turquoisecoast is trying to say. In these circumstances having a buffer available will be very valuable. It's a good idea to have money put away for a rainy day.
we had so many bills hit us all at once over the last couple of months that we ended up with a credit card bill of $11k one month. ouch.
I'm well aware that unexpected things pop up and can blow the budget.
OP mentioned car repayments of $300 a week. is that kind of car really necessary? a car is a massive expense. is selling that and buying something older but still reliable yet much cheaper not an option? or trying to get by with one car for a while?
I'm not trying to be harsh here, I just think people can get in over their heads and then it's very hard to dig your way out.
My son had a medical emergency twice, once where he required an ambulance ($1700) and another where he required emergency surgery which we went through a private surgeon ($1000). This all happened while I was on maternity leave. My DH was also made redundant at the same time and was out of work for a month (he only received a small payout). The car is actually $230 per fortnight and yes it is expensive but it was bought before children and it was a necessity at the time. I rounded it up to $300 to include petrol. In hind site we should have bought something cheaper but now we aren't in a position to sell it.
No we don't have savings.
No we can't redraw or draw down (no money to do that).
Obviously things have changed since having children and being on maternity leave, which is why we are desperately trying to refinance. I'm currently back at work a few hours a week.
It is my understanding that everyone who has health insurance over the age of 31 receives a tax break, regardless of income?
I would strongly suggest seeing a financial counsellor. Go to the MoneySmart website and find one near you.
If you have top cover health insurance wouldn't that cover the ambulance expense?
Once you get through this rough patch I also agree with the suggestions you see a financial counsellor.
DH and I were both on very high wages when I first went on maternity leave and we struggled. Enormously. We weren't used to needing savings or a financial buffer. It was a huge shock.
OP you don't have to justify to anyone on here why you find yourselves in this position, but given you want to have another baby I definitely recommend getting some good financial advice as well as a savings plan before you TTC. Babies and kids should be enjoyed without the pressure that comes with living under a financial strain.
no that's incorrect moosey. everyone (unless your income is super lie) is required to pay the Medicare levy (currently 2% of your adjusted taxable income). for those singles/families whose incomes exceeds certain thresholds (I'll post the link shortly), a Medicare levy surcharge is payable if you don't have private hospital cover.
unless your family income is above $180k, there is no benefit from a tax perspective of having hospital cover.
I'd still not be rushing out and canceling your policy though. if you're over 31 and don't have hospital cover, you get hit with a lifetime loading charge (basically a penalty for being over 31 and not having hospital cover). plus, you have kids, so hospital cover is prob a good idea. is there any way you can reduce the level of hospital cover to a more basic level of cover? do you have extras too? again, look at reducing that if there extra bells and whistles yours currently paying for that you don't use. dental and optical (for me) would be non negotiables, plus a basic level of hospital cover. shop around too, there's some good deals to be had.
any chance you could look at upping your work hours? or taking a second job?
I'd hubby actively looking for work? Is there anything he can do in the interim to get a few bucks coming in while he's looking for a proper position?
re the car. do you have another car or is this the only one? ie does hubby have his own car? I really think selling the car and ridding yourselves of that debt would help immensely.
also, while it won't help in the short term, have you heard of barefoot investor (Scott pape)? he has some wonderful strategies that are simple and easy for getting out of debt and getting ahead. he has a very easy to understand and no nonsense approach so although it won't help you this week or next week, it can help get you thinking about how better to help yourselves get out if this financial rut.
I'm sorry to hear about your son's medical emergencies and your husband's redundancy.
don't give up xx
I'm an accountant and also run my own business helping clients manage cash flow and getting out of financial strife. if I'm asking pointy questions, it's out of a genuine desire to help. I'm not trying to put the OP down in any way shape or form thankyou very much.
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