Community Chat

[drizzellla]

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@smoochy wrote:

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?

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@smoochy I think you are working out a good plan. And the fact you are working on a plan - is an excellent idea.

And one idea that you have, I have found out the hard way was a big mistake. We no longer need two cars. We go grocery shopping together. And if we have a Doctors appointment we generally go together. Rarely do we need a car that is only for one of us.

We made a big mistake buying a new car for me over a year ago. I have been retired for 7 years. I get together with friends on a regular basis but it never seems to interfere with my husbands plans. My car has 1,600 miles on it. And the only reason it has that many miles on it, is because on occasion we take it out for a trip because it has been sitting for so many months. And just sits in the driveway.

I really think one vehicle is "workable". Many of my friends now only have one vehicle and it works well for them. My vehicle is now just something to worry about and pay insurance and yearly maintenance.

And another thought you are SO RIGHT about "random krap that catches our eye". I have been guilty of that for most of my life. And I am getting so tired of throwing away or donating all this stuff that I didn't need or use but "had to have".

I think you have a good plan and I really think that it will work out well for you. 

PS - My husband also got rid of his "big policy" life insurance. He bought it when our son was born. And we had bought a house and had a 16.5% mortgage and a baby. Lots of financial bills to pay, so we needed life insurance. We are no longer in that situation. So a "big policy" life insurance is no longer needed.

[jlkz]

@smoochy 

Very impressive and thorough: you both are very wise and act in concert with each other.   Your objectives form a solid plan as opposed to " wishful thinking. "

Rather than wish you both good luck, you realize that luck has nothing to do with it !  Instead, I wish you both good health and happiness.  Let us know how you find this path / process !!!

[geezerette]

For me, the big eye-opener was adding up my random online and in store spending.  When I saw how much of my money was gone for unnecessary and unneeded things (much of which I would end up donating or tossing) in one year, it really made an impact.

Taking stock of what really is needed and then what is important to me was next.  There are a few luxuries that I'm not willing to give up.  So I'll make that up elsewhere on things I don't care so much about.

And I'll be getting rid of my old second car now that I have some backup in case something happens to my primary car.  Even just collision insurance on that old vehicle has gotten high.

One tip given to me by my insurance agent to consider if your premiums are high--consider raising your deductible.  Yes, if some disaster strikes you're out more, but chances are you'll save on those consistent premiums to make up for one claim.

[marchbd]

I appreciate all these comments and suggestions SO MUCH. Thank You to everyone! I have been retired for two and a half years. Before retiring, I paid off two credit cards, not high balances thankfully, but it gave me some peace of mind to be debt free. The grocery store is always a challenge. Horrifying prices. I'm a single woman so if I make a careless "splurge " I'm the only one to blame! loI
I had a serious talk with myself about IMPULSE buys. That adds up quickly and it had to stop. I"m proud to say that I've made significant improvements in that area.
We're in this together. Stay strong!

[Zhills]

Try giving up just one at a time so it will be a less painful experience.

Start with the one you care about the least.  You just may not need to give up that favorite one!  Stay positive!

[hkrgrl]

very good post!  

informative and thought provoking!

i have def. cut back on impulse purchases.  one, they are expensive and 2 - i really don't NEED them.  

i was absolutely going to buy Laurie Felt new barrel jeans, but $82, just no, way too much. im sure i can find barrel jeans at tjmaxx for about $40.. and seriously, i don't need another pair of jeans!! they are on the far back burner, if ever...

just went to our local bakery, having company for dinner - i got a chocolate babka - $11, ok not bad.

added 3 cupcakes - $10.50!!! i told her thanks but no thanks, she was very gracious and said no problem!   omg, $3.50 a cupcake!!! 

everything is through the roof, so i think most have to make decisions on spending/saving at this time.  and no let-up in sight.

i always try to do errands on one trip, now, i even think about that with the crazy gas prices.  no unnecessary driving for me.... 

i am just happy that our car takes reg. gas and not premium!!  $5.49 here for premium...

diesel $6.49

The piles of leaves serve as Winter shelter for butterfly larvae, frogs, salamanders and Native insects.

The best thing you can for Nature this Fall? Nothing

[Puppy Lips]

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@smoochy wrote:

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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. 

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@smoochy I will be working the polls on Nov. 3 here in FL.  It will be interesting to see if that amendment passes.  It does not totally eliminate property taxes, but they will be greatly reduced.  We will be busy at the polls for sure!

[Mom2Dogs]

@smoochy My husband and i retired in January of this year.,,so retirement is new to us.  RIght now we are living on the proceeds of the sale of our business.  We always lived a low key life because we were self employed and never knew if we would have a good month or a bad month..living on one income has always been our life.

One thing we did today that normally my husband would not do is get a quote on new brakes for his car.   We always have work done at our local Ford dealership, bought most of our cars there...but the price seemed so high.  I encouraged him to call around and we found another local place that is several hundred dollars less, so he is happy.  Last year we met with our insurance agent about our policies and did adjust them a bit and saved some money....

Do you have a financial agent?  Ours is great, and they do an annual look see at our budget....the downside...they calculate our spending with inflation and calculate at what age we will run out of money, lol.  Keeps us humble.

We do not buy any extra streaming services to TV watching,  but I did download TUBI a few weeks ago and I have found a lot of things to watch..and it is FREE!

Wishing you and your hubby luck on your budget planning.

edited to add:  Maybe quit paying on the life insurance but you would still have cash value in the policy..you could add that to your investments for additional cash.

[Sooner]

Maybe the key is leading a simpler life.  Less stuff, more time to not deal with stuff and distractions.  Maybe a lot of us could benefit greatly from a simpler life--fewer expenses, more time to enjoy life.  

I remember how a simpler life was and I think I could benefit from that.