7 Ways To Build a Minimalist Lifestyle That Can Sustain You on Only Social Security
Written by
Joel Lim
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Many believe life after retirement is only possible with millions in the bank. That’s simply not true. In reality, you might be able to survive on Social Security alone if you have a minimalist lifestyle.
The Social Security Administration (SSA) estimated that the average retirement benefit was $1,976 in January. Most people consider this amount too little. However, a minimalist mindset and some strategies can allow for this budget with a decent quality of life.
Some of these strategies include phasing out unnecessary expenses and prioritizing affordable options. Downsizing your budget and making smart financial decisions can turn your Social Security income into something that can sustain you.
Next, find out the best places to live on only a Social Security check.
Decluttering and Simplifying Possessions
Declutter your closets and storage, and keep only the possessions you need. Over the years you have worked, you have probably bought a lot of things. And you probably don’t use many of these items at all, which means they could be liabilities, taking up valuable storage space.
You can make a little cash by selling off some items, and if you donate them, you could get some tax benefits. For those renting storage units, the money used to rent these storage units could be channeled towards meeting some of your basic needs.
Avoiding Impulse Purchases
Remember that impulse purchases are also the enemy of decluttering. You cannot declutter and still make impulse purchases, because they drain your Social Security funds unnecessarily. Impulse purchases could also lead to accumulating debts — if you cannot cover all of your necessities, you may have to borrow money.
Replace impulse purchases with a simple approach called “one-in-one-out.” When buying something, ensure it replaces another item, which you should sell or donate. After all, there is no benefit in keeping too many items that you do not use or need.
Housing: Keep It Simple and Affordable
The second thing is to seek affordable housing. Many people, after retirement, cannot pay rent or a mortgage because it is simply too much. One solution that may help is downsizing.
When you retire, you’ll likely have fewer members in your household. Use this to your advantage and pay less for a smaller home, like a studio apartment in an affordable location — potentially even abroad. There are also alternative housing arrangements you can try, like living in an RV.
Why would you want to keep paying taxes for a large house with more rooms than you need? Cut your costs and move into a smaller, affordable home so you don’t go over your very finite budget.
Budgeting: Making Every Dollar Count
Budgeting is not just about listing what you must pay for. It is primarily about prioritizing “must have” items and determining whether you have the money to afford them or not.
Budgeting is also a form of preparedness. When you know where your money is headed, you’ll know how much you can afford to spend. And, if you don’t budget, your money can go faster than you think.
So, as a retiree with limited Social Security income, you must make a budget, maintain it and strictly follow it.
You can get help creting a budget from apps like Rocket Money or use a simple spreadsheet on your computer.
Food: Eating Well on a Tight Budget
One way of managing your food expenses effectively is through meal planning and strategic shopping at affordable spots like Trader Joe’s or Walmart. You could also try couponing or bulk shopping, which means you buy a month or several months’ worth of groceries in one go at places like Costco, typically at a discount.
You will also have to prioritize cooking at home, as it is more affordable than eating out. And, by cooking at home, you can make meals that are healthy and meet your needs.
And for those who are privileged enough to have space, creating a kitchen garden can help you cut down on food costs, as well, and is one of the best retirement hobbies.
The Oakland Press estimated that an average garden can cost $70 to prepare, but one can save up to $530 from the kitchen garden alone.
But when times are hard, do not shy away from getting assistance from food aid programs like SNAP or getting food from food banks, as they offer free or very affordable food.
Transportation: Cutting Costs Where Possible
If you live in an area with good public transportation, owning a car may become a want in retirement, rather than a need. It may be practical to get rid of your car and use the money on other necessities.
This is because car ownership comes with many expenses. You can avoid these unnecessary expenses like fuel, maintenance and insurance.
If you do need a car to get around, consider downsizing to a cheaper — but still reliable — model. You can also be healthier by biking and walking more.
Healthcare: Staying Healthy Without Breaking the Bank
Retirement comes with old age, which is a time when you are prone to illnesses. So, as you plan to save money, think about your health and the costs that may come with it.
The best way you can reduce healthcare costs is to maintain a healthy lifestyle: Opt for a healthy diet, be active by walking and biking like mentioned above, manage stress and ensure your well-being by making regular visits to your doctor. Living a healthy life lowers healthcare expenses.
But, even then, realistically, you will have health problems in your old age. So, you must utilize all the benefits that come with Medicare. Ensure you can access all necessary medical services at the lowest possible cost. Once you have retired, review your Medicare plan at least every year to choose the best and most effective coverage for your current healthcare needs.
It’s also to opt for generic medications, which could save you up to 85% compared to name brands, according to University of California’s Health Net. And always compare the prices of different prescriptions in different pharmacies. Some pharmacies, like Cost Plus Drugs by Mark Cuban, may offer better prices.
Entertainment and Social Life: Enjoying Life for Free or Cheap
Shifting over to a minimalist lifestyle does not mean you have to restrict yourself from having fun. Having fun is part of being healthy, and there are plenty of fun things to do without spending much money.
Many communities offer free local events. There are also certain sites where you can watch movies at no cost, and libraries offer books, movies, music and much more for free. You can engage in hobbies like swimming, crafting and gardening, which can be affordable.
In a nutshell, you can live on Social Security, but you must take on a minimalist mindset. If you keep everything simple and live in an affordable area, you can live off your Social Security check. You just have to know where your money is going and be conscious about it.
More From GOBankingRates
