If you are injured and you are unable to work, it can cause you some serious financial problems. A lot of people don’t think about this aspect of it, but it can lead to a lot of extra stress while you are recovering. Your first priority should always be making a full recovery, but you do need to think about your finances as well. If you don’t manage your money properly, you are likely to end up in debt and that can be very hard to get out of. These are some of the most important money management tips for people that are recovering from an injury.
Make A Compensation Claim
If you are injured at work or in a public space and you don’t think that you were at fault, you may be able to make a compensation claim. If you get in touch with a personal injury lawyer and explain the situation to them, they will be able to take you through the claim process and help you gather all of the evidence that you need. If you can win a settlement, you will get a lump sum that can really take the financial pressure off. As long as you budget the money effectively, you should be able to avoid borrowing money while you are out of work. It’s important that you get the process started as soon as possible because it can take a long time before you get the money.
Assess Your Finances
The next step is to evaluate your financial health so you know where you stand. You need to do this immediately because if you continue spending as you normally would, you will soon run out of money. Check what you have in all of your accounts, including savings accounts and emergency funds, and add up a total figure. Then you need to add up all of your expenses and see exactly what you are likely to spend each month. This will give you a good idea of how long you can survive before you need to start borrowing.
Rethink Your Budget
When you assess your finances, it’s likely that you’ll find that your money won’t stretch that far. If you continue spending at the same rate as you are now, you will burn through all of your savings in no time, and you may end up having to borrow to cover your expenses. That will leave you in a very bad financial position, so you need to rethink your budget. There are a lot of luxuries that you will have to cut back on, like eating out and shopping. You should also consider any subscriptions that you have because they can eat into your budget in a big way. For example, a gym subscription is not going to get used while you are injured so see if you can cancel or pause it for now. It might seem like you’re making a lot of sacrifices but once you make a full recovery, you can revert to your original budget.
It’s so important that you handle your money sensibly while you are recovering from an injury so you are in a stable position afterwards.