My grandfather was a doctor and he always said, "No one plans to be sick." The truth is, a medical emergency can happen to anyone at anytime. You could be driving in the car and have an accident that involves bodily injury, you could be playing a friendly game of hoops and break a leg, or you could simply have a stroke. All of these would be considered a medical emergency, and any medical emergency costs money.
Karen Gets a Vacation Day
Karen had to take some vacation time; if she didn't she'd lose it, that is her vacation time, not her mind. She woke up to her phone alarm 9:30 and drove to the gym to work out.
"I gotta get that knee looked at," Karen said to Dana, one of the floor trainers, as she got off the stationary bike, "it's really killing me." She ignored it, jumped in the shower, got dressed, and headed for the mall, where she thought she'd grab a bite to eat.
Karen was a twenty-something fresh out of college. "Man, it'll be great," she thought, "going to the mall on a weekday; there won't be anyone there." Except for the unemployed people. After cruising through Urban Outfitters and The Gap, she passed by a jewelry store.
Diamonds Are a Girl's Best Friend
She had to go in; she really needed a new watch. Sure her iPhone was what she used to get the time, but a watch is a great accessory and her old one was losing a couple of minutes each day and making her late. Yes, that would justify buying a new watch; now she'll be on time. She really wasn't spending consciously.
She saw the watch she just had to have. Not too pricey and within the range she wanted to pay. Karen got on line and checked her bank balance. She knew rent was due in three days and her bank balance covered not only the rent, but also the price of the watch. So... she bought the watch.
Surprise Expenses Lurk Around the Corner
Karen got home, got out of her Camry, and admired her new watch as she approached the apartment mailboxes. She removed her mail and took it upstairs to her living room and much to her horror she saw the Visa statement. She opened it and realized that her balance was well over $3,000. She tried to pay off her balance every month, but the last couple of months she wasn't successful. Well, at least she'll get paid again before she writes the check to Visa, but she definitely won't be able to pay the full balance.
The next morning she woke up and could barely move. Her knee was really killing her. She waited until 8:00 to call the doctor who could see her that afternoon. By then Karen had a real medical emergency, as she could barely walk. Her doctor informed her she probably had a torn ligament and needed to see a specialist who would probably recommend surgery.
How much was that going to cost? Although Karen had good insurance at her company, she still had a $2,000 deductible with maximum out-of-pocket expenses of $5,000 for the year.
Max Explains the Fallacy Behind Relying on Bank Balance
The Liquid Philosophy on Emergencies
Yes, sudden and unexpected things happen in our lives. They usually involve money, and when they involve a medical emergency, they can involve a lot of money. At Liquid we encourage you to have enough funds in a liquid account to cover life's sudden and unexpected expenses. A sudden and unexpected medical emergency can easily wipe you out if you don't have yourself covered.
Would you be able to pay for a medical emergency should it unexpectedly hit you over the head?