Arizona man says he’s lived on Social Security for 25 years and wants out of poverty. The Ramsey Show says the path forward starts small

For recipients of Social Security Disability Insurance (SSDI), their monthly average check of $1,358.30 puts them just above that line (2).

On the line

Dan from Mesa, Arizona, is one person who has been living on this line for 25 years. A recent caller to The Ramsey Show told hosts George Kamel and Ken Coleman that he wants out, but he does not know where to start.

“I'm trying to uplevel, but the thing is, I have to get off Social Security for the first time since 2000, which is somewhat terrifying,” Dan said.

He explained that he currently works a few hours a week at a grocery store and is studying for a certificate in data analytics. However, he has struggled with alcoholism and psychiatric disorders in the past, which has made it difficult for him to work consistently or succeed in most workplaces

“There are a lot of underlying issues and problems which have really prevented me from thinking clearly about money, making clear good choices,” he said. ”I can't really function that well in a workplace. Lots of depression and personality problems.”

Despite those challenges, the hosts were confident Dan could find a way out of poverty. Here’s what they recommended to him, along with tips that may help anyone trying to break a long-term cycle of financial hardship.

Small wins on the road to financial freedom

Coleman and Kamel encouraged Dan to focus on small steps that could eventually snowball into a larger success story. To start, Coleman suggested moving to full-time hours at the grocery store if possible.

“Get a professional opinion on whether or not you can go to full-time work,” Coleman said. “Let's take some baby steps into full-time at the grocery store if we can, because you're psychologically safe there right now.”

Next, he recommended that Dan work on building psychological safety around losing his SSDI benefits, as earned income replaces the benefit income.

“The good news is that if you make so much [from] working that you lose SSDI, good,” he said. “That's exactly what you wanted, isn't it? Because the only path out of this is making enough that you can lose it and not miss it.”

From there, the hosts urged Dan to keep his expenses low at about $1,800 per month and focus on what additional income could mean for his long-term future.

“List out your income, list out your expenses,” Kamel said. “The good news is there's going to be money left over when you believe in yourself and go, ‘I'm going to do the kind of work that I was made to do.’ And I don't think you're passionate about groceries. You're passionate about serving people.

“That could be through analytics. That could be at Target. It doesn’t matter. The key is you’re worth more than a hundred bucks a week.”

Social Security, income and work

As of 2021, over 9 million Americans received Social Security disability benefits (3). For those who can work, Social Security's Ticket to Work program helps recipients with career development and allows them to find meaningful work.

Still, as Kamel and Coleman said, returning to paid work after years of disability can be a major psychological hurdle.

SSDI recipients may also lose their benefits if they earn more than $1,550 per month as of 2024, and the benefit amounts may be reduced as earnings increase (4). For people like Dan, this can be frightening, especially when mental or physical conditions could resurface under the stress of a new job.

At the same time, the cost of living remains a challenge. A survey from public interest law firm Atticus found that living on SSDI is a “daily balancing act” of money, health, stability and dignity. About 63% of respondents said their benefits do not cover basic living expenses.

Among the 426 people surveyed, the average monthly payment was $1,243. Nearly 38% said they had skipped meals to afford bills, while 23% reported rationing medication (5).

While 29% said they had considered returning to work because SSDI is not livable, 38% said they would not last a month without benefits. That contrast highlights just how risky the transition can feel.