How to Live Well on a Fixed Income
When they’re looking at living on a fixed income for the first time, some St. Louis individuals think they need to prepare to live more frugally than ever, bidding farewell to the hobbies and activities that bring enjoyment to their life. The truth is, this doesn’t have to be your reality – with smart budgeting and financial planning, anyone can learn how to live well on a fixed income. Check out these top tips from the finance professionals at Green Light Auto Credit to learn more!
Living on a Fixed Income: Set Your Budget
If you haven’t already done so, it’s time to sit down and set a firm household budget to follow. First, write down your exact monthly income, including all sources like your pension, Social Security income, retirement savings, etc. Then, write down all of your recurring monthly expenses like utility bills, mortgage or rent payments, grocery spending, and car payments. Subtract the total amount of monthly expenses from your total monthly income. However much you have leftover is about how much you can plan to spend on miscellaneous expenses each month – though, it’s a good idea to set aside some of that money in an emergency savings fund.
How to Live on a Fixed Income: 4 Essential Steps
- Take Care of Debt: After setting a monthly budget, eliminating debt is the next biggest step you can take toward living well on a fixed income. This probably can’t be done immediately, but you can determine how soon you could realistically pay off your credit cards and any other debt you may hold. Motivate yourself to make it happen with the knowledge that once you settle your debt, you can use more of your discretionary funds for entertainment, travel, etc.
- Downsize Your Residence: Often, monthly rent or mortgage payments are Herculaneum residents’ biggest monthly expense. If you’re retired and no longer need to live in the city for work or your kids are all out of the house leaving you with empty rooms, downsizing in a more affordable area can make a huge difference if you want to learn how to live well on a fixed income.
- Earn Some Side Income: Even after they retire, some individuals choose to pick up low-commitment side jobs to keep themselves busy and earn a little extra income at the same time. Perhaps you could use your previous profession to your advantage to do some tutoring or become a handyperson. Or, you could sign yourself up on dog walking or rideshare services. When was the last time you went through your attic or closets? You could have valuable items sitting unused that could be resold on any one of the numerous online selling platforms that exist today. There are lots of ways to make extra money without sacrificing your newfound retirement freedom!
- Get Sensible Transportation: Some Florissant residents might be tempted to treat themself to a new luxury vehicle when they retire, but if you’re serious about living on a fixed income comfortably, you might want to reconsider. While not quite as opulent, a pre-owned vehicle will take your money a lot further and leave you with more funds to spend on fun. You can even opt for a late-model vehicle that will still be equipped with up-to-date technology and comfort features to make your outings in St. Louis all the more enjoyable.
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