Like most people I took a pay cut when I retired. How do I deal with making a lot less money? What am I not able to do? Am I going to be able to live within my means?
There are a lot fewer things I have to do. — Because I’m not at work all my time is mine. By that I mean I don’t feel pressured to find something to occupy me when I’m not actively doing something. Although I liked working, the time wasn’t mine, it belonged to someone else and thus was filled with things I felt obligated to do but which weren’t necessarily enjoyable. With so much time spent working or spent thinking about working I thought it was necessary to fill my down time with interesting, useful things to do, to stay busy.
The first few retirement months were spent weaning myself from being busy. I felt the need to be in motion, doing things, going places. After a couple of months I began to repeat places and activities and I soon came to understand that, with the passing of the initial novelty, I wasn’t really all that interested in most of them.
Gotta Go — I and my wife were going out for meals 5 and 6 times a week. Not only was that expensive, I really didn’t enjoy the food experience as much as one should (although I enjoyed the time with my wife). I found I got a lot more pleasure out of fixing those same meals at home myself. There were no time pressures and I preferred getting the flavors and textures exactly the way I wanted them.
We discovered there were very few other places we wanted to visit and most of those were one time events, never to be repeated, or not soon repeated.
Gotta Buy — I soon wondered why I was cruising the aisles at BestBuy and Nebraska Furniture Mart. I really didn’t need anything and I wasn’t finding anything that sparked my interest. So, unless I really need something (that I usually qualify by surfing the WEB first) I just don’t go window shopping very often.
Further, when I took the time to look around the house I discovered we usually already had something pretty close to whatever it was we were wishing for. I now know I have two battery operated hammer drills and five almost brand new caulking guns. In addition we have enough peanut butter to last us 15 or 16 months.
Gotta Spend — I have the ability to spend every dollar I start the day with and yet end up with absolutely nothing to show for it by the time I arrive home (not even receipts)! I highly recommend putting yourself and your spouse on a weekly allowance you can both live with. While this may sound restrictive I get a perverse satisfaction when I’m able to play all the golf I want and can still afford Lottery tickets at the end of the week! Mind that this allowance is not for essentials, food, gas, and the like, but for the optional things we all want to do or have. This also causes us to save up for the more expensive things we want to buy periodically.
We have taken to trading in some of the things we have to get other things we want. A quick trip through our extensive home library ultimately netted us several hundred dollars at our local used book store. Surveying the games we never use permitted the purchase of a new release that’s actually being played.
Gotta Nothing!!! — There is nothing I’ve gotta do.
I read my magazines in the library and on the WEB. In doing so I don’t have piles of them sitting around or heading for the trash every month.
Cooking twice a week, when supplemented by the occasional large frozen pizza and some deli chicken with potato salad provides all the non-breakfast meals we need. And there’s nothing like a nuked potato, butter, sour cream, bacon bits and shredded cheese to hit the spot for a quick meal. Oh, don’t forget to sprinkle some freshly diced onion on that.
Our primary entertainment consists of a satellite TV feed with the mandatory DVR — time shifting and commercial jumping are obligatory for the spouse — and a broadband Internet connection. Sports, the Science Channel, Discovery, Golf, etc., are required and my wife has to have her reality shows. The Internet feed supports NetFlix and Hulu as well as casual surfing and general bumming around. With a WiFi hot spot permeating the whole house not being able to sleep is an iPad adventure while remaining comfortably in bed.
Believe it or not, with a little prior planning for the big stuff and devoting a couple of months for winding down from “having” to do things, one gradually finds there are not a lot of things that require Outgo. We now spend money on things we “want” to do. We both do things that don’t cost a lot simply because that’s what we enjoy doing. In the meantime we keep putting money in the bank against the next big purchase we either need or want to make.
Lastly, I had always complained about not having enough time to read all the things lying about nor having time for my absorbing but irritating book of 500 Sunday crossword puzzles. Guess what, neither of those activities cost a whole heck of a lot and both are very satisfying.
We have managed to settle into a satisfying batch of activities that keep us both interested and entertained. Of course we are not driven to see the world nor do we have particularly expensive tastes. So, for us (and me in particular) retirement is not expensive yet it still meets and completes our basic needs. At least that’s true today, we will just have to see what tomorrow brings.