Even after canceling Netflix, selling the car and eating almost every meal at home, the math still doesn’t work. At 52, living with a disability, Henry’s stripped his budget to the bone — but rent, medical bills, groceries and debt payments keep pulling him underwater.
This scenario isn’t merely about skipping avocado toast or lattes in favor of beans and rice at home. It’s about survival, and for millions of Americans with disabilities, it’s an everyday reality. Data from the Financial Health Network in 2023 shows that only 10% of working-age people with disabilities are financially healthy, compared with 30% of the general population.
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A little more than half say they can’t pay their bills on time, and close to half report unmanageable debt. Cutting corners simply doesn’t fix a system seemingly stacked against people with disabilities.
Why disability drains finances faster
Disability can magnify costs in ways most others never see. Accessible housing often comes with higher rents. Specialized transportation eats into monthly budgets. Medical supplies and prescriptions become permanent line items.
A study by the Technical Assistance Collaborative found that households with disabilities often need well above their total income to maintain the same standard of living as those without. The study found two California counties, for instance, where one-bedroom units consume 142% of a person’s entire Supplemental Security Income (SSI), the federal program that provides monthly cash payments to people with limited income and resources who are blind, age 65 or older, or have qualifying disabilities.
“This income is not high enough to bring any measure of housing security,” wrote the study’s author, Lisa Sloane.
Meanwhile, income shrinks. Workers with disabilities earn an average of 31% less than workers without disabilities. And for those unable to work consistently, benefits like SSDI (Social Security Disability Insurance) or SSI rarely cover full expenses. Worse, strict income and asset limits mean that even modest savings or side income can reduce or eliminate those benefits — punishing people for trying to get ahead.
The result is a financial vice: higher costs on one side, lower income on the other. And it squeezes until there’s precious little left.
Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
What he’s already tried
In this scenario, Henry’s done what personal finance experts often suggest first: cut discretionary spending. Streaming services? Gone. Dining out? History. Travel, shopping, subscriptions? Slashed. Yet, the shortfall remains.
Rent eats up more than a third of his income. Utilities are stubbornly high. Medications and mobility supplies aren’t optional. And minimum credit card payments pull away whatever’s left. The easy cuts have already been made. What’s left requires structural change.
The next step is exhausting every possible benefit: SSI not only offers monthly cash support but also opens doors to Medicaid. SNAP (Supplemental Nutrition Assistance Program) benefits can reduce grocery costs. ABLE (Achieving a Better Life Experience) accounts allow for savings beyond SSI’s $2,000 asset cap without jeopardizing eligibility. Some states add supplemental payments or offer utility relief programs.
Then, housing. For most Americans, rent or mortgage is the single largest bill. For someone living with a disability, the idea of adding a roommate may feel complicated, but it can be a game changer. Even splitting costs with one additional person can free hundreds of dollars a month, pushing the budget closer to even. Just keep in mind how household size might affect benefit eligibility.
Debt can’t be ignored either. Carrying balances month to month at double-digit interest rates is financial quicksand. Creditors will often negotiate hardship plans if you call. Nonprofit credit counseling agencies can sometimes consolidate bills into a single payment with reduced rates. Freeing up even $100 a month from debt service could be the difference between deficit and balance.
Finally, supplementing income where possible helps, even in small doses. Remote or flexible work may be an option. Supported employment programs exist in many states to connect people with disabilities to part-time opportunities. Even earning an extra $200 a month, if it doesn’t disrupt benefits, can help close the gap.
Breaking even isn’t about willpower
The key is to stop thinking in terms of cutting “extras” and start thinking in terms of restructuring. Benefits, roommates, debt negotiations and even micro-grants from nonprofits all play a role. It won’t make life luxurious, but it can make it survivable.
For our 52-year-old in this scenario, financial peace won’t come from canceling lattes. It will come from leveraging every program available, sharing costs and chipping away at debt until the numbers finally line up. And while the path may be narrow, it’s there — a strategy to stop sinking and finally break even.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.