This is not a political post.
Yes, we, as retired people, have our own economy.
My husband is over 65 and I am under.
The year before we retired money was tracked carefully. To the penny, it was tracked. Weddings and first houses, bought. Education, as far as our input, was done. Mortgage was finished.
Our income stabilized quickly. Cost of living adjustments, addition of my pensions (2022) and my SS ( 2023) will be the only changes. After that, until one of us kicks the can, it will stay the same.
1) Come up with a rough food budget.
All of our groceries, OTC meds, paper goods come out of the same pot.
We add in any food we buy when visiting friends and family- since we do it often.
2) Look at the yearly price of things and divide by twelve.
House taxes, House/car/health insurance, car maintenance, doggie bills, propane, presents, smaller trips, house maintenance. We added all the bills up in each category and started a savings account for each. Retirement money comes in, these savings accounts are filled.
A huge plus this year is we are paying hardly any income tax! Hurray for the new accounting.
3) Spending money.
We are, both, pretty independent. Neither of us likes to "report" to the other. We started an allowance years ago. Right now it is about $300 per person, per month. Neither of us spend on impulse (well, there are times....). The allowance has us saving for things that we want or need. My husband has two hobbies, I travel.
Currently we save about 10% of our monthly income.
We have a nest egg, but you never know what is coming. This is also the money for emergencies- like the roof- and major travel. We will withdraw about 2% this year. It is saved in a combination of CDs, Stocks and (gulp) savings accounts.
5) Everything else.
Gas for the cars and electricity are about $100 a month a piece. Dinners out are simple. Runs to Walmart for the little things. Books, music. The only nemesis is Amazon. We are going on an Amazon fast beginning in April. Really, we are!
I keep one other set of books- investments. Our net worth- sans cars/house/Johnnyboat- are kept in a book. I've been doing it since 2005. It is fun to look back to see our money grow.
We don't have a lot, but it works for us.