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Good to hear from you GDonna.

I know about the medical expenses!  I'm on Medicare and a supplemental plan, but my employer covers my dental and vision plans.  Once I retire, I will be paying those as well. Plus, as you said, there are co-pays, deductibles, items not covered.  The list goes on. 

Quick comment:  When I buy dry dog food, I immediately put some in a covered bucket, and the rest goes in the freezer in freezer bags that I reuse.  It keeps the food fresh and I can buy the larger, lowest cost per pound sizes of bags without losing some of it to staleness.  As I empty the bucket over time, I refill it out of the freezer in time for it to thaw before I feed the pets.

I've had to run the air conditioning, as we are having repeated heat advisories, but I keep the a/c set at 78F on one thermostat and the other thermostat upstairs is programmable, going from 78F at night to 82F during the day, when no one is using the upstairs. I have two central heat pumps for heating and cooling both floors and a great room (combined kitchen/living/dining area) plus a vaulted ceiling above the great room, so I can't really close much of my house off but I keep the thermostats set for warmer in the summer (78 - 82) and cooler in the winter, (69-70).

I'm not sure what I will get in SS when I retire, but I have a pretty good estimation, so I am trying to cut my budget back as much as I can so that I don't have to pull money out of my retirement before I'm obliged to do so.  As I understand it, once I reach 73 or 74, I will be required to take distribution of my IRA each year.  I will be verifying this with an accountant when I get closer to that age.

I use that same type of green columnar pad for my budget.  At the end of the month, I add up the weekly totals then month and get an average monthly cost.  My goal is to get that average monthly cost lower than my estimated SS!

We may be losing our medical. We live in a state with expanded Medicaid, and are on a purchased Medicaid plan for lower income and self employed people that do not have access to employer medical insurance. Funding has been cut at the federal level, and the state is not sure if they will be able to continue these plans. We currently pay $110/Mo per person on the plan and have very little out of pocket costs, but looking at the other options we will be paying much more than that for much less coverage and our medical costs will be more than we can afford.  I try not to think about it too much. We are healthy now, but what about the future?

In happier news, I was gifted 220 pounds of new potatoes this morning from an acquaintance that had more than she can use! I will can some, freeze some as hash browns, and mash some of the bigger ones up to dehydrate them into potato flakes. Last week I gleaned a bunch of nearly ripe tomatoes from nursery plants that were being composted, which I dehydrated into "sun dried" tomatoes. I wasn't expecting either food bounty, but I do appreciate it!

We have lived on my husband's SS amount since he was 59.  He became disabled and could no longer work almost nine years ago.   We sure did not plan for that and our income going to about 40 percent of our previous income.  But, it is surprising how many expenses just went away or were far less right away.  When he was working gas cost us $300 a month and now I budget $75.  There were other expenses that went away as well even though he always carried lunch from home.  I will always be thankful that we had worked hard to pay off our home two years before.  We have not touched our retirement savings because we do not need those funds.  The amount just continues to grow for the future.  

We have a Medicare Advantage plan that was recommended by our financial planner and it covers dental and eye care and we don't pay any additional premiums.  We have been very happy with it.  I budget $150 a month for medical and the budget has plenty of surplus most of the time.  

I began drawing my spousal benefits last month.  This has allowed us to hire help for cleaning our home and taking care of our lawn.  Neither of us can do those things anymore so I am thankful that we can afford it for now and still save for future needs.  Let me tell you, for people who have always done for ourselves this was a huge adjustment!!

Lately we have found ourselves with a way overstocked pantry so we are being very careful to the only buy what is necessary and eat what we have.   I am seeing grocery prices falling here.  Many , many items are down by 50 cents or more at Aldi.  This really adds up.

Each year we get a cost of living (HA) raise on Social Security.  However, each year the premiums for Medicare also increase as does premiums for the supplemental policy.  This year between the two insurance increases I lost income.  

I do not have many categories and lump much into miscellaneous.  Most of that category are somewhat non-essential and can be put off until later if another item is needed.  As I've mentioned before, I keep a pantry and, in that pantry, I have personal care items and household supplies as well as food.  Typically, if I empty a bottle of shampoo, I put it on my shopping list.  However, if money is short, I do already have an extra shampoo in the pantry so can wait to replace it until later.  I can also wait for items to go on sale.  I try never to have zero in the pantry of any items at any time.

My grandson calls my pantry "grandma's grocery store" and that is an accurate description of the way I use it.  I keep a "shopping" list on my table for items to bring up from the basement pantry.  

My pantry has been built over many years.  If I see shampoo on sale, I'll buy a couple extras and that goes for anything else I use.  If you have room for a pantry, by all means start building it because it will save you money as well as the aggravation of being completely out of something.  When you have to drive 25 miles to shop this is especially important.

You can add $5 or $10 to your shopping budget each month to start stocking your pantry.   Just remember only to stock items you use and foods you eat.

WOW!!!! People in NZ complain about the health system. We are SO blessed currently to have the medical public health system we have here as do not have the medical costs like America and other countries have. I am on Superannuation and my husband on Supported Living and it only costs us $19.50 for each Drs visit. Prescription charge if any at all is $5. Ken was in hospital 5 days and it cost us nothing.

What you pay Donna is the equivalent of our weekly rent!!

Lana D... I can relate to you. We also were not expecting my husband to be diagnosed with a hereditary terminal illness at age 46!! 9 years ago.

 The drop in income along with everything rising, rising, rising I am grateful of having no debt and basic living expenses.

Next week we are changing our shopping to once a fortnight and going to the lowest price supermarket 20 minutes drive time from where we live. We have a supermarket 7 minutes drive time from us ( we live rural) but they "refurbished" and their prices shot up and a lot of the generic brands disappeared.

I'm sure this post from you Donna will bring LOTS of comments that we can all glean from. Thank you for your great blog.

Karen NZ

Once again Grandma Donna, your blog post addresses exactly what has been on my mind lately!  I especially appreciate you breaking down the expenses you’ll be paying for healthcare.  We have decided on a date for my husband to retire, waiting until the end of year so he will qualify for any profit sharing that may be earned.  While we won’t be eligible for Medicare for nearly a decade, we do have to carefully budget for healthcare as it will be the largest expense in our budget.

For the first 18 months we will use COBRA as it is a better choice for us at first.  When doing the retirement budget I hadn’t figured in the possibility of hitting the max out of pocket for both of us, only copays and prescriptions, so I went back in and added that as a sinking fund after reading the blog post.  I guess I just thought we would take it from savings, but your example makes more sense.  Healthcare will be 27 - 32% of our annual budget (I have two budget estimates, one is more comfortable, one is leaner)!  After 18 months we will buy an ACA plan and separate dental insurance, and expect the annual healthcare expenses to be very similar, unless the premiums go up significantly and/or the subsidies are reduced.  But we will cross that bridge when we come to it.  We do have an absolutely bare bones budget that we can get to after a few changes, if it comes to that.

We had several goals we wanted to complete in conjunction with an early retirement.  The first was paying off the mortgage, which we accomplished 5+ years ago.  The second is putting a solar electric system with battery storage on the house.  This should be completed in the next month or so.  We had thought to perhaps do after retirement, but the removal of the tax credit in 2026 bumped this up and we are in the process of finalizing a contract so it will be in place before the end of the year even if there are delays.  It feels a little scary to take this from savings and do it, but we know where we live that it is only going to get hotter, and in the past decade our annual electricity costs went from $1200 per year to $3600 per year.  So one reason for the system is to reduce our monthly electricity costs.  Early this year our area had fire related power shutoffs, and while we were lucky to be just outside of the shutoff area, it isn’t a guarantee we will be next time.  We had friends without power for over a week.  This time it was during mild weather, it usually power shutoffs for fire come when it is very hot.  So this is our other reason, to have some autonomy if there are power shutoffs, whether for safety reasons or the grid being overwhelmed during high use times.  We’ve also thought about other large purchases that might come our way.  Our cars are 3 years and 7 years old, and both are low mileage for their age.  Our refrigerator is 4 years old, our washing machine is 7 years old, and our dishwasher is 1 year old.  The water heater is 12 years old (wow, time flies) and the a/c is 13 years old.  We have a sinking fund for these kinds of household expenses, although we won’t replace the dishwasher when it becomes unrepairable.  Same for the microwave, I think, although it is a money saver in terms of cooking/reheating.

There are other things I wanted to get done that won’t get done before retirement after all, but my husband assures me he will have more time for those projects versus hiring them out in the past.  I decided I will do a good upholstery cleaning on our 13 year old sofa and chair, as well as mend the tear in the chair, rather than paying to have them reupholstered.  DH and I will paint the kitchen cupboards.  We’re going to give our bedroom furniture a deep cleaning and call it good.  We want time more than we want anything else.  We have spent a long time now saving so my husband could retire early, but it is going to be a little leaner than we’re accustomed to, mostly because of the health care costs.  We will adjust to the new normal, however!  I suppose one silver lining of being diagnosed with inflammatory bowel disease last year is our giving up almost all restaurant dining and takeout food.  So we won’t feel like we are giving it up in retirement because we already did (and then saved that money toward retirement).  And now that I’m feeling better I’ve been able to bring the grocery budget back down too

I know everyone's situation is different when they apply for Medicare. I chose a Medicare Advantage plan (MA). I do not pay for Medicare Part D as it is included in my MA. I also get a 40$ credit each quarter for over-the-counter items like band-aids, toothpaste, etc. My husband is on a different plan because it includes a vision & dental benefit. (I do not wear Rx glasses.) My sister & BFF are on the same MA as my husband. Both have had surgery (Knee replacement for one and esophageal surgery for the other.) The MA paid for surgery with little to no out of pocket. I take Rx meds (3) and my MA pays for a reduced rate (10 to 15$) out of pocket each. My husband takes no meds. Husband & I pay the Medicare B premium. It was 577$ for 3 months. My husband does the same. My expense for medical is around 250$ a month which I consider reasonable. I am a nurse & picky about my health care providers. I have been happy with the coverage so far. My husband & loved ones have been happy with their United Health Care/AARP plan also. (I do not work for an insurance company or Medicare.) When I worked FT I paid 350$ a month for the husband's insurance. My employer covered my premium. I would say our medical costs are roughly the same now. (I am happy the 350$ is not coming out of my paycheck but instead coming out of the husband's SS check!)

This topic has been much on my mind as of late. I would like to save alot more per month than we do. My husband doesn't watch budget limits and he does most of the shopping.

We are in our late 70's and our medical insurance for our secondary is insane. We pay from our Medicare and then our secondary is @$8,500. per year. Our prescription insurance is separate and is @$1,000 per year. We do not have dental, so that is out of pocket and runs us around $10,000 per year due to repeat crowns on my teeth. I have an autoimmune condition that causes decay. Our vision is submitted to Medicare as we both have health issues that affect our eyes. Medical is out of control in the U.S.

I love reading everyone's comments and learning.

Jenny, isn't it wonderful when there is sharing going on. I have read but haven't tested the theory yet but evidently if you store potatoes in an open container with an apple they will not sprout and will last longer. I am going to try it when I dig my potatoes.

I am slowly getting to where every penny has a place/purpose.  Because I get SS I am on a fixed income, in some ways it is a comfort because when each penny is accounted for and in place its a bit easier. Whether that place is in the savings or spend category.

Because I have my AC on that means I don't run any extra electric appliance unless absolutely needed. Curtains are drawn against the sun, and because of the openness of my living area I can't shut any doors except for the bedrooms. Using my charged up solar bulbs is a huge help for the "darker areas". Eating a lot of cold plates to keep from using appliances. Plus in the heat my appetite is nil....if I still had family at home I would be cooking more.

Using homemade ready meals from the freezer has also proven to be a help. 

I think about my grandmother at this time in the 1930's she had 4 small children and was picking and canning green beans in this heat. 

Functional to me means it works right! So many things in my house don't. Like the sinks. Normally sinks have the faucet inside the sink at the top, and a place on either side for soaps and things. Not at my house. My house has the faucet coming out of the counter so that whenever you try to turn it off with your wet hands you drip water all over the counter and make a mess. If you don't wipe it up right away, it makes water spots on the countertop. I am convinced that the purpose of modern design is to make life more difficult! And not only does the faucet come out of the counter for my kitchen sink, but the two sides of the sink are different sizes so the counter size is different on the two sides of the faucet, and you can only put dishsoap in one place that is not convenient. Every year we try to fix one thing wrong with our house. This year we're repainting the blotchy wall paint all over the house that comes off if you try to wash the walls. Next year we hoped to install an outside venting stove hood. I'm not sure when we'll get to replacing the sinks. 

The heat is awful! We're under the heat dome again. The city sent out notices earlier this year saying our water rates would be raised every year for the next four years. Now they sent out a notice saying the rate hikes for each year were wrong in the first notices, and they'll be even more expensive! We're going to try hard to get that second rain barrel next year. 

After trying a number of different ways, I finally came up with an inexpensive meal plan that my family likes. Whew! What a relief. It's based on beans, rice, and tortillas with meat sometimes, eggs and cheese sometimes, fruit, vegetables from the garden, soup, and for dessert, tapioca pudding. The green beans are ready in the garden, and I cooked some with onion and bacon today. We'll have our first tomatoes tomorrow as BLTs, and now I can make Grandma Donna's potatoes with some of my bacon! :) 

I'm still cutting and cutting the spending. 

I've never heard of a sinking fund before. Is it called a sinking fund because your heart sinks at the thought of all the extra money you need? :) 

I looked it up online and it sounds very complicated. I'm still getting my spending categories straight. 

I live in Germany. Here, every regular employee's health insurance is deducted directly from their salary. It's mandatory. We pay 17.05% of our gross salary for health insurance. In addition, there's 3.6% for long-term care insurance.
That means 20.65% of our gross salary is deducted directly. For medications prescribed by a doctor, we pay an additional €5 to €10. For medications not prescribed by a doctor (such as painkillers), we pay the full price.
For each day in the hospital, we pay an additional €10. For an ambulance transfer, there's a €100-€120 payment.
I'm not complaining. We're still doing quite well compared to other countries.

We have a relatively detailed budget book. Almost every category has subfolders. For example, the "Hygiene" category has subfolders for "Personal Care" and "Cleaning." The "Apartment" category has the subfolders "Rent," "Electricity," "Gas," "Water/Sewer," "Trash," etc.

When I read about your curtains, I had to smile. We also have several thick curtains. They protect us from the cold in winter and the heat in summer. We don't have air conditioning, although we also have hot summers here with temperatures over 30°C (86°F).
I sewed the curtains myself from store-bought wool blankets, because store-bought curtains are very expensive.

It's harvest season here right now. If you're careful, you can buy vegetables for very little money and preserve them for the winter. Today I got red peppers and yellow onions and spent the whole day processing them. This saves us a lot of money in the winter.
I'm currently harvesting a lot of zucchini from my garden. I'm currently drying some on the clothes rack.

It is interesting how some of these topics are so relevant to so many people. I have been thinking a lot lately about medical expenses and my budget. All the time you are growing up and even in adulthood, you hear that you should put away as much as you can for your old age. I put away what I could, which amounted to about $40,000. I started getting $834 monthly from Social Security at 62. This was almost my total income, but I was o.k. with that. I could get by without any government assistance except Medicaid, which I got when our state expanded it. I had enough to pay my bills, property taxes, etc. I am 100% debt-free. My house is paid off, and I don't use any credit cards or any other type of debt. Everything was fine until I turned 65 and they started taking $185 out of my paltry check for Medicare Part B. Now I am down to $669 monthly. That $185 made a huge difference to me. If I want to get my $185 back, I have to get rid of almost all of the money in my IRA, about $25,000, and sell off my few stocks I have left. I could only have $9,600 in assets. I also lost Medicaid when I turned 65, and the only way to get it back is to get my assets down to $9,600. If I got my assets that low, I would also be eligible to be on a Medicare Advantage D-SNP plan, where I might get $150 monthly in benefits. It would also make me eligible for about $150 monthly in SNAP benefits. So, the benefits could come out to about $500 monthly, which would be a huge improvement in my finances. However, it would mean accepting government assistance. In one way, it seems obvious that I should dump my assets so that I can get my $185 back, but I hate to have to get rid of almost my total retirement fund that I worked so hard to attain. But if I keep my retirement fund, I am losing $185 every month. (I especially hate paying the $185 because I rarely ever go to any doctor.) I am in a quandary about what to do, but I know I need to figure something out because I am losing $185 every month. Any thoughts on this?

As much as the Canadian medical care system needs fixing, it is posts like these that make me glad to have it. Having to save that amount of money just for medical things is wild to me.
I don't want to imagine that, on top of what I spend for my disabilities. Yikes!
Now dental fund I understand. That will be coming in for me when insurance coverage stops. I would have an eye doctor fund as well. I have to go every 2 years, unfortunately. And my new lenses are wildly expensive.
I am glad we only have one cat, as his vet bills and food bills add up. Thankfully he is as healthy as a horse for it. Sleek, slim and energetic. (and a little dense, but you can't fault him for being Orange)
That is very strange that SS comes in a month after retirement. I wonder why that really is...
I believe we have natural gas as a lot of our heating, plus electric bills aren't too intense. Now if we had to heat on electric, we would be lowering the thermostat all winter!
We use every square foot of the house, so no blocking off rooms. Too many adults under one roof for that to work. Otherwise I drink cold things, use cold cloths, and stay inside. Blinds shut too, helps cool it down slightly.
I forgot I was studying Canada in 1943. Then I realized I was buying local produce, putting up preserves and taking care of my victory garden. Now I need to focus on controlling my groceries, and I will really feel like I am in 1943!

I don't know much about the American health system, but I will try to advise. 500 per month for 12 months is 6000 dollars. So it would take maybe 2.5 years for you to 'earn back' the money from your IRA, provided you get all the extra benefits (from SNAP and whatnot).
Also won't the money from the IRA get spent, and therefore your assets will be down to 9600? Over time I mean. From this comment I feel like it would make sense to slowly spend from your IRA as needed until it is down to 9600, and then you will be eligible for the extra benefits.
I am not sure how you would dump your assets, unless you mean they are physical items and not cash. Then it makes sense to 'dump them' in return for extra monthly money.
I might not understand part of this situation, but I hope this makes sense and is a little bit helpful.

Becky Sue K -- What I would think about is that right now Social Security benefits will be cut by about 23% in 2033, I think it is. You can Google it to learn more if you want. Since the national debt is so high, I don't know if that will get changed before the cuts go in effect. Plus, also since the national debt is so high, there might be future cuts to any kind of government assistance. 

If you took the assistance now you would live more comfortably and you could bury some of it in the backyard in a coffee can so the government can't find it. :) Or you could hang onto your $40,000 for the possible future Social Security cuts. If you take the assistance now, the amount might go up over the years and you could live more comfortably. If the amount got cut, would it get cut as low as your present Social Security benefits or the projected cut amount? I don't know what the right thing to do is. 

Now that we're retired it seems that all my husband does is constantly review our finances. 

He spends a lot of time finding the best plans for us. And monitoring them once we acquire them.

I do wish though he'd allocate time to thinking about how we can save day to day. He's one who runs the AC all the time and never turns off a light. So it's up to me to monitor those things. I guess his family did it differently.  We grew up being told to turn off lights! I feel bad if I forget & leave a light on. It really had to be hot to run our wall unit back in the 70s in the south! 

My husband got himself off Metformin and his blood pressure meds. We see this as a way to cut medical costs or potential costs. He accomplished this by losing 20 - 25 pounds. I told him a year or so ago the only way to cut costs was to improve our health. We're fortunate to be able to do that. I'm also not buying his favorite junk food any more and slowly adding more nutritious food to his meals. (Of course, we're still spending on all the plans. But we worry that coverage won't be available or will become too expensive so staying healthy is part of our plan for the future.)

Stephanie G I looked up sinking fund too, because while I’ve heard of a sinking fund, I’ve always called ours a “freedom account” (because it helped us become free from debt, which is a term from Mary Hunt, or an “annual expenses account”.  Other family members just called it a savings account.  The confusing thing is that some sites say a sinking fund is where you are saving for annual expenses, a car, etc. and some sites say it refers to funds for a government to repay bind debts when they come due.  I guess originally the term was for government finances and not personal finances.  But I have heard it in terms of personal finances for quite some time, and it does make sense in terms of the looming house repairs we will all have over the course of home ownership.

Becky Sue, I'm not sure what you mean by "dumping" your assets.

It's unclear to me whether you looking at $40,000 or $25,000. So I'll use the $25,000. 

If you get rid of the $25,000 and no longer have it available you will get an equivalent amount "back" in 11.5 years from getting the $185 per month.

$185 per month x 12 months = $2220 per year. You will have received about $25,000 in total additional benefits in 11.5 years. ($2220 x 11.5 years)

There's no guarantee that you will keep getting $185. It could go down.

But $25,000 is in the bank now and (possibly) available. 

Another way to look at it is: you draw out $185 per month from your retirement amount (the $25,000) and you will spend it all by about 11.5 years (assuming it doesn't increase from interests or investments).

This is how I see it. Please don't rely on me. I'd suggest asking some trusted friend or someone at your bank.

Grandma Donna wrote,

Hi everyone, great conversations going on about this :)  Interesting how we have all kinds of different levels of income, places we live, yet the same concerns and all mix levels of medical and insurance expenses.

Stephanie, at first I changed my sinking funds to call them future funds because I did not like the name sinking fund used more for businesses.  Then I thought about how our finances would sink if we did not have any funds in this category so I put it back to Sinking. 

Hi Grandma Donna, it's helpful to know the lightweight "summer" portieres are effective. They look lovely too!

We're in winter and have realised that finding a supplier with quality firewood makes a big difference to how much you need. This week, I'm picking up some briquettes to trial as a possible alternative. Made from sawdust by a local business that re-mills recovered building and flooring timber, I understand they're popular in Europe. Will be better for the environment and easier to manage as we get older.

Ann W, we too have a pantry and I run it similar to yours. We're lucky to have storage space and money aside so I can stock up when things are on sale or available in bulk. I read recently that it costs more to be on a limited income because you don't have those advantages of spare capacity. My husband has been out of work the past couple of months; our pantry and freezer have been hugely helpful in minimising outlays!

Like Jenny Wren, our private hospital cover (Australia) is a little over $100/month per person. Doesn't include dental or optometry, but does pay for emergency ambulance attendance and transport.

In Australia, Medicare is the public (government) healthcare funding, available to everyone.  Our doctor doesn't charge above the nominated Medicare fee, so we are not out of pocket. Not all doctors do this; very few specialists do.

Once we spend over a certain threshold on meds or healthcare professionals in a calendar year, the % of the rebate goes up, so we pay less for meds or specialists and allied healthcare for the remainder of the year.

People with chronic health conditions can get a Chronic Health Care Plan, which gives them five subsidised visits annually to allied health professionals (eg podiatrist, physiotherapist).

The Medicare system is funded by a levy paid by those who earn above a certain amount.

People who take out private hospital cover get a government subsidy; the percentage depends again on how much you earn, ranging from 30% down to very little for high income earners.

I feel very fortunate; when I got cancer a couple of years ago, many people pointed out how lucky I was to be living here.

My husband is still a few years off retirement. We have some savings which we plan to spend on solar panels and a battery, like Kimberly F.  That investment should pay for itself within a few years and then we'll have lower costs in retirement, although we'll put aside money to replace the components as needed.

It's a great gift to be able to read everyone's posts and anticipate the challenges we need to prepare for. Thank you everyone!

@Kellie O
That sounds like quite a reasonable plan to be honest. I hope it works out well!

Thanks, Hannah A! Current electricity costs (no pun intended!) are around $4,800.00.

Even considering the limited life of the components, the return in investment is better than leaving money in the bank; the other big benefit is peace of mind.

Oh Becky Sue, this does seem like a conundrum!   I looked it up for my state and my state decided to stop considering cash assets as part of Medicaid for seniors, which is a relief.  I also saw that some states don’t count an IRA if you are required to take mandatory distributions (meaning the IRA is in “payout” mode), but that is at age 72 (maybe 73 now with new legislation in the past couple of years).

You could spend $25,000 to get back the $185 per month.  I’m thinking you would have to pay federal income tax on the payout, and perhaps state income tax depending on your state.  You write that this would also qualify you for Medicare Advantage, which another member said has much lower overall costs, and could have a cash benefit.  One thing you might be able to do is some improvements to where you live if you own your home, hopefully that could help lower your monthly costs.  Perhaps a solar electricity system, solar hot water, rain barrels, garden infrastructure, stocking up a pantry, etc.

Or you could just keep things the way they are, because that $25,000 you would have to spend is your emergency fund, and maybe you would feel insecure with only $9600 for emergencies.

Kellie O, Peace of mind is a major benefit for us as well.  The utility is certain to request regular hearings to raise the monthly connection fee (and we are required to stay connected), but we will have some protection against the increases for electricity use.  But the real peace of mind comes from knowing we will have electricity even if something happens like a power outage or power shutoff (for fire and sometimes rolling blackouts when the grid is stressed).  Unfortunately, our state no longer has a program that pays well for returning electricity to the grid.  It’s pennies now, from what I understand.  So many people have solar and they are all feeding it into the grid at the same time large solar arrays are generating and the wholesale price of electricity is cheap for the power companies if they need to purchase it.

From our research, we should expect our panels to still be producing at something like 90% in 25 years and the batteries are warrantied for 10 years and could last longer than that

Becky Sue K - sorry to hear about your struggle. 

I think I would use $185 out of retirement savings to restore your budget each month.  Myself I would be more comfortable keeping those savings as long as possible using them as needed.  Life being what it is, you'll likely deplete the funds eventually without dumping them.  You will possibly need to replace an appliance or have home repairs or expensive medical expenses that are not covered by insurance at some point and those dollars would be very important then.  Just the knowledge of having that emergency fund would help me sleep better.

As an example, my mother lived to 100.  She ran out of money in August and died the following December so was on Medicaid for only those few months.  My mother-in-law spent her last 6 years in a nursing home so ran out of funds after about a year of self-pay and was on Medicaid her last 5 years.  

Do you have a burial trust?  If not, you might want to consider establishing one with your savings which would reduce your funds and provide that you get a proper burial at some distant time in the future.  I did a burial trust with my late dh's life insurance funds left after his final expenses.  I did my trust through a bank not a funeral home.  

Pray that you are able to find the right solution for yourself. 

Is Charles able to take care of his medical needs/bills through the VA? Is there a Community Care program in your area? 

Wow, so much to think about after reading everyone's comments. Your home always looks so inviting Grandma Donna, I love your green walls, such a beautiful shade of green, your curtain and the idea of using tea leaf tins for receipts, I think that's wonderful. We are in Winter here and it gets quite cold out here on our farm, we are completely solar so I am unable to run heaters etc. We have so much timber on our property we are on just under 800 acres and would never run out of firewood, so I'm hoping one day we will be able to install a woodheater. For now it's extra layers and rugging up and my lovely outdoor fire: ). Our day time temperatures are not too bad, it's mainly the nights and mornings. In Summer we can get to 100F that's 38°C in our terms at it's hottest, our house in designed to have good air flow and to some extent naturally cool, but I have tried to replicate nature by planting trees and shrubs around my house to help, shade makes such a difference, except on those exceptionally hot and humid days. You just have to get through those by getting things done very early and late in the day. 

The weather is changing and that has a lot to do with cloud seeding etc. going on, man-made interference once again, something that I don't think will ever change sadly. There has always been natural patterns of dry and wet, hot and cold, but most people are noticing other changes aside from this. 

I have been enjoying my Winter vege garden, lots of lovely greens, my potatoes have just started sprouting and finally my onion seed has started germinating, it's been a challenging one this time around for some reason. Carrots, tomatoes and peas, herbs and flowers, thankfully for now this is all the medication I am in need off. I think from what I read and hear, the medical systems everywhere are deteriorating. When you live so far from a major town like we do, it makes things very difficult. They just don't offer the services for people like us who live remotely here in Australia. And I hope and pray I do not have to venture to the city for anything, anytime soon, I'm a country girl through and through! 

We don't have electricity bills, however when you have solar, you always have to be mindful if anything needs repairing or replacing you need to have funds available, it can be costly. We use gas for cooking and hot water, so I put aside for these. It has struck me how many little things there are that pop up, just in day to day, and the internet has made it easier to spend money hasn't it? Ebay, Amazon, just stores in general it's all there, when you live so far from shops like we do, you have to really be mindful of what/when your buying, postage costs and how urgent is it, can it wait. I can't always get to the shops, and in another time that would of meant no spending, making do...good food for thought for me personally and trying to be wiser with what funds we do have, getting that mortgage paid off or down more quickly. I highly recommend the book House Keeping in Hard Times by Mrs Sharon White, such a blessing.

Becky Sue, one thing that I'm mindful of is that governments change and so do rules around financial things.

In a few years time, might you find that your assets don't affect your situation in the same way?

If you could hold on to your $25K, as others have pointed out, it can be your emergency fund and will no doubt be needed over the years for repairs, appliances etc.

It depends a little on what assets are counted. If your home isn't included, maybe as someone's suggested, spending the money on home improvements that will save you costs is a good way to get the money "off the books". 

That still leaves you with the problem of your shortfall of around $48/week, if I calculate correctly?

The thing that came to my mind was if there is a community pantry or food co-op where you could volunteer, you might also be eligible for low cost food in return for your time.

Maybe others have suggestions too.

I'm thinking of you and wishing good things for you.

Joanna B

I agree with you about the book of House keeping in Hard Times by Mrs Sharon White ( The Legacy of Home). I have the majority of her books and they are all good common sense.

The other book I read often is "Money Secrets of the Amish" by Lorilee Craker.

There was a story in The Washington Post that only 7% of Amish children had a positive response to one more common allergens on the skin compared with more than half the general US population.  

We can learn a lot from the Amish.

Thank you for another lovely post. The medical budget part I did not realise until now what a chunk of a couple's budget that amounts to. It's a serious matter and I can see how looking at the rest of your budget and using those categories is vital. On a lighter note I loved seeing the Poldark books lined up in the background of one of your photos! I loved reading those. I bought most of them second hand and was so eager for the next one as they are so well-written and get you straight into the wonderful family adventures of that time. The South West of the UK is very pretty too. My husband and I had our honeymoon in Cornwall UK!

Yikes, UK reader here and the figures listed for your healthcare needs are frightening, the NHS is creaking at the seams but we still get free trips to the doctors or hospital if needed. We do have to pay for non-standard medication with some exemptions but no costs for hospital stays, ambulances called etc.

I also run a sinking fund and include in that a figure of £100 per month to cover our dental costs plus opticians as we both wear glasses. Any other yearly cost is also noted, divided by 12 and that figure added to the fund every month, this includes all vehicle costs excluding fuel, home & contents insurance, clothing, gifts and an amount for house maintenance. 
All other bills are covered by monthly payments so electricity, water, council tax ( sum paid each month for local facilities including rubbish removal etc ) and telephone / internet charges. We have no mortgage as managed to pay that off when we were both made redundant from the same company several years ago and received a lump sum each.

So come pay day an amount is set aside for the monthly costs, the amount for sinking fund transferred to an easy access savings account and a lump sum is also transferred to our long term savings. The balance left is what I have to spend on food and to put petrol in our cars. My husband is 5 years younger than me so has another 10 years to work but I’m due to start receiving my state pension in 6 years time when I turn 67. This will be approx £240 per week and is based on National Insurance contributions made during your working life. This is separate to any private pensions that you pay into during your working life.

We are trying to save as much as we can while we can ready for when we are both retired as who knows what healthcare will be available then!

Good news to hear that Charles will be retiring so soon.

I understand why people keep pantries, but I'm trying to simplify everything right now so I've been using up things in the pantry so that when I look into it all I see are the basics. Once I know what basic things I need, then I can buy those in bulk. 

I read a few years ago that the average couple in the US should have $250,000 saved at retirement just to cover medical costs! When I was trying to plan for retirement, I went to the Social Security site to see what our benefits would be. They were more than I expected, but now there are cuts proposed. I learned that Medicare Part A is free and covers the hospital and everyone gets it. Part B is like regular medical insurance and is optional. I looked at our state Part B coverage and it covered a lot! I looked specifically for things that might affect us personally like my husband's bad knee getting worse when he's older. I didn't see any reason why we would need an extra plan besides Part B. Even with the deductible and co-pays Part B was cheaper than the work insurance. That has a $5,000 deductible and the premiums cost more each month. Part B is taken out of the benefit so you never see that money anyway. I added up our medications and I'm not sure a Part D would help us either. We mostly get generics and those are cheap, usually $10 for 90 days worth. I know that when you're older things can happen, but I went through the family medical history very thoroughly and didn't see anything chronic. Where Medicare is worse is with vision and dental. That's very cheap through the employer. If my husband didn't have such bad teeth it wouldn't cost us anything out of pocket for regular cleanings and x rays. Cleanings are almost $300 at our dentist. I know that everyone is different and has different health, but I'm hoping our medical costs won't be too bad in retirement. margaret p your husband is amazing with getting off his medications! :) That's what we want to do too when we can. 

I'm not buying any more books right now, but I found an article about the seven money habits of the Amish online and it had good advice. There weren't any online summaries of Mrs. White's book. 

I still don't understand a sinking fund but when I get all of my categories in order maybe I will. 

Two babies hatched yesterday for Mama Barn Swallow. :) 

Stephanie G, I’m currently simplifying our pantry as well.  I’ve done it before but not with the same purpose.  Now I want a very simple pantry and to have a clear idea of how much we use annually of each item I want to keep stocked.  I think this will help me with grocery costs.  We are also eating down the freezer right now to get through foods we don’t eat often.  Last night the guys had spaghetti and instead of TVP I used a frozen vegan beef “crumblers” product my son had opened and didn’t really like that much by itself.  I am making smoothies for the guys with the various frozen  fruit, dates, flaxseed, etc. and those items are gone I won’t replace them and they won’t have smoothies.  This has been a good challenge for me to inventory the freezer and then plan meals with foods we have too much of or just didn’t love.  As part of simplifying the pantry and reducing food costs I decided that I will only buy TVP, tofu, and veggie burgers for the guys.  TVP is very cheap, tofu is good for meals that need something other than a ground beef texture, and the veggie burgers are easy to make and not too expensive.  There are so many vegan meat analogs and they are really expensive overall, so no more vegan breakfast sausage, vegan chicken nuggets, vegan corn dogs, etc.  The guys wanted them to add to lunches, etc.  (I eat meat, they don’t, and I don’t eat breakfast sausage, chicken nuggets, or corn dogs, lol!)  But now that they decided they will eat eggs they’re getting good protein and eggs have come down enough in cost eat regularly, and also of course, are unprocessed vs. ultra-processed. 

Stephanie G. 

The way I (and some others I know who do this) use a sinking fund is to think of it this way:  simply that I'm saving monthly for an expense that is large and comes regularly.  Say my homeowner's insurance is $1200 a year (I wish!).  I would put $100 each month into a savings account.  When the bill comes due once a year, I withdraw $1200 and pay it, then just keep saving $100 a month so I can pay again next year.  I do this with insurance (car and home), property taxes, and my contact lenses, which are expensive due to my  astigmatism and really poor vision.  I add those annual costs up, divide the total by 12 and deposit that figure in the savings account monthly.  The first step is to save up enough to pay the bill(s) only once or twice a year, and it is usually cheaper to do so.  Paying by the month usually incurs a fee.  That's what a sinking fund means to me - others may differ!

Also, Medicare part B won't cover much of some procedures I must have on a regular basis, so a supplement was best for me and that's why I have it.  I used an independent agent and we carefully went over Medicare, the Advantage Plans and the Supplemental Plans, and to get the coverage I need, the Supplemental Plan was needed.  I suggest an independent insurance check up for anyone going on Medicare.  

By the way, since you mentioned your husband has a bad knee, I hope you saw that Medicare has a strict limit on days in Physical Therapy, how many days in a year one can use PT, and how much time must go between in-patient care admittances for PT. 

I'm glad Joy N. mentioned VA care.  If Charles is eligible, it can save you a lot of money, GDonna (or anyone who is or has a vet in the family).   It isn't just for "those who can't afford anything else."  The more VA care is utilized, the more services are expanded and improved for everyone using the VA.  

Grandma Donna wrote,

Joy N, about the VA.  We contacted VA last year about this and after we answered all of their questions and they said contact us back after Charles retires and we will see what he might could get help with.  There is a income factor, a regular working income and has to do with many other factors. We asked if we could get an idea of if there was anything he might qualify us for but they said to call them back after he retires. Also our states we live in also have something to do with it as well. So we do not know. 

Ann w, Very good information about the burial trust from the bank.  I do not know about this because we prepaid for most of our funeral and burial many years ago.  After Madge died and we paid for her grave side service and burial, we checked on how much was left for us to pay to complete our burial.  We paid for the grave plots, the cement vaults, opening and closing of the grave, a double headstone and engraving. Life happened and we did not start a new contract to pay for the casket or the grave side service thinking that was much less than what we already paid.  We were very wrong. They will get us some way it looks like since we paid long ago. We are thinking now we will be cremated since it cost less but they do not seem to give in any and do not know if they will exchange what we have paid for already for a cremation.  Still pending...

Joanna B , Your entire comment gave me a feeling that it truly matters where we live and put ourselves where we can do the most for ourselves, garden, trees that can be cut and it comes back to my thinking from this 1930s study that during the great depression the people that made it through the with the least amount of damage were those that lived on small farms.  Many of my family that lived rural and had chickens and pigs, large gardens and kitchens built off to the side of their house so the house did not heat so badly during summer, told me they never knew their was a great depression.  Said, we were always poor, we didn't know any difference.  Big difference in being poor and being destitute. 

Stephanie,  I would call Medicare if you have not already because there is a big rabbit hole out there when it comes to our medical expenses.  I am so happy to read that your swallows are hatching :)  I love the birds around, I feel so happy when baby birds are hatching because it feels like everything is okay. (Heart)

Thank you all for these wonderful comments coming in, it is so wonderful having this forum rolling along with all of you here, you feel like family. 

Joan S, thank you for the explanation of a sinking fund. :) 

I think Medicare is like property taxes with each state being different. The Medicare coverage was broken down into completely covered, 20% co-pays, and 50% co-pays. The knee diagnosis, surgery, recovery, and PT all looked reasonable cost and similar to what people we know who have had the procedure have gone through. I looked closely at coverage for heart problems, liver problems, digestive issues, and cancer. I looked at everything else too, and mainly I was very surprised at how much was covered! My husband and I looked closely at it and decided that unless a health issue popped up, we weren't going to plan on supplemental insurance. It didn't seem to add benefit for us with its payouts compared to its cost. We both come from long-lived, generally healthy families. In fact, my husband is going to have to fly out this year for a family funeral for a relative who is 96! This relative was still living in his own home without assistance until he had a fall. (I didn't know what category to put funerals in and decided to put it under vacation.) Everyone's needs are different and I am hoping our needs keep us at the cheaper side of things. :) Of course if the coverage changes, that will be something to consider. One nice thing about Part C is that you can sign up or cancel each year. That way you can base it on present need. But we have time to reconsider all of this because we're just planning now. 

Healthcare in retirement seems so uncertain right now!  Those of us who won’t be 65 when we retire have to figure out if we qualify for Medicaid (very low income and most states have asset tests) or ACA coverage, or if we have to get private insurance, which we might not be able to do depending on preexisting conditions.  People who are old enough for Medicare face a complicated system that some politicians want to axe completely.  Unless changes are made, the most current OBBB legislation includes spending requirements that will cut Medicare every year.  All of us have to be prepared for Medicaid, Medicare, and the ACA to potentially be dismantled completely.

Before my older relatives started retiring I had no idea how expensive Medicare could be for seniors!  I just always heard how retired people had Medicare to cover their healthcare needs, and I had no idea they had to pay for the various parts just to approximate a good plan.  Many seniors are paying more for healthcare as retired persons on Medicare than they did when they had employer sponsored healthcare.  This seems entirely wrong to me, that a country such as the United States is unwilling to take care of its senior citizens.

I have no idea what will happen between now and when we qualify for Medicare.  I don’t know if it will still be there at all.  But I did decide that I didn’t want my husband to keep working only to supply us with insurance

We had the assistance of an agent to decide on the appropriate medical coverage for when we turned 65. She was recommended by a friend and has been a delight to work with. She's actually in a different state but licensed in our state. We left messages for other agents in our area and none of them got back to us. She is always thorough in answering  questions. She doesn't charge us but receives a fee from the insurance companies from what I understand. Based on our circumstances we didn't get the Advantage plan which seems to be very popular. We opted for something else.

One thing that we messed up on was the vision care or maybe it was the dental care. Our agent helped us select a plan for my husband based on benefits but he had to do the signing up himself which he did. When it was my turn to get that insurance several months later my husband added me to his. They charged us a late fee because they said I should've signed up when he did even though I wasn't retired yet and had my own plan then. My husband wasn't told this when he signed up. We paid the late fee because it wasn't that much and being on his plan is cheaper than me getting my own. 

Kimberly F , that's exactly the problem I'm having with planning! I'm now starting to plan for if these things are reduced or cut back completely. I don't see things getting better with all the national debt we have. It looks like we're going in the other direction! That's why this Depression study is so timely. It's helping me to think in new ways and solve problems I didn't even know I had! 

What you said Kimberly....

I think the looming governmental "What ifs" are what are hovering in the back of my mind and informing my digging deeply into the 1930's study.  I am not trying to get political at all.

I am taking things to the 1930's as deep as I can because IF things happen I want to be able to cope with some degree of knowledge, IF they don't happen ....knowledge is still a powerful tool for any everyday issue.

I took early retirement and have never regretted it. I was caring for elderly parents, working a job that was mentally killing me and caring for my own family and grands.. I was constantly running the "retirement costs" numbers and realized I was never going to be able to hit the numbers the experts were talking about.  I prepped for early retirement as best I could figure at the time and for me it was the right thing to do.  BUT, everyone's situation is different and decisions have to be made for yourself. 

I would add, it's my opinion we should all learn to do everything we possibly can for ourselves and to cultivate a community of like minded people because it could become invaluable someday, I pray it doesn't but for me to feel prepared is a freeing feeling.

One day my dd and I were working on genealogy and suddenly she said, "These people lived forever, I can't afford to live that long."  

Unfortunately, it seems that many seniors do outlive their resources if they need a lot of medical care or especially a nursing facility.  I think that 10 years ago my late dh's nursing home was running between $6,500 and $7,000 per month.  I'm sure it would be more now.  

I think people get confused between Medicare and Medicaid.  Also, confusing is having to have Medicare, a Medicare supplemental policy and a prescription policy.  None of the policies cover eyeglasses or exams or dental exams, dentures or hearing aids.  However, if you are on Medicaid they do pay for eyeglasses etc.  Medicaid is more state run although federally funded while Medicare is a federal fixed part of social security.

What is what we are all talking about here is how to plan for retirement as best we can by cutting spending before we retire in order to save more for retirement.  If we find we absolutely cannot manage on social security and savings, then we need to reconsider retirement.  Possibilities include waiting to retire or retiring and working a part time job.   To qualify for Medicaid, you need to be without resources which is a hard place to be.   Medicaid is a blessing to those without resources, but that is not a pleasant place to be.

It is so concerning to hear about cuts to Medicaid, especially the expansion in some states, as well as the general high cost of even basic medical care for seniors.  I went through it with my parents but they have both been gone for 10 years now and it most certainly is even worse now as all expenses have gone up generally.  (my homeowner's ins just went up over $2000 a year on top of everything else).  I am planning to stay working full-time until at least 70 and maybe then some if it is possible.  I have a job where ageism is not really a factor and I work from home doing a job that not many people can do well so that makes me hopeful I can hang on.  But of course there is no way to know what the future holds . I do assume that costs will continue to go up so I am working to lessen my regular expenses and take care of what I can now.  That basically means doing a few needed repairs in the house and also I really want to get a couple of anticipated crowns while I still have good dental insurance.  A woman I know was having pain with a tooth and the option for a crown was way beyond her means as she didn't have dental insurance (she is nearly 90 so not working!) and even the extraction was in the thousands which she can barely afford.  And I am planning to sell my house and buy a small condo which should lessen my housing costs and eliminate the need to mow and plow. I will probably list the house in about a year and a half when my son is ready to move out.  I don't want to spend the time doing so much household cleaning and maintenance anyway and I can easily live in half the space.  My parents insisted on holding on to their very old, very large, and very run down house and it was ruining them financially.  I really don't want to go there.  I have learned to be quite happy on very little though.  It would be nice to share a living space with a roommate but it is my experience that a lot of people aren't really that good at living with others anymore so I will just go at it alone. 

Oh my goodness USA's healthcare system is so expensive and complicated! I've read all this and to be honest I still can't work it out. I'm so grateful for NZ's healthcare and costs although it has some serious problems too. Thank you Grandma Donna for listing you and Charles medical costs as it helps me understand the fine tuning of your budget. Your medical costs are half our monthly income. I'm blown away! A big hug to all those negotiating that. I don't want to be political but from what I read and hear there could be major medic aid and care cutbacks. Are you all trying to factor that in? There seems so much uncertainty.

On another topic I too are simplifying my pantry to rein in grocery spending and stockpiling. Stephanie G I too have assessed which products we actually like and use and focus on those when on sale and not be distracted by other sale products. It's so much easier! I think I had to get away from that COVID lockdown stockpiling mentality. I have one long shelf in the hall cupboard with 3 or 4 of each item which are replaced as used and rotated. On the shelf above are the toiletries, household cleaners (I make our soap, laundry powder and cleaners so those are mostly ingredients) loo paper and medical. Easy to see and budget for. Our kitchen pantry is used for ingredients and condiments.

Grandma Donna - Your fabrics around your home are so pretty and I love how homey and calm it looks.

Karen S - I hope your husband is recovering well from his hospital stay.

Have a lovely weekend everyone.

I wanted to add my two cents to the subject of Medicare Advantage or Supplement Plans. These plans help pay for what Medicare doesn't cover. Most people have part A & B. There is a Part F. It is not offered anymore. The year my hubby turned 65 was the last year it was offered. We grabbed it for him. He pays a monthly premium, (now $235 monthly),  but Part F pays everything that Medicare does not pay for, including the Medicare deductible. EVERYTHING. No co-pays, no co-insurance, he pays for nothing, but does have to pay for his Part D medication. Part F does not pay for vision or dental. Hubby has diabetes, so Medicare pays for annual visit to eye doctor. When I turned 65, we went to our Health Markets Place insurance agent, ( no cost to use, they are paid by insurance and government, I believe), and I told her I wanted as close to Part F as I could get. I have Part G. This is Medicare Supplement plan. I pay $116.66 a month. It pays for everything Medicare doesn't pay for. The only difference from Part F is that I have to pay my Medicare deductible. 

Now my other family and friends all have advantage plans. They say how they have no monthly premium and have lots of perks. I get it, but I want to say that as long as you are healthy, that is all good...but you better hope you don't get cancer or another chronic illness or have a bad accident. They point out how some years, the amount we pay in premiums is more than what we would have paid in co-pays and co-insurance. And that is true. But last December my hubby was diagnosed with a rare bone cancer. The surgery for it in March was over $82,000. I don't want to think what he would have paid for the multiple visits to specialists in co-pays and what his co-insurance would have been for the surgery. This entire cancer journey has cost us nothing. His Part F plan paid it all. His bone biopsy to see if it was cancer was over $54,000.

When we decided on taking these plans, I was thinking of what could happen in the future. Yes, it has been hard to pay the premiums at times, but they are worth it. When something unexpected happens, we won't have to worry about hospital and doctor bills coming in. The monthly premiums are well worth that peace of mind. No one plans on getting cancer, but it happens. And to let you all know, all is well with hubby. The cancer was enclosed in a tumor and the surgery took care of it, no more cancer! No chemo, no radiation, he is good!  They burned out the tumor and put "medical cement" into the hole left from the tumor. Who knew there was such a thing as medical cement!! He can walk now with no pain.

Sorry for the long post, but I just want to ask those who are getting ready to get Medicare to talk to an insurance agent and get as complete a picture as you can of what is available. And also know that starting in October until the beginning of December, you can change your Advantage plan to a Supplement plan. No one plans to get sick and accidents are not pre-announced, that's why they are called "accidents". 

I am working on decluttering and making my home easier to clean and less "stuff". I want clean and serene for my home. Working on a budget and meal plans, too.

Grandma Donna your comment about putting funeral costs in your budget under the vacation category made us laugh so much here at home. I was in town with my husband and saw our local funeral home and said to him, 'Oh look a travel agency!

When I was 31 and my husband was 36 we each had a life crisis.  I was hit by a drunk driver and my suffering marriage failed utterly under that duress.  He found himself going through an unwanted divorce.  He gave his home, his savings, a car to his wife, and paid child support.  However, he had to start over with nothing.

When we met, about two years later we had five children between us and nothing else but an odd assortment of well used furnishings and a desire to get on with living.  We both worked poorly paid jobs and never made good money in the years in between though we worked hard and willingly at our jobs.  I had lived 'poor' my whole life and I knew what to do to make things stretch.  After we'd been married six years, I became a full time stay at home mom.  We paid for a home, cars, major repairs, appliances over my stay-at-home years.  We scrimped and saved and did all we could.  Our goal was to be debt free as we felt that offered us the greatest financial security.    We made that goal.  

As we got into our fifties, we started discussing future retirement.  15 years ago, every article we read said every couple needed at least $1Million in order to retire and survive, not allowing for anything extra!  We knew that wasn't going to ever be our reality.  If we'd saved every penny we ever made our whole working lives we'd never have gotten near that amount!

After we paid off our debts we found we had to step back into debt a few more times for unplanned but very necessary major home repairs, or new vehicles.  In each instance we chose to borrow and pay back at a much higher monthly rate than the loan was set for in order to return to our previous debt free status as quickly as possible.  Patsy over at A Working Pantry blog has some great points on this subject.

My husband retired five years ago.  Our sole retirement account is a fund that the county paid into while my husband worked.  We never put a penny into it because we simply didn't have it to spare.  He can draw from that fund at age 73 without tax penalties.   We live on Social Security alone.   I hadn't worked in many years because my husband felt we saved more money when I was at home full time and it's true, our return was greater when I was at home diligently working to cut daily costs.  I 'retired' at 63 because frankly we needed the extra income.  

We do not have a medicare supplement policy.  We are in good general health which is a blessing.  This year a doctor suggested I begin to use a prescription diabetic medication to help lower my A1C further.  That medicine costs $750 a month.  At the time, we had only $100 left in our very strict budget to handle extra costs.  I worked hard to learn what more I could do to lower my blood sugar which included adding new and previously untried supplements into my diet as well as losing weight and cutting the 'extra' goodies out I'd allowed to slip into my diet.  My blood sugars are lower than they have ever been.  

This is what I found needed the most adjusting to when we began to live off social security.  Some months (about 4, possibly 5) has a 5th week.  That throws off monthly bills and makes it a little harder to stretch groceries!  I've learned to track those months a year ahead and I set aside a little extra to cover the need of having an extra payment or two ahead of those times.  I try to stock up on basics like eggs, milk shelf stable fruits, extra produce as we get near the start of one of those months as well.  It helps a lot and has eased the tension of worrying that we'll have to pay a bill late.

The other thing I've noticed over five years of living on Social Security is that while our income doesn't really rise, bills do.  I spend a lot of time watching our outgo and trim our budget constantly to cover those rises.  We have never failed to manage, despite how snug our budget is.  As with all things there are many blessings we didn't realize would come.  Gifts of produce (corn, cucumbers, zucchini, blueberries, free tomato starts).  Gift cards to a restaurant for an occasional meal out.  The odd refund we didn't realize would come.

Instincts say, "Oh but there's no room for savings in your budget..." but we do save and set money aside.  Some call them annual funds, some call them sinking funds.  I'd prefer to pay auto and house insurances annually, but we find it is better for our budget to pay them monthly despite the small fee charged.  Now and then a really ample discount is offered by one or the other company and at that point I will pull money from savings and pay in full then sock all that former monthly payment back into savings to make up for the spending.  

We can plan and plan.  We can save and save.  We will none of us be fully prepared for every eventuality.   My good general health today may be a devastating injury tomorrow.  The income we have now may be halved in five years or it may be exactly what it is now.  

The worst thing we can do is sit around and fear.  The very best thing we can all do is relax and trust.  Each of us here is studying and willing to learn and we all know how to do those things that will help us survive tough times.  Things may be tough, but we are tougher.    If ever I felt this to be true it was after Hurricane Helene and the devastation that so many faced.  I am thinking specifically of North Carolina only because I saw so much coverage of that.  People lost every single thing.  Land, home, clothing, vehicles were swept away.  People camped out.  They moved families into tiny spaces.  They took what they had and shared it with others because they knew that everyone was in a hard place same as they were.  People did what had to be done even though it was beyond thinking it could be real.  They relied not on government but upon PEOPLE and kindness and they survived.  Keep that in mind.  

Grandma Donna Wrote,

Ingrid, 

Ann W brought up the funeral trust , I commented to Ann about the trust and Stephanie was the one that put her funeral fund  in the Vacation fund. I thought that was funny too.  I will now probably put my funeral plan in vacations since we are not going anywhere. :)

Stephanie G.  Mrs White has a blog, The Legacy of Homemaking, online and you can read a great many posts there, most of which I'm sure include some of the same information her books might include.