't constant and you don't feel always deprived.

I used to do this as a low income working mother with a teenager still in the house and would go to thrift stores and find bargain clothing. I will say that the thrift stores around me have high prices, just paid $10 for a pair of black jeans that used to would be $5. I also used to go to Estate Sales when I needed houseware items. 

I know some older folks that have decent health so they still work. Mostly the ones I know stop buying new clothes and other non-essential purchases, drive an older car, etc. I am about 10 years behind some of my friends and I pay attention to how others do life so I will be prepared myself when the times comes. Thank you for sharing your situation as I learned from it. 

Some people feel if you have good savings, good 401K money, etc. that life insurance is not necessary at an older age. It gets very expensive at an older age. If the surviving spouse can pay for the funeral expenses with savings money and not be crushed financially, you guys might not need life insurance. Just something to think about and do as you all feel best. 

We have one car but only one driver and my husband says using a ride share is much cheaper per month than having a car payment, insurance, gasoline, new tires or battery expenses. 

Lastly, don't know how dire things are but even middle class older adults are using food banks where I live. It helps a lot for them to cut back on food costs. Some are income based and some are not. 

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what a thoughtful, sensible post. 👌 thanks for your input 🥰   it never occurred to me, what you said about life insurance. My DH retired military and will be interred for free in a national cemetery. I also receive that benefit as his spouse.