Why a big hospital bill doesn’t bother me

Kids are expensive. Diapers, clothes and toys add up in a short amount of time. And if you’re not prepared for the extra cost, it can makes the budget a little tight at times.

But the most expensive part is getting the kid HERE! We just had our second child and the hospital bills are starting to come in. I have to laugh sometimes at the amount the hospital charges for certain things. Thankfully, we have great insurance and will only end up paying a fraction of what the initial bill is.

That will still likely be a couple thousand dollars….which can really put a burden on the budget.

Unless we are prepared for it.

When we first found out we were expecting again, our finance plan got adjusted. Normally, we budget for each month to cover all expenses, retirement and college savings. Then the rest gets put on the mortgage as an extra principal payment. But with a baby on the way, we make some changes.

As if we were paying down debt, we try to limit the budget to necessities and don’t pay anything extra on the mortgage. Instead, every extra dollar we can find get put in the “baby emergency fund”. This category is earmarked for all medical bills for momma and baby, and to cover any unexpected medical emergencies that arise.

Since medical debt is the biggest reason for bankruptcy, it’s so important that these expenses are covered. You never know what will happen before, during, or after the delivery and you want to expect the best but be prepared for the worst, financially.

This year, we were fortunate enough to have over $13k saved up. And since everything went VERY well, it looks like we will only spend a fraction of that on the hospital bills. Which means we get to throw a big ol chunk of change at the mortgage and keep on going!

Being diligent in this task can take a big burden off your back and allow you to focus on caring for momma and baby when the time comes. You don’t have to worry about how much it will cost because you are ready to write the check regardless. And should something big happen, you’re protected from touching your big emergency fund and you’re saved from incurring medical debt.

To learn how you can protect your family from the “emergencies” that seem to pop up, schedule a free consultation and I’ll walk you through the process.