Creating a budget when living on disability benefits can be challenging but essential. Here's a practical guide to making your SSI or SSDI stretch further.
In this article, we'll cover:
- Understanding your income
- Tracking your expenses
- Creating a realistic budget
- Tips for stretching your benefits
1. Understanding Your Income
Know your exact amount:
- Your net SSI or SSDI payment
- After Medicare/Medicaid deductions
- Any state supplements
- Other income sources
Payment timing:
- SSI: 1st of the month (or prior business day)
- SSDI: Based on birth date
- Plan around your payment date
- Consider early access options
Variable income (SSI):
- SSI can change month to month
- Based on income and living situation
- Plan for the lower amount
- Save extra for lean months
Concurrent benefits:
- If you receive both SSI and SSDI
- Multiple payment dates
- Track them separately
- Plan for the combined total
2. Tracking Your Expenses
Fixed expenses:
- Rent or mortgage
- Utilities
- Insurance
- Phone/internet
- Medications
Variable expenses:
- Groceries
- Transportation
- Personal care
- Entertainment
- Unexpected costs
How to track:
- Use a notebook or app
- Review bank statements
- Save receipts
- Check spending weekly
The surprise expenses:
- Medical co-pays
- Home repairs
- Car maintenance
- Replacement items
- Account for these in your budget
Important: Track every dollar for one month to understand your true spending patterns.
3. Creating a Realistic Budget
Step 1: List your income
- Net benefit amount
- Any other income
- Total monthly income
Step 2: List fixed expenses
- These are non-negotiable
- Must be paid each month
- Priority spending
Step 3: Calculate what's left
- Income minus fixed expenses
- This is for everything else
- Be realistic about this number
Step 4: Allocate remaining funds
- Groceries
- Transportation
- Personal needs
- Small emergency fund
- Any extras
Sample budget ($967 SSI): | Category | Amount | |----------|--------| | Rent (shared housing) | $500 | | Utilities | $75 | | Phone | $30 | | Groceries | $200 | | Transportation | $50 | | Personal/misc | $50 | | Small savings | $62 | | Total | $967 |
4. Tips for Stretching Your Benefits
Housing:
- Consider roommates
- Look into subsidized housing (Section 8)
- Negotiate rent when possible
- Keep utilities low
Food:
- Apply for SNAP benefits
- Use food banks
- Cook at home
- Buy store brands
- Plan meals around sales
Healthcare:
- Use Medicaid/Medicare fully
- Generic medications
- Community health centers
- Prescription assistance programs
Transportation:
- Use public transit
- Paratransit services
- Reduced fare programs
- Combine trips
Utilities:
- LIHEAP for heating/cooling assistance
- Lifeline phone discount
- Energy assistance programs
- Weatherization programs
Additional resources:
- State and local assistance programs
- Nonprofit organizations
- Community resources
- Benefits you may not know about
Managing SSI Resource Limits
Build in resource awareness:
- Track your balance throughout the month
- Spend down before the 1st if needed
- Use ABLE account for longer-term savings
- Don't let checking account grow too large
Timing matters:
- Pay bills before the 1st
- Make necessary purchases
- Keep buffer under $2,000
- Plan around the first of the month
Emergency Preparedness
Even on a tight budget:
- Try to save small amounts
- ABLE accounts don't count against SSI
- Even $10/month helps
- Have a plan for emergencies
What to do in crisis:
- Contact local assistance programs
- Social services may help
- Churches and nonprofits
- Don't wait until it's desperate
How Purple Helps
Purple makes budgeting easier:
- Clear view of income and spending
- Categorized transactions
- Real-time balance tracking
- SSI limit monitoring
- Early access to get ahead