If you rely on Social Security Disability Insurance (SSDI) due to illness or injury, it can be a little difficult to manage the benefits you get. However, with careful planning and resourcefulness, you can make the most of SSDI income. Here are 6 essential tips to better manage your benefits:
6 Tips for Living on SSDI Benefits
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Understand Your Benefits
The first step is knowing precisely what SSDI payments you qualify for. It’s also good for you to know if there are any restrictions to the benefits. You can research the benefit amounts, payment schedules, and how long the waiting periods are. This will give you a clear picture of what to expect. You can also consult experts to make informed decisions and navigate the SSDI process with ease.
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Create a Budget
It’s important to manage your SSDI income carefully to make sure it covers your essential expenses. One of the best ways to do this is to create a household budget. A budget is a plan that outlines your income and expenses. It helps you track where your money is going and see that you’re not overspending.
You can begin by listing out all your income sources including your SSDI expenses. Then, categorize your expenses and allocate your income accordingly. It’s also important to factor in intermittent big-ticket expenses, such as car repairs or medical bills. You can do this by setting aside a portion of your income each month to cover these expenses.
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Prioritize Essential Expenses
Once you have a budget, focus on paying for your essential monthly costs first, like rent, health insurance, medicine, healthy food, and transportation. Pay these bills first before you spend money on things you don’t need. It’s a good idea to check your budget often and make changes if your SSDI amount changes or your needs change. Prioritize your essentials over expenses like entertainment or dining out.
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Seek Additional Resources
While Social Security Disability Insurance (SSDI) benefits provide essential financial support, they may not cover all your monthly expenses. Explore additional public assistance programs and seek support from non-profit organizations. By doing this, you can stay safe and secure your financial well-being.
Don’t hesitate to reach out for help if you need it. You can contact your local Social Security office, search online for assistance programs, or consult with your doctor or social worker. They can guide you through the process of accessing the support you need.
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Plan for Long-Term Expenses
It’s important to proactively safeguard your financial future by preparing for unexpected costs that may arise. These occasional expenses can include medical equipment, procedures not fully covered by Medicare/Medicaid, caregiver assistance, and emergencies. You can ask about special needs trusts and Achieving a Better Life Experience (ABLE) accounts which provide supplemental support too.
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Seek Financial Counseling
Financial decisions can be complex, especially when you’re trying to make the most of your Social Security Disability Insurance (SSDI) benefits. That’s where seeking guidance from a reputable financial advisor or credit counseling agency can make a significant difference in your financial well-being.
Financial professionals can provide valuable outside perspectives, helping you identify some blind spots so you can spend your SSDI benefits better. They can also help you develop a realistic financial plan that takes into account your current situation, long-term goals, and risk tolerance.
Conclusion
By following these tips, you can manage your SSDI benefits better and build a life you enjoy. Remember, financial stability is a journey, not a destination. Take your time, make informed decisions, and don’t be afraid to ask for help.