Using Structured Settlement Money Wisely: 3 Things You Should Know
However, having money coming in from structured settlements doesn’t mean that people no longer have to be fiscally responsible. If anything, it means that they need to be even more so.
If you’re one of the more than 37,000 Americans who uses money from structured settlements every year, then here are a few tips to help you manage your funds.
Focus on Paying Off Debt
One of the wisest pieces of advice you can ever get about managing your money is to pay off your debt. So long as you owe money, you’re not financially whole. Plus, the longer you put off paying the whole amount, the more you’ll ultimately wind up paying. If you can use your structured settlement money to chip away at debt, do it.
Keep a Budget
You might have a new source of income, but that doesn’t mean you don’t need a budget anymore. If anything, a budget may be more important now than ever before, because if you have a structured settlement, chances are you were hurt. Now you have medical bills to worry about, and the incident may have even left you unable to work for a time. In order to keep your head above water, stick to a new budget that includes the money from structured settlements.
Sell Your Structured Settlements If You Have To
Selling a structured settlement for a lump sum is always an option in the event that something unexpected happens. Say, for example, that there’s a new medical bill to worry about, or college tuition increases. Selling a structured settlement can cover this cost. If this sounds a bit sketchy, don’t worry. Research shows that 92% of people who sold their structured settlements were satisfied with the decision.
If you have any questions about managing your structured settlements, feel free to share in the comments.