Finding Freedom on A Fixed Income

If retirement is looming on the horizon and you’re concerned about your financial capacity, here are some tips to help ease your mind. Anyone can stretch their budget and still enjoy those golden years.

First thing’s first: Sit down with your spouse or significant other and make a list of your combined expenses along with examining your income.

If you see something that can be cut from your list of expenses, then get rid of it. Some things many people cut right off the bat include premium cable packages, cell phone services (or reducing services), eating out less frequently, and cutting memberships that are not used frequently.

Small steps help to make a big difference

Aside from your monthly expenses that are always the same (rent, housing, insurance, gas/electric bills etc.) make a list of what you spend on a daily basis. Do you find yourself spending $10 here and there and then wondering why you have less money than you thought? Many people nickel and dime themselves without even realizing it.

Once you pinpoint where your disposable income goes, you’ll be able to get a better grasp on what you can save.

Remember that some expenses will always be there, like the mortgage payment, and while those kinds of expenses are inflexible, things like gas, entertainment, food, and heating/air can all be adjusted with small changes. If you know you can always cover your inflexible expenses, you’ll feel significantly less stressed month-to-month.

If you like to have cash on hand and find yourself going to the ATM to withdraw cash multiple times a week, try to take cash out just once a week. Get an idea of what you will spend and go from there. Be sure to check your balance frequently, that way you will always know just how much you have.

If possible, get rid of your credit cards or just don’t carry them with you. Many people like to have a credit card as a security blanket for expenses, so if you can’t give up the card completely, make sure it is in a safe place and used only for emergencies.

Creating a budget on a fixed income does not have to be a difficult task to achieve. In fact, once you pass the age of 55, saving money often becomes easier.

First of all, there are several discounts available to senior citizens (even if you don’t like to think of yourself as a senior). Look into options that can get you a discount, check out AARP and other organizations that promise savings for seniors. If you can find great deals with these programs, be sure to make good use out of them.

Make Changes to Make Money

For instance, try using coupons for items you already purchase, stock up on favorite items when they go on sale, invest in energy-efficient light bulbs (they’re costlier than their counterparts, but save money in the long run and last almost forever), and always look for good deals on items that you need.

When it comes to services, sometimes it is possible to take a lesson from our ancestors and trade services with one another instead of breaking out the check book. Think about the skills you learned on the job or in every-day life and see how they can be applied to those in the community. You might be able to mow someone’s lawn who is able to give you a haircut in exchange.

By the same token, you might be interested in taking your skills and turning them into a business. That way you will be bringing in extra income. Plus, you might actually enjoy working again if it something you truly love to do.

While a fixed income can sound like a scary thing, it shouldn’t cause anyone to have anxiety. Remember that retirement years are to be enjoyed and extra money can and should be spent from time to time. For instance, anyone looking to travel should travel if at all possible. Go out to see the grandchildren, visit old friends, or see things you have always wanted to see.

Many times travel deals exist for senior citizens, so you can have an adventure and save money. Check out travel deals offered by AAA, AARP, and other organizations that offer savings for senior citizens.

By that same token, take advantage of deals and discounts for entertainment and food options. It might take some time to get used to all the discounts available for senior citizens, but an excellent resource to check out is the senior citizen center in your community.

Another place to go to benefit from free or discounted items is your local park department. Check out any programming offered for senior citizens so you can remain active while also having a good time.

Living the Good Life

Remember that a fixed income is really no different than sticking to a budget back when you were receiving a regular paycheck. If you’re heading into your retirement years and starting to worry about how much money you’ll need, sit down with your partner or spouse now and take a look at what you need to do so that you can enjoy your retirement. There is a wealth of information online that can help, but you might also employ the services of a financial professional.

At the end of the day, if your needs are covered, it will be that much easier to determine what you have left over for your wants.


Dana Rasmussen writes about various ways to save money at all stages of life. She has been planning for her golden years since high school.

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