Settling your case can be an exciting but overwhelming time. While it feels good to have the litigation behind you, the incoming money can bring pressures that were never before imagined. It can be tempting to spend the money you’ve received, but it’s a good idea to dedicate a significant portion of this money to the future. Remember that money received due to a legal settlement is meant to make the injured party whole again. This could mean paying for medical bills, being utilized as income replacement if you can no longer work, saving for college or other life events, etc. That said, some money is also meant for your mental well-being, and there is a way to balance savings with buying the occasional treat!
Being aware of your expenses is the first step. Make a list of the things you’ll need the money for now and in the future. Once you know that amount, you’ll have a better idea of what’s left to spend with discretion.
Saving is important, but if it forces you to abandon your social life, hobbies, or love for new things, you’ll most likely feel deprived. This can result in reckless, unplanned, and impulsive spending. Saving less to afford a treat could lead to more money being saved in the long run.
Treating yourself to the occasional swanky dinner or new outfit may seem harmless, but try not to get carried away and always stick to the allocated amount in your budget. Social media is brimming with sponsored and aspirational content encouraging people to spend, spend, spend. Despite what you see online, most people can’t afford to live a life of luxury. No matter what other people are buying, and no matter how much you may want, it’s important that you don’t get swayed to spend irresponsibly. By creating a money management plan, you’ll find financial stability, which will pay off in the long run.
If you’d like help creating a structured settlement, one of our consultants in your state can help. Find our Settlement Consultant here: Structured Settlement Consultant Directory
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