How To Live Frugally On Social Security

We all see the prices of almost everything going up and our social security and other investments not. We should look at what’s happening around us and realize we need to start saving money where and when we can.

After realizing (again), we need to do more to have a better future. So, how to live frugally on social security becomes a significant issue. 

Living frugally on Social  Security isn’t any different than living frugally in any other time or place. It’s all about making prudent financial decisions that help you achieve your short and long-term goals.

It’s not complicated. It just comes down to what you need to do and then do it.

There’s a lot of concern about living on social security. One of the most commonly asked questions is, “can you live on Social Security only. The answer is yes, you can, but it depends on several factors.

I’ve heard many people say I can’t afford to retire, Most people over look several options costing them money in the long and short run. Read on maybe i will cover something you have missed.

• How much do you receive in social security benefits?
• How much debt do you have?
• Are you willing to relocate and able to relocate?
• Are you willing to relocate to another country? In some cases, this is the best option. 
• Your decisions determine your success in living on social security.
• A few things to consider if you are trying to live on social security only 
• Where do you live, or where do you want to live?

How To Live Frugally On Social Security

Living frugally can sometimes be challenging, even if you are still working. But how to live frugally on social security can be a bit more of a challenge because most people living on social security are unable to earn as much as they did, or they are afraid of losing benefits.2

You can live frugally while collecting social security and not risk your social security benefits.

Living frugally while collecting social security is the same as living frugally while you are still working. It’s about making frugal decisions.

Living frugally on social security only isn’t easy. You’ll need to form a frugal living plan. You will need to budget your money and save for upcoming events.

Pay Off Your Mortgage Before You Retire

The average retiree spends $16,723 annually on housing. That’s $1,393 a month for a place to live. That’s a lot of money. 

In retirement, most retirees find it more challenging to earn money. The wise thing to do is find ways to spend less before you leave the work world. And save the money you didn’t spend. 

One of the best ways to reduce your retirement cost is to pay off your mortgage. 

Avoid Claiming Social Security Before Your Full Retirement Age.

If you start receiving Social Security benefits before full retirement age, you can lose many money and opportunities. 

There are limits to the amount of money you may earn before you begin to pay penalties. In some cases, you could lose half of the amount of money you earn above the limit. 

Lost Benefits

If you earn more money than the allowed amount, social security could penalize you $1 for every $2 you exceed the maximum amount allowed.

If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2022, that limit is $19,560.

Know your benefits: What do you gain or lose as a result? 

Always consult a professional because mistakes are costly. 

Consider Waiting Until Age 70 To Sign Up For Social Security.

If you enjoy a job and are in good enough health to continue working or don’t need social security now, you could be doing yourself and your spouse a real favor.

If you wait until age 70 to collect social security, you will receive the maximum social security. 

Every year you postpone taking social security, your benefit increases by 8 percent. At age 70, you max out. 

Your spouse can receive your social security if you die first. If you live on both social securities, your spouse will lose money because they can collect only one social security. They can elect to receive your social security, but if you are already using that benefit, your partner will lose either their benefit or yours, whichever is smallest. They will choose between benefits at the time of your death. 

Aim To Maximize Social Security Survivor’s Payments.

After you die, your spouse will be entitled to your social security benefits. They will have the option to receive the higher amount. The choice will be between yours and theirs. 

The longer you wait, the more your benefit will be, and if your spouse needs to choose, they may choose the larger one of the two. 

Prepare For Temporary Withholding Of Social Security Payments If You Work.

If you start receiving social security and change your mind, you can suspend payments if you can repay the amount you have received 

You need to do this within 12 calendar months 

Consider Relocating To A Place Where The Cost Of Living Is Lower.

Here’s a hot subject because of all the nuances of finding and moving to a place where the cost of living is lower.  

Some people will brag about the low taxes; others will sport the cost of housing if you buy or rent. 

Others will tell you about the weather and the advantages of living where it’s warmer or cooler.  

The point is to consider all things before you move. Frequently people will get stuck on one point, and that’s how they decide. It’s not based on the big picture.

Rember the idea of moving is to live in a place where the cost of living is less. You are looking for a place you can live on social security.

Another issue is the cost of the move. If you decide to move, you will need funds, and if you make a wrong decision about where you will move, it will cost to move back. 

Please consider all of the aspects before making your final decision. 

Do A Social Security Do-Over

If you decide to start receiving social security benefits and later change your mind, you may take the request back. That’s right, but you can take back the appeal to receive social security once.

There are many reasons a person would want to start collecting social security and change their minds. It’s crucial to weigh all of your options carefully.

Not only do you have a form to fill out, but you need to pay back all money received, including money paid to spouse and children, based on the amount of social security you received.

You can’t pay social security off over time, and you can’t use a credit card. You must write a check and pay it off in one lump sum. This will be difficult for many people. 

If You Started Receiving Social Security Early 

If you start taking social security early, you leave a lot of money on the table.  The difference in taking your benefits early 62 but full retirement age is different for everyone because it’s based on their birth date.  

If a person starts to receive social security at age 62 and not their full retirement date, they could lose up to 30 percent of the amount they receive based on what they could have collected at full retirement. 

If you think about it, this is when earning money is more complicated. It may be a better choice to delay social security payments until reaching full retirement age or longer.

Every year you delay receiving social security after your full retirement age, your benefit increases by 8%. If you wait three years, that’s 24% more. 

Eliminate Debt

I know it sounds like a dream come true to be debt free, but if you are not yet debt free, this is the time to do it. Debt repayment will eat away at the money social security provides.

Down Size

Do you need everything you have? Probably not. It’s a good idea to get rid of the things you don’t need for several reasons. Our stuff owns us, and some things we have are luxury items, but we don’t need them even if we can afford them. 

Everything we own needs to be cared for. We vacuum, dust, oil, grease, reboot, update, and so much more. It’s time to enjoy life, not care for the stuff.

The other issue is, do you need that second car? If not, sell it. When you get rid of the other vehicle, you free up money. If you have payments, you will free up a lot of money. But if you don’t have payments, you still have insurance, fuel, and maintenance.

When you downsize, be mindful of what’s costing you money and what you don’t want or need. 

Get A Roommate 

Yes, I’m serious. A roommate can save you a lot of money in rent or mortgage payments and utilities. If you are looking for a roommate, read my article.

Entertainment For Senior

Entertainment is necessary. No one wants to sit on the front porch and do nothing for the rest of their lives. We all need a challenge. It can be in our work or the recreation we seek, but we all need entertainment. 

Colleges And Universities Allow Senior Citizens To Attend Classes For Free Or significantly Discounted Prices 

College isn’t just for the young. Going to college, when you enter retirement, you’ll meet more interesting people, give you something to do, and increase your odds of meeting new friends.

There are more and more secondary schools handing out financial breaks to seniors.

Move To an Area With a Lower Cost of Living

This is very controversial because of all that goes into making a correct escape plan that will work for you.

Planning and education is the key to your success. The more you plan and learn, the more likely you will make the best decision.

Frequently people make a decision based on only one or maybe two things. More often than not, many variables should be examined.

Recently I read an article written by a retired person who had moved to a foreign country because the cost of living was so low. He could afford to live and have a great time. 

He encountered a death in his family, and he couldn’t afford to go home to pay his last respects. 

Do your homework plan for when things go right and when things go wrong. 

Relocate To A Tax-Friendly State

Can we be honest for a minute? No one likes to pay taxes. If the only reason you are moving is to avoid paying taxes, what will you be walking into? Maybe a higher cost of living or a higher cost of owning and renting. 

Will the move really save you that much money?  Would the move be worth it?

Take Advantage Of Free Entertainment

Move To A Retirement Community

A retirement community is a housing complex or apartment-type complex for older adults who can care for themselves. Just think of it as a small community of older people that live close together to share property and enjoy the company of people close to their age.  

Some Of The Benefits Are 

 

• Low Maintenance Living

• Consolidation of Expenses

• Upscale Living

• A Vibrant Social Life

• Keeping in Shape

• Eating Well

• Learning, Growing, and Traveling

• Personal Care Services

• Transportation

Go To Restaurants That Offer Senior Discounts

This can quickly become a catch-22.  We all know we can save money by eating at home, but we enjoy eating out.  And we need a social life, maybe a dating life, usually eating out is included in this. 

The solution is simple. Budget your money so that when you eat out, you are eating out to enjoy. And not to avoid the cooking experience or to clean up headache.

Don’t Overpay For Prescriptions

Buying prescriptions is like buying anything else. You can walk into a business and order your prescriptions and walk out, or do your research ahead of time and save money.

Price compare, can you save money buying from some other vendor? If you can, and it’s not more trouble than it’s worth, do it. 

Other Ways To Save On Prescriptions 

• Sign up for home delivery. Home delivery is a safe and convenient way to get the prescription medications you take regularly.

• Opt for a 90-day supply.

• Go generic. 

• Stick to preferred pharmacies.

• Check out discount programs.

• Use your FSA, HSA, or HRA.

Volunteer

Volunteering is so important to many organizations. There are volunteers in every aspect of our lives. Hospitals utilize volunteers to staff the information desk and answer non-medical questions—boy scouts Girl scouts To teach young people usable skills. 

My hometown uses volunteers to aid people with their income taxes. 

• Volunteering connects you to others

• Volunteering is good for your mind and body

• Volunteering brings fun and fulfillment to your life

Retirement is about the quality of life, and if it’s not, it should be. You can gain more quality of life by being a good neighbor and helping where you can. 

Reduce Expenses 

Reducing your living expenses is frugal and saves money. There are many things you can do.

Turn off the lights when you are not in a room

Get a roommate 

Sell the stuff you don’t use.

Sell your car to save on gas and insurance. 

Drink less coffee, cokes, and adult beverages 

Drive less 

Use the library 

Cancel those programs you don’t attend anymore 

Cancel magazine subscriptions you no longer read 

cancel cable

Food Pantries

There are food pantries that practically give the food away. You may not always get what you want. But you will save a small fortune on food by going to food pantries. 

Shop at the food pantry for what they have that you need. Then buy what you’re lacking from a regular store. It really does save money.

Discounted Services 

• Medical Assistance.
• Transportation discount.
• Recreation centers discount.
• Restaurant discount.
• Grocery discount.

Second-Hand Stores

Salvation Army and Goodwill are only two examples of second-hand stores. There are plenty of other stores that sell used items, including clothes and kitchenware, and tools.

You can buy almost anything at a lower price at a second-hand store, saving you money. 

Sign Up for Medicare

Medicare has a program worked out like most other insurance.  If you are on medicare, not only do they pay for the majority of your medical expenses, but it decreases your out-of-pocket expenses associated with medical treatment. 

Ask For Senior Discounts

It never hurts to ask for a discount. The worst thing that can happen is you are told no. Many places offer senior discounts. All you need to do is ask. 

Increase Your Deductibles

Most insurance policies have a deductible you pay before they pay. the more your deductible is, the less your premiums are.

It may not make scents for everyone to do this, but it might make scents for you. 

Earn Extra Income

Most people can earn money even if it’s not full-time work or a desk job; you can make more money and relieve some financial pressure.

Consider Retiring Abroad

I touched on this earlier, but it’s phenomenal the amount of money we spend in America. The cost of living in America is so high. 

I have friends that have retired to other countries to live a happier and much cheaper life. 

Before relocating to a foreign country, you should visit it first. If you can afford it, visit several times to make sure you really do love the place.

Do some research and locate a place you love. 

Google what the cost of living in “name a country you may be interested in living in is. 

Conclustion

How to live frugally on social secuity isn’t difficult, living frugally on social security is just living frugally.