No one likes to get injured. Not only do you have to deal with the pain, but in the case of a serious injury, you have to deal with all of the recovery as well. According to TheBarnesFirm.com, “Millions of Americans suffer injuries every year and almost every person is likely to suffer an injury at some point in their life.”
If you’re injured because of someone else, however, there is at least a silver lining. By winning a personal injury lawsuit against the other person, you’ll at least have some money coming your way. But what’s the best way to spend this money? If you’ve just received some money from a personal injury lawsuit or settlement, here’s the best way to spend it.
Put it Towards Medical Bills
Unfortunately, insurance doesn’t always cover all of the costs associated with your injury. Maybe you don’t have insurance, or maybe the insurance you have just isn’t enough. In the end, you owe money to the hospital, either to pay for the room, the doctors, the surgeries, any number of fees, and more. Using the money from a personal injury lawsuit is a great way to afford paying off these bills. If you’re lucky you’re getting enough to at least cover these costs, so that you don’t have to go into debt to pay for an injury that wasn’t your fault.
Account for Your Recovery Period
Your journey isn’t always over once you leave the hospital. Maybe you need to go to physical therapy, or have some additional equipment installed in your home. These costs are still associated with your injury, even if you’re no longer staying in the hospital. Your settlement money should go towards these expenses as well, so that you don’t have to pay for them out of your savings.
Loss of Income
If you were severely injured, you may have had to miss work as a result. Now not only do you have medical expenses to pay, but you’re missing out on income from work. In addition, if you’re unable to work after your accident, then you’re going to need to live off of your savings until you recover. With your settlement money you can make up for that loss of income and use it to support your day to day life until you make a full recovery. This is why it’s not a good idea to blow all of your settlement money once you get it, as you may need to make it last for a while.
In order to negotiate your settlement, or take your case to trial, you likely retained the services of an attorney. Personal injury attorneys do everything they can to get you as much money as possible. For their services, you need to compensate them. Typically a personal injury attorney will include this money when negotiating the settlement, so that you don’t have to worry about finding the money. Just make sure that you don’t spend the money before you pay them.
Invest the Money
If you still have some money left over after paying all of your medical bills, for your lawyer, and making sure you can get by on a daily basis, a good plan is to invest the money. You never know what your future could hold, and having some extra money laying around could come in handy. Take some time to look into some investment strategies and decide which one would be best for you. While it may seem fun to spend the money now, you may be even happier in a few years when you have some extra money to retire with.
Take a Trip
Lastly, if all of your obligations are met, and you’re not worried about your financial situation, why not take a trip? You’ve had a hard time going through this injury, and the proceeding lawsuit, and you deserve to treat yourself with something nice. Spend a week on a beach or visit a country you’ve always wanted to go to.You may never get the opportunity again, so you might as well seize it while you can.
Spend Your Money Wisely
When that settlement check reaches your bank account, the amount can sometimes be overwhelming. Don’t get ahead of yourself, and make sure you come up with a plan for spending the money. You want to make sure you take care of all of the priorities first – such as medical and legal fees – before you do anything else. From there you can decide how to best spend your money to make not only your present more bearable, but to set you up for the future as well.