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Overcoming Long-Term Financial Challenges When You Have a Disability

| July 25, 2019
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Personal finances can be difficult for anyone. Unfortunately, people with disabilities face money challenges that can make it even more challenging to plan for the future. Disabilities tend to create many additional expenses. While the cost of living can be much higher for disabled people, average earnings tend to be lower. If the thought of your financial future has you feeling overwhelmed, consider some of the following tips to overcome financial challenges and save more money.

Purchase Insurance

Insurance is an excellent way to cover your finances and prevent money problems in the future.  Essentially, insurance is all about planning for those “what if” situations. What if you need an expensive operation? What if you require round-the-clock care in your senior years? What if you die unexpectedly? Long-term care insurance, health insurance, and life insurance can protect you and your loved ones from these worst-case scenarios.

A life insurance policy can relieve your family of financial burdens if you were to die suddenly. These policies will cover your lost income, funeral expenses, and any lingering medical bills that your loved one may be stuck with. Fortunately, comparing rates and shopping for low-cost insurance is fairly easy with the help of online guides and coverage calculators. Use this guide from Haven Life for help purchasing an affordable life insurance policy online.

Take Advantage of Benefits

In the United States, people with disabilities have several benefits that can help them access affordable medical care, low-cost living, and income assistance. On top of regular Social Security disability benefits, people with disabilities may qualify for Medicare before the age of 65. In fact, you will automatically be enrolled in Medicare after receiving 24 months of disability benefits. Research eligibility or talk to providers to help you sign up for Medicare and learn about your additional coverage options through Medical Advantage.

People with disabilities are also eligible for an ABLE savings account. ABLE accounts allow disabled people to save up to $15,000 per year without losing disability benefits. Plus, your investment earnings in this account are tax-free as long as you use the money for qualified disability expenses.

Work However You Can

The majority of people with health conditions and impairments are able to work in one way or another. According to U.S. News, you can still receive Social Security disability benefits while earning a small income. If you’re able to work in some capacity, consider some of these excellent job recommendations so you can contribute even more to your savings each month.

Automate Your Banking

When you receive any kind of income, pay yourself first. Take advantage of automated banking services to direct-deposit your earnings and automatically transfer a specified amount of money into your savings account. Doing this will remove the temptation of spending this extra money instead of saving it. Treat each savings contribution like another bill you have to pay.

Use Apps for Budgeting

Budgeting apps can further help you save money and contribute even more to your long-term savings. These apps are designed to organize your day-to-day finances, so you can find unnecessary expenses to adjust or cut out completely. Some apps even work with your credit card and bank account to automatically track your earnings, bill payments, and everyday spending. You’ll likely discover a few expenses that you can live without, like cable or magazine subscriptions. GoBankingRates recommends cutting these items from your budget to bulk up your savings account instead. Remember, even a daily $2 coffee will add up to over $700 a year!

It’s easy to focus on the now, striving to meet your financial obligations one month at a time. While short-term goals are an important part of financial management, you also need to look at your long-term financial health. Set larger financial goals so you can afford sufficient, high-quality care in your future.

Written by: Ed Carter, Ablefutures.org.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. The strategies mentioned may not be suitable for all readers.

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