Cutting our budget:

Since my wife will now be semi-retired (working about 2 days a week), we have to cut some expenses from our budget to avoid taking out more income from our investment dividends than I'm comfortable with at this phase of our life since neither one of us is at full retirement age.  I think we all can live more frugal lives and still enjoy ourselves with just spending less on stuff we really don't need!

Here are the cuts we made so far that will keep us living a nice life, but within our current financial means and still let some dividends and capital gains reinvest to grow our investments for the future:
Cancelled Comcast TV and phone (keeping their internet and using TV antenna and Hulu):  Saving $78/month, $936/year.
Changed our Verizon cell phone plan (I just have a basic flip phone):  Saving $29/month, $348/year.
Paid off a special tax which we were assessed in our development:  Saving $815/year.
Plan to cut eating out so much and buying less crap we don't need:  Saving $425/month, $5100/year.

This is a good start and we'll continue to look for ways to not have stuff control our lives, but still enjoy all life has to offer!