Official Geezer Guide » save debt

When Will Washington Stop Lying To Us?

Skip McGrath — Wed, 27 Jul 2011 18:44:48 +0000

That is not a political question. Both parties are lying to the people about the budget deficit and the debt cieling.

Big Lie Number 1: If we don’t pass the debt ceiling we will go into default

Default has nothing to do with the debt ceiling. The government would only default if they could not make interest payments on our debt in the form of treasury bonds and bills. Here is the math:

The government spends about $295 billion per month
The government takes in approximately $200 Billion in taxes every month
This leaves a monthly deficit of $95 billion per month
Interest payment on the debt is about $20 billion per moth
Social Security runs another $50 Billion per month and Medicare about $55 Billion
So far we are up to $125 Billion – and we still have $75 billion to work with.
Defense spending is about $50 –but could be cut by $10 if we only paid for the essentials
Then what is left would have to run the rest of the government.

So there is no default unless we decide not to pay the $20 billion per month on interest. If a politician says you won’t get your social security check he (or she) is lying. There is plenty of money to pay social security. Of course if the president though it was more important to pay for the EPA, Agricultural subsidies to farmers, The National Endowment for the Arts or National Public Radio –then he could make the choice to do that instead of sending us our social security checks. But if he did that I suspect seniors would march on Washington by the millions.

Yes, a lot of programs would be cut, employees furloughed and probably the parks and museums would close. But interest on the debt would be paid, social security checks would go out, soldiers and sailors would be paid, doctors would be paid by Medicare and the country would probably run just fine. So forget about default. Stress and inconvenience – yes. Default – No.

Big Lie Number 2: Both parties are coming up with plans to cut spending

This is an even bigger lie. Both parties claim to have plans to cut the deficit to offset the increase in the debt ceiling. That is total bull! When you look at both party’s plans there are no real cuts in spending –they are only cuts in the estimate of how much the deficit will grow. Currently the government projects the deficit will grow about $10 Trillion over the next ten years (that estimate is on the low side as some economists predict it will grow over $15 Trillion).

But when President Obama, Harry Reid or John Baynor speak about cuts they are talking about letting the deficit grow less. So if a $2 Trillion cut is announced as part of a deal, that meant the deficit will only grow to $8 Trillion instead of $10 Trillion. That is Washington’s idea of a cut.

Where are the real cuts? Between the last two censuses (2000 – 2010) the population of the United States grew slightly less than 7%. During that same period the number of US Government employees grew 19% and state government employment was up over 16%. So, bottom line, the government is growing much faster than the population.

Big Lie Number 3: If we raise taxes on oil companies, corporate jet owners and millionaires it will balance the budget.

This one is really cute. Lets take them one at a time:

Oil companies – When the Politicians talk about special breaks for oil companies they are speaking about the “depletion allowance.” This is a tax break to compensate the oil companies since they are losing their reserves as they pump. The allowance was put in place to give them an incentive to explore and drill new well to replace the oil that is depleted. If that deduction were taken away from the oil companies the total taxes collected over the next ten years would amount to about $40 billion. That’s over ten years. But our deficit just this year is over $1 Trillion.
Corporate jets – A few years ago when we were trying to recover from the recession that hit after 9/11, the congress passed and the president signed a bill that allowed corporate jet owners to accelerate their depreciation deduction. The reason for this was the corporate jet industry was in the toilet and unemployment in that industry was running over 25%.
The deductions worked. The corporate jet industry is now healthy and currently employs over 700,000 people between the manufacturers, sales, maintenance, fixed base operators, pilots and so on. So here we are in the middle of a recession and the president wants to raise a tax that will put people in the industry out of work. He wants to stick it to millionaires jet owners but in the process he will hit factory workers, pilots, food service, sales people and maintenance personnel. And worse – the total taxes saved will amount to less than $9 Billion over the next ten years.
Millionaires – The president keeps mentioning millionaires and billionaires paying more taxes. Well taxes are taken from income –not wealth. Most true millionaires and certainly billionaires actually make very little money from earned income. The number of people who make over $1 million in income in a given year is less than ten thousand.
You could raise the tax rate to 90% on all of those people and you would only take in an additional $10 to $12 billion a year. Besides, these are the people who invest in companies, create jobs and buy things that employ people. So with a recession on, lets hit them where it hurts – Right!

Remember the annual deficit for just this year is over $1 Trillion. If you add all three of these tax increases up, you get $25 billion is increased revenue. Even if you taxed everyone who made over $200,000 a year at 90% you would only bring in another $60 to $70 billion.

So now you know what is going on. It doesn’t matter if you are a Independent, a Democrat or a Republican we are all being lied to by both parties. The one thing Washington won’t do is actually cut actual spending.

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Three Shocking Events That Will Rock Our Finances

Skip McGrath — Sun, 13 Feb 2011 19:04:58 +0000

Today’s post is a guest article by Money & Markets owner, Martin Weiss. These events will have huge impacts on senior’s savings, investments and the value of the dollar over the coming weeks and months.

See below for information about subscribing to his newsletter

Three Shocking Events by Martin Weiss

With each passing day, new shocking events drive us closer to the next phase of this debt crisis.

EVENT #1: In New York, where the city is facing a $2.4 billion budget deficit, it’s getting nasty.

Mayor Bloomberg has called for cancelling holiday bonuses for police and firefighters — and the unions are mad as hell.

In fact, just this past week, the presidents of the two unions vowed to fight Bloomberg’s budget-cutting plan tooth and nail, accusing the Mayor of spreading false information in an attempt to steal their members’ money.

At their press conference on the cuts, the union heads used the words “liar,” “lie” and “lying” at least 23 times when referring to the mayor.

EVENT #2: A few miles away in New Jersey, the state is reeling from last week’s Standard & Poor’s’ bond downgrade.

The S&P cited the fact that the state’s pension system has $54 billion LESS than it needs to meet future obligations. But now, the lowered credit rating makes a bad situation worse by forcing New Jersey to pay higher interest rates to borrow money.

At a public forum in Union City last Wednesday, Governor Chris Christie said the Democrats, who control the Legislature, had compared him to Chicken Little. “The sky,” he said, citing S&P’s downgrade, “started to fall in today.”

EVENT #3: In Washington DC, Congress and the White House are once again proving their gross incompetence when it comes to dealing with the crisis:

First, the new Republican Speaker of the House — Representative John Boehner — called for budget cuts of $100 billion.

Then, Republicans slashed that target to about $50 billion even before they won the House.

Now, the Republicans are attempting to cut the budget by a mere $32 billion.

But it’s clear that even that paltry figure — an amount equal to just two one-hundredths (.02 percent) of the $1.5 trillion projected deficit for 2011 — can’t be passed because of opposition from the Democrats in the Senate and the White House.

Make no mistake: This nationwide meltdown of government debt is now inevitable. If our leaders have proven anything, it’s that they are still unwilling and unable to take the government debt crisis seriously.

As a result, a massive implosion of debt at all levels of government — from the smallest townships and counties, to many of our largest counties and states, and even to the federal government itself — is rushing towards us like a runaway freight train.

When it hits in the weeks and months ahead, it will crush the bond market and drive interest rates through the roof.

Our mission is to make sure you’re prepared. More than that: Our duty is to give you the investment recommendations you need to protect your portfolio and your retirement — and to actually grow your wealth even while millions of investors lose theirs.

So be sure to stay safe and pay close attention to our issues in the days ahead.

Good luck and God bless!

Martin

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Note – The situation in event #3 has changed since Martin penned this a few days ago. The Republicans in Congress have agreed to a $60 cut in the current budget year. But it is unlikely the Democrats led Senate will go along with those cuts.

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.

The Real State of The Union

Skip McGrath — Fri, 28 Jan 2011 19:47:58 +0000

As I watched the president deliver his annual State of The Union message last Tuesday, my optimism slowly ebbed away with each topic he covered. The Constitution requires the president to send the Congress an annual report on the state of the union. Instead over the years the State of The Union Address has turned into a political stump speech designed to tell the American people what a great job the president is doing.

So what is the actual State of The Union?

The Economy:

The Gross Domestic Product (GDP) is now about where it was at the end of 2007
Nominal unemployment (U3) sits at 9.4% –real unemployment (U6) is hovering around 16%
Housing Starts are still below 0.5 million/year (2006 housing starts were over 3 million year)
Nominal inflation is around 2.1% – Real inflation when you include food and energy is slightly under 7%
The Congressional Budget Office forecasts the 2011 deficit to come in at $1.4 Trillion
Total US Government debt will exceed the current debt ceiling of $14.4 Trillion by March of this year.
For the first time in history, Social Security will collect less this year than it takes in
When Japan lowers its corporate tax rate in February, the US will have the highest corporate tax rate in the developed world.

National Security and Defense:

The US is engaged in two wars costing over $13 Billion per month with just over 140,000 troops engaged on the ground and another 30,000 in nearby support roles
Al Qaida continues to grow in four other countries (Yemen, Sudan, Ethiopia and Pakistan
Western-friendly governments in Egypt, Jordan and Yemen are under pressure and likely to fall to Islamic fundamentalist factions such as Al Qaida in the Arabian Peninsula and the Islamic Brotherhood. The government of Lebanon has already fallen to the Hezbollah.
Iran is still on track to develop nuclear weapons and now has missiles that can reach Israel and Europe.

Education:

US High school graduates score 14^th in Math and 15^th in science among all developed countries (France is #1 in Math and Norway is #1 in science. – Source www.nationmaster.com statistics)
The US is number 1 in education spending per student
The US is 5^th in teacher salary for primary (Grade 1-8) teachers
Nine of the countries that score better in math and science allow government educational funds to pay for private schooling (I.E. Vouchers)
The high school dropout rate hovers around 25% –higher in the inner cities
The US spends 5.5% of GDP on education – 14.1 % off all government spending (federal, city, state)
11% of US eighth graders are not literate in English

So there you have it –The real state of the Union. That is what we should have heard and then we should have heard what the president’s plans are to fix this. Instead we heard about green jobs and high-speed trains. Yawn!

Tomorrow lets talk about how we Geezers could fix this problem if we were in charge. This will be your chance to play President for a Day.

Are You Prepared for State and City Pension Failures?

Are You Prepared for State and City Pension Failures?

Skip McGrath — Tue, 25 Jan 2011 19:34:14 +0000

If you are retired –or about to retire from a state or city government, your pension is at risk. Here is a great article by Nilus Mattive, author of Dividend Superstars Newsletter.

Dead ahead: State and city pension FAILURES!

Nilus Mattive

Last week The New York Times dropped a bombshell, reporting that “policy makers are working behind the scenes to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.”

This is truly huge news, with far-reaching consequences. But it shouldn’t come as a surprise if you’ve been reading my columns …

Back in July, I explained how state pension funds around the country had essentially blown their fiduciary responsibilities to retirees and their broader constituencies.

Specifically, I wrote:

“They have been consistently underestimating how much money they’ll need down the line. In essence they are pretending that inflation doesn’t exist …

“Second, despite the major losses they actually experienced in their portfolios, they are acting as if those losses haven’t completely happened yet. Instead, they are basically just figuring that things will turn around if they wait long enough …

“And interestingly enough, when these same investors were winning big a few years ago, they put off contributing more of their current earnings into their accounts … essentially letting their profits carry the day, or even borrowing money from their accounts!

“Even today, with their balances way off what they should be, they are failing to contribute to their accounts. Some are even playing ‘shell games,’ by moving money around to make it look like they’re in better shape than they really are.

Then, this past September, I discussed some of the specific state pension plans at risk of imminent failure, along with arguments and steps legislators were employing to wiggle out of past promises.

Now, you’ll get no argument from me that many employee organizations expected — nay, demanded — far too much every time they went to the negotiating table. Yet I still place most of the blame for this impending crisis on career politicians.

Like coddling parents who never say “no” to their children, they were willing to promise anything to get elected and then to stay in office …

They were happy to ignore budgets and dole out money that wasn’t even in the kitty yet …

And they stubbornly put off pending problems, acting as if the piper would never show up asking for payment.

From capitol to capitol, it was just one big game of musical chairs. Now the needle has careened off the record with one last deafening screech.

Worse, the States Are Just One Facet of

This Massive National Pension Crisis!

Similar pension problems are emerging among U.S. cities, too — where local governments can already declare bankruptcy and, in some cases, hang pensioners out to dry.

And even in places where constitutions currently protect pensions, mounting problems at the state level may ultimately unravel — or at least sharply impact — retirement benefits at the local level.

Just take a look at the latest headlines and you’ll see just how widespread the problems are …

In New York City, pension costs have more than quadrupled in the past decade, from $1.5 billion in 2001 to $7 billion this year! That’s why Mayor Bloomberg recently echoed Governor Cuomo’s state-level battle to rein in pension costs, threatening huge layoffs unless unions accept drastic retirement reforms.

Meanwhile, in Cincinnati, lawmakers currently owe retirees about $1 billion more than they have socked away. And as this story explains, it’s a real mess.

Just some of the highlights:

* “[There are] policies that allow some workers to retire with pensions of up to 90 percent of their three highest years’ salary, guaranteed 3 percent annual increases, lifetime health coverage at negligible cost and other benefits far beyond those found in most private and public retirement plans.”

* “From 2000 to 2009, investment earnings failed in half of the years to meet an 8 percent [return] goal.”

* To solve the problems, “trustees are considering proposals to raise retirement ages, lower annual cost-of-living adjustments, shift a greater share of health costs to retirees and alter pension calculation formulas.”

Look, we’ve already seen this movie with corporate pension problems over the last decade. Countless plans failed … countless more were shuttered for current employees … and a whole mess of people lost important benefits there were counting on.

Plus, as I’ve noted in the past, the government’s backup insurance plan for these failed private plans is itself underfunded by many billions.

With these same issues appearing in cities and states from one coast to the other, a lot of folks have been asking if Washington will step in.

Well, if that New York Times article is any indication, the answer is yes — Washington may step in to LET state and local governments renege on at least some of the benefits they owe retirees!

It’s not like Uncle Sam really has a choice. In addition to owing private pensioners more than what’s in the kitty, there’s also that pesky issue of massive shortfalls in the Social Security program.

So What Can You Do to Protect Yourself?

It doesn’t matter if you’re a government worker or just a regular citizen … this national pension crisis is going to affect you — directly or indirectly.

It may mean a sharp decrease in your retirement benefits. Or it could reduce the public services available in your city or town. And it will almost definitely lead to higher taxes.

So I suggest you get as much information as you can on the rapidly developing state and local debt crises striking our nation … and learn how to hedge against these problems with new investments that are now available.

In addition, I consider it absolutely critical that build up your own income-generating portfolio as quickly as possible, preferably in tax-sheltered accounts.

I’m helping my own dad do this right now, because we recognize that his state pension is no more guaranteed than anyone else’s.

As the latest headlines demonstrate, past promises to retirees are no longer sacred and benefits are no longer guaranteed. So if you’ve been putting off your personal protection plan, please make it your first priority in 2011.

Best wishes,

Nilus

Inflation is Here – Food Storage Tips for Geezers

Skip McGrath — Fri, 19 Nov 2010 21:27:11 +0000

You are probably thinking “If inflation is here, why didn’t we get an inflation adjustment on Social Security this year?” Well there are a couple of reasons. First of all the SSA doesn’t include food and energy in their calculations –and of course those are what’s going up. Who ever said our government was honest?

The other reason is the soft economy. Despite rising prices it is difficult to raise prices in a slow economy, so stores are having sales and making do with smaller margins.

What we have seen so far is nothing, however. Remember the Jimmy Carter days. This looks like it could be a repeat. Rising prices in a slow economy had a name –they called it Stagflation. If you look at underlying material prices you can get some ideas of what is coming.

Industrial materials prices (copper, steel, zinc, etc.) are up 29% since July (See chart below)
Cotton prices at the mill are up 90% to an all-time high. This will soon be reflected in clothing prices.
Corn prices are up 30% in the past year. Corn is used in the manufacture of thousands of industrial, food and consumer products.
Oil is now around $82 a barrel. That is up from the mid-60′s a few months ago. I have seen several credible forecasts that predict it will be over $150 barrel within the next year.
The US Dollar has rallied a bit in the past week or so, but the long term trend is still down. A falling dollar makes imported products more expensive. Before long all those dollar stores who import cheap Chinese junk will have to start calling themselves Two-Dollar Stores.

Basic materials prices since July 2010

As seniors most of us are on a fixed income so inflation becomes a cruel tax. And food price increases will affect all of us. So what to do? One thing you can do is store food. So here are some food storage tips:

Do not store metal cans on metal shelves. Metals can react with each other and affect the integrity of the can
Always check the expiration date and arrange your foods by expiration date so you are eating the oldest ones first
You can store grains, flour and rice a few months beyond the expiration date if you are very careful.

Place the bags of rice and grains in your freezer for a couple of days. This will usually kill any vermin or eggs.
Keep them in their original bags and place the bags in Ziploc bags and squeeze out as much air as possible. Now place the Ziploc bags in sealed 5 gallon buckets (you can get these at Ace Hardware or get them from most bakers who give them away freely).
Before you seal the bucket sprinkle 1/2 a cup of Kosher salt in the bottom to soak up any moisture.
Another thing you can do is put a small piece of dry ice in the bucket just before sealing. As dry ice melts it gives off carbon dioxide that can kill any little critters that are in the bucket.
You can also purchase food-safe oxygen absorbers [Bj5] available from food storage supply stores online.

Almost everyone our age knows how to can. So buy any fresh vegetables or fruit you can find (Costco and Sam’s Club are great places to buy good quality fruit and vegetables in large quantities) and start canning. This is a great activity to do with friends, family and neighbors. My late Grandmother used to have canning parties. Everyone would bring something different and then they would trade with each other so everyone had a nice variety.
If corn and grain prices continue to rise then meat prices will follow. Meat prices are already up this year but that could only be the beginning. I was talking with my butcher and he told me his meat suppliers are predicting increases of 50% or more in the coming year. The solution to this is a freezer if you live in an area with stable power. But if you live anywhere that storms can knock out power for days at a time, you will want a generator or just store dried or cured meats.

So those are my tips. If you want really good detailed information, here is a free eBook you can download: Prudent Storage Facts Version 4.0

The other thing you can do is convert some of your savings to silver and gold. There is nothing that makes the price of gold and silver rise faster than inflation and a falling dollar. Gold and silver are going through a normal price correction now, so there will be some good buying opportunities in the weeks ahead.

If any of you have ideas and suggestions on food storage, please leave a comment.

FIVE WAYS TO CUT EXPENSES AND SAVE MONEY

Skip McGrath — Thu, 08 Apr 2010 16:11:29 +0000

Here is a great article by Amber Dakar from Money & Markets about 5 unconventional ways to cut your daily living expenses and save money.

5 Unconventional Ways to Save

by Amber Dakar

Federal income tax returns are due in eight days. And as you’re scrambling to get yours finished, how you’ve spent your money in 2009 should be fresh on your mind. That’s why this is a great time to start (or revisit) your personal savings plan for the rest of this year.

Now, we all know about the “conventional” ways to save — including opening a traditional savings account, starting a Christmas club account, accumulating debit card rewards or bank points with our everyday purchases, and setting up monthly automatic deposits to savings accounts.

So, today I’d like to explore five unconventional methods for socking away a little extra cash each month …

Savings Strategy #1: Separate your long distance phone carrier

Instead of bundling all your phone services, consider separating them. There are several long distance phone carriers that charge you cheap rates for only the long distance calls you make.

How it works: They charge about 3 cents or 4 cents per minute with six-second billing increments and no minimums or monthly fees.

For instance, if you call someone out of state and talk for an hour or so, your bill can be as low as $5 or $6, including taxes and fees, for the month. And if you don’t talk to anyone in a month, your bill is zero!

Pioneer Telephone is one example of a company that offers this type of service. But there are plenty of others with similar services. Just do a quick Internet search and you’ll find lots of choices.

Savings Strategy #2: Enroll in your local utility company’s budget plan

By enrolling in a budget plan, participating customers pay about the same amount each month, no matter what the temperature does.

Your utility company’s budget plan might not save you money, but it could make budgeting each month a whole lot easier.

How it works: The utility company looks at your energy usage for the previous 12 months. Then, your monthly budget billing amount will be based on the average of your actual bills during the last 12 months.

While it may not actually save you money, the predictable nature of this payment system makes it much easier for you to budget. And that means it will be far easier for you to find ways to regularly plan and save.

Savings Strategy #3: Switch to a cash-back gas credit card

If you haven’t done so already, consider applying for a gas-company credit card that offers cash-back rebates with your purchases.

For example, BP Plc has the following program for their customers: If they buy Amoco Ultimate gas they will earn a 2 percent rebate on every $1 of net purchases made at BP locations with no limit on the number of rebates they can accumulate in the program.

Then, for every $25 earned in rebates they can receive a $25 BP gift card … receive a check for the amount … or donate the rebate to an environmental charity.

And there are plenty of other gas companies offering similar rebate programs. A simple Internet search will yield plenty of choices.

Savings Strategy #4: Review your auto insurance bill

We’ve all seen the commercials telling us to shop around for a better rate because we may be paying more than necessary with our current carrier. And in some cases it can be true!

You may find you’re being overcharged by a company you’ve been loyal to for years. So, it’s best to at least shop around to see if you’re getting the best rate possible. A couple of phone calls or web searches can really pay off.

It also makes sense to revisit the individual line items on your current bill. You may find overlap with other insurance plans you have — such as the policy from your healthcare insurance provider — or pieces of coverage that no longer apply to your current situation. Cutting a few superfluous options will yield big savings without sacrificing your overall protection.

Savings Strategy #5: Download coupons online

If you’re looking for discounts on your purchases, they’re probably just a mouse click away.

Taking the time to search for online coupons could mean big savings on products you regularly buy.

One popular website is coupons.com, and all you need to get started is your zip code. The site will tell you which coupons apply to your area. Another website I like is SmartSource.com, the self-described “#1 Website for Printable Grocery Coupons.”

Plus, if you buy items online, it almost always pays to do a quick search for coupons that apply to the particular online store or product you’re looking at.

And if you have an iPhone, an application like Yowza can also help you save money while on the go. The app finds deals and coupons in your geographic area … then, at the cash register, you show the clerk the Yowza deal on your mobile device and they’ll simply scan the barcode on the screen!

One word of warning: When visiting these websites or downloading mobile phone apps, some stores you patronize may not honor online coupons or deals. So before you run out the door with your online coupons in hand, please check with your local store to see if they accept them.

Best wishes,
Amber

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This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.

Budgeting Money for Seniors and Those on a Fixed Income

Skip McGrath — Thu, 08 Oct 2009 23:55:10 +0000

Once you retire, living on a fixed income has its challenges. One of the best ways to manage your money and make sure you meet your needs and avoid unnecessary debt is to budget. Too many seniors plan only with long-term budgets, but one of the tricks for successful budgeting is to have interim short-term budgets. (See step #1)

Unless you budget your money, you’re begging to go deeper into debt, and making it impossible to save. Take these steps to figure out how much money is supposed to go where so you can control your spending accordingly.

Steps

Create a budget every time you get money. For most people, this is once every two weeks. Sometimes it’s weekly, sometimes it’s monthly. Either way, it’s a regular interval, and it’s the best time to decide how you’re going to spend your money. Make a personal rule that you won’t spend any of your paycheck money until you’ve worked out your budget.
Make a list of all the things you’ll need to pay for until the next paycheck, such as:
- Rent/mortgage
- Utilities
- Medicare/Medigap Premiums, medications
- Food/groceries
- Vehicle payments, insurance, maintenance (e.g. oil changes, tire rotations), Gas
- Any debt payments
Anticipate how much you’ll need to pay for each and write that amount next to the corresponding item on the list. You can also opt to pay for a fraction of something that isn’t going to be due until after the next paycheck. For example, if your rent is $800 due on June 1, you just got paid $700 on May 12, and your next paycheck will be $700 on May 26, it may be wise to set aside $400 from this paycheck for rent so that you only need to take $400 out of your next paycheck to pay for rent.
Add up all of the amounts (we will call this your regular expenses) and subtract it from your paycheck amount. Do you get a negative number? Then you are living way beyond your means. Something has to go, or you will have to find a way to supplement your income. If you have money leftover, split that money up into a few groups:
Savings. Ideally, this should be about 30% of your paycheck, although even 10% (if you do it consistently) is pretty good. Build up enough savings for an emergency fund (6 times your regular monthly expenses), then start saving money to invest.
Emergency money. I like to keep about 25% of regular monthly expenses in an emergency fund. This would cover things like sudden unexpected car repairs, or extra medications if you get sick or that Grandson’s birthday you forgot.
Spending money. This is whatever is leftover after you subtract emergency money and savings money. It’s what you’d spend on things like clothes, eating out, movies, gifts, and anything fun, basically. If you start to cry when you realize how little fun money you have, then you need learn How to make some extra money.

Keep everything but your spending money out of reach. Leave everything (except your spending money) in the bank. Withdraw all of your fun money in cash, and leave your debit card (and credit card[s]) at home. Use the cash for anything you want, just make sure you make it last until your next paycheck. You might not want to carry it on you all at once, but having physical cash will help you keep better track of your fun money than using a card.

Falling Income by Seniors Driving More Towards Reverse Mortgages