Opening up my mailbox today resulted in a few more bills. All were expected, just one I wasn’t expecting to be so high. My new health insurance is through Blue Cross Blue Shield and I could have sworn once I started the policy and paid for the first two months, payment would then be required monthly.
No, that’s not the case. I need to pay for two month’s worth every two months.
A bill that I put aside $350 for has magically turned into $700. Ouch. If I had an emergency fund in place, this wouldn’t be a problem for I could “borrow” from it and pay it back the next month. But I don’t have one…I have chosen to pay off debt first (I do have $121 saved at Virtual Bank – but I do not really consider it an emergency fund at this point for the balance is low).
I technically have extra money in my account at the moment for home repair that I needed done. I have been leaving messages with the handiman but he hasn’t called me back. I know he ordered materials and the materials have come in, so now I feel like I’m stuck trying to get him to come out here to do the work! That’s another story in itself.
If I still can’t get a hold of the handiman, then I will have the money to cover it. If, for some reason, he finally calls me and comes to do the work, then things might get interesting at the end of the month. The bill is due February 1st and I won’t have enough income coming in to chip in the extra $350.
I’m sure things will work out. If worse comes to worse I will pay a few bills late that I can pay late without penalty and I believe I can pay the health insurance bill a little late without problems. My husband started a temporary side-job that should help. The first paycheck will arrive after the February 1st, though. I plan on calling Blue Cross Blue Shield to see if there is any way payment can be remitted monthly because shelling out $700 at a time is rough for a family with a highest regular bill of $323 (our mortgage).
In light of this happening, I have decided to have an emergency fund of $350 in place. I’m not mentally ready to do more at this point. I feel good about my online savings account at Virtual Bank so I will place my money there where it will earn above 4% interest. It looks like I will be able to fund it next month.
Going back to strategically planning what bills to pay on time is not fun. A small emergency fund will help keep that from happening again.