Financial Tips For When You're Recovering

When you are first recovering from an accident, your main thoughts will be how you can juggle the demands of family life and healing your body. However, you will soon realise that a less talked about pitfall is how you are going to manage financially, especially if you are unable to work for a prolonged period of time.

As managing money is vital for running the home, here are some financial tips to help you during your recovery, to ease the financial burden and minimise the impact on your financial stability, while reducing the stress that you are undoubtedly under. It’s time to take control!

Make a claim

Making a personal injury claim for your injuries can be complex and time-consuming, however, there are companies such as The Compensation Experts who will take the reins and negotiate and arbitrate on your behalf for injuries such as whiplash. The problem with a DIY claim is that you may settle before all your symptoms have become evident, a third party can use their knowledge and expertise to get you fair compensation for the injuries you have sustained.

Review your finances

It’s no good sitting there worrying, you really need to go through your finances with a fine-toothed comb to understand exactly what your outgoings are. Print off your last 3 months of bank statements and review your finances.

Create a simple spreadsheet and categorise your expenditure, just as a business does. There will be mandatory costs such as the mortgage or rent, utility bills and bank loans, but there will also be regular outgoings such as groceries and extra-curricular activities that the children do that fluctuate and are optional; this is where you can potentially save money.

TIP: Contact your mortgage company or other organisations that you owe money to and explain your situation. They may be able to put a plan in place for reduced payments or even a payment holiday while you are recovering.

Develop a budget

Now that you have reviewed your finance you are in the position to create a budget so that you can manage your spending in relation to your income. The mandatory expenses must be paid, but you do have wriggle room for your other optional costs. Switching to non-branded groceries, batch cooking cheap but healthy food and cutting back on entertainment expenses are solutions to making your money go further. The important thing is that you stay within your calculated budget.

Do not use credit cards

The temptation is to use credit cards to carry the expenses that you incur; however, it is wise not to use them. You may be getting a compensation payment at some time, but legal cases tend to go on longer than people initially expect, especially if the claim is challenged by insurance companies. You do not want to build up debt while you are in recovery.

The last thing you need right now is money worries; rather, you need to concentrate on getting better. Don’t stick your head in the sand and hope that your finances will survive this period. Be proactive and take control of your finances.