After you receive a settlement from an auto accident or personal injury case, dealing with a sudden influx of money may be more complicated than you might think. It’s important to make a plan to manage the money you get from your settlement effectively, so you can maximize the positive impact it has on your life. Keep this advice in mind after you receive your settlement.
Meet with a Financial Planner
If you receive a large settlement, a financial planner can help you make smart decisions about how to allocate that money. Tell your financial planner about your goals, and he or she will help you create a plan to get there. Your planner will also help you decide the best way for you to save money and how to tackle things like the taxes that come after you receive a settlement.
Pay the Bills Related to Your Case
By the time a settlement comes around, many people are facing a significant amount of medical bills. If you have bills related to your case, pay them off with your settlement money. If you were in an accident and suffered permanent injuries, earmark some of the money for home modifications or other changes that would make your quality of life better.
Make a Plan for Dealing with Loved Ones
When you come into a large settlement, it’s common for loved ones to come out of the woodwork looking for financial help. Decide in advance how you will handle these requests, so you know what to say when they come up. A rule of thumb that many financial advisors suggest is to avoid giving anyone money until at least a year after receiving your settlement
The Auto Accident Law Firm of Kevin Paul Childers supports our clients throughout every stage of the settlement process and can offer advice for what to do after you receive payment. After an accident in Manassas, VA, call our firm at (703) 330-6300 for a case consultation.