Whether you have been involved in an automobile accident or are receiving a different type of settlement, you are probably more than a little bit anxious to get the cash in your hands. Many people make the mistake of spending their settlement far too quickly, and they soon find themselves penniless and with absolutely nothing to show for it.
Here’s how to carefully plan the spending of your settlement so that you get the most of it:
Make Sure That You Get Everything You Deserve
Many insurance companies try to scam people and get away with paying them less than they deserve. It’s important to protect yourself and stand up for your legal punitive rights. Take a look at a florida legal blog for tips, and consider hiring an attorney to handle your case to ensure that you are compensated fairly.
Pay Off Bills
When you find yourself with a large sum of money at one time, you may be tempted to spend it on things that your family wants and needs. However, you should pay off bills first before you start spending. If you have any medical bills or other accident or injury-related bills, you should pay them off first.
Consider paying off your credit cards, and make sure that you catch up any bills that have fallen behind. You may even choose to make an extra payment on your car or on your mortgage to help cut down on interest charges.
Although you will probably want to spend a bit of your settlement on a few items that you need, you should consider saving a large portion of it for later. You never know when a rainy day might come, and it’s always a good idea to keep money in the bank for emergency expenses. You can keep money in your checking account if you want to, or you can look into opening a savings account so that you can make a bit of interest off of your savings.
When opening a savings account, make sure that you are aware of any stipulations involved in taking your money out if you need it. Some banks charge fees and penalties if you withdraw money from your savings account too often or too early, so you want to be aware of these charges.
With a bit of careful planning, you can use your settlement to your advantage to help you get into a better financial situation. Although it is tempting to spend your money freely, think about the future before making any large purchases.