Budget Tips for Surviving a Medical Crisis

From a financial specialist who has been through one

As a credit counselor with 15 years of experience, I’m accustomed to helping consumers who are suffering financially as a result of illness. I’ve worked with them to devise a workable household budget and find ways to generate extra income. I counsel them to join forces with family members to pull them through the tough times. I show them how a little organization and compromise can help them regain control of their finances. That was until I found myself confronted with a cancer diagnosis. Suddenly my own advice became a bitter pill to swallow.

My body, and my bottom line, have been at war with the disease for over ten years. I still have trouble believing it happened to me. How could I get sick? I have jobs to juggle, children and grandchildren who rely on me, and my own home to protect. I’m an active volunteer with commitments to my church. There was no room in my schedule, not to mention my budget, for illness. I had to face some very difficult question: Who would take care of my kids? How was I going to pay my bills? Would I lose my home? How could I afford multiple co-pays?

I was overwhelmed with shock and grief, but I knew that I had to face up to the reality of the situation. My work with many ClearPoint clients over the years had taught me that many, many people find themselves in my situation: I was not alone. I also understood that financial preparation when times are good is critical to ensuring you can handle the unexpected.

I was forced to create my very own “cancer budget”. I hope that the same strategies that worked for me can be of some help to you:

1. Denial and fear are your enemies: As corny as it sounds, taking a positive attitude when confronted with a crisis is critical. Banish negative thoughts and face up to reality.
2. The truth is in the numbers: My doctor helped me budget for my treatment. We estimated my copayments, and priced out supplements and medication not covered by insurance (especially the dreaded non-generic drugs). I determined how much sick leave I was entitled to and estimated how long it would last. Fortunately, my employer was very supportive and my manager helped me develop a flex schedule that enabled me to seek treatment without jeopardizing my job.
3. Living the budget: With the cold hard facts in hand, I hit the beach. Strange, perhaps, but I believe that you should do your budget outside of your domicile, where there are fewer distractions and you can see clearly. After 17 years of single parenting, I didn’t believe there were any money-saving measures left that I hadn’t tried, but necessity is the mother of invention.

   Reducing monthly expeditures:

   • Instead of drinking bottled water, I bought a cooler I could refill myself (savings: $40).
   • Went down to basic cable (savings: $60)
   • Downsized to a cheaper cell phone plan (savings: $40).
   • Reviewed my expenses for nonessential purchases and made sure to shop on a full stomach with a grocery list in hand (savings: $75).
   • Let magazine subscriptions lapse, began using public transit to work, and gave up lattes (savings: $100).

   Presto! I found the cash I needed to begin cancer treatment. The changes I implemented were things I could live with and they have endured the test of time.

4. Ask for a write off: Even though I doubted I would qualify, I applied for a charitable write off. To my unexpected delight, they reduced my bill by half, teaching me that it never hurts to ask.
5. Seek moral support: Knowing you are not alone makes all the difference when you are fighting a disease like cancer. I healed by helping other people and identifying with what my clients were facing every day. Sometimes a sympathetic ear is all I needed to get me back on track.
6. The future awaits: I couldn’t think about tomorrow when I was focused on surviving today; but when it occurred to me that I was going to beat this thing, I had to alter my plans and start thinking about retirement. Be sure to contribute to your 401k plan, because most employers match part of the money you invest. Even if you can only save a little, you can always add more as you go along.

Build savings: I started a small emergency fund to cover car maintenance, clothing, and house repairs. I had the money deducted from my paycheck and placed in a savings account, so I didn’t even know it was there.

Count your blessings: Every step along the way, and no matter how hard things got, I tried to keep reminding myself of all the good things in my life that were so worth living for.