Planning home care services for yourself or a loved one is a complex process. Not only do you have to work out what type of care you require, and how you are going to access it, but the question of money also raises its head. Simply put, how are you going to afford what you want – or need – in terms of the people you hire and resources you select. In other words, how are you going to tackle your home care financial planning?
Funding home care can be expensive, especially if you are not eligible for much or any state support. It is therefore important to plan as carefully as possible ands to do as much research as you can to help keep the costs down as much as possible. Here are some top tips to consider when thinking about budgeting for care.
- Set up a home care financial planning budget
As with all projects and plans that involve spending money, the first step is to know exactly what you have got to spend. Coupled with this should be at least a basic understanding of what the outgoing costs are likely to be. This is where budgeting for care comes into play. Setting up a budget from an early stage helps you retain control over what you have to spend and what you can and cannot afford. It also helps avoid unnecessary costs. Your budget will be set up for your unique needs, but it is wise to consider such areas as carer costs, travel expenses, medications and therapy and any practical domestic items needing an upgrade, such as washing machines, cooking facilities and IT.
- Assess your needs honestly and realistically
Working out your budget in this way will also help focus your mind on what help you or your loved one actually needs at home. This includes medical/nursing care, social wellbeing, companionship and support with everyday chores. You can carry out the assessment yourself, or call on the help of your GP, nursing professionals, social workers, friends and family and anyone else involved in your current care arrangements, health or wellbeing. Be honest with yourself – don’t underestimate what you need to enjoy a good quality of life with home care support. Equally, funding home care can get expensive very quickly, so be realistic about what you need and start with that before looking at ‘nice extras’ to add on if you can afford them.
- Stay organised with your paperwork
Home care financial planning inevitably ends up producing a great dela of admin as budgets are set, grants or loans applied for and assessments documented. It is important to keep paperwork in as tidy and organised a way as possible. This helps you find key documents later on and prevents delays from happening while you hunt around for what you need. Invest in a box file, set of sturdy folders or similar filing system to keep your paperwork in. Or, if you prefer to do things electronically, create folders in your email inbox to store vital messages and save attachments in a logical order on your computer.
- Don’t forget to factor in emergencies
It is an inevitable fact of life that, however well we plan, unexpected snags always crop up. Leave some room in your budget to pay for such events. They could include such expenses as paying for extra support after an unexpected hospital stay or operation. You might need to pay for training for someone to be able to address a specific need you or your loved one has. Or you may need to buy a replacement item quickly if something vital stops working, gets damaged or simply needs an upgrade.
- Beware ‘deprivation of assets’ schemes
Deprivation of assets happens when you or your loved one attempts to hand over gifts (usually money) to your children or other family members in order to bring your assets down below the thresholds required for the government to step in and contribute to your care. This can put you in an uncertain position when it comes to funding home care. For a start, you may not be able to get the money back once you have given it away and this could leave you short for other ongoing expenses. You could also be at the mercy of your local council for making practical home care arrangements.
