Distant family members, friends, neighbors and even people you’re not acquainted with will start showing up with dubious excuses trying to get some money from you. You might be tempted to give in to their schemes or your desires such as buying a luxury car or even quit your job simply because you can.
Now, how do you ensure that the excitement and such individuals do not get the best of you? Below are five smart ways to use your lawsuit settlement money.
1. Invest in your health
It’s quite tempting to use the money for other purposes such as starting a business or paying loans. However, your priority should be your health. Have you fully recovered from the injuries?
If not, ensure that you receive the best care to help with your recovery. Property and luxury houses are irrelevant if you do not take care of your health.
2. Save
Before you start spending, save. Take a hard look at your living standards and think about your future. If the injury was severe and you can no longer work, then it is imperative that you save to safeguard your future.
Take a look at your savings and retirement account and ensure that you have saved more than enough.
3. Pay off your debts
Next, take care of all your debts. When you suddenly receive a financial windfall, it is very easy to forget your debts. Talk to your lawyers and have them draft a list of all your debts including lingering medical bills, loans, and credit cards.
Paying your debts improves your credit score, puts your mind at peace and allows you to stash money into your savings account.
4. Get life insurance
Often, after receiving lawsuit settlement money from a personal injury case, you get to review your life.
When this is the case, you realize that life is too short and if you don’t have a life insurance, it’s about time you got one for the sake of your family’s coverage. Protect the future of your loved ones.
5. Get a financial adviser
Emotions can be hazardous to your recently acquired lawsuit settlement money especially after a personal injury case. To ensure that you don’t make silly mistakes or have regrets, get a reputable financial advisor.
A financial adviser can relieve the pressure; provide you with expert and unbiased advice on how to spend the money.
Financial windfall matters are not only overwhelming but are also complicated. There are so many ways to spend the money. Have a plan and avoid succumbing to temptations.
Financial windfall matters are not only overwhelming but are also complicated. There are so many ways to spend the money. Have a plan and avoid succumbing to temptations.
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