When it comes to money, I’m a planner. Every month I put together a “Krieglbert Equity Chart” and share it with ACbert. Finances are easy when everything is mapped out, but life is more complicated than a spreadsheet.
For the past two days our cat, Layla, has been throwing up and refusing food and water. All signs of trouble. The cost of an emergency vet visit started at $600 with xrays. Last time our other cat was sick, it ended up being a Urinary Track Blockage that cost around $1800 to fix. The short is you just never know.
While it’s a great habit to financially plan, it’s unhealthy to obsess over a plan because life is guaranteed to throw a curve ball. Mentally, and emotionally, fixating on unexpected expenses in which there is nothing I can do will probably cause me more in personal medical bills down the road than if I just let the feeling pass like clouds in the sky.
In my business financial planning I use an 8% monthly cash buffer to anticipate the unexpected. It not only helps me better guessimate my cash flow, but now I realize it also helps me better manage my emotions when the unexpected comes up.
I need to add a monthly cash buffer to my personal life budgeting as well, so next time I’m sitting at a vet’s office at 3am, like I am now, with an unexpected bill in hand, I’ll know it’s ok because I accounted for it.
4:35am Follow Up: Vet suggested an ultra sound and additional support costing around $1500, just to figure out what is wrong. And if something is wrong, expect the bill to top $4000. Ugh.