It may not be something you think about immediately when you’re diagnosed with cancer, but your illness is very likely to have an affect on your finances.
You may be able to continue working, but you may have to take some time off too. And what if you don’t work? How will you manage?
It’s worth taking some time to think about your finances and make a plan in case you’re looking at extra costs or less income.
Work out a budget
Cancer can affect your usual income, so it’s important to make sure you have enough money coming in to cover what you need.
Start planning a budget to look at the money you get from work, benefits, savings, investments, insurance polies or pensions. Think about your current monthly income and outgoings – and then think about what they would be if you were unable to work.
Working out your budget will help you manage your everyday finances. It can be a weekly or monthly budget – whatever works best for you. MacMillan Cancer Support has an online calculator to help you.
Write down all your regular income – wages, benefits, savings, investments and money from insurance policies – and add it up. Next write down everything you spend money on, including your mortgage or rent, bills, groceries, regular payments and entertainment.
Finally, subtract your outgoings from your income. If the final amount is less than zero, you’re spending more money than you have coming in, so you either need to think about increasing your income or cutting down on your spending.
If your income is low, you may be eligible for state benefits because of your diagnosis. Visit gov.uk/browse/benefits to find out more.
Manage your payments
It’s important to keep track of your bills and your bank accounts.
You can do that through direct debits or paying bills online. Direct debits come out automatically, paying your bills on time, but you’ll have to remember to pay bills online, perhaps putting a reminder on your phone or a calendar.
You could also ask a trusted friend or family member to help you out.
Be savvy about borrowing
It’s wise to make sure you’ve considered all other possible options before borrowing money.
If you decide you go ahead, check you’ve chosen the cheapest type of borrowing possible, be sure you can make the repayments and avoid store cards, payday loans and door-to-door lending.
Ask for help
If you’re struggling to cover your costs, give the Macmillan Support Line a call on 0808 239 6341. They can give you free guidance about borrowing and managing debt. They can also advise you on whether you may be eligible for financial help.
From budgeting to borrowing, benefits to cost, pensions to wills, it’s worth looking at every aspect of your finances. It will help you get a better picture of your financial situation. And when you have so much else to think about, money is the last thing you need to stress about.
