Living on a fixed income means that you generally rely on a set amount of money coming in from one or two sources with very little flexibility in the amounts received. Making ends meet when on a fixed income during times of rising inflation can become challenging. The inability to pay for regular living costs when expenses are increasing can lead to financial uncertainty which then causes stress and worry.
Here are a few steps you can take to stretch your funds and make the most of what you have coming in each month:
Create A Spending and Savings Plan: Knowing what you are working with and where your money is going is the first step to being in control of your finances and is essential when living on a fixed income. This will help you get a clear picture of your financial situation and will give you a great sense of control while reducing worry and stress. Veteran Saves has put together a simple and easy process that you can use to get on track.
Reduce or Eliminate Debt: Many Americans carry debt. Paying down that debt while living on a fixed income can be challenging and even overwhelming at times. Figuring out how to tackle debt with limited funds is no easy feat, however, it is possible to reduce debt while living on a fixed income. First, stop acquiring new debt, and do your homework to ensure you know exactly what you owe. You can then come up with a payment plan that works for you. If you find that you just don’t have it in the budget to make the minimum necessary payments, contact your creditors to work out a payment plan that you can handle.
Assess Your Spending: When living on a fixed income, we must look at our spending habits and make some cuts, if necessary. Start by looking at your major expenses like rent or mortgage payments and transportation. If they are taking up a large portion of your income, it may be necessary to make a change by moving to a more affordable home, refinancing, or trading in your vehicle for a lower payment. Other ideas include couponing, cooking at home more instead of eating out, cancelling gym memberships and unused streaming subscriptions, and switching your phone plan to one that is less expensive. You could also look for free festivals and concerts around your town to save money on entertainment. The most important thing is this: when assessing your finances, decide what's most important and make adjustments based on what matters most.
Find Ways to Earn More Money: Veterans, in some cases, can work while receiving VA disability, and a growing number of those living on a fixed income find themselves having to seek extra employment or income streams to make ends meet. There are a number of ways to earn some extra income, including starting a side hustle, becoming a freelancer, or driving for a delivery service.
It’s important to note that exceptions do apply when it comes to receiving benefits and earning extra income, so we encourage you to do your research before taking any position or accepting pay.
Check to see if you Qualify for Assistance: Living on a fixed income due to a disability can limit your ability to earn anything extra and can result in some hardships from time to time. These hardships make it difficult for many veterans to cover basic utilities and food expenses. Unfortunately, many veterans on disability qualify for some sort of assistance but are either unaware they qualify or believe they are not eligible.
The VA has housing grants available to eligible veterans with service-connected disabilities that can assist with securing housing or updating a home to meet your specific needs.
Additionally, SNAP provides supplemental funds that allow many veterans to stretch their income further by freeing up their food budget, so that it can be used on other necessary expenses, while still putting food on the table.
Military Saves encourages you to find out if you qualify if needed – you could be missing out on financial assistance that could make a big difference in your income and overall financial wellbeing.
If you’re living on a fixed income and not sure how you can make ends meet and save, let Veteran Saves help you get on a path to saving. It starts by making a commitment to yourself. Start today by taking the Veteran Saves Pledge. We’ll be your partner and will send information, tips, advice, and reminders that will help you stay in control and meet your saving goals while living on a fixed income.
