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Planning Financially for the Future While Living with a Disability
Released: 8/7/2024
Despite being among the lowest income earners in the country, people living with disabilities have to deal with numerous expenses on a daily basis, from medical bills to home modification costs. It is easy to understand why saving money for the future may not be a top priority for them — or might seem entirely out of reach.
When you are living with a disability, the need to protect yourself financially as you grow older is crucial. Your healthcare needs are likely to change, and you need to be financially prepared to afford the best care. Fortunately, Sharon Wagner of SeniorFriendly.info has put together a number of tips and resources to help.
How Do You Start Planning?
What do you want your future to look like? Will you require certain treatments or therapy down the road? How will you cover medical expenses that may arise?
Financial planning for the future should begin with considering your healthcare needs down the road. There will be a need for more help from caregivers and assistive technology. Assistive technology can range from pill organizers to home-monitoring systems. Such devices can help improve your efficiency in performing day-to-day activities, but they are typically costly.
Budget for Now and Your Future
Setting a budget when living with a disability is crucial for maintaining financial stability and ensuring that essential needs are met. With often higher medical and care-related expenses, a well-planned budget helps prioritize spending and manage unexpected costs. It also provides peace of mind, allowing individuals to focus on their well-being and independence without the added stress of financial uncertainty.
To make the process easier, use a budget template tailored to your specific needs. Budget templates offer a structured format, ensuring that no essential expense category is overlooked and helping you track your spending more effectively. Additionally, they simplify adjustments and planning, making it easier to stay on top of your financial goals even when unexpected changes occur.
Research Your Insurance Coverage
Find out which expenses your insurance covers. You should call in to ask about the benefits available to you. The medical and therapy expenses your insurance pays for will depend on your coverage and special needs. Knowing what your insurance doesn't cover will help you budget for the added costs.
While planning for your future insurance needs, you should keep in mind that people with disabilities qualify for Medicare coverage before they get to 65. You need to meet certain requirements for enrollment, and there are premiums and high deductibles to consider. However, if you cannot afford these costs, Medicaid can help you cover some of them. In addition to Medicare, you should also consider other forms of insurance. A whole life insurance policy, for example, acts as a form of tax-free savings account.
Build Your Savings
Insurance will not cover all your future medical-related expenses. You need to accumulate enough savings to cover the extra expenses that your insurer will not. Thanks to ABLE accounts, the ABLE National Resource Center explains that people with disabilities can save without losing SSI or Medicaid support. Find ways to pad your savings, such as cashing in change or make a good retirement plan.
Refinance Your Home Mortgage
WallStreetMojo notes that refinancing has its risks, but when done right, it can free up enough cash to give you a financially secure future. It involves replacing your existing mortgage with a new one. The new mortgage is typically larger and has better terms. Your reason for refinancing may be to consolidate your debts, improve your credit, benefit from lower interest rates and reduced mortgage payments, or free up cash from your home equity.
Before you refinance your mortgage, make sure that the potential savings cover the closing costs, the new mortgage terms are favorable, and that you use the cash you free up favorably. It's also a good idea to review your credit report to make sure there is no surprising information. Refinancing only makes sense if you plan on staying in the home for a long time.
When you are already investing plenty of time, money, and energy trying to stay afloat, making plans for the future can seem unimportant. When you throw in additional challenges of living with a disability, including difficulty finding and maintaining gainful employment, difficulty accessing resources, and confronting aging with physical challenges, motivation for future financial plans can dwindle. Use the resources provided here to help you on your journey.
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