Na Na pinches her pennies
Shh… don't tell anyone I'm poor. They all think I'm living frugal and green just like everyone these days. This is a blog about a senior citizen living a frugal life, on a fixed income, in a low income food desert, and passing along knowledge from lessons learned. Some she learned from her Grandma Mama many years ago and some learned only a few days ago.
2024 budget lay away
Is your bank account balance dropping as fast as the winter temperatures? Mine is. Please don’t misunderstand this post. I’m not complaining. I’m just explaining my 2024 monthly budget.
I have no control over the amount of Social Security I get each month but I am in complete control over how I use it. After deducting my new Medicare plan premiums my COLA monthly income is now at $1479 a month. I can’t remember who asked but someone wanted me to show how I break down my monthly spending.
Here is my 2024 budget for all to see. The expenses inside brackets are not counted because they are covered by tips from Samaritan angels every month. I list them only to remember what must be paid each month. Without the tip money I’d have to give up some things. I’ll show you the budget and I’ll explain how it works below.
| Expense | Monthly amount | Notes |
|---|---|---|
| Mortgage | 550 | Always paid first |
| Louisville gas & electric | 200 | This will be higher due to the new furnace |
| Water & sewer | 60 | It’s mostly for sewer |
| Medication | {25} | Covered by tip money |
| Doctor co-payment | 30 | (90) every 3 months |
| Vitamin shots | 30 | 15 per shot |
| Phone & internet | {125} | Covered by tip money |
| WordPress | {15} | Covered by tip money |
| Life insurance | 10 | Direct deducted |
| Burial | 110 | Direct deducted |
| Insurance dues | 3 | 36 paid yearly |
| House insurance | 147 | (1764) 882 twice a year |
| Car insurance | 150 | (1800) 900 twice a year |
| Car tags | 15 | 180 paid yearly |
| Car maintenance & gas | 50 | 600 guestimate |
| Property taxes – Shively | 20 | 240 paid yearly |
| Property taxes – Jeff. Co. | 38 | 456 paid yearly |
| Eye specialist | 25 | (300) 150 twice a year |
| Emergency repairs | 21 | You never know what might happen |
| TOTAL MONTHLY | 1458 | |
| Balance left for other stuff | 20 | Use it wisely |
Do an internet search for how to set up a budget bill paying system and you get all manor of styles from envelope stuffing to bullet journal binders. With my own personal budget I don’t need any of those. All I need is a once a year list of what must be paid, how much, and when each bill will be due. I list my monthly payments, my yearly payments, and all the irregular payments. If my list contains more payments than I’ll have in money monthly I start eliminating items one by one until I have a balanced budget.
My budget is based on how much I must save each month in order to have the money to pay an expense when it comes due. A yearly payment is divided by 12. A three times yearly payment is multiplied by 4 then divided by 12 for the monthly amount. Once I know a total amount I need to save from each month’s SS income I won’t touch that money for any reason except payment.
Do you remember the old layaway plans for buying items in stores? That’s what my monthly bill paying fund is – a bill paying layaway. I never think of the money as a savings which I can spend and make up for it later. I think of it as money already spent.
My mortgage payment is always paid first. Absolutely no exceptions. I can manage to survive without anything or everything except the roof over my head.
Second is always setting aside for the sinking fund (layaway) to cover all the irregular expense payments. This year the monthly amount being set aside for the sinking fund is $458 each month. I never touch the savings for anything other than the intended expenses. No exceptions for this either.
My property taxes are low because I applied and qualified for the homestead exemption. I get a 30% senior discount on the sewer portion of the water bill but not on the water portion.
I mustn’t forget to mention the occasional tip angels. Their tips are not as often or as large but I’m grateful for them. A one dollar tip will buy a bag of discount produce. A five dollar tip will buy flour and yeast to bake bread. A ten dollar tip will pay for non-edible grocery items. When I’m gifted an item from my Amazon wish list or get an unexpected gift (toilet paper for a year) I feel very blessed. The angels give tips for the right reason and its up to me to do the right thing with those tips. I do hope I’m doing it right.
I believe that covers everything for my 2024 budget. Can you understand why visiting the drive through foodbank and preserving the food is so important to me? My new year goals are to do more posts showing the ways I live within my means. I had thought about doing one of the no spend challenges being issued by blog writers and youtubers but I already live that way so I would be cheating.
If you don’t like where you are, move. You’re not a tree. Stay safe, stay warm, stay frugal, Anita
Na Na pinches her pennies 
This is awesome Anita. I am amazed our incomes are quite similar. My saving grace is that there are two of us, so double the income. Our expenses are more than yours of course but I use the same budgeting method, I call it the squirrel system because I squirrel away money and food for late expenses. I have found that I do not qualify for any kind of assistance including food banks just based on my income alone so I am in total accord with you on the SNAP benefits, totally not worth the bother. I do, however receive a nice little stipend for groceries through my Medicare Advantage health insurance. Thanks for posting this, it reminds me that frivolous spending adds up! Best wishes and be blessed ~ JP
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Thank you JP. The drive through foodbank that I go to doesn’t require any paperwork or income verification. Anyone can get the food with no paperwork required. Just sign my name and how many in my household so they know how much food to bring to distribute the next time. It’s a program to keep still edible food out of landfills.
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That is a truly awesome program. I always feel guilty taking free stuff but it does keep it out of the landfill doesn’t it. My son uses a similar system in the northern part of the state. Fortunately Lexington is far from a food desert (lol) lots of hungry students to feed!
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I felt guilty at first too. But I really needed the food and someone pointed out to me that no one should feel that way about rescuing good edible food from ending life in landfills. People need the food more than a garbage dump needs it. I’m glad you and your son are rescuing foods,
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Sent you a couple of emails – plz read.
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Got them, I replied.
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Thank you so much, Anita, for sharing your income and budget information. Wow! You really live ‘paycheck to paycheck’ and there is no room for a grocery allowance. Nutritious food, to me, is essential for good health. Thank goodness you have the knowledge and ability to make the most of the food you receive. It is sad to see how much we have to pay for the various insurances and all that ‘needs’ to be insured. My car insurance, too, seems ridiculously high. I don’t carry life insurance or burial insurance, opting instead for a funeral fund to cover basic cremation (I don’t want a funeral). Pre-paid burial funds are also an option. Thanks again, for sharing this intimate information. Off to create my own 2024 budget!
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Are you going to do the layaway budget? Yes, paycheck to paycheck is how many people live these days. My hope is that my blog and youtube will be of help those who struggle to see what is possible.
My life insurance is an accidental death policy through my bank. Just in case I get hit by a car or have a bad fall. I have a prepaid funeral. I paid it off a few months ago. Now I’m paying on a spot near my deceased sons and my mother. I used the spot I previously had for myself to put one of my sons who died suddenly. I’m paying a little extra each month in order to pay it off quicker. Hugs,
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I think you’re better off dropping the accidental death (remember, the coroner has to deem your death an accident in order for it to pay out) and put the money towards food.
Is it an AD&D policy or straight accident? What is the benefit amount?
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It’s an AD&D. Accidental death such as a fall down the stairs or by a hit & run driver while walking or even falling in the bathtub. I’d have to look it up to be sure but I believe it also covers me in a car wreck if I die. The benefit would be 60K to be divided among my kids.
Selena please don’t worry. I won’t go hungry because I have plenty to eat and a nice fridge to keep foods fresh. 😉 If it ever came down to no drive through foodbank anymore I still know where all the soup kitchens are located. I volunteer at a couple of them on holidays. Hugs,
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Do both of us a favor and make sure that AD&D covers you at your age. Typically AD&D policies “expire” at a certain age.
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Ok.
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Yes, I will do the lay-away budget. I am fortunate enough to have a tad more income along with less overall expense. I think I am going to do a no-buy year. I think I don’t buy a lot but, if I am being honest with myself, I would realize that is not true. I need to be more disciplined. Again, thanks for this post and for your blog overall. I find it very inspiring.
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Maybe you could do what I did to discipline myself to buy less. When I was running my quilting business I was terrible about paying for little stuff until I had nickel and dimed myself broke. I wanted to keep track of my spending but writing amounts down was much too easy to forget. That’s when I decided I didn’t need to write everything at the minute I bought something. All I really needed to do was keep the receipts.
I got 12 small envelopes. One for each month of the year and labeled them for the months. Every receipt was put into the envelopes. If I bought something and wasn’t given a receipt I wrote what it was and the amount on a piece of paper and stuck it in the envelope. Some example of places that don’t give receipts are yard sales, family restraunts, and ball game concessions.
At the end of each month I wrote on the outside of the envelop a general description and amount. Such as groceries-$$, gas-$$, ball game-$$, yard sale-$$, thrift store-$$, and so forth. Then a total spent that month. What is so nice about the receipts envelopes is that I can tally it up at my convenience instead of trying to remember to carry a little notebook.
At the end of the year I tallied all the envelopes together to see where all my extra spending was going. You would be surprised what information you can gather from simply keeping all your receipts. I still do the receipt envelopes although they are mostly empty these days. This year I discovered how to make money by just keeping my receipts.
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Thanks for the tips, Anita. I have done the envelope and receipts in the past. I’ve also done trackers and notebooks. I find that I have a ‘Scarlett O’Hara’ type of mindset- after I spend outside of my budget, I promptly don’t think about it! It’s my form of denial! But I am definitely going to get more serious and work to reduce consumption outside of what I need to do to stay healthy- fed, sheltered, dry, warm, cognitively intact- just the basics. Other than walking, gardening and reading, I really have no hobbies. I am a full-time caregiver for my special needs brother so my social life is nil. And that suits me fine as an introvert.
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At first I thought that as your pension is much more than mine that you would be better off but your outgoings are huge compared to mine. It’s good you know how to be frugal.
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Yes, every person’s is different depending on their work history.
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‘I do hope I’m doing it right.’
You’re doing it right!
Merry Christmas Anita, Healthy New Year 2024.
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Happy holidays to you too.
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Your car and homeowners insurance seem a bit high to me. You are paying more for your car insurance than I do on my 2019 SUV.
And people in my state need to stop kvetching about cost of tags (plates).
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I anticipate several of the figures to change in the new year. Yes, the insurances are a bit high. I live in an area with the most accidents, my long history without a car, and my age put me into a higher risk category. My home owner insurance should go down a little because I’ve had it long enough to establish a history for both the car and house. When I moved here I didn’t have an insurance history on the house which also put me into a higher risk category. I really should have had the company do a re-evaluation this year but I totally forgot. The next payment is in June so I’ll make a note to have them do one right after all the work is finished. Hugs,
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I find that as a senior citizen I have different wants or needs. New clothing is not important, and most household items I already own will last me the rest of my life. Of course linens and towels will wear out, but those can be bought second hand. Food and health/ household products are the great unknown. Stores can ask whatever prices they want. We still have to buy those things. Your budget is right to the bone, so food give aways are vital for you. Can you qualify for SNAP? You seem to be right on top of things and succeeding in staying on budget. Thanks for your interesting and encouraging blog.
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So true Debby, our senior needs are different. I could get $16 a month in snap benefits but the twice yearly paperwork required and having to tell my neighbors about my personal information makes it not worth the effort.
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I’m curious to know why you would have to tell your neighbors your personal information if you had SNAP?
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Last time I checked it was required that anyone applying for SNAP must have two people such as a neighbor, not a relative, sign papers telling what your home situation is. How many living in the household, who have jobs and where, what is their income and that sort of thing. The amount I could receive on SS was $16 a month. This had to be done twice a year. I believe $16 is the same amount for everyone on SS. People on SSI get more because their income is less.
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Wow, In Oregon, we just have to submit papers (bank statements, Social Security annual letter of benefits & Utility bills) for documentation!! No snoopy neighbors!! Our utility bills have the monthly bar graphs for a year, so it is easy to figure out what the monthly average turns out to be. Our senior benefits, after a couple of years, are on 12 month renewals.
I think that the minimum SNAP benefits are now $23/ month & the monthly income for a single person or 2 is https://www.usatoday.com/story/money/personalfinance/2023/12/20/2024-snap-benefits-increase/71975285007/
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According to that site my income would be too high to get the $23 monthly. I’d have to report the tip jar money as extra income.
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Thank you Anita for sharing your budget. It makes very good sense to me. I also like that you call it a “lay away” I look forward to your coming posts on how you live with in your means.
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At first I wasn’t sure about putting so much of my information on the internet. Then I realized my blog would make more sense if readers know the reasons I do what I do to survive. Thank you for letting me know it makes sense to you.
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