Make a Plan for your Future

“Where does all of the money go?”

That is a question a vast number of recipients of structured settlement claims have. The answer is: You need to learn to manage the payments properly. In fact, included in the definition of structured settlements is, it “…provides future payments ‘structured’ over time to meet a person’s ongoing financial needs.”

Do you know how to manage your payments?

In a majority of cases, people who receive a structured settlement plan don’t know enough about the financial world to successfully incorporate their payments into their lives. Everyone knows how fast debt can pile up if you don’t have a personal budget set for your family. The relief that settlement payments can offer can become a burden if you don’t adjust your family budget accordingly. Here are some tips on how to work your payment income into your life.

Make a spending plan.

1. Income: Add up your monthly income. This includes any wages, investment income, your structured payments, etc.
2. Expenses: Add up monthly expenses. This includes mortgage payments, car payments, credit cards, food, clothing, insurance, etc.
3. Include Savings: Don’t forget to pay yourself first. Set aside money for savings. 10% of total income is a good start.
4. Do the Math: Subtract income from expenses. If your expenses are higher than your income, you need to trim the extra spending or find a source of additional income.
5. Set up a Nest Egg: Plan to set aside money every month. If you will receive large lump sum payments from your settlement, add those to this investment account.

Research into different investment options. Choose the one that best suits your needs.

As stated earlier, the purpose of the structured payments is to meet your ongoing needs. Contact a financial advisor to help you make a plan for your future so your settlement will work for you.