It’s almost January of 2026 and I’m starting to work on next year’s budget.

Hubby and I each got a 2.8% increase in our social security payments.  Unfortunately, our Medicare premium went up by about $18/mo. each. Our Medicare supplement premium is going up by $11/mo. apiece. Our trash and sewer bill is going up by $3/mo. that we will split.  And, the taxes we have taken out of our payment also increased.  My taxes went up by $10.10 and hubby’s went up by $5.70. 

After all the expenditures were deducted from our 2.8% increase, I ended up with an extra $8.10 to spend and hubby ended up with an extra $6.20 of spending money.  I’m not sure we can even pay for one fast food meal with our extra funds.

What this meant is that I had to start looking at ways to adjust our budget to accommodate our huge influx of money [sic].  In all honesty, our budget is pretty much cut to the bone already, just like many of you.  However, I did find one place to cut.  I noticed in our escrow fund; we did have enough money that I could cut our monthly input a little.  Going forward, I have adjusted that budget line item down.  When I pay our property taxes next May, I may or may not adjust it up or down depending on how much is left. 

Additionally, I will add our vast [sic] additional income into our medical budget area as our deductibles have gone up and we will have to cover those.  I am also considering changing our internet service to a lower cost provider.  I’m not under contract, so it is doable.  I could save additional costs there and it’s something I have control over.  Realize that we will still live on what we’ve been living on before, just with some tweaks.

Moral of the story:

Yes, I am still working on next year’s budget.  If I can squeak out a little more from somewhere else, I will.  Just be aware that if you’re struggling, you’re not the only one.  Even though I have this money stuff pretty well figured out, for the most part anyway, I still have to adjust my budget to accommodate our income.  Just like you, there are times I have to scrimp to make the numbers work, but it IS worth it in the end.