Related topics: budgeting, financial planning, frugal, spending, cheap

Living on a "fixed income" traditionally meant you were retired or disabled and receiving Social Security benefits and perhaps a pension. You couldn't ask for overtime or a raise to compensate for higher expenses.

Thanks to layoffs, furloughs and a dismal job market, however, today millions of other people are learning what it's like to have incomes that don't increase even as their costs do.

Rising prices for gas, food and clothing are squeezing these vulnerable folks, often after they've already trimmed expenses to the bone.

Valarie Weinhaus, a disabled single mother of three young children, long ago disconnected the cable television and cut back to a cheaper Internet plan. She buys food in bulk at a store that caters to the local Amish population -- "you can get 100 pounds of beans for $15.99," said the Kirksville, Mo., resident -- and opts for the store or generic brands when she shops elsewhere.

Weinhaus, 39, buys clothes for herself and the children at thrift stores. The kids -- who are 5, 7 and 9 -- don't participate in extracurricular school activities, because those would mean extra costs Weinhaus can't afford on her $951-a-month disability check. Now that gas prices are soaring, Weinhaus' car remains parked most of the time, and she wonders where else she could cut costs.

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"I have to have my cellphone for the schools to be able to reach me in case of emergency, but I might have to let it go for the summer and have AT&T put me on an inactive line," she mused.

A 5.6% jump in gas prices last month, combined with a 1.1% increase in food prices, pushed the Consumer Price Index up 2.7% from a year earlier, the Labor Department reported last week.

And thanks to a global shortage, prices on goods made with cotton -- everything from socks to sheets -- are expected to rise 10% to 15% this summer, according to a survey by Capital Business Credit, a finance company based in New York.

Still, economists aren't heralding the return of inflation. Energy and food prices move around so much that their costs aren't considered when economists look at "core" inflation, which in March was up just 1.2% from a year earlier.

The other measures economists consult -- Treasury bond prices and consumer expectations of future price increases -- also aren't signaling much inflation ahead.

But the idea that inflation isn't a problem is a hard sell to anyone who's filled up a gas tank lately or been to a grocery.

Faced with a shrinking budget and rising prices, people typically:

• Use less, for example by carpooling, walking or riding the bus when gas prices rise
• Trim other expenses, such as eating out or pay television
• Buy for less, using sales or coupons
• Substitute cheaper products for more-expensive ones -- hamburger on sale instead of higher-priced cuts of meat, or beans and rice instead of hamburger.

When you've cut as far as you can and prices keep going up, however, it may be time to ask for help.

One place to start: Benefits.gov, the federal government's central clearinghouse for aid as varied as career help, veterans benefits, nutrition assistance and tax advice.

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If you're a senior or concerned about someone who is, you also should check out the Eldercare Locator, another government site that connects people to local services that offer free or discounted food, home repairs and transportation, among other help.

Here are other places to go to find help:

• Health care.Federally funded health centers offer treatment, checkups, children's immunizations, dental care and prescription drugs. You pay what you can afford, based on your income. If prescription drugs are pinching your budget, talk to your pharmacist about generics and other alternatives. (Doctors often don't know the retail prices of drugs, but pharmacists do and are aware of other options.)
• Rental assistance. The U.S. Department of Housing and Urban Development offers subsidized housing, public housing and rental (Section 8) vouchers for low-income people, while the states provide additional resources. Start your search here. If you don't qualify for help, renting a room or sharing housing with another family could help lower your costs.
  

  

• Energy assistance. The Low-Income Home Energy Assistance Program (LIHEAP) is another federally funded program that helps people pay home heating and cooling costs. Every state and the District of Columbia has an energy-assistance program; you can find yours here. (Use the menu bar near the top of the page to find your state; only states with online applications are included in the links below.) If you earn too much to qualify, consider an energy audit to pinpoint ways to lower your bills. The U.S. Department of Energy has a do-it-yourself version here.
• Nutrition help. The federal government offers two programs, the Supplemental Nutritional Assistance Program (which used to be known as the Food Stamp Program) and WIC (Women, Infants and Children). If you don't meet the requirements for either, you can still visit local food banks, which typically don't require you to document the depth of your need. You can find your nearest one here.
  
  

Liz Weston is the Web's most-read personal-finance writer. She is the author of several books, most recently "The 10 Commandments of Money: Survive and Thrive in the New Economy" (find it on Bing). Weston's award-winning columns appear every Monday and Thursday, exclusively on MSN Money. Join the conversation and send in your financial questions on Liz Weston's Facebook fan page.