How to budget with an asset cap?
I am on disability and this comes with an asset cap. If I have more than $2000 in assets then I can lose my health insurance. I get $1000/month disability income. How am I supposed to budget like this?
My minimum monthly expenses can be fairly low, but there are always unpredictable larger expenses that come up. For example, car repairs. Also, I could switch some of my yearly payments into monthly payments, but this ends up costing more overall. Example, my phone bill can be paid for 12 months at a discount or monthly at a higher rate.
I'm just at loss. How can I plan for the future when I'm punished for saving money?
By assets do you mean that you are not allowed more than $2000/month in a banking account (savings and/or checking, etc)? So if you receive $1000 DI monthly, and you don't spend enough of it to reduce your accounts to less than $2000/mth, you get in trouble? Just want to make sure I understand your situation.
I think my mom has to do this with her mother who is also on disability and in a care home, and she will lose any benefits similar to what you're describing. I can ask my mom how she handles those situations with her mother's income/finances and see if that will help. I think she holds a lot of it in cash... but obviously that comes with concerns to have cash lying around.
Maybe purchase Visa pre-paid cards? I don't know if those are tracked per person in any way...
By assets do you mean that you are not allowed more than $2000/month in a banking account (savings and/or checking, etc)? So if you receive $1000 DI monthly, and you don't spend enough of it to reduce your accounts to less than $2000/mth, you get in trouble?
Basically, yes. Stocks, bonds, etc. also count towards my assets which I have none of.
Yeah, there might be some things like pre-paid visa cards, but I'm wondering if there is a way to budget within these rules, not find a way to skirt the rules.