Great Ideas for Stretching a Fixed Income

During your working years you and your spouse may not have been too concerned about what and how you spent your money. After all, you could look forward to pay raises, bonuses or promotions that would boost career income over the years.

Now that you are retired at home or residing in an independent or assisted living community, the days of counting on a increasing income are behind you. It’s time to relax and enjoy the financial fruits of a lifetime of hard work. But you need to be smart about it. You’re likely depending on a fixed income from a pension, Social Security benefits or withdrawals from a 401k, and you’ll want to do all you can to steward those dollars.

Being mindful of your money is the best way to make sure you can not only cover living expenses but occasional splurges like spoiling the grand kids, taking trips, and enjoying a meal out with friends. The good news is with a little planning, it’s easy to do. Here are some ideas for stretching a fixed income.

1. Create a budget. This is the first and most important thing to do. Start by taking an inventory of all income sources available to you each month. Then look at expenses. Add the total cost of mortgage or rent, utilities, food, Medicare premiums, car insurance, gas and any other recurring bill. That will give you a baseline on expenses you must cover and an idea of what is left over for the things and experiences you enjoy. Developing and sticking to a budget is one of the most effective ways to make your money last.


2. Take advantage of all the discounts you’re entitled to receive. You might be surprised at how many there are. A lot of stores, restaurants and other businesses offer discounts for seniors, veterans, and people with lower incomes. Sometimes these discounts are posted. Many times, you only get the savings if you ask. Don’t be shy. Speak up when you check out or sign up for a service. Research coupon codes and special deals online to save big on things you want and need. Every dollar saved on necessities is a dollar available for discretionary choices.







3. Shop smarter. Simply popping into a store and buying off the shelf will mean you’re paying top dollar, yet with little extra effort, you can find a deal. For example, if you’re in the market for an item like an air popcorn popper, rug, or shoes and clothing check sites like Facebook Marketplace, Nextdoor, and OfferUp. These are places where people go to sell unwanted – sometimes brand new – items for extremely low prices. To be safe, make arrangements to pick up your bargain buy at a public place like a supermarket shopping lot.


4. Pay in cash whenever you can. In addition to avoiding credit card annual fees and interest, paying in cash makes it easier to keep track of your spending. Plus you might think twice about making a purchase when it means taking money out of your wallet.


5. Join the club. If you’re not already a member, consider signing up with a wholesale discount retailer like Costco or Sam's Club. You’ll be stunned at how much cheaper groceries, personal care items like eye solution, supplements and skin care products, home goods and even clothing are. If concerned about the room to store items sold in bulk, go in on the purchase with a friend or family member. And stay for lunch: Costco is famous for selling tasty pizza, hot dogs and other fare at prices that can’t be beat.

Whether it’s taking advantage of discounts and deals, or doing practical things like taking public transportation, attending free events, or eating out less often, there are dozens of creative ways to stretch your fixed income dollars and enjoy life to the fullest.

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