A work injury can be more daunting than you imagine because its implications extend beyond physical pain and suffering. The financial impact may be much more challenging because the cost of treatment can burn a hole in your wallet. Even worse, you may lose your wages due to absence from your job during recovery. The struggle gets bigger if you suffer from a debilitating injury that keeps you off work for the long haul. It may even affect your working capacity and long-term income potential. Fortunately, devising a financial recovery plan keeps you on the safe side. Here are some money tips to stay afloat after a work injury.
List your expenses
The first step to embarking on the financial recovery journey is to list your expenses. Typically, you can expect medical bills to disrupt your finances. The costs may run high if you require rehab and therapy to regain mobility after a severe injury. Factors like commute costs, home modifications, and wage losses can also affect your money position. List them down to create a viable comeback plan.
Rework your budget
Once you have a fair idea of your expenses, you can consider reworking your budget. But remember to factor in the current income of the household. You may depend on your savings or your partner’s income to get through. The best piece of advice is to manage with bare essentials and skip all the unnecessary expenses during the tough time. Find ways to save a bit for your emergency fund.
While the recovery phase can be daunting, work injury compensation can cover your woes. If you are Injured at work, you can rightfully claim compensation for your employer. But everything boils down to calculating the claim value wisely and presenting valid evidence to establish workplace injury. A seasoned lawyer can help you with both aspects. Your finances will be back on track sooner than later after getting the rightful compensation.
Steer clear of debts
Experts recommend steering clear of debts during a financial crisis like the one you may encounter after a work injury. Making payments with your credit card seems easy when the money is tight, but you may end up with a huge bill. Ditch the habit and commit to a frugal approach. Consider reworking the existing debt terms with your lender instead of skipping the payments.
Try to get back to work sooner than later
This one is a no-brainer because resuming regular income is the best way to regain financial stability. You can even pick a WFH side hustle to maintain a steady flow of income when off your job due to mobility issues. Discuss the options to return with your employer as they may allow you to work remotely or join in a different role according to your capacity. You may set up a home-based business if returning to your job is not an option.
A work injury should not damage your finances, no matter how challenging things appear with your money. You can follow these simple tips to regain control and start afresh.