Community Chat

[tarsmom]

Hi all,

I am 61 and have been in management for many years.   I decided to take a less stressful job and start soon (same company).  It will be a big pay cut.  

So ladies that are retired (or anyone else), how did you transition into a lower income?  I don't buy coffee out, I don't go out for lunch, I wear black slacks every day, we don't go on big fancy vacations, etc.  I do spend money on makeup and get my hair done about every 5 weeks.  We are going to call the cable company this week to ask for a lower rate.  

Any/all tips are appreciated!  Thank you!

[software]

I put myself on a tight budget a couple of years ago to prepare myself for retirement.

I would suggest that you look twice at every dollar that leaves your hand.   You can save a few dollars here & there and it adds up.    In my case, no more hair coloring and I only get a haircut 2-3 times a year.   My choices  may not become your choices, just saying.

I gave up my $80/month AT&T cell phone for a pay-as-you-go Tracfone.   I may spend $100 per YEAR.    I cut my power bill by using more appliances that use 110 volts instead of 220.  In other words, I use more table top appliances instead of my stove or oven.   I hang out my laundry, to avoid the clothes dryer.  I had an infrared gas heater installed to avoid using my forced-air furnace during the winter.

Now that I live alone, no kids or husband to please, I cut way back on my grocery bill, but it was a process.   I can survive on much less food than I think I need.   Less convenience foods.    Simple meals-- 3oz protein, a veggie, maybe a salad.    

I try to do my own home maintenance.   I don't pay anyone to do my lawn or other things around my house.   I know how to use a pump sprayer, I don't need a exterminator service.

Don't go into "budget starvation" mode right away.    Slowly & gradually transition to a simpler life.   Best of luck.

@tarsmom

[CelticCrafter]

You can switch cell phone plans, cable plans, get alternate quotes on your homeowners and car insurances, try to stretch your hair appointment to every 6 or 7 weeks, do you have your nails done.

You also need to consider if by taking a big pay cut is it really worth working at all anymore.  Wear and tear on the car and gas or train/bus fares, how many hours are you spending commuting, even though you wear black slacks every day, you do need to replace them and your tops every so often.

[lolakimono]

@tarsmom

You can reduce spending and increase income, but you need to do one or the other (or both).  You could consider an alternate source of income- child care, pet sitting, sales, etc.

As others have commented, insurance, telephone, cable, and "extras" should be examined.  

My neighbor just installed solar panels (free to him) and has seen a significant reduction in his electric bills.

I would start with groceries, and see if there are things that you can do to reduce your bill (couponing, monitoring the weekly ads, using a warehouse club for savings, etc.)

There are a lot of "discounts" available to you already through organizations you might already belong to (AAA, AARP, etc.)

The hair expense for me is where I would start, but I am cheap and would never go every five weeks (unless I had a short haircut to maintain) but if it's for color I would look into coloring at home.  

[just bee]

I was almost fifty when I decided to take an entry level job at the hospital and start nursing school.  The first thing I did was hide my credit cards.  When I realized I might be damaging my credit rating because I wasn't in debt, I searched for the cards but couldn't find them.  Now I just have one.

I gave up shopping for entertainment.  Stopped buying unnecessary clothes, jewelry, books, magazines, toiletries, household decor.  Stopped going to restaurants.  I still pack a lunch for work.

We plan menus, shop for food and cook at home.  I always ask myself, "Is this something I need or is it just something I want?"

It becomes a habit.  It's amazing how we react to stress.  We often shop to self-medicate.  You may find with the new job that you're less stressed and don't feel that need to buy items to make yourself feel better.

Simplify!

[hoosieroriginal]

Always ask yourself "do you need it, or do you want it?"  I do that every time I let money go out of my pocket.  I cut the newspaper and recently cut cable.  I now read every night for 3 hours before I go to bed and am really enjoying it.  I get my books at the discount table at B&N and get shared books with my friends.  Basically, I would say don't buy anymore work clothes - use what you have because when you retire, you will not need them anymore.  Good luck with your cable company - didn't work for me so I dropped them like a rock! 

[Meowingkitty]

I would still keep my hair appointments the same. You need to look nice for work and it keeps your spirits up. For us we put a budget together and I keep track of spending on an app. I did call the cable company and got a lower rate. You could get rid of a land line if you still have one. More meals at home and crock pot meals. Watch the miscellaneous spending. If you can't pay for it don't charge it. It gets to the point you might want to reconsider if it's worth it to work anymore. Gas, car insurance, maintenance etc is pricy. Also consider how much you give to the government in taxes. Sometime work is just not worth it anymore. 

[DCAnnie2004]

This might sound obvious, but when you get your first paycheck -- and see exactly how much you'll be bringing home -- make a budget for each one. Be honest with yourself about how much money you have for expenses and how much is discretionary after putting some into savings.

The hardest part -- be honest about what is discretionary.  Hair and makeup both fit in this category.  Treats and extracurricular activities as well.  This will help you prioritize what is most important to you.

[judy0330]

One thing I would strongly suggest is to write down everything you spend.  And I mean everything.  I am fortunate that at this point in my life money is not an issue -- but that has certainly not always been the case.  Even now I still keep a ledger type book because I like to see where our money goes.  It is a real eye opener -- and has also been helpful even years down the road when I want to check on something we bought -- which contractor we used -- etc.  

[TeezNu]

Seek out thrift stores for needs and an occasional treat.  I've found excellent quality clothing, home decor, small appliances, kitchen needs, etc. - all at ridiculously low prices.  Pack your patience, though, and try to go on weekdays, when you have plenty of time to peruse the store.  And, of course, you will not always find what you need on every visit.

Also, do an online search for Clark Howard, and go to his website - lots of info there.

Visit your local library for books and magazines.  In the past, I've been able to occasionally find free or very low cost magazine subscriptions online.

LOTS of ideas online, including websites.