My savings rate and expenses – February update – bonus time

Rent is about the same as it always was. My car related expenses were a bit higher than usual due to some additional principal payments(one of my annual goals) and the car insurance bill coming in this month.

I also had some pesky new health issues that unfortunately still persist. This month had some doctor visits. That included an annual trip to the doctor and an urgent care stop along with some prescription expenses.

I have an HSA with a high deductible so most health care payments fall on me completely until the deductible is met(then I pay 20% after until my out of pocket max). That means that I can potentially have to front up to ~5k each year in medical costs even while having insurance!

I’m still nowhere close to being near that out of pocket maximum. I haven’t even met my deductible yet! And there are more health expenses coming down the pipeline in March and April and potentially later that will limit my savings rate those months.

Healthcare is one of the biggest question marks when it comes to early retirement. I’ve seen first hand how much those can actually cost even if you have insurance. Plus the premiums for that insurance. It can suck if you happen to have some chronic conditions or any medical emergencies.

I’m still not sure how much this latest event will end up costing me. Nor am I done with any doctor visits to figure out what’s going on. Still, I’m hopeful that I can get things figured out and managed sooner than later even if it costs me a little bit. There’s one thing you don’t want to skimp on and that’s your health so I’ll gladly take a hit to my savings rate to make sure everything is well.

Healthcare expenses do make you think about the prospect of early retirement and how realistic it is especially with all the uncertainty in the american healthcare system. One of the biggest perks of having a job is employer sponsored healthcare and even with that annual expenses for a single person can still run in the 5k range depending on plan design plus any premiums your employer may not cover.

Not all of us are lucky enough to stay healthy and that can really affect your ability to retire early because medical costs and access to medical care are a big question mark when it comes to retirement planning.

Beyond that, the usual suspects are there with restaurants and groceries leading the way. Groceries are offset by a credit card cash back credit which helps to lower my expenses for the month. I do use credit cards for everything, pay off the bill in full every month and take advantage of the various cash back perks that they grant you to save some money on the side.

That’s it for the update this month. I’m excited to see the savings rate this month but know that the next few months are probably going to be a bit rough.

I had some medical expenses in late February and early March that will likely fall into March and April and might need some additional doctors visits and medications in the future. Health is important so I want to make sure I don’t skimp on that part of my expenses.

I also have a vacation planned in April to visit Nashville, TN(another goal) and I’ve already paid for the hotel/plan/car in March so add that to the medical bills and you have a recipe for a disaster!

Hope your February was as good as mine and that your March is shaping up to be better than mine as well.

Thanks for reading and see you in a week for another side hustle update.