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Misconceptions About Living on a Fixed Income

Fixed income is often seen as something great when in reality, it’s not as many people think.


There are many downsides to it and yet people who have never lived on a fixed income will most likely focus on the pros of living on a fixed income.

However, if you are already living on a fixed income, you know what struggle it can be.

If you’re only about to start living on a fixed income, this article won’t scare you, but I’ll do my best to project the reality of living on a fixed income by breaking down the most popular misconceptions.

I’ll also provide a couple of things you can do to improve your situation of living on a fixed income, so keep on reading until the end!

Are you Living on a Fixed Income?

Living on a fixed income refers to everyone who receives a monthly payment that’s fixed and can’t be changed or increased.

Most fixed income streams include disability, pension, social security, and even inheritance but there are many ways you could end up living on a fixed income.

If you receive a monthly payment every month that doesn’t change and will remain the same for the rest of the year, you’re living on a fixed income.

What is it Like to Live on Fixed Income?

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Living on a fixed income can be difficult since there’s very little to no room for flexibility to increase the income you receive.

Many say that living on a fixed income is really hard while others don’t believe it, but here’s why. When you start living on a fixed income, you might not even feel the inflation.

But as the years pass, inflation is most likely going to increase a lot more, and yet your fixed income won’t be able to follow.

Therefore, many people on fixed income are having a hard time stretching the fixed income or making ends meet.

So that’s why down below, you’ll find out some of the most known misconceptions about fixed income and living on a fixed income.

Misconceptions About Living on a Fixed Income

folded money on wood surface

It’s Enough and You Don’t Have to Worry about Finances

Fixed income might seem enough to many, but it’s often not enough.

It can seem like it’s just enough when you first start receiving fixed income, but inflation is rising so quickly that in only a year or a couple of years, you can notice difficulties.

From there, you’ll definitely start to struggle, have to save more or even find a way to supplement your income.

Worrying about finances will become intense and you will feel as if you were trapped without too many options to improve your situation.

Unfortunately, no one deserves to be in such a situation and yet that’s how the economy works.

You’re Set for Life

Fixed income is not something that will set you for life. Yes, you’ll have the security of a monthly payment, but other than that, you won’t be set for life.


Because of the inflation. The payment you’re receiving has very little to no flexibility and yet inflation will eat up most of your payment’s current value.

And unfortunately, when you’re supposed to be set for life after working hard for most of your life, you will have difficulties.

So, when you’re supposed to be set for life, you will be looking into ways to improve your situation since no one likes to struggle financially, right?

You Get to Enjoy Free Time

Yes, fixed income comes with free time. If you like having free time, you will have plenty of things to do, things you enjoy doing.

However, if you are struggling financially due to living on a fixed income, you won’t be able to enjoy your free time.

You will be stressed, looking to find ways to improve your situation, and any free time you have or any hobby you’d like to do, you might not be able to do financially.

Such a hard financial situation in combination with lots of free time can definitely drive people crazy and unfortunately, it’s not about the people yet about the system.

From the surface, this might seem like one of the biggest advantages of living on a fixed income. But it is only when you live it that you actually get to see the downside of free time that you are supposed to enjoy.

Downside of Living on a Fixed Income

The biggest downside of living on a fixed income is inflation. Your payment might be valuable for the first or a couple of years, but it’ll start to become less valuable.

Everyone is sleeping on inflation until it gets in the way of life. And that’s the biggest downside of living on a fixed income.

However, there are a couple more. Of course, all of the other downsides are due to the financial crisis inflation caused.

And some other downsides as a cause of that include unhappiness, financial insecurity, stress, overall worrying about your finances, and living situation.

All of this follows, and the end result is often relocation to a cheaper state, finding extreme ways to save money, and giving up on things you love to make ends meet.

Good Things About Living on a Fixed Income

book, glasses, coffee and notebooks

Regardless of the misconceptions and downsides, there are actually a couple of good things about living on a fixed income.

It’s all about the correct mindset. The Sooner you know what awaits you, the sooner you can act and change things. It’s important to look at things positively and always try to find at least one positive thing.

Having plenty of free time can be a really good benefit if you can improve your financial situation when living on a fixed income.

Having access to the internet and being able to make money only using your laptop is another advantage you can seriously consider.

It’s never too late to start an online business or get creative and start making money by following your passion – even if you have to do it with the help of the internet.

Therefore, you can actually enjoy living on a fixed income, and even though the journey might be tough, it’s definitely worth it.

What Can You Do to Improve Your Fixed Income Situation?

money in jar labeled tips

One thing I would recommend to everyone is to start learning how to make money online.

There are dozens of ways to make money online and while some take longer, others can actually help you make money instantly.

If you have to get technical and improve your computer skills first, do it. From there, start exploring the internet and learn more about online businesses.

My advice is to get either into affiliate marketing or freelancing.

While freelancing is easier to setup and you can start finding clients and make money days from getting started, affiliate marketing is for everyone who wants to play the long game.

Depending on your situation, you can choose one, or you can do both if you really have that much time on your hands and will to improve your fixed-income situation as quickly as possible.

Wealthy Affiliate is a great platform that teaches people how to start an online business by finding something they’re passionate about and creating a website where they will share valuable content.

From there, you can monetize your website in many different ways which leads to passive income streams.

Of course, this won’t be easy, and it will take a lot of time, work, and effort. However, Wealthy Affiliate is free to join, and you have nothing to lose, right?

What’s also great about Wealthy Affiliate is that you can do it at your own pace.

It’s Important to Focus on the Long-Term

While short term income boost will be good enough, you don’t want to end up working way longer than you should have, right?

Therefore, for the best financial security, focusing on improving the finances in the long term is the best thing you can do.

And if you can do it by creating a passive income stream, you will have both time and money to live well, no matter at what age.

It’s all about the cash flow and yet having a great life balance that will keep you happy and stress-free.

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Bottom Line Is…

There are many misconceptions about living on a fixed income. If you’re only about to live on a fixed income, you shouldn’t be afraid, but you should be aware of what’s waiting for you.

And if you’re already struggling, keep in mind that there’s a way to improve your situation, be happy again, and have a quality life.

Of course, these things will require sacrifice, determination, and lots of hard work. But you can make it because it’s definitely worth it.

Are you currently living on a fixed income? What do you like and don’t like about it?

I would love to hear your thoughts, so please share your comments and questions below and I will be happy to respond.

All the best,


Founder/Creator: Living On Lean Means ?

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