Financial Distress: 6 Ways to Handle Your Personal Finances After an Accident
Even with insurance your personal finances can reduced to shambles after an accident. You will most likely have a deductible to pay, repairs to any damage that may have been caused, and medical bills. While you are focused on these bills, you have other bills coming up like your electric and water payments. It starts to feel overwhelming and before you know it, you find yourself behind on payments and interest is starting to work against you. Rather than stressing out and becoming frustrated as complications mount, your time will be better spent brushing up on effective ways to handle your personal finances in the aftermath of your accident.
1. Utilize Your Liquid Savings
Even if you have stocks, exchange traded funds or index funds, it’s best that you maximize your checking, money market and savings accounts first since those particular accounts aren’t vulnerable to value fluctuation. If you’re thinking about dipping into any retirement funds that you have, there’s a chance that you may have to deal with early withdrawal penalties.
2. Make and Stick to a Budget
Not only will you want to make a budget after your accident, you’ll also want to stick to that budget. A budget lets you know whether or not you’re currently living within your means and lets you know exactly where every cent is going.
3. Reduce Your Monthly Bills
If you have any services that you don’t absolutely need, get rid of them as quickly as possible. It’s also a good idea to look at the fees attached to your necessary services, such as your checking account. If you can get those same services elsewhere without having to pay a fee, make the switch.
4. Hire a Injury Lawyer
You may not like the idea of turning to a lawyer, but you never know if you could be entitled to financial compensation as a result of your accident. There’s no need for you to struggle and be made to pay for someone else’s mistake. Sit down with an injury lawyer like those from the law offices of Tony Zuber & Paul Brioux and see if you have a solid personal injury case on your hands.
5. Check Your Insurance Coverage
If you had to make an insurance claim as a result of your accident, now is the perfect time for you to go over your insurance plan. See if there are any discounts that you qualify for, or if there is anything in your premiums that you can cut out. Check to see if you have a disability or umbrella insurance policy, both of which can seriously come in handy the next time you’re in an accident.
6. Keep Up With Routine Maintenance
It’s a good idea to go ahead and have routine maintenance done on your car, home and your health if your accident didn’t result in physical injuries or damage to your automobile. The reason for this is that minor problems are easier to take care of now than major problems later on.
While an accident might be the perfect catalyst for making sure you’re prepared for a financial disaster, it’s always better to start preparing before the accident ever occurs. This way if you won’t find yourself stressing out as much about your finances, especially if you were seriously injured. The last thing you want is for you and your loved ones to end up in financial ruin and constantly wondering how you are going to make ends meet. Do your best now to prepare in case the worst should ever happen and you should be able to make it out on top of things in the end.
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Category: Financial Education, Financial Planning
