Is being on a fixed income during these economic times causing you to "hunker down"?

Youngster

Youngster

Member
I've been able to handle the inflation we're seeing in this country up to this point. I am expecting it to get worse before it gets better so I am beginning to take that into consideration. As far as my discretionary spending goes, I'm cutting back on eating out and I'm now traveling less frequently to closer destinations. How about you?
 

Covid cut out nearly all of my pleasure expenses. We stopped going anywhere so no restaurants, movies,plays,concerts . Very little gasoline expense. Absolutely no travel. The only real expense we’ve had in the past 3 years is food and pay tv channels.
 

Another bank crashed over the weekend, First Republic. The FED may raise interest rates again.

I'm good for now but I have been going through my expenses. I have canceled a few entertainment subscriptions that I haven't used much. I've told a relative that they must start paying a couple of bills that I have absorbed for them. That's about all for now but I am paying closer attention and will put the amounts saved into my savings account monthly.

The thing is that I don't see anything coming soon that could improve things. The government will continue their spending spree and something will have to give.
 
Yes. I have had to cut subscriptions, slow down on helping relatives with bills, and am eating out less. I am trying to save for upcoming trips and a rainy day. The good thing with rising interest rates is that CDs are also giving higher interest rates. That is something I am looking into. Having my money earn more money is an important consideration for me.
 
We did our weekly grocery shopping today, and as expected there were a lot of items that have increased in price, in just the past week. About the only thing that came down in price today was eggs. We've cut back on our running around substantially over the past 2 years...casino trips, etc., so our bank accounts have grown a bit, but if this inflation and the FED actions don't begin to stabilize in coming months, any savings increase will be quickly reduced.
 
@Youngster you post a lot of interesting questions.

I used to be able to save up a little here and there to use the money for things I like and enjoy but those things are coming to a close. Inflation coupled with a fixed income have refocused my budget primarily on needs and not wants. I did a painstaking granular budget recently, projecting out my costs for the next 10 years against my income (yes, I know it's a theoretical model) and the outlook for me is concerning.
 
I cancelled my newspaper home delivery and changed to digital only. That move saved me about $25 a month and since I prefer to read the paper on my ipad anyway I should have done it months ago. I put my home meal delivery service on pause. I enjoyed the meals but the cost was about about $100 a month. I will probably cancel Netflix. It's the most expensive of my streaming services and I can resurrect it when the final season of The Crown is available. Like NorthernLight, I have some money set aside that I planned to use for some home improvements but I seem to procrastinate about spending it right now.
 
Well I cancelled long dist phone about 2 yrs ago, to save some
money...recently cancelled a bunch of tv cable shows to save
100 bucks....have nearly stopped having meal delivered due to
high fees they have started charging...but then never had much
money to spend anyway....so in reality it seems about the same as ever....
 
I have mentioned this before but 2 years ago when I found out my husband was cheating again I divorced him and my income was cut in half along with the assets.

I sold the house and downsized to a small condo. I cut my expenses. Then inflation really rose and my son came up with some substitutions that saved me money such as T-Mobile prepaid plan for 15/month and you tube tv shared with a friend to cut the cost in half.

I have taken 2 trips to Europe and will take one more in 24 and then travel will be done mainly due to cost. I am doing a little consulting to increase my income but unfortunately it’s been sparse. I only eat out once or twice a month versus doing that weekly.

I would cut out buying anything discretionary before I would be uncomfortable at home by either freezing or sweating or not buying the food I want to eat. I did enough of that when young.
 
Cutting back can help, sometimes. Also, second-guessing whenever I want to buy something.

When I was in business, sometimes I'd think, "It's only $50," or, "It's just $20 a month." Someone pointed out that it might seem like a small amount, but it adds up. They were right!

I think staying out of stores would help. In some stores I can go in and not buy anything. But it seems in the grocery store I always spend much more than I intended.
 
NorthernLight said:
Cutting back can help, sometimes. Also, second-guessing whenever I want to buy something.

When I was in business, sometimes I'd think, "It's only $50," or, "It's just $20 a month." Someone pointed out that it might seem like a small amount, but it adds up. They were right!

I think staying out of stores would help. In some stores I can go in and not buy anything. But it seems in the grocery store I always spend much more than I intended.
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I learned this rule some time ago. Don't shop for groceries when you're hungry. It helps to curb your impulse buying.
 
My wife and I have always saved our money, when others were eating out or going to the mall we stayed home and saved money.
When we retired we positioned our selves to be independent. We are on a well have a septic, have land with timber can take food
from where we live via garden and other resources. We can also generate power for the electric things we must have and can heat and
cook with a wood stove.
All of that said the cost of living is going up and the world economies are moving in an unsettling direction. I think we all fell it.
 
I don't go out nearly as much as I used to and think long and hard about what I really need as opposed to what I'd like to have. Because of the increase in fuel oil, I now keep my heat set at 55°. In the summer, I open the windows and use fans to circulate the air unless it's very hot in which case I'll turn on the air conditioning and once the heat is down and the humidity is out of the air I keep it set at 78°.

I haven't bought new clothes in ages because I already have more than I need, although I recently bought a new pair of flip-flops. In the past two years I've mostly spent money on necessary home improvements, a lot of money, but it had to be done. Gotta have a well, gotta have heat, gotta have a roof, gotta have plumbing.

It's a good thing I don't enjoy shopping. I don't often go to stores unless I'm intent on buying something specific. I do spend quite a bit at the grocery store because I'm particular about what I eat and buy the best I can afford. It's justified because I don't eat out very much anymore, and I enjoy good food that I make for myself.

With prices rising on everything it's mind-boggling that some people I know constantly complain about the costs and how they can't afford it, but still manage to continue eating out, getting take-out, buying clothes, decorative household items, and the latest electronic gadgets that they really don't need. They deny themselves nothing and buy something new almost everyday.
 
Youngster said:
I've been able to handle the inflation we're seeing in this country up to this point. I am expecting it to get worse before it gets better so I am beginning to take that into consideration. As far as my discretionary spending goes, I'm cutting back on eating out and I'm now traveling less frequently to closer destinations. How about you?
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No, I'm not hunkering down as you put it and I don't like short trips. I'm just not into spontaneous trips either. Part of the enjoyment for me is the planning stage before a trip. I love traveling and just returned yesterday from a 15 day cruise. I'm certainly more active when traveling. The first week on my cruise, Fitbit said I had 145,661 steps and for the second week, it was 167,181 steps.

I have a positive outlook on things so not stressing on what may happen economy-wise.

Luckily for me, I don't care for outside prepared food when not traveling. Restaurants would be out of business if it depended on me. Even though I'm not a vegetarian, I eat mostly a plant based diet and love preparing my own meals. Plus, I'm not into material things so don't have to sweat if I have enough extra clothes, shoes or the latest updated electronic item.
 
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Lucky me; I'm 77 and I really don't want nor do I need much. Like, Bella, I don't like shopping. Actually, I hate shopping. I don't want anymore "stuff" in my place. I just pay my rent, buy some basic groceries and keep away from those pesky restaurants that want me to give them a 25% tip. Really? What for?

So, come on inflation. I can take it!
 
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