A Healthy Life: The Best Investment
21 March 2008
5 Comments
To put it mildly, the cost of health insurance in crippling for many people, if not outright prohibitive. Worse, though, is the actual cost of health care: a surgery here, a prescription there, and suddenly you’re in more debt than if you had been out playing the ponies.
Sure, you can save money in a rainy day fund. Heck, you can even sock a few bucks away in an HSA. But, in the long run, the best personal finance advice you can get on the issue is to live a healthy life.
There’s the big stuff, of course: don’t take field trips to Chernobyl and avoid war zones. Most of us seem to have that sort of thing figured out, though. The big health issues, everybody knows about. It’s the little stuff that I think will really benefit me, in the end, and might help you out, as well. Little stuff, for me, means talking my vitamins and taking the occasional walk. I don’t smoke, and I’ve managed to avoid most of the environmental factors that seem to end with horror stories. I even read the directions before operating power tools.
I’m not certain how far I need to go on a health kick, of course — I know plenty of mountain-biking, granola-eating health nuts who have their fair share of medical problems — but I think a reasonable amount of due diligence on my own health can be a wise investment. I’m not the most extreme person you’ll find, but I think I take reasonable care of my health.
I’m also taking steps to take care of the financial aspects of my health, as well. I’ve got a bit of money budgeted for the occasional cold (I’d rather pay for a doctor’s visit for a cold now than a hospital visit for pneumonia later), and I seem to have gotten some insurance figured out. Lastly, I’m trying build up my rainy day account; sure, I don’t believe that it’s enough, but it is possible that my savings could be enough to keep the wolves from the door long enough for me to get back on my feet.
Furthermore, I’ve taken the initiative to learn how my health insurance works — you don’t want to trying to figure out little details like the amount of your deductible in the emergency room. I’ve read up on my rights as a patient and know how little things like medical debt forgiveness works. I think that it’s a personal necessity to know how all of this works, even if it’s just in case.
Thumbnail image by Mcgun
“you don’t want to trying to figure out little details like the amount of your deductible in the emergency room.”
Not only do you want to know the little details about your health insurance policy, but it helps to investigate your hospital as well. Before our second child was born, we made an emergency room visit because my wife was feeling especially woozy and had even collapsed onto the bed. It turned out to be a simple sinus infection.
It also turns out that the hospital’s emergency room was operated a little differently than the rest of the hospital (something to do with ownership…), and so our insurance didn’t cover the visit. Now we know which emergency rooms do count, and next closest one is fifteen minutes farther away.
“even sock a few bucks away in an HSA”
I’m looking forward to learning more about HSAs first hand this summer. My wife is going to have the chance to switch this summer, but it might not be worth it yet since we have lots of scheduled doc visits for kids and our emergency fund isn’t as large as I’d like.
I do think we will switch in the next few years because HSAs make get retirement accounts. A large portion of retirement expenses will be medical related. So we can save now, take the deduction, and then take the money out tax free someday for medical expenses!
With regards to HSAs — this is one of those cases when knowing your options are crucial. Some HSAs can work well with your retirement planning, but some also are based on a use it or lose it plan. You either use your savings every year or give them up. Not a good deal.
Really? I was under the impression that HSAs by definition allow you to save your money for when you really need it. We already have access to a flexible spending account (FSA) which is worth using, but quite a hassle.
Unfortunately not. My other half and I were going over his employer’s plan and it turns out to be one of the ‘use it or lose it’ plans.
Good to know and that’s just despicable. I hope his employer wises up and provides him with a real HSA in the near future.
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