So, now that every single American must have health insurance or face a penalty, how do you budget for that cost, and how would that affect your other debts? Do you know how much extra in interest you will now be paying due to this new expense? What if you don't obtain any health insurance? What's that going to cost you?
Well, for one, in 2016, you're subject to either of the following penalties, depending on which one is higher.

• 2.5% of your household income, or
• $695 per adult, and $347.50 per child under the age of 18, with a max of $2,085.

There is a max penalty on the first option, but I don't have the time to explain it here.
It's important to always consider your "true cost" by taking each or your expenses and adding the amount you could have saved in interest by applying the money for that expense to the Program. Doing so will help you realize how much you will be paying in interest by taking on the penalty. Although I don't advocate taking a penalty just to avoid paying expensive health insurance because you may be healthy, the program will help you realize the true cost to taking on either the monthly health insurance expense, or the cost of the penalty.

One of my all-time favorite insights into money management.  Most people forget that to avoid debt, all you have to do is not buy stuff you can't afford. Now, there are those things that we may have to take on some debt (i.e. mortgage, vehicle), but other than large expenses, debt is unnecessary.

​Luckily, there are solutions that help those that already have debt get out in the most mathematically-way possible!  Check out the procrastination cost to see an example of how you can find out what it'll personally cost you to procrastinate paying off the debts you have acquired.