How to Manage Finances When Living With a Disability

Disabilities can cause major inconveniences and challenges in trying to carry out daily tasks. However, persons with disabilities (PWDs) may sometimes find themselves in a situation where financial stress is the most pressing.

Money can feel tight when you’re trying to juggle multiple responsibilities on a limited income from disability benefits, facing unexpected medical costs, or adjusting to new circumstances in a dynamic world. However, with the right approach, you can build flexibility, peace, and security in your financial life. Let’s walk through some actionable guidance to help you make the most out of your income regardless of your circumstances.

Table of Contents

Know Your Income and Expenses

The first thing you have to do is get a crystal clear picture of your cash flow. Try listing every source of income and benefits you can reap. It could be part-time or gig work, pension, child tax, or more. Other options to take into account include Social Security disability insurance or government-funded support programs available in your country.

For example, differently abled Canadian residents receive disability support from the Ontario Disability Support Program and can explore ODSP payday loans when urgent, or a private insurance payout. Next, write down all your expenses, including housing, utilities, groceries, and so on. Now you will get a picture of how much cash is coming in and how much is going out.

Smart Budgeting

Now that you have a track of your cash flow, you must be able to prioritize what matters most and build a budget around that. There’s a simple rule you can follow: the 50/30/20 rule.

50% needs: Includes things like rent, food, medication, and bills.
30% wants: Hobbies, take-out, or digital subscriptions.
20% savings or debt payments: Small amounts add up over time and can be used in times of need.

Remember to also include irregular expenses while budgeting. Holiday gifts, annual medical equipment maintenance can also add up, so take into account all possible expenses to avoid being caught off guard.

Cut Costs Where You Can, But Be Realistic

There’s only so much cutting you can do when you’re already living lean. However, small savings can still add up:

Look for medical discounts or programs that cover co-pays or medications.
Apply for utility assistance programs in your area. Many offer help to people on disability incomes.
Check if your internet service provider (ISP) offers low-income plans. Some ISPs offer basic service at reduced rates.
Review your subscriptions and cancel anything you’re not using often.
Use cashback and rewards apps like Rakuten for small rebates.
Meal plan with intention. Fewer grocery trips, fewer impulse buys.

Prioritize an Emergency Fund

In tough financial times, emergencies aren’t only big disasters. Sudden expenses, likely an appliance breakdown, a broken wheelchair, or an unexpected utility or medical bill, can derail your monthly financial plan. Setting aside small amounts, such as $10 to $20 a month for emergencies, can go a long way.

What’s next?

Managing money while living with a disability can feel overwhelming, but you don’t have to do it perfectly. The goal isn’t to master everything overnight, but to gradually create habits and systems that make your financial life feel more stable and less stressful.