Expense 4-Health Care: Like all of the other expenses discussed in the three previous weeks, health care can be an unpredictable expense, even when considering the relative “protection” provided by health insurance. Expenses that must be covered are deductibles, preventative or elective care, vitamins and minerals, and prescription costs. Are you ready for these to pop up at any time? Your body doesn’t know if you’re short on money this month – it will get sick and need care regardless of how prepared you are.
Getting sick or needing medical care can be a whopper of an expense. You might get sick and need a very expensive prescription that the insurance company (if you have insurance) only partially covers it. You may be faced with a high co-pay, or worse yet, have to pay for it out-of-pocket.
Doctor visits are not cheap either. You can help avoid the stress by saving a little bit of money for a medical rainy day (in addition to the other rainy day expenses). Just like Vincent did in week 3 of the last post, you can cushion the financial blow (by saving whatever you can afford) each month. If you have a Health Savings Account (HSA), it can help you save for medical expenses. An HSA allows you to set aside pre-tax dollars to meet certain health care costs. The money is payroll deducted and put into your account, so is easy for you to manage.
Have a great tip for this unexpected expense? Please post it below and share with the community!