Planning for a life-altering disability isn’t always at the top of the priority list. But, when you’re diagnosed with a disabling condition, you just might need a plan.
According to Market Watch, here are the first two of four steps that people with serious health conditions should take:
(1) Develop a financial plan. Establish a budget and prioritize expenses. Figure out how to spend down your assets in the least harmful ways because using retirement income may trigger penalties, and charging to credit cards ultimately adds financial charges.
(2) Cut costs and identify sources of assistance for living expenses. Quickly cut discretionary spending and look at how you can reduce costs for necessary expenses, such as groceries, housing, utilities, and healthcare. The most common assistance programs that people used while waiting for Social Securiy Disability Insurance include the following: food stamps, prescription drug assistance, Medicaid, utility assistance, food pantry, free health clinics, and rent assistance.
Part 2 of this blog on Wednesday will cover two more steps for handling your personal finances if a disability occurs.
This information is not intended as a substitute for legal or other professional services. You may want to seek expert assistance before making any decisions that may affect your personal financial situation.