$$$ Making Ends Meet? $$$

 

Let's face the facts living on a fixed income, is no picnic. Especially, when it's based on disability like mine is. You re juggling life expenses just like when you were working fulltime except now, you can't just go out and get a part-time job to supplement your income without jeopardizing the income you do have coming.  

(made up people names)
We've all heard or seen the stories about poor Mrs. Jenson who eats cat or dog food because she can't afford to eat regular food and meet her basic expenses. Or, how Mr. Clark rations out his prescriptions. He skips taking it as prescribed because there's a deductible on his RX plan, or it's too expensive even with his plan, or to make allowances for the dreaded Medi-Gap. This is more the normal rather than rare happenings today. It might even be you or someone next to you. And every day, I'm thankful for my departed beloved who still taking care of me that I do not have to face those choices. 

I'm not rolling in wealth, but I'm not that destitute either. I have a responsibility to maintain my financial status. I'll eat ground beef dinners rather than prime rib, but if I'm careful, I can afford prime rib about once every two months or so. My Momma always told me, if you want to control your finances, start with your mouth. When I look at my grocery purchases, it's true. The amount I spend in a month on "junk" and quick meals out (gas station sodas, Mc Donald's etc) was way out of control. 

Now, I follow the 50/30/20 rule and keep a kakeibo (Japanese paper budget journals). The 50/30/20 rule works perfectly within kakeibo system. The rule is 50% goes to fixed expenditures like rent, utilities, insurance policies. These have to be paid each month. The 30% is other wants/needs like gym dues, beauty shop/barber, internet, medicines, other bills, television subscriptions like Netflix. etc. luxuries like movies and cultural events/concerts, groceries also are placed here. The 20% is savings not to be touched except in dire emergencies or what you are saving for.

What??!!! Your figures don't fit within these guidelines? Mine didn't either at first. Don't give up yet. You may have to fudge a bit and gradually work towards this result. Start with the 30% set of expenditures. Divide it into two categories needs vs wants. Can you go without an item or cut the amount spent for a few months up to six months? The 20% can be cut to 10% for a few months while you get your finances in order. Remember, your savings are working for something you want/need like replace a broken/get a dishwasher, or a car, a trip, or a house. It comes right off the top after the 50%. The rest of your income falls in the 30% bracket. For the net two months, I've switched my 30% and 20% around with 30% going to savings because I've got an October deadline. So I've tightened my spending even more, but it's only in the short term. My Momma said, "Doing without your wants, won't kill you."

The system is adjustable. I purchase my prescriptions are placed in my 50% column at a fixed cost of $100 per month, but in reality always when purchased the cost is only $240. I get a discount for bulk buying my meds. That's a $60 built in cushion in case some doctor prescribes an additional medicine or two during a month like an antibiotic.  If not the money goes for Christmas presents for my family. I get a bonus about mid November & December when Med-Gap usually falls, but my supplement pays 100% of any prescription. I also met all my deductibles and my maximum out of pocket expenses in January this year, so all my medical, therapy, and hospital bills are covered 100%. Sweet!

Give it a try for a month. If nothing else, you have a black or blue and white idea of where every penny of your money is going.

That makes sense and cents.

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