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Unexpected Expenses

Preparing for Costs Insurance Won't Cover

By Megan L. Fowler, MSJ

To start, keep a log of how much money you pay and for what reasons each month. For example: $25 per month for vet bills, $500 per month for property insurance. "Using this method, when the bills come due, you will not have to scramble to pay them," says Stewart.

Once you have established your monthly bills and allotted for any extras that may come up, it's important to stick to your budget, Stewart says. "Stick to your goals and dreams," she says. "You say the money won't stretch that far? Then give up something else. Stop getting those manicures so your kids can have braces. Braces can benefit your children for years to come while the manicures are used up in a week or two."

Also, it's a good idea to research your doctor, or whoever you are paying, to make sure you are getting the best deals for your money. "Research and talk to other parents who are getting braces for their kids," says Stewart. "Compare vet prices by calling around or asking friends."

For any item that will end up costing you more than, say $500, always wait 24 hours before doing anything, suggests Williams. "If possible, in that 24 hours' waiting time, do some type of comparison shopping – it may be calling for quotes, getting estimates over the Internet or getting similar price information from friends," she says. "Medical/dental care is difficult to price shop, as every situation is different. Be open to discussing the issue with your health care provider, who might have other options."

A flexible spending account with your employer is ideal for medical items. "The drawback is you need to spend the money first, then request the reimbursement from your account," Williams says. "Only if you are disciplined, you could charge the item, say eye glasses, on a credit card, request reimbursement and then pay the credit account immediately. You can always make a payment prior to the statement arriving."

Want to see more?

• For a Rainy Day and Beyond: Start Saving Before Baby Arrives
• Medical Emergencies Without Insurance: How to Get the Help You Need Without Going into Debt
• Money Sense for New Families: 5 Tips from Financial Planners
• Talk about it!