How to get your finances in order if you’re diagnosed with a long-term illness

If you’ve been diagnosed with a serious illness or disability, money may be the last thing on your mind. However, as soon as you’re able to, you should give some thought to your finances. If you can no longer work as a result of your condition, you’ll probably need to take some steps to ensure your financial situation is stable.

Determine which benefits you’re eligible for
Speak with your employer to find out how much paid sick leave you’re entitled to. If you have some form of disability coverage, also reach out to your insurer. Additionally, you may be eligible for unemployment insurance. Contact your state’s unemployment insurance program as soon as possible to apply.

If you’re going to have trouble making your mortgage payments, you should also contact your mortgage company. Some lenders offer foreclosure prevention programs to help homeowners who are dealing with a crisis.

Make a budget and manage your money carefully
Determine how much money you require each month by making a list of living expenses including groceries, rent/mortgage, utilities, insurance, car payments, and other recurring fees. Compare this with what you have coming in from various revenue sources. You may need to cut back on certain frills or unnecessary expenses to make ends meet.

To manage your finances more effectively when facing an illness, consider enlisting the help of a financial adviser, debt counselor, or other industry professional.