Living better on a fixed income
Simple steps from freezing leftovers to cutting mobile phone service fees
You may be retired or still working, but you’re probably dealing with the same problem many folks 50 and older experience. Expenses keep rising, but income doesn’t.
Those who are younger or at the peak of their earning ability can job-hop to higher-paying positions. But that’s not easy for the middle-aged, who are often judged by their years rather than their talent.
Those who can see the end of their working days coming have to live just as frugally as those living on the fixed income of Social Security or a pension.
Yet just a few easy changes will make even a low, fixed income go a lot further, giving you more cash you can use to make your life better. The first place to start is by realizing exactly how you spend your money.
Take a close look at several months of your bank and credit or debit card statements. Are there a lot of minor purchases you can’t identify — $20 here, $30 there? It’s easy to get deeper into credit card debt than you wish if you don’t pay attention to these little charges. You may not even be aware of how much you’re spending until you get your statement. There are two solutions to this problem, both very simple. The first: use checks instead of a card, and write down every purchase in a register.
Writing a check is more laborious than just sliding a card, so it often will make you change a habit of making frequent casual inexpensive purchases. This habit alone can add up to $100 or more each month.
The second solution: Get a check register from your financial institution. Write down every transaction when you spend or send money. That allows you to see what you’re putting on your card so you can start pulling back if you’ve spent a bit more than you intended.
Next, check out how many companies have access to your financial accounts. Some may include phone service, installment payments and other automatic withdrawals. If possible, eliminate some of these.
Meanwhile, add up all the amounts you’re stuck with, and subtract that sum from your monthly income. Since that money is already spoken for, get it out of your mind. It’s not spendable income.
Examine your credit card statements carefully every month. You’ll sometimes find small monthly payments for a “travel club” or magazine subscription that you never authorized.
If you use a credit card, rather than a debit card, you can get these bogus charges reversed.
Now to home economies that can cut your bills. You probably already know, and practice, shutting off lights in rooms you’re not using.
But how about heat registers? It makes no sense to heat up a bedroom if you’re spending the evening in your living room. There are thin magnetic sheets you can place over heat registers to keep any heat from escaping.
If you have access to your water heater, be sure the hot water temperature is not so high that you have to add cold water. Heating a whole tank of water to scalding temperatures is expensive. You’ll save money by turning it to a lower temperature, and clothes can be washed just as clean with warm, rather than hot water. You can always temporarily turn the gauge up if you want a long, very hot shower. Food is another area where you can increase your luxury factor with proper planning. For example, I love a good plate of pasta with bottled sauce improved with diced tomatoes, herbs and cooked hamburger or seafood. But I don’t want to go to all that effort for one night’s dinner. So I make a big pot of pasta, then portion it out into plastic containers, each with about two servings.
I put each container into a plastic grocery produce bag, suck the air out, twist the top and tie it into a knot, then date and label the contents. It’s really nice to come home, pull out a container of pasta, heat it up and have a delicious dinner.
In fact, use the freezer part of your fridge for money-saving food storage. Make up a company-size meal — it’s cheaper to cook for four or five than for just one person. Divide the pot roast or whatever into single-size portions, and freeze them for later use.
If meat is on sale at a local market, buy it, divide it into single portions and freeze it. Also freeze leftover rice from an Asian meal, discounted candy and chocolate after a holiday and even larger sizes of your favorite foods divided into smaller portions.
One big expense that can be easily cut is mobile phone service. Signing a contract for several years and paying for a new phone in installments is not the best way to go. Instead, when you’re no longer under contract, investigate prepaid phone services. You can get plans that start at less than $50 per month for unlimited talk and text, plus Internet. Many of the companies that offer such services have frequent sales where you can outright buy a good phone for one-third or less than buying it on a multiyear plan.
When you realize you’re saving money with these small changes, don’t just spend the savings any old way. Make plans for it.
Perhaps you’ll want to save it for a better vacation, a new appliance or some home refreshing.
Working on extending your income means that aside from having more disposable cash, you won’t feel as constricted by your fixed income, because you “fixed” that problem.