Elaine :

Rob I should have complimented you on your comments over at the other site and here also. Very few people followed you here. Can I call them dunces?

Elaine :

Rob do you have a website?

The CPI used by Social Security is calculated by the U.S. Bureau of Labor Statistics (BLS). It is calculated at a national level and doesn’t account for changes of costs in a particular city or state. I agree that this isn’t the best system. However, sending checks to all Social Security recipients won’t solve the problem. The problem could be altered by using local level CPI indexes. However, this could quickly become a very complicated system!

Having your expenses go up while your income remains the same is an unfortunate situation to be in. When your expenses exceed your income, there are always two options – decrease expenses, or increase income. One option to prevent this situation from escalating would be to talk to your landlord. You might be able to negotiate a longer-term lease with a more favorable monthly rent. As you said, homes aren’t selling these days. Since you’ve lived there for 11 years and pay your rent regularly, you are an ideal tenant for your landlord; he might be interested in negotiating!

If you believe that decreasing your expenses is not a viable option, the alternative is to increase your personal income. Have you considered getting a part time job? Some studies have shown that maintaining a job in retirement can result in increased brain function and increased life expectancy. A job can also increase self-esteem and decrease boredom. Not to mention – decrease your financial burden!

If you are willing to look for a job, there are a lot of great resources out there. AARP has partnered with many employers that have created programs for hiring and training older working. Likewise, the U.S. Department of Labor has established a Senior Community Service Employment Program (SCSEP). Their mission is “to promote economic self-sufficiency for older individuals who are working to achieve this dream.”

If neither of these programs work for you, you can consider working at a local church or fast food chain. Any of these options can provide a very nice second income stream! If your rent is increasing by $45 per month, that can be more than covered working 2 hours per week at a job, even if it only pays minimum wage!

It’s very admirable that you were able to provide your four children with a college education. I greatly respect that. However, you need to remember that putting them through college was your choice. You could have saved the money for your retirement and allowed them to take student loans. Are your children aware of your financial situation? They might we willing to lend a helping hand.

Remember, you are not stuck in your situation. You always have options. I wish you the best of luck!

- Rob