Financial Health

 

The Financial Burden of the Home Caregiver

The financial burden of taking care of your loved one for an extended period of time can have a devastating impact on your finances.

If you are the sole caregiver and have employment outside of your home, you will have to give up your job. With the added out-of-pocket expenses you will have to cover for your patient, your financial well-being can quickly be lost.

Legal and Accounting Matters

As soon as you are able, make an appointment with your attorney and accountant. If you do not have either, consider choosing a firm that has both attorneys and accountants under one roof. It is often best that both these advisers know the whole story of your situation and together, they can suggest the best plan of action. Or,Google online legal service provider to handle matters from your home. You will find these services to be fast and reasonably priced.

Do you have Power of Attorney (POA) for your loved one? The POA needs to cover financial affairs AND healthcare directives. Know what your loved one’s wishes are concerning their end of life directives. Do you have a POA for yourslef naming a trusted family member or friend to carry out your wishes? It can be a bit unnerving to think about and discuss these matters, but it is important that you do.

Most legal documents require a notarized signature; this is necessary for Power of Attorney documents, Wills, and Trusts. No need to transport your loved one to a notary. Instead, use the nationwide mobile notary service. The notary will come to your home and legally notarize your documents.

 

 

Get a Job

If you do not own a home and meet certain income requirements, you may be eligible to receive a small monthly stipend for your time spent care giving. Many States have programs in place to make these payments. You can begin your search at

When you are ready, consider working from home full or part-time to replace the income you or your spouse lost. If you are currently employed and the job you preform can be done remotely, contact your employer and explain your situation. Make suggestions on how you can work from home either full or part-time and ask if they would be agreeable to this arrangement.

If you are ready to strike out on your own, you can start your search using Google to look for work from home options. However, beware of many online scams where you have to pay upfront fees to get a job. Instead, visit Upwork which is a community of freelancers who are available for permanent hire or by the project for virtually every kind of job you can think of. Upwork does preliminary screening, handles paying employees when the employer is satisfied with the completed task. Upwork prepares all the necessary tax documents at year end. Of course you pay a fee for these services, but this makes finding a good paying job that is not a scam very doable. And it is free to sign up with Upwork. You only pay a fee when you are hired.

Visit the site and learn what types of “gigs” employers are looking for and read top-rated freelancer list of skills. You can then prepare your own resume that will bring potential employers to your desktop (or laptop). You only accept the job offers you are interested in working on and YOU decide the time of day and number of days you want to work. Gigs and freelancers are world-wide. The world is at your finger tips through your computer.

Sell or Keep Your Home

In uncertain economic times, refinancing your mortgage may be an option for you to carefully consider.

Perhaps you may be a good fit for a reverse mortgage. You must carefully weigh the benefits and drawbacks of this option. Contact a mortgage broker for information.

You may decide to sell your residence to eliminate mortgage and property tax obligations. Moving closer to family or friends could expand your support network.

Find a trusted real estate professional for accurate information on the value of your home if you decide to move forward with any option that involves your home.

Life Insurance

Another important consideration is life insurance. Does your loved one have a life insurance policy? Do you know where the policy is, who is the insurer, and are the payments current?

If no life insurance, does your loved one have a small insurance policy to cover final expenses and burial costs?

And what about your insurance coverage? The same questions apply. Do you have enough life insurance to cover the needs of your patient should you pass on before him/her.

Because banks are paying zero or near-zero rates on savings account, one way to still earn decent interest on your savings account is to apply for a cash value life insurance policy that becomes a savings account paying a better interest rate than a bank or credit union.

How about your health insurance coverage? Are you Medicare only? Having a secondary health coverage policy will often pay for items Medicare will not.

All of these important questions surrounding insurance policies and coverage should be addressed as soon as possible.

Your Good Credit

Keeping an eye on your credit score is always a good idea and you can check it as often as you wish for no cost at Credit Karma.

They will send you information about how to improve or maintain your credit score, explaining what counts toward a higher score. You can learn alot about the credit score game and how to play to win.

There are hundreds of credit cards available today. The higher your credit score, the greater your selection to choose from. If you do not already have a high limit card with great cash back or miles program and you qualify, apply for one as a safety net. Switch your purchases to this card and use the credit cards you currently have to make a small purchase each month to keep the card active. Use your new high rewards credit card to make all your purchases and watch the rewards grow quickly.

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