Dear Penny: SSDI Benefits Aren’t Cutting It — How Can I Cut Costs and Earn Extra Money?
I am currently receiving Social Security Disability Insurance (SSDI) from the government. With all the increases in the cost of living, do you have any ideas on how I can cut some of my basic cost of living expenses? Also, because of this, I have been considering driving for Uber. I know, though, that I can only make a certain amount of money without affecting my disability payments. How/where do I find out what this amount is?
Thank you,
Want to Work
Dear Want to,
First, you can find the allowable earnings amount through the Social Security Administration. For 2024, the monthly income limit is $2,590 for statutorily Blind individuals and $1,550 for non-Blind individuals. If you earn more than that limit in a month, you’re considered to be engaging in substantial gainful activity (SGA), which makes you ineligible for SSDI benefits.
You’re allowed a trial work period, where you can work and earn income without becoming ineligible for benefits — so if you realize you’re unable to work, you haven’t been sent back to square one. As a trial, you can earn up to $1,110 from work in any of nine months within a five-year period without compromising your benefits.
Note that these income limits are after expenses, so you’ll be able to deduct the cost of gas and car maintenance and other work-related expenses as a ride share driver.
Second, to tackle cost-of-living increases, map out how you’re using money. Start with your major monthly commitments: housing, utilities, health care, transportation, etc. Making adjustments to your major expenses can have the biggest impact on your finances if they’re feasible. But those are big changes — moving or changing health care providers, for example.
If those changes aren’t right for you right now, look at other ways you use money.
Is there a debt you could refinance to reduce your monthly bill? Could you adjust savings goals temporarily to free up monthly resources?
If you make all the adjustments that feel feasible in these areas and still feel a pinch, look at where you’re spending money. If groceries cost a lot each month, do you have access to a local food bank or could you qualify for SNAP benefits (folks receiving SSDI are exempt from SNAP work requirements). If you buy a lot of clothes, could you find clothing swaps or shop at a thrift store? If you’re dining out or ordering in often, could you switch to frozen meals or a meal-prep service (Dinnerly meals start under $5 each)?
Dana Miranda is a Certified Educator in Personal Finance® and author of YOU DON’T NEED A BUDGET. She writes Healthy Rich, a newsletter about how capitalism impacts the ways we think, teach and talk about money.
