Everyone should have an emergency savings account. This fund needs enough cash available to cover at least six months of common expenses. That figure represents your mortgage, utility payments, and healthcare costs.

The figures for your monthly bills are easy to predict. Knowing how much to pay your doctor is a different story!

A reasonable goal is to set aside about 8% of your annual household income to manage your healthcare needs. If you have an HSA or a similar savings vehicle, that amount can be part of your emergency plan.

How to Reduce Healthcare Costs for Families

Saving 8% of your income on top of the other bills you pay may seem like an impossible task. One way you can lower the risk of having an unplanned healthcare expense is to maintain a healthy lifestyle.

Eating healthy foods in proper portions, getting at least 150 minutes of moderate exercise each week, and having well-rounded nutrition can often reduce your annual healthcare expenses.

Consider adding supplements from DaVinci Labs, Nutramedix, or Standard Process to fill in the nutritional gaps that might exist from your regular eating habits. It’s an affordable way to support your health right now.

You can also reduce the amount of sugar you consume. Eliminating one sugary beverage from your daily routine takes away over 200 calories.

How to Determine Your Total Healthcare Budget

When you start the budgeting process for your healthcare expenses, it is often helpful to divide the costs into three specific categories.

Your fixed premium is the amount you pay for insurance. It may be through an employer, from an exchange, or something your family purchases independently.

Routine costs are the second category to consider. This figure represents the copay requirements with each visit, regular prescription costs, and the amounts you can anticipate paying from the activities that happened in previous years.

The final category involves the unexpected costs. It can help to find out what an unplanned trip to the ER would be, an urgent medical procedure, or something else that might happen during the year. Adding those figures into the budget helps to avoid a surprise.

If you don’t spend all of the money in your budget for healthcare expenses, roll it over to the next one. Keep those funds available so that you can manage an emergency if it arises.