How to Use SSI and SSDI Funds Without Risking Your Eligibility
Introduction: Why Spending Rules Matter for Disability Benefits
If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you may already know that strict rules govern how you can spend your benefits. Exceeding resource limits or spending money in ways that Social Security doesn’t approve of could put your benefits at risk.
This guide explains what you can and cannot buy with disability benefits, how to stay within financial limits, and how Purple’s banking tools can help you manage spending safely.
Why Are There Rules for Spending Disability Benefits?
Government assistance programs are designed to cover essential living expenses for people with disabilities. However, SSI has strict resource limits ($2,000 for individuals, $3,000 for couples), meaning you can’t accumulate too much money without losing eligibility.
SSDI, on the other hand, has fewer spending restrictions but limits how much you can earn from work before your benefits are reduced.
Understanding these rules is critical to keeping your benefits while maintaining financial security.
What Can You Spend SSI and SSDI Money On?
✅ Approved Expenses for SSI & SSDI
The Social Security Administration (SSA) allows benefits to be used for:
Housing & Utilities: Rent, mortgage, electricity, water, and internet
Groceries & Food: Including groceries purchased with SNAP/EBT
Medical Expenses: Copays, prescriptions, and medical devices
Transportation: Public transit, gas, car insurance, and repairs
Essential Personal Items: Clothing, hygiene products, and assistive devices
❌ Spending That Could Put SSI Benefits at Risk
For SSI recipients, the following expenses may be problematic:
Excess Savings: If your total assets exceed $2,000 ($3,000 for couples)
Gifting Money: Giving away cash or valuables may trigger penalties
Non-Essential Purchases: Expensive luxury items or investments can affect eligibility
SSDI recipients have more flexibility but should still track income limits if working.
How to Avoid Losing SSI Due to Spending Issues
1. Use a Special Needs Trust (SNT) or ABLE Account
If you want to save money beyond the $2,000 SSI limit, consider:
ABLE Accounts: Tax-advantaged savings accounts that don’t affect SSI
Special Needs Trusts (SNTs): A legal way to hold money for a disabled individual without impacting benefits
2. Track Your Spending to Stay Under the SSI Resource Limit
Purple provides:
✅ Real-time spending insights
✅ Automated balance tracking
✅ Alerts to prevent SSI disqualification
3. Use Direct Deposits & Spending Controls
Setting up direct deposits for your SSI or SSDI payments ensures funds are used appropriately. With Purple’s spending controls, you can categorize purchases to stay compliant with SSA rules.
Real-Life Examples of How Spending Affects Benefits
Case 1: Emily Avoids Losing Her SSI by Tracking Expenses
Emily, who receives SSI, accidentally saved $2,500, putting her benefits at risk. By using Purple’s alerts, she transferred excess funds into an ABLE account, keeping her eligibility intact.
Case 2: Mark Uses SSDI While Working Without Penalties
Mark, an SSDI recipient, earns money from a part-time job. Using Purple’s income tracker, he monitors his Substantial Gainful Activity (SGA) limit to ensure he doesn’t lose SSDI.
FAQs About Spending Disability Benefits
Can I Use My SSI for Vacation or Entertainment?
Yes, but be cautious—if it causes your savings to exceed $2,000, it could affect eligibility.
Can I Save More Than $2,000 on SSI?
Only if you use an ABLE account or a Special Needs Trust. Otherwise, you must spend down excess funds.
Does Purple Help Track My Benefits and Spending?
Yes! Purple’s spending controls and balance alerts help users manage their finances while staying SSI/SSDI compliant.
Conclusion: Manage Your Disability Benefits Safely with Purple
Understanding the spending rules for SSI and SSDI is essential for keeping your benefits intact. By tracking your expenses, staying under resource limits, and using tools like ABLE accounts and spending controls, you can maintain financial stability without risking eligibility.
💜 Open a Purple Account Today to Manage Your Benefits the Right Way!