7 Financial Decisions to Make Immediately After an Injury

Suffering an unexpected injury, particularly from a motorcycle or car accident, throws your life into immediate chaos. In addition to the physical pain and emotional distress, a huge cloud looms over you: the cost.

From accumulating medical bills to lost income and unexpected charges, the financial hit can be daunting. However, by responding fast and making wise decisions, you can navigate this difficult situation and create long-term financial stability.

1. Maintain Detailed Records

The first moments after an accident call for a practical review of your financial picture. Keeping track of every dollar is the most important factor.

Maintain accurate records of all expenses incurred from the injury, including:

• Hospitalization
• Doctor visits
• Prescriptions
• Over-the-counter medications
• Transportation to appointments
• Home or vehicle modifications for accessibility

Assess your income. Be aware of your current income and realistically project your future earning potential based on the extent and duration of your injury’s impact on your ability to work.

2. Create a Budget

With a complete picture of your income and expenses, creating a detailed budget is crucial. Prioritize what you need most. Keep your cash flow in check, and have an idea of where you could possibly cut back.

3. Review Every Detail

The influx of medical bills can be overwhelming.

Don’t simply pay them without scrutiny. Carefully review each bill for any errors, duplicate charges, or discrepancies. Don’t hesitate to negotiate with healthcare providers. 

Many hospitals and clinics offer payment plans, discounts for upfront payments, or financial assistance programs based on your income and circumstances. 

4. Read Your Insurance Policy

Understand the finer details of your insurance coverage.

Delve into:

• Policy details
• Deductibles
• Co-pays
• Out-of-pocket expenses

Explore options for maximizing your benefits and understand the process for submitting claims and appeals if necessary. 

5. Investigate Injury Compensation

Aside from your own insurance, investigate potential areas of compensation.

For instance, if you live in St. Louis and your motorcycle injury resulted from someone else’s negligence, researching the role of a St. Louis motorcycle accident lawyer is a vital step.

A lawyer can help with the following:

• Assess the merits of your case
• Guide you through the court process
• Help you pursue reimbursement for medical expenses
• Retrieve lost income (past and future)
• Pursue a settlement for pain and suffering

If you were hurt on the job, report your accident to your employer and file a Workers’ Compensation claim as soon as possible so that you can start receiving compensation that can pay back medical expenses and lost wages.

Also, investigate your disability benefits eligibility. This could be:

• Short-term disability coverage (through your employer)
• Long-term disability policies
• Social Security Disability Insurance (SSDI)

SSDI may be necessary if your injury is severe and expected to last at least a year.

6. Create an Emergency Fund

Having a solid financial safety net is the key to weathering the storm of an injury.

Keep six months’ worth of living expenses in a readily accessible savings account. This account can serve as a cushion for unexpected costs and income interruptions during your recovery.

If the injury leads to new debt, make a solid plan to pay it back. Explore debt consolidation or balance transfers to perhaps lower interest levels and simplify payments.

Take good care of your credit score during this time. Expect to talk with creditors if you can’t pay to avoid late fees and marks on your credit report.

7. Make a Long-term Plan

Make long-term financial health plans (in addition to recovery) in the immediate future.

Review your retirement funds. Assess how the injury might impact your ability to contribute. Review your situation with a financial planner to determine if you’re still on track to meet your long-term financial goals.

If you receive a settlement or lump sum, don’t spend it impulsively. Instead, invest wisely in a comprehensive plan for managing and (perhaps) increasing these funds, aligning them with your long-term objectives and risk tolerance.

Above all, maintain financial discipline. Continue to budget, track spending, and continually seek ways to improve overall financial well-being.

Stay the Course

Navigating the financial complexities after an unexpected injury can feel overwhelming. Remember that you don’t have to do it alone. 

Access to financial and legal counsel can provide invaluable help and support. A financial planner can help you budget, plan, and make good financial choices, while a personal injury attorney can advocate for your rights and help get you the compensation you deserve.

By taking proactive steps, seeking professional guidance, and maintaining financial discipline, you can navigate the financial aftermath of an injury and work towards a secure and stable future.