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Adjusting Your Budget when having time off work

Adjusting Your Budget

Having a work accident can wreak havoc on your finances. This is because you’re likely to take a pay cut because you can’t work, and you may have additional expenses related to your health care. If you’re feeling overwhelmed with all the changes happening to your budget, keep reading for a simple approach to staying financially afloat during a challenging time.

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Understand how your monthly income will change. If you have an accident at work, you will get statutory sick pay as compensation during your down time. The law outlines that you will receive around £85 each week, with the maximum time allotted for sick pay being 28 weeks. However, if your company has an additional plan for paying injured employees, you could receive more. You should talk this over with your boss so that you are aware of how much your salary will change while you are not at work and plan accordingly.

Cut back where you can. There are some household expenses, such as rent or a mortgage payment, that you cannot forego. However, you may be able to lighten your financial load by making other changes in your budget. For example, you can reduce your grocery expenses by using coupons. And although you shouldn’t completely cut out incidental expenses such as dining out and entertainment purchases, reducing the amount of money that you spend on these kinds of activities can make a big difference in how much money you have to put toward necessary items.

Negotiate with your creditors. Regardless of whether you have enough money left over at the end of the month to pay all your debts, you should contact your creditors to let them know about your new financial circumstances. Ask if there is any way to lower your monthly payments while you are on sick leave and how you can prevent late charges on your accounts. Because they’ll probably want more details about your ability to pay, talking to them over the phone can give you more leverage than contacting them by mail or email.

Be diligent with your record-keeping. You probably already have a system for keeping track of all of the bills you receive and the payments you make, but this becomes even more important in the case of a work accident. You want to keep a close eye on how much you’re saving on monthly expenses, but record-keeping can also help you in court if you decide to file a work accident claim. In this scenario, the court will need to know how much you spend on medical bills, transportation and other budget items related to your accident. It will be easier to present your case if you have everything organised, not to mention it will help you successfully maintain your finances.

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