- Step 1. Gather your current financial information. (Then stay organized).
- Step 2. Create A Financial Snapshot Of Your Net Worth And How You Spend Your Money.
- Step 3. Plan Ahead.
- Step 4. If there is a shortfall, consider the alternatives to help close the gap.
- Step 5. Calculate Your "Real Earnings"
FOR INFORMATION ABOUT EACH OF THE FOLLOWING SUBJECTS, SEE THE OTHER SECTIONS OF THIS ARTICLE
To get a fix on your financial situation, and how it could change because of your health condition, take the following steps:
Step 1. Start by gathering your current financial information. (Once you're got your information together, stay organized. It's easy. Being organized can be a major time saver. See "To Learn More.")
Step 2. Create a financial snapshot of your net worth and how you spend your money ("cash flow").
Step 3. Plan ahead to find out how much money you are likely to need because of medical costs, as well as a loss of income if your health takes a downturn and you become disabled. At the same time, look on the positive side. Think about your personal goals and how much money you will need to meet them.
Step 4. If there's a shortfall, consider which of the variety of available techniques can help close the gap.
Step 5. Last, but not least, take a few minutes to find out how much you really earn compared to what you think you earn. "Real Earnings" include such things as expenses you would not have if you didn't work at your job. Calculating Real Earnings can help you see how to increase the number. It can also help you focus on the balance between work and whatever fulfills you which often takes on greater importance since your diagnosis.
- If you are likely to need long term care and don't have insurance or the resources to cover, consider taking steps to qualify for Medicaid. See Government Benefits.
- To round out your financial planning, consider planning ahead to get the legal paperwork in place to assure you are in control of what happens to you medically if you become unable to speak for yourself. It also takes care of what happens to your assets if you become unable to take care of them yourself, or if you die. This is generally referred to as Estate Planning. (See "To Learn More.")
- To learn tips about spending less, click here. For tips on saving money, click here.