Budgeting with Social Security Income

By Heidi Green , last updated September 12, 2011

If you are eligible to receive a regular income from Social Security, you might be interested in tangible ways to budget this income. In many ways, learning how to budget your Social Security Income is a lot like learning to budget any other sources of money coming into your household. Because checks coming in from Social Security are a bit more stable, however, there is much you can do to plan ahead and incorporate the revenue stream into your future budget. As always, moderation is always a key element in any endeavor, including your budget. Read on to learn about some tips that will work especially well with you and your budget!

Retirement: Life and Money In Your Sixties And Beyond

One of the first questions that many people face when retirement is looming is financial in nature; how will you handle your budget when you don't have the security of a regular paycheck to back you up? Fortunately, if you are eligible for Social Security benefits, and you probably are if you are over a certain age, you can look forward to regular, if minimal, paycheck. While benefits vary from situation to situation, you can be reasonably sure of seeing some sort of stipend on a monthly basis. If you are fortunate enough to have a retirement pension, you already are aware of the benefits that come from a monthly paycheck. If you apply for and start receiving a Social Security check as well, you will be in an even better position to maximize your monthly funds.

Many people that have reached retirement age will still seek gainful employment. There are several reasons for this. First, keeping busy allows many retirees to maintain an active lifestyle and a healthy balance between activity and relaxation in their lives. Secondly, any sort of extra income is always welcome, even if it is from a part time or minimum wage job. After all of your sources of revenue are taken into account; Social Security checks, retirement pensions and extra income earned from a job, you can begin to budget out your finances.

The Fine Art Of Budgeting

To start planning out your budget, you will want to first have a general idea of how much money you are taking in on an annual, monthly and maybe even weekly basis. This will give you an idea of your living expenses. After you know how much money you will be receiving, you should take the taxes off the top. Chances are, you won't even see that money in the first place, so it is wise to factor that into the mix. After your taxes are taken into account, start taking away for your bills. Do you have monthly bills? Then subtract them from your monthly budget. Do you have yearly bills? Then take the amount away from your annual budget. Common bills include insurance, rent, electric and cable, but your particular bills may vary. Don't forget to include things like food and even entertainment. Once you have an idea for your expenses, stick within their limit.

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