The main concern many people have when they are out of work and struggling to make ends meet is how to keep their income flowing when they can’t work, whether due to an injury or some other reason. There are a few ways to do this that don’t involve selling your body, selling your possessions, or getting into debt with credit cards.
Here’s how you can keep your income flowing during these tough times without resorting to drastic measures that will put more stress on you in the long run.
Insurance Options
Insurance can be a great tool for keeping your income flowing, but it’s important to note that not all policies are created equal. Some types of insurance, like long-term disability (LTD) and cancer insurance, will only help replace income if you’re diagnosed with a certain illness.
Did you know that a 20-year-old worker has 25% chance of becoming disabled during their career? Depending on your line of work and if you are in a potentially dangerous profession, it makes sense to consider a policy that can protect you from the consequences of permanent or temporary disability.
On the other hand, universal life insurance provides coverage in certain situations—health, injury, or death—regardless of your diagnosis or age.
Is there support available?
There are a few options for replacing your income if you can’t work as a result of an injury. Social security disability, for instance, is available if you qualify. If you are unsure whether your health conditions makes you eligible, it’s worth investigating your option with a professional social security lawyer who can advise you.
Additionally, if you’re entitled to monetary compensation from an injury or other accident, it could be used as well (though, again, such a payout would likely not replace your current income). Monetary compensation for personal injury or medical negligence, for example, can help cover medical bills and address lifestyle changes for long-lasting issues.
Working from home
When you are stuck in a professional rut, it can be helpful to think outside the box. If companies do not need your skills, it’s more than a matter of rewriting your resume. In those cases, having a home based business can help replace your income, partially or even fully. Your home-based business could simply start a side-hustle venture that enables you to explore your passion.
For instance, it’s the perfect opportunity to showcase your craft skills or create art pieces that do not relate to your professional knowledge but can help pay the bills.
Your investment portfolio
What about investments? If you haven’t had time to prepare an emergency fund, your last source of steady income could be those accumulated assets. In most cases, it’s best to leave these alone and let them continue to grow over time.
However, if your health prevents you from working and you can’t live off of savings alone (or if there isn’t enough in savings), then it might make sense to grow your investment strategy with reliable, passive income sources. Real estate is a favorite for everyone, as you can rapidly generate income by renting out a room in your house or inherited property.
From taking out a preventive insurance policy to starting an independent venture, there is more than one way to protect your income when you can’t work.