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Living on a fixed income in retirement might sound constricting to some, but for Arizona-based retiree Gail Graves, her life has never been better. Not only has retirement given her more free time to enjoy life on her terms, but smart budgeting has helped her construct a fulfilling lifestyle.
Through a combination of a government employee pension, Social Security retirement benefits and a recurring retirement account (IRA) withdrawal, Graves has the same budget every month. She’s still trying new activities, traveling and living a healthy lifestyle, all while feeling happier.
Specifically, here are five ways Graves lives better in retirement than when she was working, while sticking to a budget:
1. Pursuing Free/Affordable Activities
With more free time in retirement, Graves has focused more on her hobbies and activities, many of which don’t even dent her budget.
“I found out that there are all kinds of wonderful, exciting things to do that are free,” she said.
For example, she’s joined Meetup groups for activities like hiking and cribbage for entertainment and companionship. She now plays cribbage once a week with friends at a senior center.
“We sometimes forget who just dealt because we’re talking so much,” she said.
She also enjoys cultural activities like local museums and botanical gardens, and she has the flexibility to visit when those institutions have free days or free hours. She also looks for free passes through her library.
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Graves also spends time volunteering, some of which serves a dual purpose, like exercising while picking up trash along a trail with a hiking group.
2. Spending Time With Family
Another way Graves has improved her life in retirement without being constrained by her budget is by spending time with family, including her children and grandchildren. She recently moved one town over to be closer to her daughter, while also wanting to leave a community where she didn’t feel like the HOA was in great shape.
Now she has the dual benefit of being closer to family while living in a 55+ community full of friendly people and activities that she may utilize more as she ages.
Meanwhile, Graves has plenty of free time to pick and choose her activities, but nothing so constricting that she can’t make time for her family.
“We have a rule: grandkids and kids come first. So if somebody’s got something going on at school or if they need me, I’ll miss an activity. No big deal,” she said.
3. Prioritizing Health
Looking for free and low-cost activities like hiking has an added health benefit, and Graves constructs her life in a way that prioritizes healthy habits. For example, she has the free time to go to the gym or hike at least five days per week. She also cooks at home almost daily and often takes food with her when going out.
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“If you’re trying to eat healthy, it’s better to just pack your own lunch,” she said.
She also often makes three meals at a time and freezes two.
“So if I get home and I’m in a hurry, I’ve got something healthy to eat, and I won’t go out to eat,” she said.
Meanwhile, making food herself helps her stay on budget. So in some sense, her budget supports her health. Being active and healthy also contributes to spending less money at the doctor, making it easier to stay on budget.
4. Traveling
Graves tracks her expenses and is careful with things like gas and groceries, with the big reward being that she can budget more for travel. However, Graves is still typically modest with her travel spending and ties it into other areas of her life, like focusing on health and family.
For example, she’ll take day trips or a three-day trip with her sister to areas a few hours away, like Northern Arizona. She’ll also go on hiking trips, like spending time in Yellowstone National Park and the Grand Teton National Park in Wyoming last year. She also hiked to the bottom of the Grand Canyon.
“I have traveled all over the place camping, which is much more affordable,” she said. “A campground with my camping group runs about $10 a night.”
5. A Sense of Acceptance
Lastly, living on a fixed income in retirement has the upside of helping Graves gain a sense of acceptance, making life more enjoyable.
Some people find that constantly striving for more income and more things to buy gets exhausting, as it can be a never-ending race. It can also make some things feel disappointing, as maybe you’re planning to buy a nicer car but feel stuck with your current car.
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But when following a specific budget, you might find that the best thing to do is embrace your circ*mstances, and that can be particularly helpful in retirement when you have more free time but maybe less earning potential.
“It comes down to accepting,” said Graves. “Yeah, I can’t go to Europe every year. I can save and I can go every couple years or something like that. But I can do whatever I want the rest of the time because I don’t have to work to earn money.”
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