Did you know that motor vehicle collisions account for 78% of injuries and 71% of all accidents in the US? This is just the tip of the iceberg. In 2022, the US experienced 63 million injuries and 1283.5 billion dollars in costs. Anyone who has been a victim can attest that a life-changing event can leave you emotionally and financially devastated.
An unexpected job loss due to an injury, a sudden medical problem, and other unfortunate events can disrupt financial stability. However, with careful planning and a focus on long-term goals, it is possible to rebuild a financial foundation.
In this article, we’ll discuss ways you can regain control of your personal finances after a disaster.
1. Seek Compensation
If you have been a victim of a life-changing accident, you should act quickly and seek compensation from the party concerned as early as possible. Let’s consider the example of St. Louis, the least safe city in the US There is a higher chance of having a life-changing accident here than anywhere else in the nation.
Fortunately, according to TorHoerman Law, St. Louis has a five-year statute of limitations. This means that victims have a five-year window after the incident to file a lawsuit and seek compensation. If the statute of limitations expires, you will never be able to claim compensation from the person responsible.
Finding personal injury lawyers in St. Louis who have knowledge before the law is passed to navigate the legal system is important. A qualified attorney will use his legal skills to investigate the incident, gather evidence, and build a strong case for you.
Important evidence includes statements of witnesses present at the time of the incident, medical records, witness statements, etc. However, knowledge of the legal system is required to use evidence to build a strong case. And with 1.3 million attorneys in the United States, it’s easy to find someone to build your case for.
2. Deal With Debt Smartly
After a life-changing event or mistake, medical bills are common. And depending on the severity of the injury or condition, the burden of medical expenses and debts can cripple financial stability. In such cases, it is important to deal directly with debt in a strategic manner.
According to the latest government data, Americans owe at least $220 billion in medical debt. The most surprising thing is that about three million people owe more than $10,000 in medical bills, and 14 million Americans owe more than $1,000. Medical debt is an ongoing problem in the US despite the fact that over 90% of the population has insurance.
If you are one of those who have huge medical debt, here is your guide. Prioritizing high-interest loans like payday loans and credit cards is important because of the high interest rates. Don’t hesitate to contact your lender and negotiate a lower interest rate.
3. Explore Qualified Career Opportunities
One of the most devastating consequences of any unfortunate event involving a non-fatal injury is a significant loss of worker productivity. This causes huge financial loss to the victim. A recent study showed that lost income due to long-term injuries added more than $50,000 over a 14-year follow-up period.
The silver lining is that by 2023, 24.2% of people with disabilities will be employed in the US, according to the US Bureau of Labor Statistics. Consider investing in skills development to improve your employability and seek higher paying opportunities. Additionally, consider gig economy platforms for quick cash.
Also, look for government assistance programs that offer job training or financial support to people who are struggling. Employment should be your top priority when rebuilding your financial foundation after a disaster.
4. Prepare a Financial Safety Net
Finally, prioritize building a safety net for future uncertainty as you gain financial stability through the steps mentioned above. The first step to building a financial safety net is to set aside a small percentage of your income for an emergency fund.
Start small by saving at least three to six months of living expenses. This will be useful if another accident leads to a loss of employment or income in the future. Having this cushion will help you focus on getting back to work instead of making a living.
Also, review your insurance to ensure you have adequate coverage for health issues, disabilities, and life-changing events. If your finances are stable, focus on long-term goals such as investment strategies or retirement savings.
Life-changing accidents are unpredictable, but their consequences are predictable. Preparation is key here. Start by having an emergency fund and plan for any unfortunate event. If you are already a victim, seek compensation from the person responsible for the damage, budget your lifestyle, manage debts properly, check jobs, etc., to regain financial stability. With perseverance and determination, overcoming obstacles and emerging with a solid financial foundation is possible.
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