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That said, millions of Americans do it every year.
GOBankingRates spoke with Diane P., a 68-year-old retired teacher whos learning to live comfortably on a fixed income.
Fixed Income
Diane broke down the specific numbers.
I get $2,850 in Social Security benefits each month, plus $2,200 from my teachers pension.
I paid off my house last year, thank goodness!
But property taxes, insurance and utilities still add up.
Michigan winters arent cheap to heat through, she said.
Medicare Part B premiums take $174.70 right off the top of my Social Security, she explained.
Then theres my supplemental insurance, prescriptions and dental care nothing is truly free in retirement!
Ive gotten pretty creative with meal planning.
It saves money and keeps us social!
My car is paid off, but theres still insurance, gas and maintenance, she said.
I have a go at combine errands to save on gas prices are crazy these days!
and occasional movies with friends, staying active is worth every penny, she said.
I set aside money each month for visits to see my grandkids in Colorado.
Having a dedicated travel fund means I never have to miss the important moments, she said.
Emergency Fund: $200
Diane learned to feed her emergency fund, no matter what.
After my water heater died last winter, I learned the hard way about keeping emergency savings.
Now I put away a little each month, just in case, she said.
However, this usually gives her some money left over.
I keep that extra as a buffer or add it to my emergency fund, she said.
And for those looking to retire, consider this advice from Diane.
Track everything for at least three months before retiring, Diane advised.
And add 20% to whatever you think youll need there are always surprise expenses!
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