One Step

Are you one misstep from financial crisis?

A friend just received a bill from the hospital for tests run. The $1,200 owed the hospital could put many folks into a tail spin.

Right now, it will match up with many of the stimulus checks folks are counting on. However, this amount could be the last straw.

My friend will be fine. He has 6 months of expenses tucked away for emergencies like this and can cover this amount. I advised he keep close track of all his medical bills for 2008. This may be the year his qualifying medical expenses exceed 7.5% of his AGI (adjusted gross income) and are deductible.

Good news. My friend is doing fine.

'til later