Questions Covered:
Where do I start when I have no money coming in?
I'm young and will be on disability the rest of my life so what can I do?
Who do you discuss money with? If you don’t currently talk to anyone about it, is there someone you could consider having those conversations with?
I'm financially stable. So how much should I be putting away now?
For someone who isn't currently on disability but expects to be in the near future, should she continue saving at her current pace, or slow down? She's considering withdrawing money now but feels uncertain about whether it's the right move. What should she do?
There’s advice out there about paying off credit cards—some suggest starting with the lowest balance, while others recommend focusing on the highest interest rate. I’m curious about your thoughts on which strategy is best.
Where do I start when I have no money coming in?
Social Security:
Contact Social Security Administration for benefits, especially if wheelchair-bound full-time.
If you're not receiving the right amount, keep following up and taking notes.
You might be entitled to additional benefits, such as claiming a parent’s retirement benefits.
Consider Job Opportunities:
Explore remote work options through job sites like:
Starting a Business:
Identify skills or interests and explore business ideas.
Use free resources like public libraries, e.g., Denver’s Biz Boost, for business support and consultation.
Starting a business can offer tax advantages.
Maximize Existing Savings:
Consider alternatives like CDs, treasury bonds, or high-yield savings accounts to grow savings.
Even small contributions with higher interest rates can significantly increase savings over time.
Other Resources: Nerd Wallet and Bank Rate
I'm young and will be on disability the rest of my life so what can I do?
Look for disability-friendly employers:
Explore companies like Accenture, Google, Salesforce, and United Airlines that are known for hiring people with disabilities.
Use platforms like BuiltIn for job opportunities in the tech sector.
Prepare for interviews:
Practice answering potential questions and clarify any accommodations you'll need.
Remember, you're also interviewing the company to ensure it supports your needs.
Plan for the future:
Start saving for retirement early; compounding interest and time can help your money grow.
Aim for small, consistent contributions, even as little as $50-$100 per month, into a high-yield savings account or IRA.
Utilize employer 401K:
If your employer offers a 401K match, contribute up to the match amount for free money.
Try to save at least 10% of your income for long-term growth.
Who do you discuss money with? If you don’t currently talk to anyone about it, is there someone you could consider having those conversations with?
Talk to family:
Family members can provide guidance and support during financial challenges.
Engage with trusted friends:
Friends, especially those you trust deeply, can be good sounding boards for money conversations.
Consult financial advisors:
Professionals, such as financial advisors, can help guide decision-making.
Overcome discomfort with discussing money:
Although money conversations can feel personal, talking about finances is essential for making informed decisions and finding solutions.
I'm financially stable. So how much should I be putting away now?
First, review your current expenses: essential needs vs. wants.
Identify non-essential items you could cut to save more (e.g., subscriptions, unnecessary purchases).
If you're on disability, check how your benefits might change over time.
Estimate future earning potential and project your savings based on that.
Aim to save around $250 a month or more, if possible.
Consider putting money into a retirement account like a Roth IRA (post-tax) or traditional IRA (pre-tax).
Stay flexible with your savings—adjust contributions if needed due to unexpected life changes.
By age 35, aim to have 1.5x your salary saved; by age 50, 3.5x your salary.
For someone who isn't currently on disability but expects to be in the near future, should she continue saving at her current pace, or slow down? She's considering withdrawing money now but feels uncertain about whether it's the right move. What should she do?
Continue saving what she can now.
Be cautious with withdrawing from retirement accounts due to taxes and a 10% early withdrawal penalty.
Withdrawals may avoid penalties if there's an emergency, but it's important to assess carefully.
Consider reducing retirement contributions and putting money into a high-yield savings account, CDs, treasury bonds, or a general brokerage account.
Avoid keeping large sums in low-yield savings where it’s not working for her.
Keep savings in a separate account to reduce temptation to spend.
Aim for saving around 10% as a general rule.
If employed, check with the employer about long-term disability insurance benefits, especially during open enrollment.
If self-employed, explore long-term disability options, but expect it to be pricier.
There’s advice out there about paying off credit cards—some suggest starting with the lowest balance, while others recommend focusing on the highest interest rate. I’m curious about your thoughts on which strategy is best.
First, contact your credit card company to negotiate a lower interest rate. They might be willing to reduce it to keep your business.
Consider transferring balances to lower-interest cards if you can secure a better deal.
If you have multiple cards with varying rates, pay off the one with the lower balance first to free up money for higher-interest debt.
Always prioritize reducing your interest rates to save more over time.
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