After you have suffered a serious injury, you may find that you are unable to work. If your injury was caused by someone else and you are able to sue for compensation for your injuries, your settlement may be able to support you until you have recovered enough to work again. However, you will want to take measures to save money so you do not burn through your settlement on a spending spree.
Remember How Limited Your Funds Are
While we often think that we can live under austerity if necessary, when we have access to seemingly unlimited funds, it can be tempting to spend your settlement on all sorts of luxuries. First, though, you will need to determine if you will be able to live off of your settlement in the first place. Consult with your doctor regarding how soon your doctor believes you can return to work. Once you have a time frame, you will be able to divide your settlement by that time frame to understand how much you will be able to spend each month. If you exceed this amount, you will need to cut back on your spending the next month to make up the difference.
Track Your Spending
If you weren't already, you'll need to keep track of what you are spending. Create a chart to determine where money is leaking the most. Then, ask yourself if there is any way you can slash this expense. For example, if housing is your biggest expense, consider looking for a smaller home that has a lower rent. If your expenses are primarily related to splurges, you will need to find less expensive ways to entertain yourself.
Get a Structured Settlement
One way to avoid spending all of your money is to instead choose a structured settlement. Rather than receiving your payments as one lump sum, you will receive your payments stretched out over a longer period.
You are also able to sell your structured settlement. By doing so, you will receive a lump payment rather than continuing to receive monthly payments. The benefit of this is that you can use your entire settlement to make an important purchase, such as a house or a new business. You will sell your structured settlement directly to a company that will treat your settlement as an investment. You'll receive the settlement amount, at a reduced rate, and the investor will receive your regular payments. You will need the judge's approval to make the sale. For more structured settlement information, contact a professional.