Live wild, live young, live free -this is the mantra that attracts most youngsters. But responsibilities can knock at anyone’s door at any time. Maybe for you, it’s your ailing loved one who needs your attention and care.
Caregiving is one of the toughest responsibilities to shoulder. A phase of financial crisis can pop up as a big problem under these circumstances. However, if you know how to manage your finances, your boat can easily sail through the safe harbor. If you are oblivious to financial planning, maybe we could help you.
Here is your guide to managing your finances when you are playing the role of a family caregiver.
Prioritize your financial stability
Being a caregiver is, of course, a selfless job, but the world doesn’t run like this. You have your stomach to fill and bills to pay. So, be a little selfish and prioritize your financial stability.
Start with creating a budget and stick to it. Rule out the luxury expenses and spend only on things that are required. Try to cut your expenses and save more, even if it is only a few dollars.
Refrain from taking debts
Treating yourself or your loved one to push tension and gloom out of the window may sound like a great idea, but refrain from implementing it. Of course, you have your credit card but try to keep the balances low.
Low-interest offers are any day better than high-interest debts incurred through credit cards.
Create an emergency fund
Emergencies never come with prior notice. It might get very difficult for you to manage an emergency while you are trying to wade through a phase of a financial crisis that caregiving brings.
The best way to avoid any of the aforementioned situations is by creating and maintaining emergency funds. Stop digging into your savings. Instead, save more and keep it for unforeseen situations.
Think before you cut down your work hours
When you are responsible for taking care of someone you love dearly, maintaining a balance between your personal and professional life seems like an impossible task. Many caregivers succumb to the pressure and cut down their working hours to cater to the needs of their loved ones.
Before cutting down your work hours, evaluate the pros and cons of the same. Instead of leaving your full-time job, look for other solutions, like changing your work shifts or working a little on the weekends. Talk to your employer and come to a conclusion that benefits both ends of the spectrum.
If you cut down the working hours of your high-paying job, consider taking up a part-time job that is less demanding and strenuous so that you can work without having to put a lot of pressure on yourself. However, if your part-time job is low-paying, try to limit your expenses.
Explore healthcare schemes
Even if no one understands you, your state government does. US citizens can relish various benefits through various federal and state-run schemes if they are eligible for it. Medicaid, Medicare, etc., are some schemes that cover the medical expenses of the care recipient while also offering many additional perks.
Did you know that CDPAP in NY pays $36,053 a year, that is, $17.33 an hour?
Explore the schemes you are eligible for.
Prepare for your retirement
Few years down the line, you will find yourself in a similar situation. Start preparing for it now. Try to maintain your retirement account, even if you could shell out only a small amount every month. Buy long-term insurance to secure your health in old age. Create a will, a living will, and medical power of attorney.
Financial planning is necessary for everyone, more so if you shoulder someone else’s responsibility. We hope this guide will help you plan your finances better.