Part 2 – Income and Expenses
August 1, 2011
Now that you are familiar with the legal process and what your potential award may be, it’s time to determine what your financial needs will be while you’re waiting for that award.
Even if you don’t have a good grasp on what your income is versus how much money you spend, you’ll find that this is a straightforward process.
If you have a budget already in place, you’re ahead of the game. If not, don’t worry! You don’t need to go through the tedious and emotional process of building out a full family budget. With a few easy steps, you’ll have a good idea of what your bills and expenses are each month. First, write them down. This doesn’t need to be a detailed list, but it does need to be realistic. Make sure to include items such as mortgage/rent, insurance, taxes, car payment, gas, food, utilities and other household living expenses. There may be things you need to include that are specific to your needs.
Once that’s done, you’re half way there. Now you need to write down your monthly income, and match it to your projected expenses. If your income matches or exceeds your expenses, you probably are not an ideal candidate for legal funding. However, if your income comes up short, you have several options:
- Cut back on any unnecessary expenses.
- Determine the possible ways to increase your income, such as legal funding, credit and loans, or family and friends.
Though planning can be a frustrating process, it can relieve a lot of stress. No budget is perfect, but even a rough outline can help you prepare and ease the pressure.
In our next post, we’ll look at your options for additional income more in-depth.
