An accident, especially one that resulted in injuries, can have a significant impact on your financial stability. Damages to your vehicle, medical bills, lost wages due to time away from work, and other expenses can all add up and impact anyone’s finances. To recover from an injury doctors may recommend physical therapy, medical treatment, or even psychological assistance. However, recovering financially from an accident may be more complicated and not as straightforward. We have outlined some tips for analyzing your finances and some budget changes you could make that could help you bounce back after an accident.
Focus on Your Recovery
Dwelling in the past will not help your financial situation, rather than investing your time thinking about the past, use this energy to focus on your recovery. Draft a plan with realistic goals and set your mind to it. Make sure you include not only your financial recovery but mental and physical as well, especially if you suffered any injuries during the accident. Having a plan will help you recover more easily and keep you on track.
Analyze Your Current Finances
Analyze where you stand financially and assess what liabilities you face and what resources you have. Calculate how much you have spent on accident-related expenses and how much you will continue to spend. Consider any long-term medical treatment that you may need, prescription drugs, psychological counseling, fixing property damages, etc. Your financial analysis will give you a better picture of what you can afford now and, in the future, and will make it easier to draft a plan to improve your situation.
Hire an Attorney to Recover Compensation
An attorney will fight to recover the compensation that you deserve for the damages you suffered from the accident. An experienced personal injury lawyer will be able to determine not only the economic damages you are entitled to, but also non-economic damages. Compensation for non-economic damages can cover psychological pain and trauma, and other non-tangible losses you suffered. Personal injury law firm Panish Shea & Boyle’s website indicates that studies show that plaintiffs that hire a lawyer receive a higher settlement compared to people who represent themselves. A legal professional will handle all communications and negotiations with the insurance companies to secure the compensation you deserve. If necessary, a lawyer can also take your case to trial if they believe that is necessary to achieve the best possible outcome. Contact an attorney to discuss your accident as soon as possible, even if you believe you don’t have a valid case, most personal injury lawyers offer free initial consultations, so don’t hesitate in contacting a legal team as soon as you can.
Cut Your Spending
Once you have determined your current financial situation you can start creating a budget. The easiest way to cut down your spending is by eliminating unnecessary expenses. For example, if you were injured, you probably won’t be able to go to the gym for a few months, so you can start by canceling your gym membership. Other unnecessary expenses include eating out at restaurants, daily coffee runs, music streaming services, and others. After eliminating these expenses, you can prioritize your payments. If you have credit card debt, try to make all your payments, even if it’s just the minimum payment. Paying this will be much better than getting charged late payment fees and having your credit score affected.
An accident can be a traumatic experience for everyone involved, whether you were at fault or not. It can result in debilitating or even permanent injuries, unexpected expenses, and lingering psychological issues. Taking the right steps toward recovery, not only physical recovery but financial as well is one of the most important tasks to get back on your feet. Don’t be shy and ask for help and guidance if needed, speak with personal injury attorneys, medical and psychological professionals, and financial professionals when needed.