Financial planning is hard for everyone, and for someone with disabilities, planning for the future can be especially complicated. If you’re living with a disability, it’s crucial that you make a clear financial plan, as well as understand how you’ll access and afford the care you may need later in life. You should take a close look at your income and expenses, save for your retirement, and consider life insurance or burial insurance to protect your family’s finances.
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Understand Your Costs
If you’re living with a disability, you probably have a higher cost of living than the average American. Along with doctor’s appointments and the added cost of medications or assistive equipment, you may have extra costs such as special dietary requirements, limited mobility that affects your earning potential, or a higher cost of accessible transportation. Calculate your costs, then create a budget that’s easy to follow. You should set money aside for basic needs, discretionary spending, and savings, and carefully monitoring your costs.
Increasing Your Earning Potential
Your disability shouldn’t limit you, so find ways to increase your earning potential. Evaluate your current job and check the job market for accessible jobs you’d excel at. Don’t be afraid to apply for a new job; if you have the necessary skills, employers can’t discriminate against you based on your disability. You can even consider working remotely to pick up extra hours and increase your earning potential while accommodating your disability.
Know Your Rights
You may be eligible for assistance from state or federal governments, so research programs that benefit individuals with disabilities. As a person with a disability, you’re also eligible for tax breaks, so know your rights when it comes to claiming the disability tax credit, social security disability tax credit, or disability-related work expenses that can be deducted.
Set Up Savings Goals
Financial planning is important for everyone, and if you have a disability, you need to ensure you’ll be able to afford the increased care you may need in later life. Set savings goals, and look for programs that will help you make large purchases, such as helping you secure a low-interest mortgage or grant programs that will help you purchase or modify a car. Make sure you’re able to save every month, and plan for the future with manageable savings goals.
Consider Life Insurance
As a person with a disability, it can be difficult to get a life insurance policy. However, with persistence, you can get a great policy that will help you plan for the future, and you may qualify for lower rates due to your disability. A life insurance policy can help your family in the event of your death and will cover costs such as outstanding debts, or the remainder of your mortgage.
Safeguard Your Loved One’s Finances
It might seem strange to plan for your death, but planning your funeral is just as important as planning for your retirement. You want to ensure your last wishes are carried out, and you don’t want your funeral to place a financial burden on your family. Protect your family’s finances by investing in burial insurance to help you afford funeral expenses, medical bills, or even personal loans you leave behind. When deciding on the insurance plan you want to purchase, research the kind of funeral you’d like to have and make sure you invest in a plan that will cover all the costs, as well as any other medical or personal bills you leave behind.
If you have disabilities, you need to have a clear financial plan for the future. Take the time to learn about your options, increase your earning potential, start savings goals, and buy insurance so you’ll be cared for in later life and even in death.