A testimony from Reelika
Having a baby is always a miracle and a real blessing for entire family. But with all this excitement, huge lists of medical and delivery expenses come, as well.
I was in a hospital already three days before my son was born. I always knew I wanted to have a private family room and not to share the room with three other women and their babies — yes, this is how it is here in Northern Europe. The shared room is covered by health insurance, but the private one is not.
I never knew I’d have to stay in a hospital that long. But due to an emergency c-section it totaled up to a week and the cost of a room was calculated based on the number of days I stayed there.
The total cost of staying one week in a delivery room was almost my full monthly salary. But I paid it fully in cash!
Here is how I did it:
- I set my mindset earlier that a new life should not start with a debt.
- I did my homework and found out the potential expenses of a delivery room. I estimated the stay in a hospital up to five days.
- Once I found out about my pregnancy, I created myself a weekly savings plan for the delivery room.
- I learned to say “no” to many invitations that would have cost me too much money.
- I prioritized and focused on things that matter the most.
- I opened another savings account specifically for the baby and delivery costs. I had a portion of my money automatically transferred from the checking account to the savings each time I got paid.
- I took advantage of reading many educational books about finances and business as I also majored in.
- I made some extra income with freelance consulting.
- I decided to increase my emergency fund. I also went through my closets and sold any clothes I didn’t need anymore.
- I got used to the new lifestyle of living below my means.
Although I had saved a lot, the delivery room still cost more than I estimated. But since I stayed in a hospital longer due to the emergency c-section, I treated the situation as an emergency as well.
I decided to pull 15% of the delivery costs from my emergency fund and pay the remaining 85% with my savings. Just like that, my delivery and one-week stay at the hospital were paid off with cash!
Reelika is a working mom, entrepreneur, Christian, philanthropist at heart, financial management lover, travel enthusiast, and baking fanatic. She blogs at Financially Wise On Heels about personal finance and entrepreneurship.
Have you saved up and paid cash for something — large or small? Submit your story for possible publication here.
Lisa says
Wow!! I wish i lived in England! My first pregnancy was an emergency csection and it cost $35,000 here in alaska. That was just for the delivery and 5 day hospital stay. It was about another $8000 for dr visits. We don’t make that much in a year! Thankfully the state has insurance for low income for pregnancy and for the child after they are born as well. So it was covered. My second is due in august and it was quoted at least $50,000 for dr care and delivery with just a standard 3 day stay.
Harmony @ creatingmykaleidoscope says
Congrats! I too just had a baby, our third. It’s so important to think about the cost of pregnancy care and hospital charges ahead of time. Being surprised about these expenses can cause a lot of stress when you should be focused on recovering and enjoying your little bundle of joy.
We used a health savings account to save up the funds for delivery by making small contributions over the past year (and accruing a small amount of interest). I recently posted about all of the ways that we save money with a newborn: http://creatingmykaleidoscope.com/2015/04/16/ten-money-saving-tips-for-new-parents/
Reelika @Financially Wise On Heels says
Congrats, Harmony! It was very wise of you to open the health savings account, well done 🙂
Kate says
Congratulations on your baby! Thanks for sharing your testimonial! 😀 Blessings!
Reelika @Financially Wise On Heels says
I’m glad you liked it, Kate 🙂
Sarah@TheOrthodoxMama says
What a wonderful story! I also had an unexpected c-section, but at that point in our lives we weren’t focused on staying out of debt. It took us over a year to “pay off” our son. It was, in fact, one of the things that led us to our new financial mindset. Thanks for the inspiration!
Ashley P says
My first son was born summer of 2013. We’re still paying that hospital bill.
My second son was born at home with a midwife 2 weeks ago. That birth was paid off a month before he even got here. My second kid was paid off before my first! Just thanking God I didn’t need a hospital transfer. That was one more bill He knew I did NOT need! 😛
Reelika @Financially Wise On Heels says
Asheley, wow, it can really happen 🙂 But with the right mindset, I am sure you will be able to pay off the first kid’s debt as well 🙂
Reelika @Financially Wise On Heels says
Sarah, I’m glad you found it inspirational 🙂
Kristen @ Joyfully Thriving says
We did the same for our baby! We planned ahead by putting all of my piano earnings (I teach piano lessons) into a baby fund so we would have enough to meet our high deductible. It meant we didn’t have to worry when I also had an emergency c-section and our baby spent 5 days in the NICU. We knew we had enough money to pay our bills. What a blessing! And thankfully, our baby came home with no lasting complications. An even bigger blessing!
Reelika @Financially Wise On Heels says
Congrats, Kristen, this is awesome! I can totally relate to you, and you are right, it is a blessing 🙂
Miriam B says
What an amazing story! Reading this really brightened my day. 🙂
Reelika @Financially Wise On Heels says
Glad you found it inspirational, Miriam!
Jennifer Ratliff says
For any moms in the US who need it: If you do not have maternity coverage most hospitals have a prepay program. I used this with my second son. I had to pay $1800 before my due date and then all expenses associated with baby were covered! Also, any expenses before due date. (problems, tests, ultrasounds, etc.) are included. You can do your prenatal visits for a huge discount too. I chose a closer local clinic (who worked with the hospital) and was charged around $10 per prenatal visit and a little bit for my glucose testing and stuf like that. This is not a “government” program, it is throught the hospital. With my third child the cost was $2000 and just a bit more for the prenatal care visits. I received wonderful care both times.
Christie says
That’s incredible! I paid almost 3 times that AFTER insurance just for the delivery.
Reelika @Financially Wise On Heels says
Jennifer, thank you for sharing this useful information. This is awesome and can benefit so many families 🙂
Ashley P says
How cool!
We just paid cash for the birth of our second son! But it was a home birth with a midwife, so it was a lot cheaper than a hospital stay. Kudos to you for being able to save so much! And congrats on your baby! ^_^
Reelika @Financially Wise On Heels says
Congrats to you Ashley 🙂 My baby is now 4 already 🙂
Kelly Cox says
Reelika! I love your story. Debt free is the way to go. I think it pleases the Lord and with a little work and prayer on our part, it is possible. Blessings to you and I’ve now checked out your site and will be back. Lots of exciting stuff there. 🙂 I’m passionate about living debt free too!
Reelika @Financially Wise On Heels says
Thank you, Kelly, it is not always easy to live debt free, but definitely doable 🙂
Karen M Roth says
You have 2 reasons to be proud Reelika! No debt and the most precious gift you could have ever received! That precious little one from God :-D. Looks like a sweet little angel.
Reelika @Financially Wise On Heels says
Thank you, Karen, for all the kind words 🙂