Budget Monthly to Handle Medical Expenses

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Medical bills and the debt snow ball

In a recent Dave Ramsey show, a gentlemen described a situation in which his daughter has disabilities and is requiring medical treatment. God bless him! This is not uncommon for many families today and can cause a lot of financial stress.

Even though his medical bills don’t have interest, he is receiving new bills on a regular basis. Dave related by saying, “as quick as one gets paid off another one appears.”

How to budget reoccurring medical bills

The approach to dealing with these types of expenses is to make them a part of the monthly budget so they don’t become debt.  For example, if the bills are estimated to be $3000 per year, divide by 12 and set aside $250 per month to make the payments.Budget Medical Expenses

It slows down the debt snow ball, but Dave says “you are admitting in your budget the reality of the situation.” You may be guessing the amount of the medical bills, but it is an estimate. You know it’s going to be a regular occurring expense and you have to pay it.

Can you relate to this situation?  How have you handled medical expenses such as the ones described in this post as part of your monthly budget?

About Jason

Hi, I'm Jason and I started One Money Design over 2 years ago with a passion to help people make progress along their journey to true financial freedom. I've worked as a volunteer financial coach for over 5 years providing people practical financial tips and helping them apply Biblical stewardship principles to their finances. I enjoy spending time with my wife and two children and learning more about personal money management every day. Follow me on Twitter, Facebook and Google +

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  • http://www.facebook.com/Rebirth5450 Patrick McClain

    Very helpful information. I would like to know further on what to do with unexpected expenses such as getting sick a few times a year or even once a year. Should we just have a budget set aside for miscellaneous expenses, and if we don’t spend it consider it cash surplus?