By Kendall Little
WWR Article Summary (tl;dr) One way to relieve anxiety over money is to make sure you have an emergency fund in place. Ideally, your emergency fund would cover at least six months’ worth of expenses, including insurance premiums, and mortgage payments, groceries and utility bills.
Money matters don’t have to be nightmare-inducing, though. Here are five common financial fears and now you can overcome them.
–– Unexpected medical costs.
According to a Gallup survey conducted this year, 58 percent of those polled said they were at least moderately worried about not being able to pay unforeseen medical costs if they were involved in an accident or diagnosed with a serious illness.
Even with a solid health insurance plan, pricey out-of-network visits and increasing deductibles can be frightening. A Bankrate survey in August found that 22 percent of Americans said they or a close family member avoided a visit to a doctor in the past year because of the cost.
It’s important to not only have a solid health insurance plan that will cover you in your worst-case scenario, but also to familiarize yourself with the terms.
“Let’s start with, if this happened tomorrow, what should you have that would protect you?” said Amy Irvine of Irvine Wealth Planning Strategies in Corning, N.Y. If you know exactly what you’ll be expected to pay in the case of a medical emergency and where to expect coverage, you can better prepare, both financially and mentally.
–– Money-draining emergencies.
Medical emergencies aren’t the only surprises that can strain finances. A Northwestern Mutual study from 2016 found that 55 percent of Americans’ financial anxieties stem from general unexpected expenses.