You might be wondering if you can survive only on your Social Security payment as you get closer to retirement. If you aren’t disciplined, Social Security is considered a pretty meager source of income & might be tough to live off of.
Use the Social Security Administration’s Quick Calculator to get an estimate of your benefits. This will help you determine how much you should anticipate receiving each month.
You should make sure your lifestyle can support a smaller income if the Social Security cheque is less than ideal. Review your spending and make any necessary adjustments to your spending patterns before you begin collecting. In the long run, you will fare better if you are more prepared.
You Reside In An Affordable State
You can you that you can stay comfortably on a smaller income by relocating to a low-cost state. The quantity of reasonably affordable housing options accessible in the state of their choice is one of the most significant indicators, according to Michael Hammelburger, CEO & financial counselor for The Bottom Line Group.
If the person is able to find rental homes or housing that is affordable given their Social Security income, that is encouraging. According to a recent analysis by GOBankingRates on The Cost of Living Around America, Alabama, Kansas, Oklahoma, and Mississippi were the most reasonably priced states.
Conversely, the three most expensive states in the US to live in are Massachusetts, Hawaii, and California.
Your Debt Is Reduced
If you have consumed the time to pay down your debt, that is another important sign that you can survive on your Social Security income. Living on a less salary can be challenging if you have a lot of debt.
Living comfortably on Social Security requires paying off credit card debt and other unsecured obligations.
“Your monthly expenses will be significantly lower if you have no credit card balances, mortgage, car payment, or student loan debt,” stated Brian Meiggs, the founder of My Millennial Guide and an entrepreneur.
This will make it easier for your Social Security earnings to pay for necessities such as housing, utilities, and food. You may rely on Social Security for more safety and financial flexibility if you have less debt.
You Can Spend Less For Necessities
The average cost of necessities and public services is another metric. A person’s Social Security income will go further in an area if it has comparatively lower expenditures for things like groceries, transportation, healthcare, and utilities in comparison to other regions, according to Hammelburger.
“The direct result of lower prices on frequently purchased items is that individuals are now equipped to maintain a decent living-standard without placing undue stress on their fiscal resources.”
You Are Ready To Lead A More Modest Lifestyle
Making some compromises may be necessary to learn how to survive on the Social Security check that you receive. If your home is larger than you require, you may want to think about downsizing or choosing to use public transit rather than owning a car.
Setting priorities for your goals is crucial. You’ll need to make changes if you don’t want to work, yet don’t have any other income than Social Security. It’s not necessary for these changes to be painful.
The amount of money you may save by staying home and brewing your own coffee rather than hiring a barista might surprise you.
You Don’t Fear Having A Side Business
In conclusion, you may need to consider taking up a side gig if your Social Security earnings aren’t enough to cover your expenses. You can close the gap and make more money out of your Social Security benefits by working a part-time job.
Furthermore, you may be a little selective and discover something you truly enjoy doing because you won’t need your entire salary.
