# Making a budget work



## ladytoysdream (Dec 13, 2008)

I just did a budget for the new year based on what we had go out this year. 

If someone else saw our budget, they would be dumbfounded that it even works for what we have coming in on paper, versus what needs to go out. 

Hubby wants to retire in less than 2.5 yrs. Early retirement so he can draw SS. He wants then to work for a farmer part time, during harvest mainly. 

I am frustrated with the current budget. We have one year to go on his truck and then hopefully can use that extra money to pay down on the HEL. 
We can't make a budget work in retirement, with what we have currently going out monthly.

I talked with a good friend yesterday. This spring, their plans was for her to retire when she turned 62. Then he would work till 65. So she just turned 62 this fall, and now tells me, she will have to work till she is 65. He won't retire till she does now. It will take like 3 yrs to get their extra bills cleaned up. I guess that means the camper they bought this summer. 

So.........
have you put pen to paper and have a working budget for now ? 
And then for retirement ?


----------



## Ramblin Wreck (Jun 10, 2005)

I developed a budget before retiring, and it has proven to be fairly accurate. I bought some adjoining land, which wasn't in the budget, and I had some tax savings from putting the farm in an agricultural covenant. If I have a bad month financially, I just stay home the next month. It's amazing what you can save just by staying home. Also, living below your means helps too.


----------



## Colorado (Aug 19, 2005)

Budgets are fun deals. I am having to re-do mine for the coming year. I have had to add in things this year that I had not planned on. And last year. 

I read all I could find before I retired. I have been retired 8 years now and was wanting to work a little longer. I believe it was Money magazine that had the best piece. Said retirement was like a 3 legged stool but had changed to a 4 legged one to make it work. SS, pension, and savings had done it for people, but way things were going and this was years ago, that one would need part time job added to that. 

SS is not enough to live on like you have, many times not enough to live on at all. The pension and you savings come in to cover some more. BUT as you get older you can have more bills coming in. Medical things do happen to some of us as we get older. Things wear out and have to be replaced. You can not live to the hilt of your income to start with. We never know how long we will live to stretch out the money. 

A college professor told me he want to retire early as had had one heart attack already so he knew what thier income woud be in retirement and they started living on that amount and saving back the rest. He was still working and had some costs because of the job and they could make in on that amount. I thought that a good idea and tried it. So living below my income and saving more. When I retired I was already budgeted down. I have stuck to that for awhile and everything got so high I had to add more per month. Now time I need more per month again with raising costs and medical bills I starting having. My pension ends within the next year. It will be paid out. 

Ones needs to have things paid off and be debt free. (inless you have a darn good income to cover it) I retired at 72, I had to work that long to build up my SS and pension. I am felmale and now 80. Yes, it takes planning. 

Yes, one sure can save money stayig home. Even a few dollars at the thrift add up.


----------



## SageLady (Jun 10, 2008)

We retired completely debt free - no mortgage, no car payment, no credit card bills, and we have a budget for our monthly living expenses. But of course, everything costs more these days so we've had to cut back here and there, plus rethink our budget at times and fine tune it a little, and then there is always the unexpected expenses that throw the budget off as well. We do the best we can with what we've got and it all seems to work out - at least for the time being. We are worried about the future with inflation and all. I would advise anyone that is retiring to have ALL of their bills, loans and mortgage paid off first...


----------



## farmerj (Aug 20, 2011)

Did you plan for inflation in your budget as well as maintenance costs?

Both should be a line item


----------



## Jokarva (Jan 17, 2010)

SageLady said:


> I would advise anyone that is retiring to have ALL of their bills, loans and mortgage paid off first...


We both retired this year at age 55, never would have considered it if all our debt wasn't paid. We have decent retirement income and some savings...so I don't have a budget per se, but I do keep an eye on every penny that leaves this house.


----------



## Gianni (Dec 9, 2009)

I considered going @ 60 1/2 but rolled a truck last year after buying a car the month before. Now it will be 62 minimum.


----------

