Why an Emergency Fund is Important and Why a Single Visit to the Hospital Can Wreck Your Finances

Medical care is a big problem for people of all ages.

However, it can be a huge financial problem for older Americans who have a low income. According to the NHP foundation about 48% of American aged 55 years and above who earn an income of less than $60,000 say that a single emergency visit to the hospital is among their major financial concerns. Older Americans avoid using medical care because of the cost.

Save Up Money for Emergencies

People often find themselves in an emergency room due to several reasons. The cost of an emergency visit can range from small to significant amounts. If you have enough savings, a single emergency visit will not necessarily ruin your finances.

You should ensure that you have an emergency fund which has 3-6 months of savings. If you happen to have a health issue, you can then use the savings to avoid being in medical debt. You can also get a side job to maximize your savings.

Don’t let a Small Health Issue to Escalate into a Bigger One

One of the reasons people find themselves in an emergency room is because they let minor health issues to turn to big ones by not going to the hospital. If you are a low-income earner, you might prefer not to go to the hospital. However, you might find that the small health problem which could have cost you around $25 will now cost you thousands of dollars in the long run.

Josh Goodhue

Josh Goodhue is a journalist and political commentator and analyst. He writes a political column for the Journalist Observer, he also contributes political articles to various periodicals and is a frequent guest on news shows about the state of politics in the country. He has had years of experience in the field of policy making, and has worked for (and with) several organizations focused on creating a political awareness among the country’s citizens. He has a degree in Public Policy from Harvard Kennedy School Of Government, and an MFA in Creative Writing from the California Institute Of Integral Studies.

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