Tips on How to Cut your Medical Expenses
Tips on How to Cut your Medical Expenses
There is no such thing as a free lunch. Moreover, there is no such thing as free medication. Some time or another, all of us will need medical treatment. Whether it would be for simple colds or for serious illnesses, these things would hurt us and burn our pockets.
According to a recent study, Americans spend more money on medical expenses than any other nationality in the world. As prices get higher and life gets harder, saving some money from your medical expenses will definitely benefit you.
Here are some practical tips on how to cut your medical costs:
Mind Your Health
Prevention is always better than cure. Being fit and healthy seems to be a 21st century fad and it wouldn’t hurt us if we join in the bandwagon. An analysis of the 1987 National Medical Expenditures Survey revealed that people who are more active spend less on medical expenses than those who live lethargic lives. The analysis equated the benefit of being physically active to $330 (1987 dollar value) per person.
For smokers and drinkers, reducing cigarette and alcohol consumption is an option which you may find feasible. You will not only reduce future medical costs but also reduce direct costs from purchasing these products.
Go Generic
Taking generic drugs is the way to go. Patents are used by manufacturers to be able to set a price so as to recover their costs in developing their products. But these patents don’t last forever and sooner or later, generic versions of these drugs will be available. Generic drugs are basically the same as the branded ones in terms of ingredients and quality.
Going generic can save you a lot of money. According to the Association of Chain Drug Stores, the generic drugs are priced at $24 on the average in 2004, while the average price of the branded ones is $96 dollars.
Deal with your Doctor
Take time out to discuss things with your doctor, for this can also save you a lot of cash. Don’t be shy to ask him about the possible alternatives that you can take. Ask him if there is a generic drug that you can take if he prescribes you a branded drug. If you are going to have surgery, try to schedule wisely, so as to prevent overstaying in the hospital. And most importantly, do as you are told. If he asks you to quit your vice, quit it. If he tells you to be active, then you’d better be!
Medical expenses can really dig a hole in your pocket. Try to be wise in your medical transactions and more importantly, take care of your health.
Cutting your Kids’ Schooling Costs
Cutting your Kids’ Schooling Costs
Whenever the school season is just around the corner, there’s only one thing that parents are thinking about – the impending costs. Education is a primary right and a pertinent need of every child but it can become very costly. Availing of scholarships and education grants for your children is the best way to get them through schooling. But of course, only a small percentage of children can be given these privileges.
There are simple and effective measures that parents can employ in cutting the costs of their children’s schooling, especially during the back-to-school season. Most often, these measures are often taken for granted, but don’t miss out!
Organize and Save
Keep an inventory of your children’s school supplies and keep it organized. If you are not organized, you will be spending more money on replenishing your supplies. Small things like pencils and crayons may not cost too much, but if you replenish your supplies unnecessarily, you are losing valuable money.
You should also try involving the kids when making the inventory. This will give them a sense of ownership for their things and would know where to take and put their things.
Tax Holidays
Tax holidays are often offered by many states during the back-to-school season. Price ceilings will be put on different school gears. You might want to do a little research and ask about the schedule and the details of the tax holidays in your area.
Bulk Buying
It’s a basic economic principle – “the more you buy, the more you save”. Well, this is applicable if you are buying a specific item which you will really need in the near future. In buying pencils, for example, you might want to buy a box rather than buying one for each of your kids. Face it, you will be needing to replenish these after some time, so might as well avail of the lower price by buying in bulk.
Transportation
You might want to consider buying your child a bicycle for him to bring to school. This, of course, is not always feasible. Finding a cheap and safe way to bring your children to school daily is an important thing. Car pools and school transportation services are options that you can look at.
Snacks
Whenever you have the time and energy to prepare food for your children, do so. You will not only be saving on the pocket money that you will give to them but you are also secured that your children are eating healthy and safe meals.
Getting your children through school is a hard task and a costly one. Saving money through practical and simple means can assist you in this endeavor. The benefits will eventually add up to bring a brighter future to your children.
Tips on how to Save Effectively in Banks
Tips on how to Save Effectively in Banks
Many of us think that putting our money in the bank is a secure and wise way of saving. Yes, this is true if we are wise in dealing with banks. Banks are not charitable institutions, these are profit-driven entities which charge different kinds of fees and do all sorts of schemes to take away some of your money. The savings that you can get in being wise in making bank transactions can add up after some time and let you use your money where you want to.
Here are some tips on how to effectively save money in the bank:
Mind the Opportunity Cost
Think about the factors that are affecting your money in the bank. Are there fees that the bank is asking you to pay for keeping and using your own money? How much? Are they requiring a minimum balance for holding an account? You might be interested in other alternatives that are available out there, waiting for your investment. You should always factor in the opportunities that you are deprived of because you are putting your money in the bank. You might also be interested in taking a look into the terms of other banks. Probably the bank that can best suit your needs is out there waiting for you.
Book Balancing
Always bear in mind to have your checkbooks balanced at the end of every month. Issuing bounced checks can cost you a lot. The average fee for issuing checks with insufficient funds is $20. If you are not aware of the problem, you can easily issue several bounced checks in a certain period of time and this is very costly indeed.
Tame the ATM Machines
The best practice in using ATM machines is to avoid using ATM machines of other banks. This way, you will save on ATM fees. However, it wouldn’t hurt if you also knew the ATM machines of other banks which do not charge fees.
E-banking
With the advent of globalization, everything is becoming electronic. This is also true in the banking world and technology is quickly becoming a benchmark of competition. E-banking can save you some money from transportation costs and more importantly, it will save you time. The time you spend waiting at the bank can be used for some other productive activities.
Truly, putting your money in the bank is a wise way of saving money, but only if you are wise enough to prevent the bank from chipping away your wealth. In saving, it is not only the benefits such as annual returns which you should consider, you should always think about the costs involved in the process.
How to Save Money for Tuition Fees
How to Save Money for Tuition Fees
As soon as their child is born, parents can start saving up for their children’s college education.
With tuition fees climbing up yearly, it is better to have a sound financial plan so that it would not be difficult for you to send your kids off to college when they grow up.
Aside from the cash that you have saved yourself, here are the top 3 sources that can help you get your kids through college:
1. Scholarship grants
2. Part-time jobs
3. Financial aids
These are good alternative sources for your children to start off on their college education.
But as a parent, you would not want to fall in those long lines for financial aid or let your child work himself to death just to have money for tuition and other expenses.
Here are some ways on how you can have a jump start at shaving off those hard-earned bucks for your child’s college education:
1. The earlier, the better.
Start investing your money as soon as your child is born.
First, put the savings or investments under your name.
Later on, decide whether you want to transfer the account to your child’s name by the time he or she turns 15. This way, you will have minimal taxes, if at all.
However, you need to be careful when transferring account names.
Some states require a total turnover of funds once your child turns 18 or 21. This is also ineffective if, in the future, you apply for financial aid.
Also remember that tuition fees 10 or 15 years from now may double or even triple the current rates.
2. Establish a trust fund for your child.
This is a very wise plan for a child’s parents or relatives to invest in.
A trust fund is similar to a time-deposit where the money will be given to your child after a certain number of years.
After the designated time, the fund may be received in one lump sum or through an installment basis.
When building up a trust fund, check out details like the interest rates, taxes and withdrawal restrictions.
All in all, you need to approximate the costs of tuition fees, dorm room, meals, books, and other expenses that may come up.
Make sure that you invest money wisely as your child grows.
By the time that there are only two or three years to go before you send your son or daughter off to college, “lock” an ample amount of the funds by investing them in low-risk bonds to ensure that you will get to have enough for them to start their college education.
Secrets of keeping to the family budget
Secrets of keeping to the family budget
The high cost of living in today’s society, wherever you may be, has made budgeting a priority among families. In today’s inflationary world, nothing is more important than knowing how to wisely spend the meager income that you get.
Financial problems usually arise due to lack of proper budgeting skills, or failure to keep to the proposed budget. No matter how much income you may have, it is still important to keep track of your assets and liabilities, your earnings and expenses.
It is ironic but a person who earns thousands will have the same problems with the person who earns by the hundreds. Most often, different kinds of people, with diverse income levels, have budgeting problems. Others who may have been successful in making a budget, usually fail to keep within such a budget.
A budget refers to a financial plan, taking the incoming and outgoing monetary resources into consideration. A good budget should not only mean a balance or equity between income and expenditures. It also means lesser expenses, and making an allowance for savings.
If you earn a thousand dollars per month, you should map out all the necessary expenses you will have to incur during the month such as payment for your house, food and transportation. Of course, this is presuming that your tax liabilities have already been settled. What remains after you deduct your total expenses from your income is your savings.
What you do with your savings will make a difference later on, when the need arises. You can choose to keep your savings in a piggy bank or place it in a bank where there is minimum interest rate but at least your money is safe from you and from intruders. With a bigger savings, you can get the services of a financial adviser who can give you higher-yielding investment options
Here are tips to make sure that you keep within the family budget:
1. Maintain a logbook where you can list your income and expense account on a weekly or monthly schedule.
2. Buy your groceries at one time. To do this, make a list of all the things that you would need for your target period and purchase them at one time. Sometimes, there are discounts if you buy by the dozen so take advantage of this.
3. Avoid going to the supermarket and shops if you do not need to buy necessary items. This will keep you from making unnecessary purchases and keep you from straying away from your budget.
4. Think twice before you buy something. By doing this, you will realize that it is not really a necessity but a whim.
Self-Control and Saving Money
Self-Control and Saving Money
Self-control is one of the many virtues that is something that can be learned by each and every person. And learning it will prove to be very significant in the way people handle their finances. Possessing a sense of self-control somehow helps people to put aside money instead of spending it. It helps people to resist the terrible “itch” they get to spend money the moment they get hold of it.
This is a common pitfall for most people. Often, when people come into a certain amount of money, they have this tendency to rush out and instantly satisfy the irresistible urge to splurge on anything they lay their eyes on. This is a very dangerous mistake. Sometimes people fail to recognize the idea that the future has to be considered, too, whenever spending and savings enter the picture.
The cliché “nothing is constant” still rings true until today. The stuff people see now as shiny and new will fade and rust away later. And patience and self-control makes people realize and think about the many other more important things that requires more of people’s concern, specifically money-wise.
A person’s financial success starts with a conscious effort to control one’s expenditures and save up for the future.
Realizing the high correlation of self-control and saving money, the next question is, how do we start learning and acquire this virtue of self-control, which seems so elusive? Well, there are many ways which people often take for granted. Here are some of the less complicated ones that are easier to follow. Learn them, and hope they grow on you. Try to apply these easy steps in your daily living and surely they will bear you wonderful fruits on your way to financial stability and security.
1. Do not purchase items on impulse. Consider thinking if you really need the item, or maybe you can still put it off for later when you really have the need for it.
2. Identify the your needs from wants. You wouldn’t want to spend so much on something that you may regret doing so in the future.
3. Look for a person who can serve as a role model for you and adapt a financial life similar to what he does. In this way, self-control will seem very easy when you see that others are actually doing it.