Finance Guru: Dealing With Medical Bills

Even with health insurance, all it takes is one major illness or injury to be stuck with overwhelming medical bills. When this happens, you might feel like there’s nothing you can do but pay the entire amount owed or file for bankruptcy. In most cases, however, there are several measures you can take to whittle down medical debts both big and small.

1. Check any medical bills you receive carefully. You should receive a detailed statement for any services or procedures you receive. Make sure that you have actually received what you’re being billed for. Did you receive each medication and service listed? Do the dates of service listed on the bill match up with your records? Are you being billed more than once for the same service or supply? The easiest way to check your bills for accuracy is to keep a record of what treatments your receiving and when you’re receiving them.

2. You’ll also need to check your insurance policy and make sure that the insurance is paying for what it’s supposed to. If they have denied payment for treatment or services that you think should be covered, ask for the matter to be reviewed.

3. Try to settle the debt for less than the amount owed by negotiating with providers. If you know in advance you’ll need treatment, negotiate beforehand. Offer to pay a discounted amount upfront, for example. This tact can work with emergency or unplanned treatment after the fact. If you simply can’t pay the whole amount, most providers would have something rather than nothing and will work with you.

4. Get help to pay the bills. There are programs available for people who can’t pay their medical bills. Ask your provider.

Don’t sacrifice your own future to pay for Your Child’s Education

Of course you want to be able to pay for your child’s college education. Who doesn’t? It’s every parent’s dream, right? For those who can afford it, paying for college for the kids outright is a great thing. For most middle-class people however, the thought of paying the bill for four years of higher education or taking on more student loan debt can be downright nightmare-inducing.

Here are some things to remember when planning for your children’s college education:

1. Start setting aside money when they are young if you can, but it’s never too late to start.

2. Apply for every scholarship you can find. Start researching scholarships and involve your college-bound child in the process. As soon as your child is a junior in college, start looking for scholarships. Make it your child’s job to apply for any scholarship you can find, no matter how big or how small. Those small scholarships can add up quickly!

3. Don’t sacrifice your own future to pay for college. Don’t forego funding your own retirement account in order to pay for your child’s college. Think of it this way. Your child can get loans to pay for college and then work for years to pay them off, but you can’t get a loan for retirement and work to pay it off.

Get Your Financial Affairs in Order

You can work on getting your credit card debt, student loan debt, and other financial troubles under control, but until you get organized with your finances, you’ll never be able to fully achieve financial freedom. Here are some tips to get organized with your finances.

1. Prepare a budget and stick to it. You should know exactly how much money is coming in and how much money is going out. These amounts need to be balanced.

2. Make a list of all debts and total amounts owed. Seeing it in black and white might surprise you but you need to know the bottom line.

3. Set aside a time each month to pay bills. Whether you choose to pay bills online or through the mail, it helps to have a set time to pay bills.

4. Keep a calendar, either hard copy or on your computer, with bill due dates clearly marked. Decide when you need to pay these bills in order for them to be on time and record these dates as well.

5. Keep bills and bill-paying supplies in one place.

6. If your stack of bills seems like it’s a mile high, consider consolidating some of your bills to take some of the pressure off.

7. Don’t pile up unopened bills on the kitchen counter or elsewhere. Go through your mail every day. Throw away junk mail, open bills, and record their due dates immediately. Billing cycles vary and even though your Visa bill was due on the 5th last month, don’t count on the fact it will always be due on the 5th. Opening your bills will help you avoid unpleasant surprises and late payment fees.

8. While there are certain records you’ll need to keep for a long time, like tax returns and proof of paid off accounts, you can shred utility bills once the payment has gone through.

9. Just as you are being diligent to ensure you’re paying all your bills and you’re paying them on time, make sure you’re getting paid as well. Check direct deposits for accuracy and monitor savings and investment accounts.

10. Keep a file with separate file folders for paycheck stubs, tax returns, sales contracts, and anything else related to your finances.

10 tips to earn $625 a month extra!

What would you do with an extra $625 a month? You could put that money towards credit card debt or build up your savings account. We’re talking $7,500 a year, and you don’t need to get a raise or start saving dryer lint–you just need to cut back in little ways that add up. Try these ten tips for saving up to $625 a month.

1. Make fewer trips to the store. If you are going to the grocery store more than twice a week, chances are you’re spending too much. By only going to the grocery store once a week, with a list, you could save $50 a week (cut out those little $25 trips).

2. When making your grocery list, refer to the store’s circular and plan your weekly meals around what’s on sale. You could save another $25 a week.

3. Cut back on eating out. If you cut out one meal out a week, you can save at least $25 a week.

4. Drive less, plan your trips wisely. You could save a tank of gas a month, or at least $10 a week.

5. Cut back on cable. Chances are there are plenty of channels you aren’t watching. You could cut another $25 a month from your budget.

6. Shop around for car, home, and life insurance. If you cut $10 a month off each of these, that’s $30 a month.

7. Eating lunch out more than once a week? Cut out even two times of eating out a week and you’ll save $50 a month.

8. Instead of going out for drinks once a week with your friends, host a wine night at your house once a month. You can still have your nights out the other three weeks of the month, but save at least $25 a month by having a BYOB get-together on that fourth week.

9. Bypass the coffee store. Treat yourself once a week rather than three or five times a week. Cut out two lattes a week and save $25 a month.

10. Try to shave $10 a month off of your water, electric, gas, phone, and other utility bills that fluctuate month to month. You’ll save at least $30.

If you follow all of these tips, you can save $625 without changing your life all that much. Even if you followed some of these tips, imagine what $500 a month could do. The little things add up.

10 Habits You Can Change to Save Money in the New Year

As a new year begins, and you consider what you can do to make this coming year better than the last year, it’s a good idea to look at your habits. Many of our habits contribute to money leaks in our lives.

It might take some time to eradicate a habit in your life, but you can work on one at a time. Work on developing good habit from this list each month, and in 10 months you could have a new you that is also more financially sound:

Brew your own coffee: Instead of buying coffee, brew your own and bring it along. At the very least, you could brew your own coffee three days a week, and only buy it two mornings a week. With the cost of coffee rising, you really could save a bundle over time.
Brown bag it: This is everyone’s frugal living tip — because it works. Not only can you save money on your lunch each day, but you can also live healthier. Healthier lunches prepared at home and brought to work will save you money on health care costs down the road.
Carpool: Save money by spreading out the cost of gas with your co-workers, or with neighbors who work near your location. There are a number of web sites — and even a Facebook app — that can help you find people to share rides with. You’ll spend less in gas and maybe even make new friends.
Walk more: Instead of driving everywhere, consider how you might walk more. I’ve stopped driving around my neighborhood, opting to walk or ride my bike. This saves money on gas, prevents idling, and improves my health. Even if you do drive, consider parking further away from your destination. A little more exercise — leading to better health — will help you save money in the long run.
Work out at home: Make an effort to work out at home. The gas costs related to going to the gym only add to the cost of the membership. There are plenty of ways to get in good shape without going to the gym.
Grow your own food: You don’t need a big garden. Even if you have a small space, you can grow tomatoes in a container, and keep an herb garden in your window. Of course, if you have the space for it a bigger garden can be great. Save money on food and eat healthier.
Plan your meals: Part of the big costs associated with meal time is often because we don’t plan ahead. Make a menu, and plan out what you need. You can also plan your meals around what’s on sale, and what you have coupons for. Use the crock pot, or get a 30-minute meal cookbook to ensure that you have time to create healthy, low cost meals for your family.
Cut the soda: Instead of drinking soda, switch to water. You’ll be drinking fewer calories, and water costs much less — especially out of the tap. You can invest a little in a water filter if you feel it necessary. Over time, the filter will more than pay for itself.
Institute a waiting period before making a purchase: Before you buy something, institute a waiting period. You might be surprised to discover that what you “want” changes when you think about it for 10 to 20 days. This can be a good way to curb impulse spending.
Stop smoking: This is listed last because it might take more than a month to kick this habit. However, the rewards in terms of saving money as well as improved health, might be well worth it.

What new habits do you want to develop in order to save money?

My Horrible Habit of Eating Out

I must confess my sins. I have a terrible habit of eating out whenever possible. Uncontrolled, I can eat out or take out three or more times a week. That of course is one of the primary reasons I got into debt in the first place.

For the last year, I fell back into that old habit. Yuck! I felt that my life had gotten so busy, what with my career, my family business, my extracurricular activities, I couldn’t possibly have time to cook. Besides, I enjoy eating out and why shouldn’t I? I wasn’t getting into debt for it this time! I paid with money that I had!

So, yeah, I ate out too much last year. While I didn’t get into debt this time around, I sure wasted thousands of dollars.

This month, I recommitted myself to cooking at home, eating at home, and saving the extra cash for more important things…like maybe a vacation with my husband.

I started using the tricks I learned while getting out of debt. I cooked extra food and froze or refrigerated the leftovers for later. I used easy recipes that don’t take time away from my important activities so I can cook AND work at the same time. I also have the added bonus of having a husband who reminds me of my savings goal whenever I get a craving.

While I’m not happy with the fact that I can’t go dining like I want to, I sure do look forward to having money around again!

Last night, without spending too much effort, I made two boxes worth of macaroni and cheese. I already have a pot of brown rice in the refrigerator from the previous evening. I have porkchops marinading in the refrigerator. I have barbecue ribs from three nights ago. I have my usual spaghetti and meatballs in the freezer from a week ago. I have carrot sticks and cleaned brocoli ready to be eaten raw. I’m set!

My trick is to cook one item every night or every other night. Make sure I cook plenty. After a week of doing this, my refrigerator constantly has delicious food … which makes it really hard to justify eating out.

Store Food Carefully to Save Money

College students, young professionals, and anyone trying to save money as well as time cannot afford to have food waste before consumption. Here are some tips to store your food to save time and money.

Use good containers. I recently discovered vacuum storage containers. I didn’t really believe the promotional claims, that they can seal in freshness by locking out excess air, but the containers were on sale, so I had to try. Guess what? It actually worked ridiculously well! I stored grapes in them in the refrigerator. Instead of wilting within a week and a half, they were fresh and firm for three weeks, the amount of time it took for me to finish them. Usually, I have to throw out half the grapes because I just can’t eat that much. So, invest in some good containers to store your food.
Wash and dry vegetables immediately after purchase, then store them in a good container or bag with a paper towel. The paper towel reduces moisture, delaying rotting, but gives out just enough moisture to prevent the vegetables from wilting.
Plan your purchases to account for the fact that some food will go bad before others. I have a bi-weekly grocery shopping schedule. I buy and plan my meals so that I eat the fragile foods first and the hardier, longer lasting foods the following weeks. So, fish gets eaten the first week, sausages the second week. Spinach the first week, broccoli the second week.
Cook meats as soon as you get them, portion the meats, then refrigerate or freeze the meats. If you don’t, one of two things will probably happen if you are anything like me. One, you leave the meat in the refrigerator and a week later throw it out because you don’t want to touch it anymore. Two, you put the meat in the freezer and then keep it there for months because the whole process of defrosting and cooking mid-week is too much for you. But, immediately cooking, portioning, and then freezing assure that you have individual sized meals ready for the microwave whenever you want. Chicken and pork work best. Avoid reheating hunks of beef, just doesn’t taste good.
Create your own freezer meals! This is just the best thing to do for anyone trying to save money and time. Make your meals, pack them in individual containers, and grab and go for the rest of the week. Check out my earlier articles for great freezer meals.

How to Budget Around Christmas

Christmas is a beautiful time of year. The colors, the carols, the decorations, the food and the presents have all been a part of Christmas for decades. But amidst all of the cheer and festivities, Christmas can be a nightmare to families who are on a budget or who don’t have much money.

Presents, food and decorations are always expensive, depending on what type you buy. But, there are some simpler ways to avoid overspending around the holiday season. Everyone can budget, even if it does seem like a daunting task.

Here are some tips that you might find useful:

Food

When buying food or drinks, try to buy home brand as often as possible. You will find that home brand is cheaper than name brand and tastes exactly the same.
When purchasing alcohol, limit yourself a little and don’t buy more than you need to get through Christmas. Alcohol can be pricey but you can also get them for under $10.00 on the internet and in various local shops
When you go shopping for all of those Christmas goodies, write out a list and stick to it. You’ll find this way you won’t end up getting something you don’t need simply because it was an impulse buy.
When buying food, look around and compare prices. More often then not, you’ll find the same product at varying prices.
When buying soft drinks for the kids, the best to get are home brand from Cole’s or Woolworth’s. They have a great variety and all from eighty five cents and under.
In most Woolworth’s stores, they mark down the prices considerably after 6:00 p.m. If you shop around this time, you’re bound to get a bargain on items that usually would have cost more then you could afford.
Try to buy healthy food instead of unhealthy food. It can be cheaper and better for you. But Christmas is a time of celebrations, so don’t ban all sweets.

Decorations

Decorations are part of what makes Christmas great. Fairy lights, beautiful colors and all that other beautiful stuff can be a little costly, depending on what you buy.

If you want to decorate your house then I suggest the following things:

When buying decorations, only buy what you need. Buying something simply because you ‘may have a use for it’ is usually a waste of money
Re-using decorations from previous years is also a good idea and will help you to cut costs when it comes to purchasing new decorations.
Making your own decorations is also a good idea. If you have kids, paper, a pair of scissors and a tube of paint (around $2.00 at Go-Lo) then the options are endless. You’ll end up with some great decorations and it will keep the kids entertained for hours on end.
Buy decorations from your local Go-Lo. Trust me when I say this, they have great decorations at great prices, most of which are under $2.00.
Decorations can be made from recycled products in your home. Cardboard boxes, plastic containers, old soft drink bottles, paper and aluminum cans are all great when it comes to making your own decorations. You get cheap decorations and you’re doing something for the environment. Good news all round!
You can buy cheap fairy lights and absolutely beautiful decorations for Christmas at Go-Lo. The people there lower their prices just before Christmas because they know how much Christmas can cost. Such good people!

Presents

Now we come to the hardest part. The worst part of budgeting at Christmas is buying presents. And if you have a big family, then it’s going to cost a bundle. But there are ways to save money even when buying for a large family:

Presents don’t have to be big to show someone that you care. Something simple can be all it takes to show someone how much you love them. After all, it’s the thought that counts, right?
You can find simple and inexpensive gifts on the internet or at Go-Lo if you spend some time looking. Some people are happy with the simplest of objects.
Remember, don’t overbuy for Christmas. Christmas is a time for family and friends to get together and have fun. It’s not about the money, it’s about being with those who love and want you.
Some of the best gifts are homemade. If you can knit, sew, use a hammer or bake then you’ve got a lot of options. Even a child as young as eight can use a hammer and turn a piece of wood into something for their parents or family. Trust me when I say this
Compared to others, if you have a roof over your head, food on the table and a loving family, then you are indeed lucky. Your love means so much to people who care about you.

Here is a great idea for a homemade Christmas present:

You’ll need:

A small box
Pretty wrapping paper
Glue
A small piece of cardboard or paper
An hour or so
A ribbon
A flower such as a rose (optional)

What to Do

Take the small box and paint over the outside and the lid in a thin layer of glue
Wrap the outside in the wrapping paper. Do the lid as well (But only the outside)
Smooth down the paper and rid it of any bumps or lumps.
Grab the small piece of cardboard/paper and write the following message on it

My Love to You

This is a very special gift
That you can never see
The reason it’s so special is
It’s just for you from me
Whenever you are lonely
Or even feeling blue
You only have to hold this gift
And know I think of you
You can never unwrap it
Please leave the ribbon tied
Just hold the box close to your heart
It’s filled with love inside.
Tie the card to the box using the ribbon by placing the card on top of the lid and wrap the ribbon around it, securing both the lid and the card in place Now you have a lovely gift to give to a friend or a parent or maybe even a favorite aunt or uncle!

When Christmas comes around this year just remember that it’s all about having fun! You don’t have to spend big to have a first class Christmas, believe me. Often you’ll find that spending time with your family is worth more then are amount of wealth. Family is more important then money. That’s the way it’s always been and that’s the way it always will be. Don’t use the excuse “We haven’t got much money because it’s Christmas” You really needn’t spend big just because it’s the holiday season!

But for now my friends, Thanks for reading and have fun! I hope you have a safe and happy Christmas and a great new year, Merry Christmas to all and to all a Good night!

Finance Guru: “Improve Your Borrowing Power”?!

Spam is just a wonderful waste of everybody’s time. I wonder if there are still people out in the world who is taken in by spam? Probably. What’s the old saying? “A sucker is born every minute.”

In this case, very true. There are actually people out there who will believe the above spam message, “improve your borrowing power.” In our American culture of debt, we believe that we need good credit so that we can borrow more and more money to buy more and more stuff. We forget that what we are borrowing is our future money, paid for with our future earnings, usually with heavy interest. Someone benefits, but it isn’t us.

Rather than improving our borrowing power, let’s improve our earning and saving power.

Improve Your Earning Power

Take classes to improve your professional skills.
Consider a career change if you are unhappy where you are.
Go back for a degree.
Take a part-time job or start your own business.
Work harder where you are and politely let your supervisors know you are looking for more duties with more pay.

Improve Your Saving Power

If you haven’t started saving yet, open a savings account and start with just $50 a month. That’s pocket change, but will add up quickly in one year.
Use a change jar and dump your change in it every night.
Move your savings account to one that pays higher interest.
Check with your benefits department and join in the company’s 401K or 403(b) plan.
Have your money automatically withdrawn from your paycheck every month to go directly to your savings

How to Afford Christmas Without Compromising on Fun

Celebrating Christmas is an expensive proposition. Apart from the extra food and drink, Christmas involves a host of other spending such as gifts, wrapping, decorations, and seasonal entertainment. But it is possible to reduce your spending without dampening the holiday spirit. You can fill your home with Christmas cheer without having to spend more than you can afford, by using a few clever tips.

Budget

The first and most important thing is to make a budget that is realistic and won’t store up post holiday financial troubles. To do that, first calculate the maximum sum you can afford for Christmas. Then break that down across the various sorts of spending associated with the holidays. Have a shopping list of what you need and stick to it, don’t be led astray by tempting extras! If your Christmas budget is going to struggle to encompass everything you want to do then try some of these suggestions to make it stretch further.

Decorations

These are the key to creating a festive ambiance in your home, with a tree as the usual centerpiece. But there are some funky and fun alternatives to the baubles in the shops. If you live near, or can get to, a suitable area, collect some acorns, pine-cones and nuts. Spray these silver or gold to make natural decorations to hang from the tree. Candles create a great atmosphere and you can easily make your own Christmas themed holders. When you entertain guests, bake some small cakes or cookies and use those as supplementary decorations which can be taken down to nibble on. That way you’ll have the smell of fresh baking as a bonus side effect when your guests arrive.

Christmas trees can be very expensive, but there are a couple of ways to reduce the cost. If you are getting a traditional tree, it’s worth investing in a living one (ie. one growing in a pot). As well as being environmentally friendlier it can be reused for several years. After Christmas put it outside and look after it like any ordinary plant. Cut trees are priced by size so if you’re getting one of those, get a smaller one and put it on a table covered with a white sheet to give it the impression of height.

If your space is limited but you still want a live tree, ask for scrap branches from a tree seller (they may even let you have them for free). Put the branches in a large vase with other seasonal plants such as mistletoe. Spruce up the vase with a few ribbons and hang your decorations from the branches Ivy is another low priced festive plant that can be used for decorating try it as part of a table setting.

Gifts

Gifts are usually the biggest expense at Christmas, especially for anyone with a large family or circle of friends. But there are ways to keep the cost under control here as well. If you and your friends have children, why not agree that you will each buy presents for your own children on behalf of the other. That way each of you only spends what you can afford (there’s no element of having to guess what the other will spend and match it) and you can get your children what they really want/need. Otherwise try to agree a price limit with friends and family.

Consider whether creative homemade gifts would be suitable for some recipients instead of purchasing a gift. Gift baskets are fun, easy to put together inexpensively and can have a personalized touch which a shop bought present lacks. Grandparents, uncles and aunts will love gifts made from your children’s artwork.

For smaller kids a dressing-up box makes a great low-cost present which will encourage them in imaginative play. You can stock one from your old clothes, shoes and hats etc (try and include a few items which lend themselves to exotic roles such as pirates and princesses). If you are expecting your kids to end up with some electric toys, buy some rechargeable batteries and a charger. It’ll be more cost-efficient in the long run and will spare you those cries of “my new car isn’t working any more!” the next day.

A great idea is to give your own “gift certificates” for chores and other activities which friends or relatives can call on later. Kids can give certificates for things such as a car wash or an hour’s gardening; parents can offer vouchers for a trip to the beach or other desirable location, or an hour spent in an activity of a child’s choice; adults can provide things like a back-rub, home cooked dinner of the recipient’s choice, or an hour of help around the home.

Catering

Don’t do the Christmas food shopping when you’re hungry. You’ll want to get everything on offer when your stomach is demanding “feed me!”, and you’ll end up buying much more than you need. If the family is coming to you for the main Christmas meal, ask everyone to do their bit by bringing something along. It needn’t be main dishes, but perhaps some of the snacks and side dishes. Mulled wine is a great traditional Christmas party drink. It also happens to be economical in that you can use inexpensive wine and mix it with apple juice or even water to stretch the quantities.

Other Tips

Keep your credit card out of sight and pay by cash wherever possible. There’s nothing like parting with real notes to make you think twice about unnecessary purchases.
Last-minute shopping is a gamble, but it can pay off because many shops drop prices dramatically just before they close for the holiday. Don’t do it if you don’t want to take a risk though.
You’ll spend more money than you expect on stamps and fancy wrapping . You can cut costs by:
Being selective about the cards you send. Prune your Christmas list if it has become too lengthy.
Sending free E-Christmas cards
Reusing old Christmas cards as gift tags
Use less expensive paper for wrapping, such as that used to prepare packages for mailing. You (or the kids) can decorate the paper with sponges dipped in craft paints, rubber stamps, or potatoes cut in half and carved into Christmas shapes.

Finally although these suggestions are Christmas themed, many of them are equally applicable to other holidays and festivals and even birthdays.