Never Cut These Expenses Unless You Have Zero Options

Financial emergencies hurt, and sometimes, drastic lifestyle cuts are needed to get back on track. Canceling subscriptions, tightening the food budget, and selling belongings are just a few tactics for weathering money problems. When even bigger reductions are needed, like selling the car or moving in with a loved one, drastic cuts feel inevitable.

While extreme financial tightening is difficult, these expenses should not be cut unless there are zero other options:

Life insurance and long-term care insurance

If you acquired life insurance or long-term care coverage prior to obtaining a preexisting condition, keep paying for these, especially If you have a partner or dependents. If you do cancel, the cost to re-obtain down the road will likely be higher, as these premiums are age and health-status dependent. If the cost is simply too high, look into temporarily reducing coverage rather than canceling altogether.

Renter’s insurance

For renters, unlike mortgage holders, insurance is often optional. Since rental insurance is inexpensive (approximately $15/month) and accidents do happen, don’t cut this coverage if possible. Losing your belongings due to a flood, fire, or theft will significantly exacerbate an already difficult financial situation. Plus, canceling may save less money than anticipated if you have a bundled insurance discount.

Basic health/dental/vision insurance

While electing a cheaper insurance premium for a year may be needed, it’s unwise to forego coverage altogether. Emergencies happen, and an uninsured medical bill would be bank-breaking. Additionally, putting off certain types of care can cost much more later. The cavity that would have been $100 out-of-pocket turns into an $1800 root canal if left untreated.

Updated prescription glasses

I’m guilty of putting off new glasses when money was tight. If you’re squinting to read road signs, don’t wait. The increased risk of a car accident is unwise, both for safety and financial reasons. Tip: for cheaper exams and glasses, try Walmart Optical, Costco Optical, or an online service.

Essential prescription medication

Before considering rationing medications, do everything possible to compare retail prices, see if your insurance has a less expensive mail-order option, try prescription coupons that can be scanned in-store, or try Cost Plus online pharmacy.

Antivirus software, particularly for vulnerable systems like Windows

The fallout from a computer virus or malware attack is not worth the cost savings. Corrupt or destroyed files, compromised accounts, an unusable device, and possible identity theft are at stake. Often, antivirus subscriptions will cover multiple devices, so it’s worth asking a friend or family member if you can temporarily use theirs or split the cost with you until you get back on your feet.

Final thoughts

Weathering a period of financial difficulty comes with tough decisions. Protecting yourself by keeping the necessary expenses above will keep your path to a stable financial future more secure.