By Nicole Levison

While most of your friends are trying to figure out how they will save enough money to take that next dream vacation, you are responsible not only for providing for your family and fattening up the 401K, but the duty of caring for a loved one with special needs. Looks like you’ll be needing a budget.

No magical formula exists for coming up with a budget—it’s a combination of common sense and control. Here are some general tips to help squeeze more mileage out of your resources:

1. Set a budget. Establishing any regimen is often initially painful, but a budget is necessary and will serve you well in the long run. When you attempt to create a budget, these are the basics:

• Identify how much you currently spend. Do this by literally carrying around a small notebook and, for exactly two weeks, write down EVERYTHING you spend. Don’t forget anything. That $3 morning coffee? Write it down. You’ll see how much that adds up at the end of two weeks (and it might just get you to make coffee at home!). The gas you spend to drive to work? After two weeks of adding that up you might consider carpooling with other coworkers.
• Evaluate your current spending and then set guidelines that encompass your financial objectives. Almost every person in the United States spends outside their means. We are bombarded daily with images of celebrities and wealthy people driving fancy cars and wearing designer clothes. It is tempting—and human—to want a piece of that. You know there are priorities in life—and it’s okay to splurge once in a while. But if the splurging requires using a credit card, you don’t need it. Some people have argued that the only acceptable use for a credit card is a medical emergency. As a caregiver, you may be more likely to experience that, so save your credit cards for the situations they are meant for.
• Track your spending, and be sure to leave room for emergencies because, as you know more than anyone, unforeseen situations pop up!

2. Make your medical plan work for you. CNN’s personal fnance editor, Gerri Willis, advises to analyze your medical costs and offers this advice:

• If your annual medical costs exceed 7.5 percent of your adjusted gross income, you can write off the expenses. Sometimes, the money you save with taxes can be worth the hourly fee of an accountant. Ask friends and family for the names of people you can trust. Even better—ask a local church or support organization if they know of any financial advisors or accountants who offer free or reduced services for caregivers.
  
• Your spouse and dependents (including parents) can count toward reaching your medical plan's limit.
  
• You can deduct travel expenses or uninsured medical treatments like hearing aids.Write everything down! The gas, the mileage, the candy bar you bought on the way to the hospital—they're all “travel-related” expenses. Think like a business professional on a business trip. You may already have one full-time job, but caregiving is also a full-time job. Start thinking of it as work, and expense, expense, expense!
  
• Publication 52 at www.irs.gov provides a complete list of what may count toward your medical deductions. Read it over and make sure you take full advantage of this.

3. Ask and then ask again. Do not be afraid to ask questions or for help! Whether it’s a trusted financial planner, other family members, or even asking your local drugstore for a “good-guy” discount, you will find that the majority of people want to help someone who is dedicating a good portion of his or her life to caregiving.

Ask your doctor for samples or a discount rate. Many physicians want to keep patients happy and will gladly offer reduced fees if they know it will make a difference to you (or prevent you from finding another doctor). Ask local support groups if they know of services to help caregivers, and never be too proud to accept donations. A local church may have services for food drives for caregivers—take advantage of that. Local Boy Scouts and Girl Scouts may agree to be volunteers and run errands for you. Your next-door neighbor who loves to cook may be more than willing to give you all her leftovers—and you could not only enjoy a delicious meal, but save a bundle on groceries!

4. Control debt. According to www.CardWeb.com, the average U.S. household with at least one credit card has nearly $9,200 in credit-card debt! While it’s hard to avoid using a card when circumstances prevail, here are a couple pieces of caveats to heed:

• Move your balances over to credit cards with better interest rates. If that’s not an option, at least try to pay off the higher interest cards first.
  
• Pay off the balance—or the most you can. The minimum-payment option should not be an option. While it’s tempting to put the extra cash toward other worthy causes, in the end it can take years longer to pay off a balance.
  
• Prioritize actual necessities versus the items and services you can live without. For example, while a gym membership serves your health well, if you’re not utilizing it, a home-based routine (providing you actually do it!) can be just as effective.  

5. Understand tax basics. If you’re not a pro, hire one—because tax time is a great time to save money. And being savvy to the basics all year long can save you loads of money when tax day comes.

It is fairly easy to talk about the various ways to save and budget money, cut corners, and plan for the future—the real trick is having enough income coming in.

As one who spends a large chunk of time caring for others, this can be the greatest challenge of them all. Do you risk being demoted, laid off, or fired in order to give the necessary care to your loved one? Or is a major change of lifestyle in order? Whether you are involved in a long-term or a temporary caregiving situation, this is a very personal choice.

You are devoting your physical and emotional efforts, and, in the big picture, money is just a means and can never take the place of the love that fuels you to be a loving caregiver.