Common Financial Issues Faced By Caregivers
When you think about caregiving, both the complexities and rewards come to mind. The idea of how demanding yet fulfilling it is as a job will dominate. However, have you considered adjusting the angle and see the other factors about caregiving? Finances are a hot topic no matter what platform and industry you are in, especially in caregiving. Financial resources are significant in the lives of caregivers.
According to an article from Forbes, there are at least 67% caregivers who have got some expenses for the job is required to lessen their living disbursement. There are also 63% who have pull out their savings or sold properties to carry out their caregiving duties. With these events, it is really evident for you to be aware of the common financial issues faced by caregivers. You can also learn about this concern from the outstanding book of Eleanor Gaccetta titled One Caregiver’s Journey.
Moreover, here are some of the typical financial concerns experienced by most caregivers that you should know and learn from.
No long-term financial plan
There are 32% of caregivers who didn’t continue or lessen their budget for their personal savings in order to attend to their family members who are sick or has a disability, based on Forbes. Hence, the savings that is one of the things that can bring you financial stability is at stake, because it is being halted for caregiving purposes. Perhaps you have also cut the money that you allocated for your retirement plans. As much as possible, get your plan on track or readjust some parts of it for your benefit. Having long-term goals for financial stability is an important aspect that nobody can give you but only yourself. Apply for a 401(k); re-open a savings account; and such. It doesn’t matter how big your contributions are, what is important is you still do your share for your future’s sake.
Out-of-pocket spending
In the broadest sense, this pertains to the buying of essentials — such as products and services, in aid of the individual that you are assisting. The activities that are usually related to this type of spending are co-pays for medicinal payment, transportation fees, meals payment, and the likes. According to Families Caring for Aging America, 1 in 5 people who are taking care of an aging or sick person stated that the largest out-of-pocket disbursement of older adults is allocated on medical expenses. Additionally, 8% of caregivers, as evaluated by 2011 NSOC, have over $1,000 out-of-pocket expenses annually, which are basically spent on the medical needs of the individual that they are taking care of.
Troublesome debts
Debts are like booby traps. They can bring a lot of suffering and harm to you, without you instantly realizing it. You may have borrowed money from your friend, availed some services from loan sharks, or got some funds from bank loans, these all go down to one result: financial instability. These debts may be bearable at first, but once you ran out of money and you don’t have enough income to spend — they become larger and larger. After all the fund-borrowing process, you will be stress in finding resources to pay them. Hence, as much as possible, avoid being in debt or having debts that can bring you trouble in the future.
No emergency funds
As a caregiver, having a good amount of emergency funds is essential. It is due to the fact that you’ll never know when things will escalate and when there are unexpected expenses. Your emergency funds will surely help you safeguard your financial resources. There may be some who stopped on saving money for these situations due to personal reasons and financial statuses. But, nobody desires to be worried upon thinking on worst-case events. That is why it is significant to secure your emergency resources; so, you are prepared when there are unexpected casualties or events that will take place.
Handling your finances is not easy. Caregiving is also not easy. When these two are combined, you are probably being overwhelmed and in distress by now — yet, you are still thriving, learning, and growing. No matter how many financial issues that you are facing, just take note of them and find some solution to handle your money well. Gradually, you can achieve the financial stability that you deserve.
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