How to Live on a Very Low Fixed Income

Food, transportation, utilities and housing all cost money, and paying for all of those expenses while on a very low fixed income can be difficult. You’ll need to employ a few different strategies, such as writing down your expenses to keep up with where your money is being spent, to have enough money to pay for your necessary expenses, put money into savings and still do something fun once in a while.

Create a budget. To live on a very low fixed income, you must keep track of your spending so you don't run out of money before your next check arrives. Write down your fixed essential expenses, such as rent, mortgage and car payments, and then write down your variable essential expenses, such as utilities, gas and groceries. Look back at your old receipts and write down an average for each variable payment. Add at least $50 to your variable expenses total, in case one of your bills is higher than you expect.

Save 10 percent of your money if you can afford it after your essential expenses. If you have $300 left after your essential expenses, then try to save $30. Your savings creates a safety net in case any unforeseen circumstance occurs, such as personal injury.

Track where your money is going. Write down -- or enter on a computer -- everything you spend. For example, if you spend $10 on a movie, write down that expense as a non-essential purchase. If you begin having trouble paying for your essential expenses, look at where your money is going and cut down on any unnecessary expenses.

Use coupons when you shop. Shopping can be expensive, but you can cut down on the costs by using coupons offered in weekly ads. You can also find printable coupons online, print them out and use them when you buy your items at the store. Go online and look for the weekly ads of your local retail stores if you do not receive the ads in the mail.