Friday, September 13, 2019

lowering the budget to match Social Security income

In a year Hubby will be 62... we have debated on whether to take social security or wait

Why are we looking at it now?

First he decided to not go to ODOT for the winter. If they could have promised him 3rd shift I think he would have but they couldn't.

Second , the RRA his company put aside for him that pays our health ins runs out next Oct. That's $1200 a month that will have to come out of our pocket. His social security would cover the mortgage (which is more than the health ins) freeing that money to pay the health ins. BUT not sure that is the answer at this point.

Third,  a friend suggested we leave the annual payments in the IRA until they are due and then  month before pull that extra amt. Our finance guy suggested  put half in a savings acct we already have that pays more in interest than our regular bank and leave the big ones like propane in the IRA.

SO We decided to live on the "budget" of social security and see if we could do it and how much we would still have to pull from IRA... looking at what he earned hauling in a year (that will be late April minus costs as it's a paying hobby not a business but still we do all of it) and what we can pull on top of SS and earnings and not take the hit on taxes

SO digging through the budget

1/1/2019 the budget was set at $8794 based on 2018 (2 homes for 6 months)

8/1/2019 the budget came in at $6123 (even after 100 degree days)

9/10/2019 the budget hit $7695. I paid off some extras that incurred while doing this home and moving just to get them out of my hair and not incur interest.

Last night 9/12/2019 we set the budget at $5883... we would have to pay the mortgage and truck from IRA at the budget. Social security would cover the rest.

That really limits us in some areas that I am not sure we can go as low as we set it.

What it affects?

I will not be putting in a garden next year as it would cost us $2500 to finish bringing up the soil at this point to have it ready for next year. Hubby talked to 3 of the ones that send produce to Produce auction and they are willing to sell us what I am looking for in the amounts I want based on what the going price at auction was. AND they are basing it on Tuesday auction where they actually get more money at Friday auction. They judged we would be spending close to $400 including canning lids according to the one that actually just set up her youngest and new hubby as they didn't have a garden this year.One heard I was looking for beets last month so she planted extra to come in later this month. I will buy soil for my grow bags to grow a few things I want. I can get the soil at the end of Sept/ Oct when the stores are clearing those items.

I will buy frozen yellow corn, broccoli, cauliflower, Brussels sprouts, peas and peas with carrots during Kroger's 10 for 10 sales.

I will get my acorn squash from the place I usually get my squash. The rest was grown by Amish so I don't need anything else. I only got pie pumpkins this year and no regular pumpkins.

Son 2 is military. He is going to check out his commissary to see if they carry things that I normally buy at Sam's club and if which is the better price.

Right now I save more that my prime membership at Amazon costs me.

It's going to be an interesting year.


  1. We were at Sam's last week and I was quite surprised at how high prices were there. I actually wonder how they are Keeping the doors open when there is so much competition and crazy low prices all over town. Milk was $2.96 a gallon. Every other store on that side of town has milk for $1.06. I know that SS decision is a tough one. There are so many opinions on it out there. We did not have to make the choice since Hubby was disabled from one day to the next. SSDI requires us to wait til full retirement age. We are fortunate that our house was paid off before the disability occurred since our income went to half.

    1. I know we ended up buying sugar at Walmart for $5 cheaper than it was at Sam's Couldn't Figure that one out.

  2. Interesting experiment. I took my ss at 62 and never regretted it. But it worked financially for me.
    Maybe, considering your health problems,it's time to give up a massive garden. Hard to imagine you coming out ahead with paying 2500 dollars just for prep.
    Also, your budget figures confused me. Was that for monthly expenses?

    1. budget is month... we do have annual bills that we divide by 12 to get the monthly amount and that amount goes into Ally saving.
      I know when I got the cost to finish bringing the garden up after paying $300 this year I was like NOPE. I will do grow bags, pots and maybe a square foot for salad stuff but definitely will be buying from the Amish in this area.

  3. It will be interesting to see if you can do this.

  4. Hopefully you can make this work. It's hard but I know it can be done. We retired early he was 49 and I was 47. He had a pension. That was 11 years ago. It's hard work but we have done well. I think not having a house payment was the best thing for our budget. That made it work.
    I have grow bags and grew some potatoes and lettuce in them. Not a lot of potatoes but it will be a lot more next year. They actually do better here in the grow bag then in the garden.

    Not sure why you have to spend so much though to get your soil ok. We have never even had ours tested. Of course I'm thinking about it this year because I want it to be as best as it can be for this next season.
    Have a great day.

    1. I tested ours. NO nitrogen or potash. Literally none. We did get it up some but the agent figure out how much more for both gardens and what it would cost. We might put manure on the north garden as it has the berry bushes and strawberries along with asparagus.I have grow bags, grew gourmet potatoes in them very well but the sweet potatoes didn't do a thing.