Getting sick of having an accident at any time can be an incredibly straining time on your finances, as well as your health, relationships, and stress levels. It’s vital that you have a budget in place quickly so that you can work out where to find money, how to keep your lifestyle at an adequate level, and also plan for the future. With this in mind, let’s take a look at some clever ideas for budgeting throughout a long-term illness or disability.
Work out what you are due
First of all, bear in mind that people who have long-term illness and disabilities often have higher expenses in almost every area of life. It’s vital, then, that you ensure you get everything you can regarding available income. You might be eligible for Social Security Disability payments, for example, or get medical help from your health insurers. There are other Supplemental Security Income benefits to explore, too, such as the Ticket To Work program which might help you find more suitable work.
Are you due compensation?
If you are ill or injured because of someone else’s actions, you might be eligible for compensation - see your lawyer for more details on what you need to do. However, once you get your settlement, you will need to think carefully about using it appropriately. For example, a structured settlement might be better for you. And how do structured settlements work? Well, in simple terms you get your compensation award but it is paid out at various intervals., For example, you might have to undergo medical treatment in a year’s time, and you can arrange a payment to help you pay for it.
Look for tax breaks
Some people with long-term illnesses or disabilities could be eligible for tax breaks. Make sure that you check out the IRS website to ensure you aren’t paying too much tax on your income.
Save lump sums
Given the cost of living for people with long-term illnesses and disabilities, it’s important to treat any lump sum payments with caution. Ideally, you should plan on putting any inheritance or one-off lump sums into a savings account. That said, be aware that any savings you have could impact any social security payments you receive.
Adapt your lifestyle
As your cost of living will go up in many different areas of your life, you will need to adjust other areas. A complete change of lifestyle might not be necessary, but there will be sacrifices to make. Try looking to shop a little smarter - avoid buying brand name products, for example. And always hunt down coupons and use outlets or stores like Costco to buy in bulk and save money that way.
Have financial goals
It’s easy to forget about having financial goals for the future when you are suffering. But if you want to improve your lifestyle, it’s a necessity. Creating a safety net for your future is vital when you have a long-term illness or disability, so consider aiming to create an emergency fund, pay off debts where possible, and invest in a retirement account.