[Anna43]

I heard on the news this week that we will receive a $2 Social Security raise for 2017 and that our Medicare premiums will increase by $27. So we will have a net loss of $25. Then I have to assume my supplemental policy premium will increase by somewhere in the $50 range and RX insurance will increase by between $10 to $20. So for 2017 I will have to figure out how to reduce my expenses by at least $100. Of course, property taxes, cost of groceries, car insurance, household insurance and everything else will likely increase as well.

At the end of June I will average all my spending in all budget categories for the first half of 2016 and adjust my budget for the rest of the year. I'm thinking it might make 2017 less painful if I start cutting the projected $100 as much as possible for the rest of this year. At least it will give me ideas on how best to achieve the cuts that will be necessary after the first of the year.

 

[ilovechocolate]

When I heard that on TV the other night I was astounded. It's just not fair and it's not right. Good luck with your budget-cutting.

 

[nuisance26]

~Per month? That's a pretty big chunk on a fixed income. Is there any way you can make up that $100 through a small side-hustle like baking, produce from a garden, crafts, or lessons in something you do well(sewing, carpentry, math, etc)? Especially with media awareness about this issue, your church or community groups like food banks may offer some respite on this. You might also qualify for having your property taxes reduced based on age or disability. Good luck!~

 

[Brat]

It isn't easy.. You sure don't have anything by the end of the month to live on..

 

[Giro]

This is a lesson for the next generation of retirees. You cannot live on social security alone. Pensions and retirement accounts grow with inflation, social security does not and is not guaranteed.

 

[Anna43]

Giro, very true. However, to my generation Social Security was promoted differently. For the last 40 years I've lived rural or in small towns. Although I worked until I was 70 I never had a job that provided any benefits. So until I qualified for Medicare I was paying my own medical which did not leave me funds for retirement planning. Add to that my dh became disabled in 2001 and passed away 8 months ago.

Fortunately, my home is paid for and I have no debt. That is the only way I have any hope of managing on Social Security. I do have some savings to only be used for a dire emergency because, of course, there is no way to replace those funds.

I just added and averaged my expenses for the first six months of this year and I have $23.66 less expenditures than income. Some categories I went over budget and some under, but I need to be extremely careful the rest of the year. For instance, housing is well under budget for six months, but the next six months includes property taxes and house insurance which will put that category $400 in the red without taking into account any miscellaneous expenses like repairs, mowing, snow removal. An almost $600 plumbing bill in May wrecked this years housing budget. Auto, clothing, food, medical (by less than $2) and utilities were all under budget. Miscellaneous was way over budget and I will need to be very frugal the rest of the year to bring that back under control. No excuses for the overspending other than being negligent.

 

[KmmCo]

Budgeting can be tuff for anybody, but especially those on a fixed income. It really comes down to what is absolutely necessary to live and what can be cut out to save $$. There are no easy answers for anyone these days....

 

[Giro]

My mother will be in the same situation when she retires. She doesn't save anything and even borrows from me occasionally . I'm afraid she will look to me for support when she can no longer work. I can see her future and she us choosing to cover her eyes and ears.

I know it's tough. I watch my grandmother live on social security and a small pension after my grandfather passed away a few years ago.