These are the sort of questions that are valuable to ask as we age. Hubs has a pension. I taught for many years, but in a Catholic school and wages were VERY low, so SS is low and I have no retirement… We were very happy living in MO and the cost of living is very low there. But because of family circumstances (caring for my parents), we moved to Iowa and the cost of living is MUCH higher. It’s not as high as places on the coasts or in Chicago, but our income didn’t change… just the cost of living. So we had to make decisions about how to live… what to buy… what were priorities… how to stretch things… etc.
There are some things that just aren’t negotiable. Property taxes are horrible here. It takes two months of our income just to pay property tax and property insurance. Our home is nice, but is a standard 3 bedroom home on a smallish city lot. It was built in 1980, so isn’t terribly old, but on the other hand, it’s not new and constantly needs repair and updates. We could move to something much smaller and in a worse neighborhood, but even those homes are high taxes. We have seriously considered moving to a condo, and even went to see one for sale last week. It had decent space but by the time we fixed items and brought it up to date, it was going to be costly. As we age, we have to consider things like lawn care, maintainence, cleaning, etc. I recently made the decision to hire a monthly house cleaner. It’s $70 a month, and as long as I can afford it, it is helping. But I also know that this is something that I can cut if needed. Hubs is 77; he has trouble getting up on the roof for repairs anymore. And mowing is becoming more difficult. He’s considering hiring it out. If we moved to the condo, there is no more lawn care or maintainence, but on the other hand, there is a $800 monthly HOA charge. So it takes a bit of weighing and balancing to make these kinds of decisions. Our kids have all said they will come and help on these things, but they live a distance away, and that has to be factored in.
Utilities are a standard rate, so we try to be wise in use. Hubs super insulated the house a few years ago, and that helps as we can just turn off the heat/cool for hours at a time. Water/sewer costs are out of sight. I have tried watering our garden, but the cost outweighed the cost of just buying veggies. Sad. We also think our cell service is expensive. But switching to another company will only lower our rates temporarily and then that company zooms them back up.
Other costs are clothing. I am at the point that I just don’t buy much anymore, except shoes. I need good shoes to keep my feet in good shape. Food is another cost, but it is negotiable. We are blessed to have both Aldi and the Amish markets close. So we eat well, but on a very strict budget. We have no need for new furniture, new linens, new kitchen things other than appliances that break down. We don’t need any new home decor, but may need to repaint the interior walls at some point. We don’t spend much on health and beauty things, although I do get a haircut about every 3-4 months.
We have Medicare plus a supplemental policy, and we have dental insurance. We don’t carry life insurance. Auto insurance is a bummer, but again, we are at the mercy of the company. And our vehicles will probably be the last we ever buy unless there is an accident. We don’t see at our age having the need for another new vehicle. But that also means regular maintanence to keep them running.
We have two expenses that we can cut WAY back on, but choose not to. I think it is important to understand what we choose… and why we choose. Those two for us are our charitable giving and travel. Our faith practice teaches to give out of gratitude, and we choose to be generous with this. No regrets and no plans to change. Our other “luxury” is travel. We have had some expensive cruises, and some very inexpensive weekend get aways or day trips. Whichever, it refreshes our soul. But we never go into debt for this. It just is worked into our budget.
We have been out of debt many years, and I am so grateful. It was hard to scrimp and sacrifice, but worth it. It allowed us freedom to put our earnings where we wanted them.We
Another thing to consider in all of this is lifestyle. We don’t judge these things on right or wrong… or moral/ ethical vs. immoral/unethical. It differs from person to person. We like to have family and friends visit. We like to host, but do so on a budget and try to be creative and imaginative as we do so. For example, one time we had a make-your-own-pizza party. I made bread dough for crusts, and set out sauces, cheeses, etc. It was so much fun! Our friends group likes to do pot lucks, and we get a great meal at little cost to anyone, but have loads of fun. We have never seen the need to spend a lot of money entertaining. We both have art hobbies. It takes some money to buy supplies, and we know this can be cut in a moment. But art fills our soul and satisfies that creative urge. We don’t spend on “vices” such as smoking, drugs, alcohol, gambling, and the like. While that may seem like a moral choice, it is more that we just don’t enjoy that lifestyle, so why do it? We love movies and shows, but because of my poor hearing, we choose to not do this. While there are frustrating situations in my life, I choose to be happy. And that governs just about everything.
We have to inventory health. So so important as we age. We try to stay healthy, active, busy, which is good for both mental and physical health. Hubs and I both have cancer, and while it is under control, the fact is that we have CANCER! We are in our late 70s and things fall apart! LOL! So we need to constantly look to the future with all of the what-ifs.
I’m sure there is more that we consider as we make financial choices and lifestyle choices, but the fact that you are thinking seriously about all of this is a great step forward.
I have been thinking also about what you had said earlier and above about the condo. I had it drilled into me from a young age that condo’s are a waste of money, either buy a house or rent - and I’m trying to think about it differently as the world changes. Also, like what you were saying about not wanting to do yard work maintainence - that’s important too. And house needs change - right now I have two children at home, but when it’s just me I don’t need all this space. Or kitchen space - I used to cook a lot more but now I really don’t so I don’t need a large kitchen or a new stove. I have a chest freezer because I used to stock up on things but as the kids have gotten older we don’t eat the same foods over and over so I don’t stock up as much and I probably don’t need that now.