Living on a fixed income can be difficult. While it's not easy, retirees, disabled people and employees can benefit from good budgeting practices. By tracking your money and cutting unnecessary expenses, you can improve how you use your income.

• List all your expenses for one month. At the end of the month, carefully review your list and ask yourself questions like, "What did I buy that I don't need? What could I have spent less on? Does my income more than cover all these expenses?"
  
  
• Answer these questions truthfully. Once you know how you spend, make certain your income covers expenses. Then, cut those expenses until you're actually saving money. You never know when an emergency expense might arise.
  
  
• Think of your future. You know you'll have emergency expenses in the future, so start saving. Start small, if you must. Begin saving ten pesos a day. Or, save your pocket change every day. Then gradually increase the amount you put away.
  
  
• What about inflation? When you're on a fixed income, you should think about how inflation affects your finances. Inflation reduces the value of each peso. The only way you can beat inflation is by having your savings grow faster than inflation. To do so, you may have to put your money in stable or growth-oriented investments such as pension funds, especially for your retirement years. Always seek the advice of a good financial planner before investing your hard-earned money. Citibank offers a free financial check-up that should prove useful in finding ways to beat inflation.

  Most employees have pension plans with the SSS or GSIS. In general, if you have made more than 120 contributions for the SSS and 60 payments for the GSIS, you will be given your pension monthly starting your retirement date. Otherwise, you will receive your pension in one lump sum. (The GSIS, though, has a different set of mechanics for the pension plan depending on when you joined the service. Call GSIS at 891-6161 for more information.) The GSIS extends additional benefits to its pensioners such as a carer's allowance, a cash gift, an anniversary benefit for those aged 100 and above, and burial assistance.

  Because government pensions are usually not very substantial, you may consider taking out a private policy for this purpose.
  

• Is your income really fixed? Sometimes there are ways to increase income. Can you work part-time? Can you bake cookies or prepare tocino and sell them at the office? Could you hold a garage sale? Do you have collectibles you could sell (antiques, stamps, artwork, etc.)? Are there government benefits you qualify for but have not taken advantage of? Think of ways to earn extra money.