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  • Writer's pictureNick T.

Surviving on a Fixed Income



Foreword

Living on a fixed income can be challenging. Due to inflation and supply chain issues, the cost of goods is through the roof. Careful budgeting is required to navigate your financial situation. We compiled this guide to provide you with some useful tips to manage your money on a fixed income.



Stick to Your Budget

Outline your necessary expenses such as housing, utilities, food, and healthcare. Determine how much of your monthly income to allocate to each category. By monitoring your budget, you can ensure you don’t go overboard on discretionary purchases like entertainment or dining out.


Eliminate Unnecessary Expenses

Review your transaction history to identify areas where you can cut back. Constant takeout or delivery orders can take a large portion of your check. Prepare your own food and use affordable ingredients whenever possible. If you are signed up for subscription-based services, consider cancelling the ones that you barely use. Living within your means is vital for managing your finances on a fixed income.


Shop Smart

Look for sales, coupons, and discounts when shopping for essentials. Compare prices online before you make a purchase. Although it can be time consuming, shopping for deals can lead to significant savings. If you need a card for online shopping, this site is a great resource.


Look for Supplemental Income

If your personal circumstances allow for it, consider supplementing your fixed income with a part-time gig or freelance work. Make sure that picking up a job won’t disqualify you from collecting your current benefits. You may also consider renting out a portion of your home in order to reduce your mortgage or rental expenses.


Use Public Transportation

If you live in an area with reliable transportation, consider using public transportation instead of purchasing a vehicle. You can save a good deal of money by eliminating maintenance, gas and insurance costs.


Stay on Top of Your Debts

When you’re on a fixed income, its especially important to manage your debts. Develop a plan to pay them off and work it into your monthly budget. Avoid incurring any new debts or monthly expenses.


Look for Additional Benefits

Check your eligibility for programs like SNAP, Medicaid, and housing assistance. By taking advantage of all available government benefits, you’ll have the best chance of staying afloat on a fixed income.


Consider Moving

If all else fails, consider downsizing to a more affordable living space. Alternatively, you could move to a state with lower income taxes. Out of the 50 states, 37 don’t impose a tax on Social Security benefits.

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