Living on Less

Many of us live paycheck to paycheck. Once I retired, I found myself having to manage on about half of what I was making while I was working. What a shock to the system that was! I am the one responsible for paying my bills and making sure they are paid on time. Like many of us, I’m finding that it is not always easy when your primary source of income is Social Security.

In order to know that my bills are paid on time I use a “bill calendar.” This was something I learned through a program called “Your Money, Your Goals,” distributed by the Consumer Financial Credit Bureau, and it’s a tool I’ve come to rely on. The bill calendar is simply a calendar that lists the dates when each of my bills are due. Since paying them late results in a service charge being added on, it’s wise to pay them on time.

I also use a budget sheet listing the specific bills I have to pay each month. It saves me a lot of worry about whether I’ve paid each bill or not. It’s not easy getting them all paid on time…and it’s not easy making sure I have the money on hand to pay them. I’ve found the best way to do that is to sit down first thing on the day my Social Security check is deposited and pay all of my major bills at once. Whatever is left over is money I can use for groceries, gas, entertainment, etc. I can’t tell you how much better it is to know that I won’t have creditors constantly phoning me to demand money.

I try to set aside something for my saving account each month too, so I have a little extra to fall back on in emergency situations. I’ve had times in the past where I had to choose paying up front for an unexpected expense or having to charge it. It’s much better to pay it immediately as charging it means having interest added on.

I remember those days of being afraid to answer the phone because someone wanted money I didn’t have. I remember spending days worrying about whether I’d have the money to pay an important bill on time and what it would mean if I didn’t. Using the tricks and tools I learned from some basic budgeting classes, I no longer go through that stress. Yes, it’s still difficult learning to live on half of what my income was, but I know where I stand now and I’m comfortable knowing my bills are paid. Living on less may not be desirable but it is possible!

If you would like to learn more about creating a budget, and using tools like budget forms and bill calendars to manage your money, please contact Disability Network Lakeshore at 616-396-5326.