How do u live on $700/month, truly?

[tx2sturgis]

SSI is social security income that you earned based on what you payed in for the many years you worked before you reach the age where you can collect it.

SSD is the one for disability. It may also be tied to how much you paid into Social security.

Just a minor correction: SSI and SSD are 'needs based' benefits.

Social Security Retirement Benefit is the benefit based on eligibility determined by your age and how much you paid in over your working life, and that is the one that is not based on 'needs'

I collect retirement benefits, and yes I 'NEED' them but they are paid to me since I am eligible based on me having paid in for decades, and I can collect that benefit whether I 'need' the money or not.

 

[D'L]

SSI and SSD are not the same thing, and I have encountered a lot of people who confuse the two.

You do not get SSD (Social Security Disability) unless you are "officially" disabled. Meaning you have to apply, and it is their opinion that counts, which is often not your reality. Some people seem to get it right away others wait for years or don't get approved at all.

SSI (Supplemental Security Income) is for everyone, IF you or your employer paid Social Security Tax during the years you were working. If you were self employed, it was called a "self employment tax", but was really payment into Social Security. If your employer did not pay into Social Security or you worked under the table and did not report your earnings and did not pay the tax in to Social Security, you won't have any SSI account and you won't get any SSI money. You have to have worked paying those taxes to a minimum amount of money earned to be eligible.

It doesn't matter if you are broke or have a million dollars in the bank, if you are eligible for SSI and apply for it when you become of age to be eligible, you will get that money. How much you get will depend on how much you or your employer(s) paid into it, which depends on how much money you earned and for how many years. It also doesn't matter if you have a huge pension from your former work; you will still get SSI.

Working at minimum wage all your life means not much was paid in, so your payments will be small. If you made $100,000 or more a year every year you worked and paid into SSI, your payments will be much larger. This is because SSI is Not charity or assistance for low income people. So, SSI is not for people who didn't pay enough into the fund while working. A person who didn't pay enough in will need to find some government assistance program.

It might be noted that Social Security was never intended to be what people live on when they retire, and it was not set up in a way that truly allows for that. It was always intended, and still is, as only supplemental income. Unfortunately, as we all know, more and more people are trying to live on that income alone because for many different reasons they have to. The program was set up in a time in this country that is very long past.

You can apply for SSD....Disability..... at any age. You have to be a certain age to apply for SSI, as it is only for older people.

Pretty sure all these statements are true and verifiable, but if I am wrong about something feel free to correct me.

 

[D'L]

Just a minor correction: SSI and SSD are 'needs based' benefits.

My understanding is that SSI is not needs based. If you paid enough in, you get SSI. Doesn't matter if you "need" it or not.
SSD is, of course, needs based.

 

[D'L]

OK....sorry, I am wrong.
SSI and Social Security are not the same so I am full of it.

What I said is true of Social Security, but social Security is not SSI. I have been calling it that, but it is not. Confusing. But I have it straight now!

Unlike Social Security benefits, SSI benefits are not based on your prior work or a family member's prior work. SSI is financed by general funds of the U.S. Treasury--personal income taxes, corporate and other taxes.

 

[tx2sturgis]

 

[rruff]

like take a 60 yr old lady widowed with some health issues. has a home and land in big pricey location. property worth 3 million. she ain't selling but she has 'no income' really thru SS etc that can get her decent medical insurance at a real affordable price. The healthcare thru govt requires no 'finances' thru assets owned. It is based on what is your income for the year and then a subsidy can hit. and make healthcare affordable to one 'who is a millinaire' on assets but is cash poor per month truly. SO I think there is a sad but doable round about way to help many but ya know, like you said, hmmm, on it all as the world has to be manuevered thru crazy requirements and more at all times but some can benefit to a good degree on who we are.

Reminds me of something that there was a lot of buzz about a few years ago... how the rich keep from paying taxes.

For instance someone could retire young and have all their assets in stocks that don't pay dividends. Instead of selling some stock periodically to pay their bills, they take out a portfolio loan... basically loan money to themselves. This is not considered income, so no tax... and since many welfare programs are strictly income based, they can also qualify for free healthcare and food!

Financial advisors make big bucks figure all this out and making it legal...

 

[RearViewMirror]

I liked your post. telling it like it is for you and your walk thru 'life on finances' and as it has to work as you maneuver thru it. No flack from me on that one LOL

I ain't living on 700 either but if I HAD to, darn right I would do just that cause if I HAD to then it is what it is but MANY here are not this low of monthly income at all so?

One thing on subsidy and healthcare options etc is IT IS available if one qualifies and if one even has money in the bank it means one can still thru 'low income' get a great subsidy for a great healthcare plan..........so in a way the human right you kinda are saying is trying to be given but of course so many shades of gray out there on qualifications and what subisidy one gets and still can afford on what plan.

like take a 60 yr old lady widowed with some health issues. has a home and land in big pricey location. property worth 3 million. she ain't selling but she has 'no income' really thru SS etc that can get her decent medical insurance at a real affordable price. The healthcare thru govt requires no 'finances' thru assets owned. It is based on what is your income for the year and then a subsidy can hit. and make healthcare affordable to one 'who is a millinaire' on assets but is cash poor per month truly. SO I think there is a sad but doable round about way to help many but ya know, like you said, hmmm, on it all as the world has to be manuevered thru crazy requirements and more at all times but some can benefit to a good degree on who we are.

If I posted what we do and what we get and what assets we own and how we work the system people would go bat crazy on what I post but I won't do that cause I also know that for over 40 yrs we paid big into the system also so we paid our dues. Now we take some dues back all legally thru the govt as how it rolls of course they allow it, I am taking advantage of it. Like I said, we paid so ......

That's kind of the issue we face right now. Not so much with assets since we don't own land or a house anymore. The vast majority of that money went into our investments. We have money we can pull out of an emergency fund that doesn't count as income. But that money isn't making us any money either. But we can transfer it at anytime and it doesn't count as income. But if we pull $1 out of our investments? That is income. And I get it... Our money is making money for us so it should be taxed. The only investments that don't fall under this are Roth IRA's as the interest is non taxable. But there are two considerations to remember with a Roth IRA.

1: It was taxed "before" being invested. So there is an upfront "cost" that must be considered.

2: Since we both retired at such a young age, the Roth IRA is still not taxed if we remove any money from that investment since it was taxed "before" being put into that investment. But it "is" considered "income". I lacked the foresight to see what might happen so far in the future about my wife retiring early and healthcare as a whole. So even if we just took the interest from that investment and removed it, it wouldn't be "taxable" income but it would still raise my federal income tax filing. Meaning that we have to pay more for health insurance.

This goes with any money we remove from any investments that we have been paying into over the years. Mine are split between deferred comp and Roth IRA's. No matter which one we pull from, we will pay more for health insurance.

Once again... Saying all of that I am not complaining. It's just the way the system works. In reality??? We have zero assets (not counting money invested) since we live out of a van. An van that is financed I might add. Some would say what we are doing is a very stupid decision and at times??? I might be inclined to agree lol. But... We can travel 2 miles down the road or 200 miles down the road without a timeframe. It is a permanent vacation. We pay no utilities, no real estate tax, and no bills that come with owning a traditional "sticks and bricks" like we had for 17 years before we sold our house. But we are also building no equity other than what our money is building for itself. So we have plenty of money but can't really touch it for two reasons.

1: If we take it out, we will pay more for health insurance

2: If we take it out, it lowers the amount of interest that that money creates.

I know (now) that this thread was created on the question of how someone can truly live on $700 a month. And I understand that many "have" no choice but to stretch their money and resources as far as they possibly can and take advantage of every available option given to them just to survive. Then there are people like us that it becomes a balancing act on how to make it work "for us". I don't take for granted the position we are in at the moment. We are lucky that (so far) we haven't had any major health issues. But that will change one day. I understand that we are living outside the lines of what is considered normal for any person our age. But I'm not one to live in between the lines. One day though... all of this will change. We don't live forever nor are we guaranteed tomorrow.

How long will this last? 1 year, 5 years, 6 months? No idea? I just know that when I'm lying on my deathbed thinking back over my life that I would have regrets for not taking this leap when we had the chance.

SSI and SSD are not the same thing, and I have encountered a lot of people who confuse the two.

You do not get SSD (Social Security Disability) unless you are "officially" disabled. Meaning you have to apply, and it is their opinion that counts, which is often not your reality. Some people seem to get it right away others wait for years or don't get approved at all.

You are correct. I applied even though I knew if I were to get anything it would be very small. I was approved but due to paying in so little I was not entitled to SSD. Which is fine. I didn't pay in so I shouldn't expect to get a payout for something I paid very little into.

 

[rruff]

How long will this last? 1 year, 5 years, 6 months? No idea? I just know that when I'm lying on my deathbed thinking back over my life that I would have regrets for not taking this leap when we had the chance.

Freedom is priceless...peace.

 

[RearViewMirror]

Freedom is priceless...peace.

I agree. But it sure does cost a lot lol

 

[bullfrog]

What many people are not understanding when they read the title in my opinion is there are people that “want” to simplify their lives and limit possessions enough so that they have freedom to travel, to pick up and leave anytime to anywhere on the smallest budget possible. There are those that are using social services to try to get to a point they can survive on $700 as well. They want to know if it is possible on $700 a month. It depends on each individual’s situation really. There are many variables like health insurance, and whether or not to invest in real estate as a home base or use it as an investment. The resources you have to begin with and how you use them make a big difference. Thank you to all that are sharing their experiences as it brings to light just how difficult it is whether you start trying to live on $700 a month with lots of resources or none. This lifestyle can be very expensive for those with the resources but it can also be uplifting for those without them. Everyone benefits from discussions like these. Thanks again! One personal note, seasonal work doing things we enjoy doing in places we enjoy being with people we enjoy being with has been key in making this lifestyle work for us not only through the experiences but also financially.

 

[rruff]

I agree. But it sure does cost a lot lol

Not really. There is a leisure class at both ends of the socioeconomic spectrum, though it's rare for anyone to find freedom and peace. No matter how much security we have, it's never enough... of course we will die anyway! Is the goal of life to forestall that inevitable end as long as possible? To constantly worry and obsess over things that might happen?

 

[Carla618]

Working at minimum wage all your life means not much was paid in, so your payments will be small. If you made $100,000 or more a year every year you worked and paid into SSI, your payments will be much larger. This is because SSI is Not charity or assistance for low income people. So, SSI is not for people who didn't pay enough into the fund while working. A person who didn't pay enough in will need to find some government assistance program.

These social security posts should be in a dedicated thread.

More than one employee at the local social security office explained the difference between disability checks and SSI checks (why I would be on SSI versus disability). They said it was because I did not pay enough into the system. (I think I was approved for disability at 60 or 61).

At the social security 800 number (when I turned 62) the woman told me I will partially be on regular Social Security, but part of my benefits will still come from SSI. As a result, I get two checks monthly. They add up to the same amount that I would get if I received just one check from SSI.

I'm merely repeating what I was told. Could be inaccurate info, for all I know.

 

[JRRNeiklot]

I wouldn't say it's a human right, but the cost of it is insane. The more expensive it gets, the less people can afford it.

I remember back in "the good old days", insurance hardly existed, and healthcare was cheap. Even poor people could afford it. Real per capita healthcare costs have gone up over 800% since 1960, while wages have barely risen.

If healthcare is a basic human right that everyone is entitled to, then slavery is legal. You'd be forcing someone to labor for you without compensation. That's the very definition of slavery.

 

[bullfrog]

The big problem is healthcare has been turned into a money making monopoly by insurance and drug companies to the detriment of those that need it and those that provide it. It is no longer regulated by competition nor equally available to all that need it. Civilizations of days gone past recognized this and made providers swear an oath to provide life saving care when needed. Guess people today aren’t as civilized as they used to be! Lol!!!

 

[Carla618]

If healthcare is a basic human right that everyone is entitled to, then slavery is legal. You'd be forcing someone to labor for you without compensation. That's the very definition of slavery.

We all "labor" for things we don't use. It is not slavery.

 

[RoamerRV428]

Then there are people like us that it becomes a balancing act on how to make it work "for us". I don't take for granted the position we are in at the moment. We are lucky that (so far) we haven't had any major health issues. But that will change one day. I understand that we are living outside the lines of what is considered normal for any person our age. But I'm not one to live in between the lines. One day though... all of this will change. We don't live forever nor are we guaranteed tomorrow.

yea I so get your post. we right now are in a big balancing act of how finances are being used and moved thru accts just like you. hubby works part time right now before we full retire and hit the road and it will be sooner than later now, just gotta get my 1 kid into college and that handled, ugh lol, and I keep telling him to NOT work so much cause I can't have xyz income and have to keep everything 'very in line' on how the money hits those tax papers.

worse is truly our money is not making great money at all like you it is more of a 'conservative' game vs. an aggressive interest game we played when younger with our money. we did very well but at this point, I can't gamble aggressive on it to make more cause if I lose it I am screwed, too old to make more now

I think some have more it is still a fine line of having being wiped out or ? in the end. Happens to many. Like ya said play the game best ya can, make sure not all money is only going out, some has to be made and walk the line like we all have to do.

 

[RearViewMirror]

If healthcare is a basic human right that everyone is entitled to, then slavery is legal. You'd be forcing someone to labor for you without compensation. That's the very definition of slavery.

Well... You took that to the extreme didn't you? Slavery? Really?

Here's the deal... There is no magic bullet that will fix what is now almost a century old problem. And NO ONE is arguing that a Dr. shouldn't get paid for their time, expertise, or whatever they specialize in. In fact, they should be paid very well.

Yes... I "personally" think that quality healthcare is a basic human right. The issue becomes how do we pay for it? And for that I don't have an answer. Insurance companies have spent decades lobbying Congress and what we have is what we have right now.

I mentioned the chargemaster for the hospitals in a previous post. Each and every hospital has a chargemaster. And between those hospitals? Those charges could vary wildly. God forbid you have to go out of network. You will be stuck with that entire bill. And if you can't pay that bill? They can garnish your wages until that bill is paid. Which means that some are never able to pay that bill depending on what service was provided. To be clear... I am not for "socialized" healthcare (even though we have forms of that built into our system already).

But to give you an example of what and why hospitals charge what they do? It all has to do with insurance. I mentioned that my wife was over the billing dept. for the largest hospital in the state. Insurance companies send people that are insured with their company to specific hospitals. primary care physicians, specialist, etc... with the expectation that they will get a certain amount of money for sending those covered patients to their specific in network facilities. Those facilities in return pay the insurance companies a set amount for patients being sent to them. So to make up the revenue associated with those cost? The chargemaster comes into play. There is a reason that an IV bag that cost literally $1 is charged at almost $140, Tylenol is charged at $37 a pill, etc... It has nothing to do with the hospital. It all has to do with the insurance companies. And if you are truly in a life or death situation? You don't have the option of what hospital they transport you to. So we are in a no win situation. That goes for all of us. Plain and simple.

I'll give you an analogy... I worked for the FD for 28 years. The FD is paid for by your taxes. What if we showed up to fire only to find out that the family that lives in that structure didn't pay their real estate tax, personal property tax, etc... And since they didn't pay those taxes? We don't put the fire out. Or... they have the option of us putting the fire out but we will charge an exorbitant amount of money to do so? Would you stand for that? In a life or death situation, honestly, would you stand for that??? Same thing applies to healthcare.

yea I so get your post. we right now are in a big balancing act of how finances are being used and moved thru accts just like you. hubby works part time right now before we full retire and hit the road and it will be sooner than later now, just gotta get my 1 kid into college and that handled, ugh lol, and I keep telling him to NOT work so much cause I can't have xyz income and have to keep everything 'very in line' on how the money hits those tax papers.

worse is truly our money is not making great money at all like you it is more of a 'conservative' game vs. an aggressive interest game we played when younger with our money. we did very well but at this point, I can't gamble aggressive on it to make more cause if I lose it I am screwed, too old to make more now

I think some have more it is still a fine line of having being wiped out or ? in the end. Happens to many. Like ya said play the game best ya can, make sure not all money is only going out, some has to be made and walk the line like we all have to do.

I agree with everything you say. The only money we can "earn" has to be under the table and that isn't right. We have, in the past, traded for working on campsites just for the free camp. But that can't be counted as income.

There is a reason that the ultra wealthy are able to take advantage of special tax advantages "we" are not able to access. We fall in the middle. We make enough to live comfortably but not enough to take advantage of what is afforded those with much more money. That said... I'm still not complaining as we are still able to do what we want to do when we want to do it (within reason). But I have a spreadsheet of everything that is being brought in and everything that is going out. Turns out... We are actually making money just by traveling and living in the van. But that could change at any point. All it will take is one emergency and we could be screwed for the rest of our life.

Like you, we are putting our 17 year old daughter into college and that is just another thing that we have to take into account. Luckily, she has a full ride. But she will be in college for 8 years. And how long that full ride will be in effect remains to be seen.

 

[RoamerRV428]

Like you, we are putting our 17 year old daughter into college and that is just another thing that we have to take into account. Luckily, she has a full ride. But she will be in college for 8 years. And how long that full ride will be in effect remains to be seen.

wow mine is 17 also and doesn't have full ride but only 4 yrs but we got some financial aid but I also socked alot away for her yrs but key is out of that college money I wanna keep as much in our hands in the bitter end that we can HAHA Super happy your DD got a full ride for her career to come!! Congrats on that for sure!!

I agree with ya. 'we those who fall' into that category are in a pickle kinda in that we have some but we don't have loads but we also are the biggest taxed segment and yet we do mostly take 'less' from govt before but lately, I see a tide turning for sure. 'those of us there' and can walk in that financial area are now taking advantage of everything the govt will give us and it is kinda nice but in the end the unbalance of it all still is keeping everything in govt on shakey ground etc but hey, I know me and you and others ain't 'gonna fix it all overnight' at all so....

best I can do now, when I finally 'wised up' and decided I have to play the game or I am gonna lose now.....I am all in playing the game and by george, I am actually winning it at this point it is all I can do ya know. Everyone walks a balance of what is 'overall right' and sheer azz survival of what we did earn and were taxed heavily I thought on the darn money we made....anyway... so at some point, when it flips it flips to survive now and take what I can thru all legal points and we are doing just that.

With inflation and more the way it is going, our 'wonderful what woulda been 'decent SS to rely on' is now more like a pizz in the bucket for what we will need for decent survival coming at us older we get.

I think alot of us just hitting into retirement or near are finding, wow, ALL that money 'they' told us to have, or near it, sure as heck is not gonna travel far from what has just happened over the last 2 yrs and more yrs to come with prices skyrocketing. I thought me and hubby had it 'in the bag' but darn ya know LOL I got shocked on it all and am learning that playing the game is the best way forward.

luckily too we are frugal types and live more simple cause we want so that always helps alot of us too

at some point I flipped to I am keeping every dime in MY wallet and finding every free dime out there I can. Getting older now too is scary for so many of us as we all know. Going into old age protection mode is kinda where we are at.

Funny but I hit a grocery and at checkout when I was like 57 or so the check out lady said, senior discount day. Cool. I said what age and she said 60 and I was like.....wild, give it to me. I know I saved but darn a 'small hit to the vanity' of it all but hey I saved regardless HAHA any little dime in my wallet helps me move forward I guess LOL

 

[RearViewMirror]

Thanks. She worked very hard to get to where she is right now and I couldn't be more proud of her accomplishments.

I've found that living in such a small space that it really makes you think twice "do I really need this?" 99% of the time the answer is no. Honest the only fluctuation that we really have to deal with (at the moment) is fuel. Can't control the price of diesel and the further West you go? The more expensive it is. Everything else pretty much stays the same. We have a budget set up that allows us to go and do things we would like to do while also putting money back into our investments. I would be lying if I said we didn't go over budget sometimes because there are things that come up. But that is what our emergency fund is set up for. If we dip into that? Then the next month we just put the money we would have invested back into the emergency fund.

Like I said... It's a balancing act. But not much different than owning a home. Things go wrong in your home all the time that must be repaired. And that must be paid by you. Things can and will go wrong in our van. That is inevitable. But that is what the 6 year 150,000 mile warranty that we paid for comes into play. Only issue there is, when warranty work is being done on the van, we will have to foot the bill for a rental car, hotel (or Airbnb), for the time period that the van is being worked on. But tis part of life. I wouldn't trade it. And I hope we can do this for as long as possible before we have to settle down once again. At least I can say that I tried and can die without regretting that I didn't try when I had the chance.

 

[JRRNeiklot]

We all "labor" for things we don't use. It is not slavery.

If I send men with guns to make you mow my yard, repair my car, or stitch up a cut in my arm, that's slavery.