My wife and I, both 79, are trying to survive on $2K/month from Social Security. Our house is paid off and we have $50K in savings, but we’re scared of running out of cash — what do we do?

Maximize your home value

While owning a home outright is a huge advantage, maintaining it can be costly.

You can consider downsizing. Moving to a smaller, lower-maintenance home or a senior-friendly community can reduce property taxes, utilities, and upkeep. Downsizing can free up capital and reduce monthly costs significantly.

Renting out a spare room or partnering with another senior through vetted home-sharing programs can also help with supplementing income and provide companionship and added security. Programs like the National Shared Housing Resource Center offer resources for income-generating home-sharing options.

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Optimize your healthcare

Medicare provides essential coverage, but supplemental insurance can be pricy.

Seniors with limited income should check eligibility for Medicare Savings Programs (MSPs). These state-administered programs help pay Medicare premiums, deductibles, and co-pays for low-income seniors. Also, learn about the “Extra Help” program for prescription drugs. The SSA offers assistance to reduce Part D prescription costs based on income and resources.

Staying on top of these programs through resources like Medicare.gov can save hundreds or even thousands of dollars every year.

Reduce your living expenses

Stretching $2,000 a month requires some discipline, but living a frugal lifestyle while still enjoying quality of life is key.

Make sure you create a monthly budget and try to cut discretionary spending.

Track all expenses and categorize needs vs. wants. You can consider using free budgeting tools if you're tech-savvy. Limit dining out, subscriptions, and non-essential purchases. Buy in bulk, shop sales, and utilize food assistance programs if eligible.

Local senior centers, food banks, and utility assistance programs can help reduce expenses.

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Prepare an emergency fund

Unexpected health expenses, home repairs or other emergencies can quickly throw you off a tight budget.

Usually people are advised to keep at least 3-6 months worth of expenses in a highly liquid account, such as a dedicated high-yield savings account. This means that if you need to access funds right away, you won’t have to tap your investments or take on debt.

It may be tricky to do in your current situation, but retirees are generally advised to build larger emergency funds. Consult a trusted financial advisor about this if you can.

Abid Salahi, finance expert and co-founder of FinlyWealth, told GOBankingRates retirees should aim to keep 12 to 18 months of living expenses in their emergency fund.

If you’re a senior living on a tight Social Security income, it's important to be proactive about emergency savings, optimize your home and healthcare costs, and have control over daily expenses. By taking these steps, you can avoid running out of money and feel more secure in your retirement.