Financial planning should be part of everyone’s life, but it takes on a particular meaning for those affected by a chronic condition. While it can be pushed into the background during an acute episode, it can also be front and center interfering with daily life. How will I get by? What happens if I can’t be cared for at home? What if I can’t work? These are just a few of the questions people ask themselves. However, developing a financial plan, that you regular review and modify as things change, can help put order to what can feel like financial chaos.
Below are some steps to consider in developing a financial plan
1. Don’t go it alone: There are any number of people who can help you. They will know about special programs, be it for housing, food, medicine, rides, health insurance, disability insurance, long term care etc. Just as it’s good to have an advocate to help you navigate the health care system, there are people who can help you plan a more financially secure future.
Your medical provider may already have contacts you can use, so don’t be afraid to bring up that you need help with finances. They understand all too well how money can impact your choices in care. People who can help include:
- Social worker, case manager at the hospital or health facility where you receive care
- Local chapter of condition specific organization e.g. National Parkinson’s Disease Association Many of these organizations have programs, workbooks as well as staff that can assist you such as the Alzheimer’s Association Financial andLegal Planning for Caregivers. Check Medline’s list of organizations to find the organization that covers your particularly health issue.
- Local office on aging-This service is usually for those 60+ and many offer case management services. If you are a caregiver and your charge is 60+ they can provide assistance. Find what is available in your state by clicking here.
-
Centers
for Independent Living: Every state has an independent living center that
provide an array of services. Click here for your state center.
-
Veterans
can get help from a variety of sources. Check out the financial assistance
links from Veterans Families United.
- Medicare.gov Check out the options under Talk to Someone
- Local Church
- Community action agency: Local private and public non-profit organizations that can connect you with national, state and local program. Use the following link to learn about CAAs in your area
- Human Resources: If you are employed talk to your companies human resources about benefits, retirement packages etc.
- Financial counselor
- 211This is a free and confidential service available throughout the country to assist you in finding the help you need. By calling 211 you will be connected with your local service.
2. Create a Budget: Regardless of who you work with, understanding both income and expenses will be necessary. It’s important that you are honest in what you expect your income to be as well as what your expenses are and/or might be in the coming months. Going through the exercise below will be a big help.
To begin this process, have all of your financial paperwork in one place including bank statements, investment accounts, bills (utilities, rent, mortgage, car, school loans, lay-a-way plans, childcare etc.), paystubs, taxes, credit card bills, receipts from the last three months
A.
Calculate
your income. How much
money can you count on each month? This includes net income from work, Social
Security, disability, investment income, child support, alimony, other people
in your household’s income etc. If you are self-employed, consider using the
income from your lowest-earning month in the past year as your baseline income.
Calculating your monthly income worksheet
B. Calculate Monthly Expenses: As you calculate your monthlies, use receipts, bank statements from the last several months to help with accuracy. Since some areas, such as food, gasoline, can vary from month to month, use an average for the last several months
a. Mortgage, rent
b. Car payment
c. Insurance (home, health, life)
d. Food: Divide into two categories, groceries and “take out”-meals from fast food, coffee etc.
e. Utilities (water, electricity, phone, Internet, cable, TV)
f. Personal care includes massages, gym membership as well as items such as vitamins and other care items
g. Child and/or adult care
h. Transportation costs such as gas, car maintenance, Uber etc.
i. Student loans/school fees
j. Other loans you might have
k. Medical: Expenses/co pays for doctors visits, dental care, durable medical supplies, disposable products, prescriptions, over the counter medications etc.
l. Savings-If you try to put money aside each month
m. Entertainment
n. Credit card payment
o. Upcoming expenses that need to be planned for: Such as upcoming dental procedure, possible need for long term care.
Check out the worksheet Make a Budget. Very user friendly.
C. Tally monthly Income and Expenses: Are you living within your means or over extended? If you are living beyond your means, check out the following:
b.
Living
within your means: Un stuff yourself
c.
Health
Costs: When You Have Some money But Not Enough
f. Shop Around for the Best Pharmaceutical Prices
3. Financial Power of Attorney: A power of attorney can speak and act for you if you are incapacitated. There are multiple types of decisions that they can be given, including health care choices and financial decisions. While many tasks can be included under power of attorney or durable power of attorney, you can divide these tasks so one person is the health proxy (can speak for you about health care decisions if you are unable to do so) and another deals with finances etc. You can begin this discussion with those listed under section 1, but it’s recommended that you use a lawyer to finalize decisions and draw up the necessary paper work. If you can’t afford a lawyer, consider using Legal Aid.
Other Reading
Parkinson’s Foundation Financial Planning
Financial and Estate Planning for the Parkinson’s Community
Alzheimer’s Association Financial and Legal Planning for Caregivers
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