3 Tips For Preparing For Unexpected Medical Expenses In Tough Times

Tips for Preparing for Medical Expenses

JAKARTA - The need for medical costs is increasing, especially in the midst of a pandemic. The solution needed to minimize the problem of unexpected costs other than hospitalization costs while undergoing hospitalization is to have health insurance with the best services.

A different financial strategy is needed, especially in relation to the preparation of health costs. You can do the following tricks so that your finances don't fall apart when the risk of facing medical costs comes, quoted by ANTARA.

Have enough emergency funds

When the pandemic hit, many finally realized the importance of having savings or assets that were easy to liquidate.

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Given the ongoing needs of life and forcing people to continue to spend on basic needs, the allocation for emergency funds is something that is often forgotten when conditions are normal and the urgency is only felt when facing economic conditions like today.

Regarding health risks, if it turns out that your protection is lacking and you are forced to allocate it from personal savings, then this is where the allocation can be taken.

The simple formula is to know the expenses. For family? In general, the amount of emergency funds that need to be prepared is 3-6 months of expenditure.

Choose a cashless facility

Currently, there are many insurance companies that provide a claim payment system with the cashless method, where this facility makes it easy for customers to transact using only cards or applications from insurance companies.

This is certainly a plus point so that you don't have to be burdened with cash expenditures to then apply for a reimbursement as in the existing traditional method.

Create an expense budget

The first way that you can do to manage personal finances, both with small and large salaries, is to make an expense budget.

Making a spending budget doesn't need to be difficult, the most important thing is that you must be able to prioritize your spending first.

Setting priorities will help you allocate income more easily. Some of the prioritized priorities include daily expenses such as monthly bills and shopping needs.

After that, prioritize debt installments (if you have one), and you can allocate the rest for investment savings, emergency funds, social funds, and insurance.