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How an Emergency Fund Can Cover a Medical Leave of Absence
Description
Episode 104 of The Emergency Fund Podcast explores a scenario many listeners haven't planned for: taking an unpaid medical leave of absence. Lucas and Luna walk through the real numbers behind a three-month leave for surgery recovery, including how much to save beyond the standard three to six months of expenses. They discuss the Family and Medical Leave Act (FMLA), COBRA health insurance costs, and the hidden expenses like lost retirement contributions and professional license fees. Using a concrete example of a $60,000 annual salary in Austin, Texas, they calculate the actual cash needed — roughly $18,000 for living expenses plus $6,000 for COBRA premiums. The episode also touches on mental health leaves and the difference between planned and emergency medical leave. A practical guide for anyone who wants their emergency fund to cover not just job loss, but a real health crisis.