5 Smart Financial Planning Tips for People with Disabilities

This post was submitted by Annabelle Harris of elders.center

When you have a disability, planning ahead is prudent. You want to ensure that you can afford quality care if you need it later in life. Plus, you want to help support and protect your family when it comes to financial matters. To help you get started, dearfelicia offers five smart financial planning tips for people with disabilities.

Plan for Life’s What-Ifs

Thinking about your future funeral doesn’t sound like fun. But making plans so your family won’t bear the financial burden is thoughtful and can help relieve stress during a tough time. Burial insurance helps cover those what-ifs for your loved ones, paying for funeral costs and things like medical bills. Before you buy coverage, think about what type of final arrangements you’ll want, as well as help with any bills you may leave behind.

Another what-if involves full life insurance coverage. You might choose a life insurance policy to help support your family financially when you pass away. Depending on your disability—and whether it affects your life expectancy—you may be able to find affordable life insurance coverage.

Take Steps to Increase Your Income

One great way to lay a foundation for your financial future is through career advancement. If you’re spinning your wheels in your current job, finding new employment with an opportunity for more responsibilities and higher pay is essential. Especially if you have skills that aren’t being put to use.

If it’s your skill set that could use a boost to uplift your career, consider earning certifications or even a new degree. Moving from an associate’s degree to a bachelor’s or a bachelor’s to a master’s provides both increased knowledge and a bump in salary. Plus, online programs make it easier to reach professional goals while maintaining work and family commitments, not to mention they are a boon for people with mobility issues.

Take Steps to Save Money

One of the simplest ways to save money is to know where your money is going. To do that, you need to create a budget. Outline your monthly expenses and income to see what you’re overspending on—there are likely a few ways you can save.

Sticking to a family budget can help you put aside a little money at a time. Over a few months or a year, those amounts add up. Especially if you choose a savings account that earns interest, putting money aside can help you handle small emergencies that come up in daily life. This way, you don’t go into debt getting your car fixed or buying a new refrigerator when yours goes out unexpectedly.

There are other ways to save that are easy, too. Experts say that buying in bulk often saves consumers around 20 percent—and even up to 83 percent, depending on what you’re buying, notes 100 Days of Real Food. Coupons can also help you save a lot on grocery and household items, and there are many free apps and digital coupons available for things you already buy. Also, if you’re a homeowner and need a cash infusion, you could refinance by decreasing your equity in your home.

Keep an Eye on Your Benefits

If you receive Supplemental Security Income (SSI) or Social Security payments, saving too much money could affect your benefits, according to the Social Security Administration.

One exception is the Achieving a Better Life Experience (ABLE) account, a special savings option for people with disabilities. If you meet the requirements, you can save up to $100,000 without affecting your SSI payments. 

There are other special savings options and programs for people with disabilities, too. You might be able to take courses on financial education or receive free tax preparation, which can help you work toward your financial goals.

Seek Support If You Need It

Planning for your future can feel intimidating whether you have a disability or not. However, it’s a must, and thankfully, you don’t need to go it alone. You can find assistance with organizations that offer future planning and other resources. You might be eligible to receive support from a range of public benefits programs throughout your life, and knowing about these programs can help you plan your finances even better.

Managing your finances isn’t always easy. But it’s a necessary step when facing the future, both for people with disabilities and those without. As a person who is living with a disability, you can take action to prepare for your future and ensure that your finances are strong, too.

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