I Retired on Just $2,000 a Month: Here’s How You Can Do It Too
Written by
Adam Palasciano
Edited by
Nicholas Morine
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Retirement should be a time of rest, relaxation, enjoyment, and more importantly financial security. With rising prices and stubborn inflation, the idea of retirement seems far away for many. In fact, CNBC reported that 56% of Americans say they’re not on track to comfortably retire. This is a concerning statistic as millions of Americans reach retirement age each year.
But contrary to popular belief, with careful planning and curtailed spending, it is possible to retire with lesser amounts of money and still live comfortably.
To prove this idea, I spoke with one such successful retiree and posed the following questions to gain more insight:
- What profession did you retire from?
- What year did you retire?
- How much money did you have saved in total by the time you retired?
- What is your total monthly income in retirement (from Social Security, retirement accounts, pensions, savings, other sources, etc.), roughly?
- How much are your current monthly expenses, roughly?
- How are you able to manage your expenses each month in retirement while still maintaining good financial health?
Amelia’s Retirement Experience
Amelia Thompson, a 62-year-old from Denver, Colorado, is a freelancer and former teacher who worked at various schools across the state. She retired in 2018 and managed to save a total of $150,000 by that time. Now, her total monthly income is roughly $2,000, which consists of combined funds from her monthly Social Security benefit, her retirement account, a small pension from her last employer and some money from her savings.
Her current monthly expenses are approximately $1,800 — including her mortgage which is almost paid off, utilities, groceries, health insurance and a small amount for personal entertainment and hobbies.
She explained that managing expenses in retirement has been challenging but manageable. She follows a strict budgeting system, limiting unnecessary spending while still enjoying her retirement. She cooks most of her meals at home and limits entertainment costs by enjoying free or low-cost activities. She sold her car and takes advantage of local public transportation instead. On top of that, she downsized her home and moved into a smaller, more affordable property where she currently resides.
One other key strategy that she’s found useful is investing a portion of her retirement funds into a safe, low-risk account. This has allowed her to grow her retirement savings slowly but surely. Through her efforts, she’s found her retirement to be comfortable and she leads a financially stress-free life.
Amelia’s testimonial is an inspiration to anyone who is currently retired or who is looking to retire soon. Even with a monthly income of roughly $2,000, Amelia has created a financially sustainable lifestyle for herself. She is living proof that with proper retirement planning, responsible budgeting, reducing expenses over time, and living below your means, retirement is well within reach for most.
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