Greetings and welcome to the fourth edition of Wallet Wellness in 2024 - your midweek source of practical financial tips to elevate your money management skills!

Today, we are looking at ways to financially prepare for unexpected healthcare costs to ensure that unavoidable trip to the doctor doesn’t leave your wallet in disarray. 

We hope last week’s deep dive into the top 10 money wasters to avoid at all cost was insightful and you already are keeping your wallet under lock and key!

As always, be sure to check out the Concept Corner below for a deep dive into the money concept of the week.

Let’s dive in!

MONEY254 TIP OF THE WEEK

Five Ways to Financially Prepare for Health Emergencies

January is technically a planning month and it is coming to a close today. There is a good chance many have not given thought to how a health emergency - own or within their family - can affect their finances. It is often overlooked.

Medical expenses not only threaten wellbeing but also strain finances, affecting both you and your loved ones. In this Wallet Wellness edition, we explore some of the strategies you can employ to ensure you fortify your wallet against unexpected medical expenses.

1. Build an Emergency Fund 🔐

Establish a safety net covering 3-6 months of living expenses. This fund serves as a crucial buffer, preventing financial strain during unforeseen medical events.

• Identify essential expenses: Clearly define and prioritise necessities when calculating your fund. Read More.

• Consistent contributions: Regularly add to your emergency fund to ensure its continual growth.

• Accessibility matters: Keep the fund in easily accessible accounts for quick availability. Read More.

2. Get Adequate Health Insurance 🏥

Tailor your health insurance to specific needs, creating a robust shield against significant medical bills that can otherwise drain savings.

• Understand coverage: Thoroughly grasp the details of your health insurance plan. Read the fine print and know where co-payment will be needed, your limits, exemptions, pre-authorisation requirements etc. Read More. 

• Regularly review policies: Ensure your coverage aligns with your changing health needs and those of your family. FYI, we at Money254 can help you compare health policies offers from over 38 underwriters here.

• Seek expert advice: Consult professionals to find the most suitable plan. Read More.

3. Build More than One Source of Income 🤝

Diversify income streams to reduce vulnerability during challenging times, ensuring ongoing financial stability. Read More.

• Enhance skills: Invest in learning new skills to expand income opportunities. Read More.

• Explore passive income: Identify avenues that generate money with minimal effort. Read More.

• Network strategically: Cultivate professional relationships for potentially new income sources. Read More.

4. Prioritise Your Health 🧘

Invest in preventive healthcare measures that are low cost and within your control to minimise the risk of major medical issues, promoting long-term well-being.

• Adopt a holistic approach: Focus on physical, mental, and emotional health.

• Establish healthy habits: Incorporate regular exercise and balanced nutrition into daily life.

• Schedule regular check-ups: Early detection can prevent severe health complications.

5. Plan for the Future 📝

Develop a comprehensive financial plan, including retirement savings and investments, ensuring sustained financial well-being. As your personal finances grow, so is your ability to financially handle rising healthcare costs. 

• Set clear goals: Define your financial objectives for the short and long term. Read More.

• Automate savings: Establish automatic transfers to your savings and investment accounts. Read More.

• Reassess periodically: Regularly review and adjust your financial plan based on changing circumstances. Read More.

CONCEPT CORNER

Procrastination

This is a true enemy of your finances. Procrastination is the act of delaying or postponing tasks, often choosing short-term ease over long-term benefits. In the healthcare context, for example, lack of timely preparation may result in financial strain during health emergencies, limiting access to quality care and hindering the overall well-being of yourself and your family. Read More.

MONEY AND ME

Insurance, a Life Saver: My Story

In this narration, Steve made the critical error of waiting too long to get a health cover for his family after losing an employer-provided one when he was declared redundant in 2020 and moved to self employment. Read More.

MONEY254 #MONEYTOK

Tips to Save More in 2024

With the ever-rising cost of living, and resultant income challenges, the need to build up a rainy day fund is more important than ever before. In this Moneytok, we explore a few tips to help you save more and power your goals. You can read the full article here too.

@money254hq

With everything seemingly so expensive now, saving money could be tough these days. Besides, if you're starting your New Year unhappy abou... See more

That's it for the fourth Wallet Wellness edition of 2024! We hope these financial tips have added some energy to your mid-week hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week and watch out for Money Weekly on your inbox this Friday.

Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.

Cheers to your wallet's well-being!

Eric and the Money254 editorial team.