A debilitating car accident can turn your life upside down in a single moment. The injuries can be severe enough to put you out of action for an extended time. In the worst cases, the mishap can lead to permanent disability and immense emotional trauma. Your relationship and family suffer due to a lack of companionship. Besides the physical suffering and mental trauma, your finances can go haywire.
Imagine the expenses of medical treatment, rehab, and home modifications. A damaged car may require extensive repairs and replacement. Moreover, staying off from work leads to income disruption. Your finances will likely take a major blow with so much happening simultaneously. But it is possible to regain control and stability, provided you take the right approach. Let us share some valuable advice on staying afloat after a debilitating car accident.
Consider your expenses and income
Your expenses and income do not remain the same after a severe injury. Medical bills and rehab costs can be back-breaking for anyone, specifically when one has to pay them out of pocket. You may have to spend on mobility aids and home modifications to regain independence after a crippling injury. Your family expenses can literally go out of control with the additional burden. Likewise, your income suffers as you may have to stay home for an extended recovery period. You may rejoin a different role with a lower salary bracket. In fact, you may lose your capacity to work due to a disability. Considering these factors is crucial to creating a viable comeback plan.
Rework your monthly budget
Once you know where you stand financially, you must rework your monthly budget to make ends meet. The objective is to fit your expenses into your current income and try your best to save a bit every month. Even small savings are enough to create a financial cushion for a rainy day. It may seem daunting at first, but you can eventually find ways to create an emergency fund. Everything boils down to stretching your money by cutting unnecessary expenses. It is equally vital to keep debts at bay. However, you may need to make a conscious effort to limit debit card spending and repay your current debts as soon as possible.
Seek personal injury compensation
Nothing is worse than facing a debilitating injury due to someone else’s negligence. You feel cheated and want the guilty person to pay for your suffering. The silver lining is that you can file a claim for personal injury compensation in such situations. A car accident attorney ensures that your claim covers the entire financial damages, from medical treatment costs, damages, and wage loss. They can even get you paid for emotional pain and loss of consortium. The dollar figure of compensation is often enough to get a victim’s finances back on track. Remember not to negotiate with the guilty person’s insurance company on your own because they will try their best to settle at a lowball offer.
Find alternative income streams
Besides controlling your expenses, boosting your income is another way to regain financial stability after severe injuries. They are likely to put you off your feet temporarily or even permanently. You can consider resuming work as soon as possible, but things may not be favorable. Explore alternatives such as remote work with your employer or freelancing projects you can pick from home. Your spouse and grown-up kids can do their bit to support family finances. The purpose is to keep your money position on track, and every dollar can make a difference.
Plan for the future
Think beyond staying afloat and plan for a secure future to keep things on the right track despite a debilitating injury. You may not be able to work full-time after a disability. Moreover, your employer may not have a work-from-home option. But starting a home-based business is a good idea to set your finances in motion. You can also invest a part of your compensation claim for regular income and long-term security. Ensure that your disability does not deprive you of financial independence. Consulting an expert is the best way to diversify your portfolio and get maximum returns on your investment.
Physical recovery should be a priority after a car accident, but you must also focus on financial stability in the long run. It is even more crucial if you are the primary earning member of the family. Following these simple tips can keep you afloat and set you on the road to a comfortable and secure future.