Living on a Fixed Income-Managing Temporary Bumps In The Road

There seems to be a lot of financial talk on retirement blogs these days. Living on a Fixed Income and Managing It’s understandable.Fixed income is a type of investment that focuses on capital and income preservation.  Deciding what we want to do with the money we have, how to live richly on what money we have available, can be a challenge for the best of us.

Occasionally in life, we hit a bump. So it is in my life. For the next few weeks, my budget is what good ole Dave Ramsey would call “bare bones” and I would describe as somewhere between social security and starving college student poverty. A confluence of events have conspired to put me into this place.

Retirement savings are gone and social security has not begun, leaving me and my pension alone. While my businesses are moving forward, actual profit is in the horizon. My college student has lost his summer job and may need some minor assistance in the short term. Most importantly, I’ve made the financial investment to attend college-but won’t see the accompanying grant money for a good three weeks.

I speak of this not to whine (although whining has its place in the short term). but to share some truths about temporary times such as this.

In times of economic instability, the US Treasury guarantees government fixed-income securities, which are considered safe-haven assets.

Living on a Fixed Income

Living On A Fixed Income

First for living on a Fixed Income, situations like this are not the end of the world.  Temporary bumps in the road happen. It’s important to deal with situations like these and move forward. I could cry in my proverbial wine about having to put off or avoid regular activities. Instead, I look at it as a time to nest, declutter and relax.  I also remind myself that sometimes we make sacrifices for improvement or the better good. So it is in this case.  Whether my two years of education will lead me to a second career is questionable. But more knowledge and skills are never a bad thing, especially when such knowledge is gotten for better than free.

Secondly for living on a Fixed Income, because I am prepared or positioned in a generally positive way, some of the difficulties of a short term emergency are lessened. I am still not completely positioned the way I would like to be-there are steps to take.  But my  home pantry is stocked and have a freezer full of meat and fish on sale.  I have the necessities of my hobbies and interests at home, so I can do the things l love without spending money.  I have friends who also, overall, prefer social activities that are free or inexpensive. 

 I live in an area with easy access to libraries and free parks and events.  With one glaring exception (a choice not a need) that was long planned for, I need to spend no money other than for perishables.  As I mentioned in another post, I have no major savings to speak of-that will change with the receipt of my grant and increased business income (banked for emergencies). And I’ll admit my current budget is a work in progress. Oh, and having no debt other than my house and limited monthly bills remain an asset as well. If I had credit cards, a car payment or other costs, life would be different.

Finally-and the most important point:  To date, I feel neither deprived nor depressed.  So far I’ve managed to enjoy myself, be entertained, and basically have my normally enriching life without spending money.  Have I put off a couple things?  You bet.  Could I live like this long term?  The answer is probably yes, but without as much reward. I enjoy the occasional concert, the occasional dining out, the occasional national or international travel opportunity.  They are important parts of my life-but in the short term, I can live richly without them.

Life is about choices, options, and preparation and attitude (among other things). By taking small, baby steps here and there to prepare and position myself, I’ve made it easier to withstand this temporary downturn.  By accepting my financial situation and budgeting to deal with it (admittedly an ongoing process), I’ve reached an overall level of satisfaction  I’ve also limited (and continue to limit even more) the monthly expenses I incur, leaving more “disposable income”.Your Social Security payments may increase (or decrease) as a result of cost-of-living adjustments, but once you begin receiving benefits, your monthly payments are set.

I’ll certainly be happy mid September when that grant check arrives.  I’ll be happier in October when the first social security payment hits my hand and a few drabs of income stream money as well. Meanwhile though, I’m content. I’m happy, comfortable and know whatever happens it will work out-and that’s what counts.

oh, and that glaring exception. Its restaurant week here, meaning restaurant from the best french bistro on down have $35.00 prix fixe dinners where some goes to charity.

Frequently Asked Questions

What does it mean when someone is living on a fixed income?

Fixed income is a type of investment that focuses on capital and income preservation.

What are the disadvantages of fixed income?

Credit risk, market risk, movement penalties, hidden fees, and lack of transparency in results are just a few of the risks associated with fixed income investments.

Is living on a fixed income safe?

In times of economic instability, the US Treasury guarantees government fixed-income securities, which are considered safe-haven assets.

Is Social security fixed-income?

Your Social Security payments may increase (or decrease) as a result of cost-of-living adjustments, but once you begin receiving benefits, your monthly payments are set.

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