However, you never know what is going to happen. It may be a bad skiing accident where you blow out your knee, or a bad kidney stone that sends you to the emergency room in the middle of the night. You may fall on your way out to the car one morning and end up with a serious concussion and stitches. Health insurance has protected these people from walking out of the hospital with thirty thousand dollars or more in debt. Suppose you want to lower the cost of your health insurance by switching to a high deductible health insurance plan and put away money into a health savings account (HSA) each month. This strategy lets you save money overall, and you cover the occasional doctor’s visit out of your HSA. It also protects you if that disaster does strike unexpectedly. You do not want to be fighting with the hospital when you need an emergency procedure done. It takes planning to move on to the next step. You need to prepare to do the things you want to do. Your budget is the way you can get control of your finances. It allows you to determine when and how you spend your money. It is important to realize that “budget” isn’t a bad word and that your financial plan will help you reach your goals. When you are in your twenties, you have a long way until retirement, and the more you contribute now, the more that money can help you. It is will have a longer period to grow and benefit you. You need to make sure you are making regular contributions to your retirement account. If you do not qualify for a 401(k), you need to set up an IRA. Your parents or friends may pressure you to make other decisions or to rush you into something before you are totally ready. If you are not ready yet, you may regret the choices that you made. Planning now for these events will make it easier when you are ready, but you should decide when that will be.
