Managing your finances can be complex. There are numerous aspects to consider, such as cashflow, mortgages, investments, superannuation, insurance, and more. It becomes even more complicated when you have a family member with a disability, which adds another layer of complexity to the situation.
As a financial adviser who has worked with hundreds of families across Australia, I’ve seen firsthand the challenges faced by families with a member living with a disability. I also have a niece with Cerebral Palsy, so I understand these difficulties well.
Here are some tips to help manage your financial situation:
- Plan ahead. Having a clear and realistic budget is critical for any household, but it’s especially important for families with a member living with a disability. You need to account for the current and future costs, including medical care, education, equipment, housing, and other support services. You should also plan for emergencies, such as income loss or unexpected expenses. Some clients like to project their budgets a year or two ahead to better prepare for holidays, renovations, or car upgrades.
- Assess your options. There are various financial support services available for people with disabilities and their families, including the National Disability Insurance Scheme (NDIS), Disability Support Pension (DSP), Carer Payment, and Carer Allowance. Navigating these options can be overwhelming, but there are resources to help determine your eligibility and how to apply for the benefits you’re entitled to.
- Save and invest wisely. Saving and investing are key to building wealth and securing your future. However, it’s important to save and invest carefully, as some options may affect eligibility for government benefits or tax concessions. For example, assets (excluding your home) and income are considered when determining eligibility for the DSP. You can also use strategies like a Special Disability Trust (SDT) to save for the care of a person with a severe disability, which could increase the DSP you can claim.
- Protect yourself and your family. Managing your finances doesn’t just involve building wealth, it also requires protecting it. Life is unpredictable, so it’s crucial to have backup plans in place for emergencies. Do you have family members you can rely on? Do you have assets that could be sold in an emergency? Regularly reviewing your insurance needs ensures adequate coverage for income, health, life, and disability. You should also consider updating your will, appointing a power of attorney, and naming a guardian for your disabled family member, so your wishes are respected if you’re unable to care for them.
- Find a balance between lifestyle and finances. Lastly, it’s important to strike a balance between managing your finances and enjoying life. Many clients struggle with being too frugal or not frugal enough. Consider your balance: Are you saving a portion of your income each month? Are you treating yourself occasionally with holidays or activities? How much time do you spend on hobbies? Do you have sufficient savings in case of emergencies?
I hope these tips help you feel more in control of your financial situation. CPSN and Unite Wealth are hosting a finance webinar in December 2023. If you have any specific topics you’d like covered, feel free to contact CPSN at 03 9478 1001 or email cpsn@cpsn.org.au.
Unite Wealth offers financial advice across all aspects of your financial situation, from cashflow and budgeting to more complex financial structures like SMSFs and Trusts. We’re committed to providing life-changing financial advice while supporting charitable organizations like CPSN.
Robert Rich is an award-winning Certified Financial Planner who has assisted hundreds of families across Australia. You can reach him at robert@unitewealth.com.au or 0411 023 954.
This information is general in nature and does not take into account your personal objectives, financial situation, or needs. Before acting on it, you should consider its relevance to your circumstances.
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