Many women 55 or older need to trim their spending—either to build a nest egg faster or to make it last. In addition, cutting expenses is a more efficient way to generate a cash reserve. Reason: You may have to pay taxes on the money you earn, either from work or from investments. But there is no tax on money you don’t spend! This information may help:
When facing a tight money situation, some older women respond by moving to a lower-cost location. It’s not an easy decision. In fact, it can be soul-wrenching, because it means leaving neighbors and friends and the home you’ve lived in for many years. But still, the cost of living in one city can be dramatically less than in another.
The Social Security Administration tells us the Cost of Living increase for 2015 is a mere 1.7 percent—one of smallest increases since the program started. That's because cost-of-living (COLA) increases are tied to the Consumer Price Index, which has been hovering near historic lows.