There's no bigger reason to be thankful
We don't always think of this financial asset in this context, but its importance can't be overstated. (Plus, six Black Friday book recommendations.)
Hi there, my friend.
Happy Thanksgiving! I know the holidays can be hard — especially if you have recently lost a loved one — but I hope this is a day of joy and peace for you.
As I thought of what to write about for this week, a flood of possibilities came to mind.
I could write about the dangers of store credit cards, but I’d just done that recently.
I could write about travel savings, but I’d done that, too.
Or I could just take the easy route and reshare things that I’ve written in the past about Black Friday and holiday shopping and such…
By the way, that pumpkin-headed kid in the picture above is my son. He’s 19 and in college now, but that will forever be one of my favorite pictures ever. But I digress…
Rather than treading the usual Thanksgiving ground, I wanted to try something different and address one of the most important financial assets anyone can have. It can make or break your entire financial situation, but it isn’t always talked about in this context.
Perhaps the most expensive thing in life?
One of the things I say most in interviews — and I’ve said it on Substack countless times, too — is that few things in life are more expensive than crummy credit.
That is undeniably true.
One of those things, however, is poor health.
I’m not sure that anything in life is more expensive than bad health.
If you’re healthy, be thankful for it, and do whatever you can to preserve it.
If your loved ones have their health as well, be incredibly thankful for that, too.
The importance of our health is obviously not just about money, but the impact of it on our finances can be so massive that it simply can’t be overstated.
Medical debt by the numbers
It is staggering. According to government data,
Americans owe at least $220 billion in medical debt.
About 14 million have more than $1,000 in medical debt.
About 3 million Americans have more than $10,000 in medical debt.
And that’s just debt. That doesn’t include other costs we face regularly, like the $800 billion — BILLION! — we spend on prescription drugs in 2024.
All of that is money that can’t go to emergency funds, high-interest debt payments, retirement or college fund savings and even fun things like trips to Hawaii or tickets to see your favorite musician. The financial impact of poor health can literally be limitless, and it is crushing millions of Americans today.
An investment in your future
When it comes to money, I’m a big believer in controlling what you can control. You don’t know if the Federal Reserve will lower interest rates, but you can reduce your own by shopping around for a mortgage rate or getting a 0% balance transfer credit card. You don’t how secure your job is, but you can put money away, grow your network and have your resume ready in case the worst happens.
I feel similarly when it comes to your health. Yes, many aspects of our health are simply beyond our power to change — as much as we might wish otherwise — but our decisions and actions have very real impacts on our physical and mental health, too.
Of course, I’m not a doctor or a medical expert, by any stretch. I’ll defer to others to give you that kind of advice. However, when it comes to treating your health as the invaluable financial asset it is, I can offer some guidance…
Don’t be afraid to spend in moderation to improve your health. Of course, there are plenty of things that you can do for your health that don’t cost a cent, such as going for a hike, doing bodyweight exercises or meditating. However, I also believe that it is OK to spend in moderation to level up your health. Consider it an investment in your future. Gym memberships, exercise equipment, athletic apparel, higher-quality foods and other such items can help contribute to better health. As with any major expense, however, it can be worth creating a line item in your budget for it to ensure that it won’t push you into debt.
Negotiate medical bills. Far more things than you realize are negotiable. Perhaps none are more important than medical bills, however. In writing my book, I spoke with many people who successfully negotiated medical bills, sometimes saving themselves thousands of dollars simply because they were willing to ask. One of those people was the late, great Marshall Allen, who spent his life crusading against high medical costs and teaching people that they should never pay their first medical bill. Here’s a piece I wrote about his message…
Consider your mental health as well. Again, there are plenty of free things that you can do to help your mental health — meditating, praying, reading, exercising, talking with loved ones, listening to music, the list goes on — but it is OK to spend on that as well. Again, consider it an investment in your future. As I’ve mentioned before, the meditation app Headspace (not an advertisement, just a sincere recommendation) has helped me greatly in difficult times, and I’m also a firm believer in the power of therapy, but there are plenty of other options as well. Please seek out what works for you because your mental health can have a profound effect on your physical health and vice versa.
Save for the future. As Mr. Shawn Carter once said, “In anticipation of precipitation, stack chips for a rainy day.”
We don’t know when medical issues will arrive, but we can certainly try our best to be as ready for them when they do. Health savings accounts and flexible spending accounts can be a great tool. (Learn more about them here.) A simple high-yield savings account can be, too. Saving money can be easier said than done, especially when you’re on a tight budget. However, the truth is that even a small amount of savings can be impactful. It can be your umbrella-ella-ella-eh-eh-eh when that rainy day arrives.
Say no to medical credit cards. Just like store credit cards from your favorite retailer, a medical credit card might be the first payment solution offered up by your medical provider. And just like store credit cards, they’re very likely not the best choice, so don’t feel pressured into saying yes. Instead, ask them if they offer a no-interest payment plan that you can take advantage of.
Ask about the “cash price” instead. Insurance isn’t always the best option when it comes to paying for prescription medications. If you find yourself shocked at how much you’re being charged the next time you go to the pharmacist, ask them this: “What would tbe cash price be for this prescription?” They’ll be happy to tell you. To be clear, the cash price doesn’t mean that you have to use actual dollar bills to pay. It just means that you won’t be using your insurance. As strange as it may seem, that can sometimes be the cheapest alternative.
“What if we wait?” When it comes to health, some things are urgent, but the truth is that not everything is. If you’re going through a financial rough patch, it is OK to ask the doctor if there would be any harm in delaying a procedure or service until a better time. You’re not going to hurt the doctor’s feelings — if you do, consider it a red flag and start shopping for a new doctor — and it can help you avoid potential debt in the future.
6 Black Friday book recommendations
If you’re looking for a good read or a great gift this holiday season, I have a few recommendations…
“Mind Your Money” by Yanely Espinal. I have enormous respect for Yanely. If you follow her socials at @MissBeHelpful, you’ll see that she devotes enormous amounts of time to traveling the country to advocate for requiring personal finance curriculum in schools. It’s a real passion for her, and she’s had a major impact. Our nation’s kids are better off because of the work she does. She has also written an amazing personal finance book, which is described on Amazon like this: “[It] delivers all the personal finance basics through insightful stories with a splash of sass.” A perfect description. Go and get it. You’ll be glad you did.
“Retirement Bites” by Kerry Hannon and Janna Herron. My friend Janna and her co-author Kerry — both personal finance experts with ties to Yahoo Finance among other outlets — have given us a really well-written guide to planning for retirement, specifically targeting Gen Xers like myself. It’s clever, funny and easy to understand. I liked it so much that I wrote a recommendation for its back cover.
“My Mother’s Money” by Beth Pinsker. If this sounds familiar, it is because I featured Beth in my most recent post here. It is a wonderfully written, heartfelt look at the struggle of financial caregiving, but it is also an invaluable guidebook for those who are supporting their parents financially or think they will be someday. It is an enormously important topic, and Beth — a certified financial planner and a financial columnist at Marketwatch — covers it beautifully.
“Unraveling Your Relationship with Money” by Shannah Game, and “Overcoming Financial Trauma” by Rahkim Sabree. Our relationships with money are challenging and complex. Shannah and Rahkim — two money experts with a focus on helping people deal with financial trauma — offer real insights and actionable steps to help people who are struggling with that relationship. This is important stuff, and these books can hugely impactful.
“Ask Questions, Save Money, Make More: How To Take Control Of Your Financial Life” by me! I’m incredibly proud of my book, and it is especially relevant during these times of high inflation. You have more power over your money than you realize. My book can help you wield it. Often, all it takes is asking the right question.
Be good to yourself, my friend. I’m thankful for you, and I hope you’re thankful for all the good things that you have.
Have an amazing Thanksgiving day — and try not to go too crazy shopping this weekend.
Until next time!
Matt
Stack chips for a rainy day! 😂 Great article, Matt! Physical/mental health and financial health are definitely tied together in our overall wellness. Thanks for writing about this and giving practical advice as always! Hope your Thanksgiving was a gentle one.