Three months later, I'm back

Obviously, I haven't posted here for several months. The main reason is that we've had an insane number of big-ticket expenses lately, and I just wasn't up for talking about them. They drained our savings account and prompted us to re-evaluate our sailing goals.

Basically, we've decided that as much as we love sailing and as confident as we are in our belief that we'd love the liveaboard lifestyle, sailing will have to wait. I don't know how long, but for the next five or 10 years, it's not going to be a pressing goal. What we've learned is that sailing is extremely expensive, and the boat is just one part of that. Boats need places to live. Boats need parts and repairs. Boats have to meet certain government standards and requirements. We started to understand the oft-repeated assertion that boats are essentially drains in the ocean.

We've also learned that we aren't willing to give up everything to save for this dream. We like to travel; we like to explore new places. Are we going to stop doing that for five or 10 years in the hope that we might be able to do it by boat? Apparently, the answer to that question is no. For New Year's, we're going to New Orleans with some of our friends, and next June, all three of us are going to celebrate Trent and my 10th anniversary with a trip to western Montana (a special place to us, as that is where our son was born). I am excited about these excursions, and I don't feel guilty about spending money on them. I grew up taking yearly roadtrips with my parents; those are among my happiest childhood memories. Those adventures were learning opportunities. I want the same for my son. (We've been careful to pay for these trips with money we actually have.)

Like I said, we've had a lot of unexpected expenses in the last few months: dental work to the tune of $3000, a water-damaged wall, a broken sink, a broken toilet, an ER visit for a deep gash to the forehead, visits to the doctor, increased health insurance premiums, etc. etc. etc. It's been discouraging, but I think we're back on track.

That said, despite the obstacles, we're still on the right track. I am happy to report that while we've used our credit cards, we've paid them off in full every month. We still have a cushion in our emergency fund. We're now documenting each and every expense. Our credit scores have increased. Our school loans have decreased (albeit by only a small amount). We've been contributing ~15% of our income to our 401Ks. Trent found a new contract gig and a side gig, too.  

I like writing about money and finances, so I'm going to start writing here again. Some of our goals might have changed, but what hasn't changed is that we're still dedicated to pursuing financial freedom.

Living aboard - a question

Like many young couples (30 is still young, right?), our lives are full of job obligations, parenting, and financial strategizing. Beneath the surface, though, runs our desire to cut the literal and figurative docklines and go sailing. It's something I think about every day. It's what motivates us to work hard, play frugally, and spend wisely (well... usually).

We talk about selling this place in 3-4 years, purchasing a boat, and living aboard. From my landlocked vantage point, I get the impression that we should be able to manage it, especially if we either buy the boat outright or put a big down payment on a loan. As long as we have Internet access, we should be able to keep the jobs we have now, meaning we won't lost any (or much) income. We wouldn't have a mortgage or the house-related expenses, though of course we'll obtain plenty of boat-related financial obligations.

When it comes to money, I sometimes overlook the finer details. I'm often overly optimistic and fail to realize it until I'm drowning in unanticipated expenses. So I'm just trying to get a better sense of whether our plan is really feasible.

A couple of questions for those of you who live aboard: how much do you spend per month on marina fees? What do those fees include? And - do you think you spend less living aboard than you would if you lived in a traditional home?

We work hard for the money, do-do do-dooo...

I've slacked off on posting lately not for a lack of things to say, but because I don't have enough time to say it. This August has consisted of work, work, and more work. I think we're somewhat overcommitted right now, job-wise, and yet I don't think we can afford to cut back in any area; one of Trent's highest-paying contracts ended for good a couple of months ago, and now we're playing catch-up. 

We've put our son in daycare 20 hours a week (which he absolutely loves, by the way - that in itself makes it worthwhile) so we have time to tackle our work and do it well. Ideally, we'll be able to make more money even with the daycare expenses than we would if one or both of us let some of our other contracts run out. We'll try this until December and then re-evaluate.

I truly enjoy my job but I do wish it paid more. I've stopped calculating my hourly wage. It's too depressing. Every now and then, I scrounge around for some possible alternatives on the job boards, but I don't see anything that appeals to me or for which I am qualified.

One week spending diet

We're on a mandatory one-week spending diet until we get paid again next Tuesday. Thanks to a slew of recent bills (health insurance, cable, phone, etc.), student loan payments, and my dental work (which I did pay off as planned), we have little cash left in the checking account. That makes me uncomfortable. Usually, I like to see it pretty well padded because Bank of America is very sneaky about how and when they post transactions. Sometimes I feel like they WANT to catch us off guard and see us go into the red.

We won't be going out to eat, nor will we do any full grocery runs. We'll wait on paying the water and electric bills (they won't be late, but normally we send in our payments right away). If worst comes to worst and we don't think we're going to make it on what's in the account right now, I'll transfer more over from savings - but I really do not want to do that. 

Membership Perks

Today I discovered that Capital One charged me a $59 "Membership Fee." Wow. So glad to be part of the Capital One club.

My balance on the card *was* zero. Really, this was too kind of them.

Part I of II: If you don't have health insurance

To say that I have an intense interest in the current healthcare debate would be an understatement. My stake in this issue developed from my own not-so-good experiences with the U.S. healthcare system. When I discovered I was pregnant with my son, I didn't have health insurance. It was the first time in 27 years that I let my coverage lapse. My company didn't offer insurance to its employees, private insurers wouldn't touch me with a 10-foot pole after I checked the "pregnant" box on the application (because if you're applying for private insurance and are pregnant, pregnancy is essentially considered a pre-existing condition by many insurers), and we made too much money (read: lower middle class income) to qualify for state aid. We paid for my prenatal visits out of pocket ($5000). We also paid for an emergency c-section and a three-day hospital stay (more than $20,000). The bills poured in for months.

I now have a much better understanding of why medical expenses often go hand in hand with bankruptcy. I also understand how stressful and, frankly, horrifying it feels to not have coverage when you need it (keep in mind that in 2007, more than 15% of all Americans lacked health insurance coverage, according to the U.S. Census Bureau).

Therefore, given the timeliness of the issue and my passion for it, I'm writing a two-part post on what to if you have no insurance (Part I), and how to obtain and make the most of private health insurance (Part II). I won't address employer-sponsored health insurance, but some of these tips may apply to that situation, too. I also won't address prescriptions because that could be a post in and of itself. Please keep in mind that this is not professional advice, nor is it comprehensive. All I can offer are homegrown suggestions that have sprouted from my own experiences. Feel free to comment and provide your own perspectives and advice.

So - What do you do if you have no health insurance? 

People without health insurance generally fall into two categories: people who don't have it because they don't want it/don't think they need it, and people who don't have it because they can't get it (36% of people who applied for private insurance were denied because of pre-existing conditions, according to a recent national survey). These tips apply to both situations:

1. Have an emergency fund in place, just in case. If you're not yet saving for a rainy day and you don't have health insurance, start hoarding now - even if you can't set aside all that much at one time. It's amazing how fast your savings will accrue if you contribute consistently to that fund. If you have a health emergency, you'll be able to pay at least part of the bill right away. In turn, that may make your care provider more amenable to a reasonable payment plan.

2. Find a family doctor who isn't a member of the Insurance Company Puppet Club, and see this person every year for a preventative physical and a women's/men's exam. I think some people would disagree with this piece of advice - because physicals can cost a couple hundred dollars, and you can get them on the cheap at clinics (see below) - but think of it this way: it's beneficial to have a doctor who knows your health history and, over time, grows to care about you as an individual, not just as a paying client. That doctor could serve as an advocate for you if your health takes a turn for the worse.

Is it possible to find a doctor who isn't squeamish about caring for someone without insurance? I think so, but you may have to do some hunting. Ask friends for recommendations. Look at doctor reviews on the Internet. Call around and see which office seems most accommodating. There are a lot of doctors out there, and you'll find someone who's happy to work with you. When you do visit this doctor...

3. ...remember that the price of health care is not set in stone. Actually, it is set in stone for a lot of people with health insurance: the prices are often determined in agreements between the insurance companies and the care providers. But if you don't have health insurance, you can haggle - for a lower price, for a no-interest payment plan, or both. When I had my son, the hospital took a significant chunk off the bill because we paid most of it up front (with the help of a loan from my parents). I also negotiated the cost of my prenatal care. Recently, my dentist's office allowed me to set up a no-interest payment plan that I can manage - meaning I don't have to rack up any additional credit card debt in order to get my teeth fixed.

It can't hurt to ask about your options. Don't forget that health care is a business, and if you don't like the service you're receiving, you can go elsewhere. It might take time and energy, but making some calls to different providers and telling them what you want and can afford could save you some big bucks in the long run. No-one should make you feel they're just doing you a favor by deigning to see you.

4. For run-of-the-mill illnesses and health care needs, consider using a discount clinic with affordable "menu pricing." These clinics are cropping up all over the country: in grocery stores, in malls, and even in airports. We visited the Little Clinic at our local Kroger store when our son came down with a persistent cough. A visit to his pediatrician would have cost more than one hundred dollars, and the doctor couldn't see him the same day. A visit to the nurse practitioner at the Little Clinic cost $60, and we didn't even have to wait. Clinics like these also offer physicals and immunizations (including flu shots) at a decent price. 

5. Take preventative measures. We can't choose our genes and we can't always control our environment, but we can control what we eat, what we weigh, and how much exercise we get. Studies have shown that maintaining an ideal weight/body mass index, eating a proper diet, and exercising all lower the risk of heart disease, cancer, and other major illnesses. 

6. Research advocacy groups and health care programs in your state and county. If you get really sick and can't afford your bills, where will you turn? Based on my own experience, I'd say that depends on the state in which you live. For example, here in Tennessee, the CoverTN program helps individuals who can't get health insurance elsewhere. There's assistance available, but you might need to do some investigating to suss out all your options (consider starting with your state and local government websites). This is where having a good doctor who cares about you can come in handy - he or she can likely recommend programs for which you may be eligible. 

7. Don't put your finances before your health. Your health is more important than money! If you experience chest pain or if your child is running a 104 fever that won't come down, don't put off going to the emergency room because you're worried about the cost. You are worth more than your bank account. You are not a pair of shoes or a new coffee table; you are not expendable or optional. You and your family deserve to get the medical attention you need. Worry about the money later.

Opportunity

I'm so excited! I just found out I've been invited to take part in a paid "leadership opportunity" at work. This means our income will increase - not by much, but every little bit helps. Moreover, it means I'm doing a good job, and that makes me happy. I generally like what I do and I take pride in it. Being recognized for my hard work feels very gratifying.

Bonus to an already thumbs-up day: Trent surprised me by ordering Confessions of a Shopaholic through Netflix. :-)