Making Money Stretch After an Accident

After an accident, you will likely experience a number of financial loses, as well as out-of-pocket costs. As such, you will have to tighten your purse strings in order to get by. Making money stretch may not be at the forefront of your mind, however, while you are busy concentrating on recovering from your accident, your bills will continue to mount up.

It is better to address the fact that you will have to make money stretch after an accident, rather than ignoring the problem in the hope that it will go away. The longer you put off making important changes to your lifestyle, the more difficult it will become to find the extra cash that you need to get by.

Create a Budget

The first step towards making your money stretch after an accident should always involve creating a budget. Make an ordered list of all your current expenses, ensuring that you do not underestimate the money that you spend from month-to-month.

You can use bank statements to help build a picture of what you spend in a typical month. Your initial budget may shock you, but do not panic just yet. You will revisit your budget and make changes as you learn to make your money stretch.

Spend Cash

When you use debit or credit cards for purchases, it is difficult to keep track of where your money is going. When you create your budget, make sure to allocate cash amounts to different areas of essential spending. That way you can separate amounts of cash and reserve them for specific expenses.

Separating your cash will not be enough to make your money stretch, however. The next important stage of budgeting will involve getting more for the money that you do have. You will have to make some sacrifices, but it will be worth it for the peace of mind of knowing you can afford to get by each month.

Put Your Money Where Your Mouth Is

One of main areas where you can save money is through grocery shopping. Store-brand products are often cheaper, with little-to-no reduction in quality. Shop around for the best prices and take advantage of any discounts available.

Another great way to save money is through the great American pastime of coupon clipping. You will be amazed at how much you can save by using coupons to reduce the cost of your monthly grocery budget. However, it is important to reallocate your savings to another area of your budget.

Ask for Help

Don’t be afraid to ask family or friends for help if you really need it. Borrowing even a small amount of money may help you get by until your cash-flow improves. Remember to account for any promised repayments in your budget, and try to stretch payments where possible.

You can also approach creditors to negotiate changes in payments, however, this should be your last resort. Before renegotiating payments, find out how these changes will affect your interest and future credit.

Pursuing a personal injury claim after an accident can help cover the cost of your losses. Edwards & Patterson are here to represent you after an accident. Call today for advice from an expert lawyer.