Retirement On A Shoestring

kcfield | Aug 12, 2023 | 188 posts since 2012

For those DA readers who are retired (or soon to retire) and on a limited income, what are some of your strategies for enjoying your retirement years on a shoestring budget?

For those DA readers who are retired (or soon to retired) and have a significant nest egg for retirement, what counsel do you have for those on a more limited budget to be able to enjoy their retirement years?

Post a comment

Kaight | Aug 12, 2023 | 1,192 posts since 2011

JeffinEasternFL | Aug 12, 2023 | 744 posts since 2020

Retired at age 47 and only regret was it wasn't at 45!

Ally6770 | Aug 13, 2023 | 4,310 posts since 2010

I still live on $20 to $21,000 a year with no problem. I get what I want when I want it. I just hate to pay more for things when I know what I want and I can get it cheaper. We started gifting the kids each each in the 90's and I still do the first week of Jan. My property taxes are now $5,900 and Medicare is $6,500. and I want for nothing. I just add everything up that I wrote checks for, and what I charged during the year. I rarely have any cash in my purse. I used only debit, credit cards or checks or I do not shop there. My cash is in reward checking accounts, savings accounts or CD's until I need it. I pay everything off every month. Also use grocery blogs etc.
This is an example from one of the blogs from tonight. There are blogs for every main store in your area. There are ones for CVS, Walgreens, many grocery stores, Target and Kohls, Penny's, Macy's etc. I purchased 2 king sets and 2 queen sets of summer and flannel sheets, 2 mattress pads, 2 king pillows that are normally $100 each and 2 for the other bed, 2 summer blankets and 1 comforter, 2 winter blankets at Macy's for $88.
Below is from one of the blogs tonight. Just do searches on your browser.

I made a $0.34 profit after getting $33.40 worth of free products at Meijer this week. Want to get the same deals I did? You’ll need to print a couple of coupons, but the rest of the prep can be done just by using your phone. The bloggers that post will give you the link to print the coupons and the sites to clip the coupons for your trip.

Some are store specific and some have many stores on the blog and you have to go through the to find what you could use or purchase for the food banks.

choice1 | Aug 13, 2023 | 372 posts since 2023

Ally, sorry for my confusion…are the property taxes and Medicare included in your $20-21k number? Thanks
We manage by (primarily) focusing on expenses. Retired from corporate world 25+ years ago and subsequently focusing in on lectures, seminars, writings, etc as independent contractor in foreign/domestic arena…the point for here…starting IC gigs… years before corporate retirement…start early! Use to pay over $1k per month on medical…piece of cake now for those under 65. Our total personal expenses average less than $3k a month…like/luv Schedule C!

Ally6770 | Aug 13, 2023 | 4,310 posts since 2010

Yes. They are included. I pay as much as I can by the year and it is usually cheaper. The one that I should not is probably the garbage because they would not give a refund. I don't purchase at lot because of my age and I have a big freezer and a stock pile that I rotate and we traveled a lot when we were younger and I have no desire to travel now. I like the outdoor summer concerts, the lectures at the 3 colleges in town, hiking if I can get someone to go with me because I am allergic to most biting and stinging insects. So I do my 10,000 steps in the house every day. I did just get a 55 inch smart TV at Costco for $149.00 that was a 23 model that I can put in the basement it is finished and do it downstairs and have the news on. while I do it. I do a mile in 15 minutes yet and I put chairs pillows and things to walk around fast to help keep my balance. I did go with my son and his family on a 4 island cruise after my heart surgery and 75th birthday celebration and I climbed a 750 foot rock waterfall in Jamaica. My son, a doctor, said MOM YOU ARE NOT DOING THAT. I said you are not my boss and I did it and actually the whole family ended up doing it. I still trim trees and climb 10 foot step ladders and get on the top runner to wash windows on the landing of the open stairway. But will not use a chain saw anymore. My neighbor has one on a pole and I took all the the limbs and branches to the wood pile Thursday that she cut off her 5 trees. She is going to let my son use it when he comes in the fall. We did this while watching her 3 kids 2-4 and 5 play in the backyard. They are so good. I use the saw on a pole but the thick limbs take a long time to do with the regular saw I have and a chain saw would be easier and much quicker. I did trim the branches and limbs a week ago while wearing a heary monitor but the day was in the mid 70's and no wind and we have not had a day like that all summer. The doc was concerned cuz I have a slow heart beat in the high 40's and low 50's and it got up to 80's. When I took it off after a couple days and dropped it off at the hospital he called when they read it and said I think we have to have a talk. Your heart is doing a lot more now. I told him what I was doing and he was relieved. I no longer can manage the 30 foot ladder to clean the eavestroughs. It is too hard to get it set up now for me. I am thinking of getting those covers for the eaves that let the water leak through but I understand the holes get plugged up regularly.

JeffinEasternFL | Aug 13, 2023 | 744 posts since 2020

Consuming less "stuff" goes a long way! My Dad (died in 2001 for reference) never made over $21K a year in his life. He paid off a mortgage in 25 years as his ONLY "consumer loan" ever. (I had to get him a credit card so he could buy airline tix and such in the 90's). He used it 2x a year and then paid it off promptly to keep it active and always left it at home. Never had cable tv (he was happy w/ 10 stations and the antenna on the roof for 30~ years). Never had a cell phone. Had a half closet and half bureau of clothes and a wash machine in the basement, no dryer, hung 'em on a clothesline downstairs. Paid cash for a very plain new vehicle/pickup truck and drove it 12~16 years (or more). Went to the bank every Friday, got money orders for any "bills" and thus always just "paid cash". He lived in NJ w/ a modest home but, high property taxes too. Kept the thermostat at 67-68'F in the winter, no a/c in the summer. He enjoyed horse racing, the lottery and was the 1965 NJ state champion in bowling. He was on/off a pro bowler in the 50's too. So, he had hobbies, but they were secondary in cash flow. Saving and bills first he always did! Accumulated all of $30K in an IRA with 45~ years of work. Still saved otherwise too. Died with a net worth of over $200Kin 2001. ($125K~ being the home). Could live well (casually eat out 2-3x weekly, play lottery, go to the track few times a month, etc.,) on never more than $1250~ a month by turn of the century (all inclusive, property taxes paid quarterly too). Had a GED diploma, 3 tours in the Navy and was a master bricklayer for 50+ years in a decent union. He worked part time only in his 50's taking the cold winters off. I learned SO MUCH from him that carried over to my life. Though I went to college, had a military career and a very successful business, by age 47 I had a LIQUID net worth nearing $3M. I made a lot and saved invested more and lived on $15-$60K in the 80's through the 00's w/o ANY debt. None...Why? I was a lot like him. I enjoyed life but, saved first, bought later and always planned not for a "rainy day" but a "rainy month" (so to speak). I retired at 47 and am enjoying life. I graduated college in 1982 with 2 old paid for cars and $1K in the bank and NO loans (a double major with honors in 4 years to boot and a low paying corporate sales job w/ 60-hour work weeks in retail to start my adult life when unemployment was 9%) - I worked throughout college as well and Dad helped a little bit too. Finally in retirement I built 2 new homes, (paid cash), (I always rented modest homes when working for flexibility in my careers, (plus I averaged 50-60 hours a week work leaving little time for home maintenance when in the military and owning my business). Thus, I moved several times too, etc., yet in retirement my net worth has INCREASED 33%~ from age 47 to 63 to $4M~. In my life I had a 48-month car loan age 22 (1983), but I paid it off in 19 months. Leased a computer system for $5K~ to start my business in '93. Paid .50 interest on a credit card in Desert Storm when the mail was delayed. That's it for debt! (I never had cable tv unless it was "included" in the rent - not much time to watch either, I got a cell phone in 2001 but, cut the landline. etc. Bough a lot of suits, a lot of'em but, on deep sale every New Year's Day for a decade +. Yada. I enjoy experiences, not stuff! There's a LOT of opportunity out there and ways to cut costs that will not hinder one's life. I think the turtle most always wins the race; patience IS a virtue!

kcfield | Aug 13, 2023 | 188 posts since 2012

Jeff: Great examples. Thanks for sharing about your father's wisdom and thrift; and how you applied his wisdom in your own life.

Rightdx | Aug 15, 2023 | 43 posts since 2022

I retired recently and haven't yet started on Social Security, so I have focused more on cutting costs. Most people have already cut their "land line", but there is money to be saved by cutting cable as well. We were paying about $250/month for Comcast triple play (land line, cable and internet), but now we are only using them for internet. We were subscribing to Hulu Live TV for $70 but just discovered I could get everything I need on Sling Blue ($40) with the news package (an extra $6), so we can watch FOX news, CNBC and NewsMax. I was paying $75/month for cell phone with Verizon, but I switched Visible (by Verizon) for only $25! Also shopping more at Costco and buying in bulk. Costco hotdogs are still only $1.50, drink included!

JeffinEasternFL | Aug 15, 2023 | 744 posts since 2020

Get an (decent) antenna and you will only need to stream "pay channels" (if you really need 'em). example: here 35~ miles from the Orlando broadcast towers my attic antenna gets all the "standard power" channels -70 of 'em! Every major tv market has a dozen to 100~ channels on the air. If you're within 50~ miles of 'em or their repeaters your set for a small one-time cost of (re) mounting that attic or rooftop antenna again. With ATSC 3.0 broadcast coming on board in almost all metro markets, there's more reason than ever to (go back) to OTA TV. Why pay when it's almost all "free" anyway?? It's just TV!!

milty | Aug 15, 2023 | 1,689 posts since 2018

When I lost my job during the Great Recession (spouse still working), the first thing I did was create a spreadsheet to keep track of our income versus expenses. This allowed me to make sure we were living within our means and plan for the future. Fortunately, I was able to go back to work shortly after losing my job, and then finally retire on my own terms. But I still keep that spreadsheet.

Everyone here has filled in great advice for what to do in retirement, which I cannot improve on. I would add though that living within one's means provides a certain peace that cannot be overstated. Oh, and I would also suggest everyone interested in fixed income investments, retired or not, keep an eye on this website.

Ally6770 | Aug 15, 2023 | 4,310 posts since 2010

It is so nice to put your head on the pillow at night and be sound asleep in 2 minutes or less. No worries.

kcfield | Aug 16, 2023 | 188 posts since 2012

Milty: Thanks for sharing your wisdom, especially with respect to the peace that comes from living within one's means.

milty | Aug 17, 2023 | 1,689 posts since 2018

kcfield: Thanks for the comment. I've always been frugal that way (whereas politically I can't seem to keep my mouth shut), perhaps not always getting everything we want, but always being able to get what we need.

kcfield | Aug 18, 2023 | 188 posts since 2012

Milty: Politically you may (in your words) not "keep your mouth shut" but you also keep your ears open. You listen to what others have to say (esp. those with opposing views) before you respond, which is respectful, and helpful for the conversations on DA.

trav99 | Aug 18, 2023 | 14 posts since 2022

All good advice. I'll add some thoughts if anyone's bored.
I'm within 10 years of retirement and aren't working as much now as I used to, partly because I'm a caretaker to an elderly parent. My career is in a field that one doesn't do to earn money, but does because one is drawn to it; it's not a high-income field even though it requires years of training starting very young. So my views are a little different probably. Still, I've been careful with my funds and have a house paid off and funds in CDs and the stock market for retirement. I'll also have a moderate SS and pension.

I know DAers here are savvy with their money so some of this may be baked in already with a lot of you but...
First, some thoughts both to get you TO retirement, as well as once you've retired:
(1) Shop around for your best financial deals. Your credit cards, checking account, CDs, IRAs and HSAs don't have to be at the same place.
(2) Don't pay yearly or monthly fees unless you've actually done the math to know that it really, truly, is worth it. A lot of times people don't realize how much they throw away by PAYING to join a store/club. Costco: if you have a large family and constantly buy groceries in bulk it can be worth it, but if you're retired or don't buy groceries in bulk it very well may not be worth it. The exception: hearing aids, glasses, and the pharmacy. For hearing aids and glasses, you save way more than the cost of the yearly membership. Outside of that though, if you're a single retired person, you very well may not make up the difference just from groceries. Still, for Costco there's at least an arguement in its favor. The one that's ridiculous is Amazon Prime. Amazon knows exactly what they're doing. Making people pay a hefty fee just to get free shipping is brilliant for Amazon -- they know psycology -- because people who have paid that fee will then almost always simply just use Amazon by default, even if there are cheaper items elsewhere (most Prime members won't even bother to look to see if things are cheaper elsewhere -- because after all, you've already paid your fee for the year, so if you don't make use of Amazon as much as possible the fee is money down the drain). This becomes a deviously clever never-ending circle of profit for Amazon (charging a hefty fee that is not necessary, knowing that people who feel they are "members" of something, especially once they've paid a hefty fee, will rarely bother to look elsewhere to see if an item is cheaper, because they'll want to "get the most" out of the ridiculous fee they've already paid). As far as the "extras" like Prime Video, well, unless you really like that Prime exclusive show... realize that Prime membership is meant to lock you in and make you loyal to Amazon. Not for me. When there's an item I want to buy, I research where it's the best deal and go there. Frequent Flyer miles are the same. It's all well and good to try to fly one airline to rack up miles if fares are comparable among the different carriers. But you'd be surprised how many people will pay a heck of a lot more for a comparable flight only because they have a mileage program with Airline A instead of Airline B, wasting way more than the value of the miles they got. Do the math, folks.
(3) Make do with less. Do you really need the latest $1000 bells-and-whistles iphone when a $129 Android will suffice? The most recent phone I got was a Samsung android for $129 around 2-3 years ago. Works great. Won't upgrade until it fails or I actually NEED to. Instead of buying the latest, greatest product of everything, learn to make do with only what you really need. Of course you shouldn't deny yourself of everything, but make your "gifts" to yourself in moderation. Once or twice a year get something for yourself that you've thought about for a while, don't just buy the flashy thing you just heard about on impluse.
(4) Don't buy something just because it's "on sale" unless it's something you want or need anyway. This may sound like a no-brainer but you'd be surprised how many people can't stop themselves from buying something because it's "on sale." Is it any wonder that JCPenney's market share started going downhill a few years ago when they got rid of their multiple coupon policy and instead instituted a "one fair price" policy? No one shopped there anymore, because the illusion of a bargain was gone. So then they went back to raising their prices and having multiple coupons/% off sales on everything, and the customers came back. My neighbor went back to raving about them again when they brought back their higher prices and "sales", even though the end prices were the same.
(5) Don't ever buy anything on impulse. Have the self control to go home and think about it first. Do you really need it? Really? If you really do, it'll still be there tomorrow. By the time most people retire they're mature enough about this, but not always, you'd be surprised.
(6) Know the value of what you buy. What used to be 6oz tuna cans for decades, changed to 5oz a few years ago. We still call ice cream "half gallons" but they're not half gallons anymore. Everything from Triscuits to breakfast cereals are secretly downsizing. Not a bad idea if you'd like to downsize yourself, perhaps, but be aware of the true cost of things. Perhaps it's better to buy a $150 printer where toner is $30 instead of a $30 printer where toner is $150.

And once you're retired:
(1) Live within your means
(2) Consider spending your money on experiences rather than things. Working all your life you may not have had time to do experiences, like travel to other countries, partake in events or experiences in subjects you find interesting, etc. I think an enjoyable life is about experiences, not things. If you have a little savings to spend, instead of Buying "X", try Experiencing "Y".
(3) Even when spending money on experiences, do it wiesely. When people go to Hawaii so many will spend $$ to stay at the large resorts. Last time I went to the Big Island, I found a homey little motel run by a Japanese granny up in the hills in a town filled with artists. All the other guests were locals from other islands travelling in the area. Not only was it astonishingly dirt cheap compared to the resorts, but way more enjoyable talking to locals that were travelling, instead of staying in a giant commercial resort. For those of you who stay in resorts, just once in your life, try doing it this way.
(4) Look for fulfilling experiences that don't cost money (or very little) as well. For instance, tutoring people (a retired friend tutors adult immigrants in English at a local library and absolutely loves it. My dad volunteered at a local foodbank when he retired and nothing could get him to miss going every Monday to do so). Lots of local colleges and community colleges have lecture series on various topics. Clubs to join. Tai Chi in the park... bingo in the hall... whatever floats your boat, but there are a lot of fulfilling experiences you can do that don't cost an arm and a leg.
(5) Somtimes some of the most fun things are those right under your nose. Going to Africa may be fascinating, but also what about that bird sanctuary you forgot about 20mins away? Or a drive to the mountain/beach/prarie/national park/etc in your area? Or something just around the corner? Hidden in plain sight are a bunch of places that give tours -- you'd be surprised -- from the local newspaper to a food manufacturing plant to the local water sanitaion plant.
(6) The world isn't fair and sometimes it can seem like we were given a bad hand in life... but be thankful for what you have and that you're still around. I'm in my late 50s and I've already seen way too many colleagues and friends my age pass away.

And thus I come full circle back to my view that experiences are better than things -- and many of them can be done for little cost.

Maybe I went offtopic a bit, so just take them for what they are.
Really loved all the comments and suggestions from others!

JeffinEasternFL | Aug 18, 2023 | 744 posts since 2020

You do know you do NOT need to be a Costco member to use the pharmacy - in ANY state! That IS the law. SOME states: you don't have to be a member to buy the gasoline either, other states you do not. (Costco is "top tier" fuel) FYI...

JTE | Aug 19, 2023 | 7 posts since 2022

If we're talking limited income: Track your monthly expenses for at six months or longer, before you retire. Determine exactly where your money goes so you know what you'll be dealing with in terms of what you'll have to cover, what can be trimmed back, and what your priorities will be for any discretionary spending. With that information, create a post-retirement budget and stick to it. Take advantage of freebies, rebates and credit card points whenever you can, invest carefully and remember that anything that sounds too good to be true is probably too risky for you. Tracking everything and careful budgeting can be a pain at times, but in the long run it's a lot easier on the nerves.

Ally6770 | Aug 24, 2023 | 4,310 posts since 2010

Use a gasoline app on your computer or phone and use a cash back credit card and top the tank and do errands on the days it has gone down. Gas in Michigan is $3.27 today using my credit card.

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.