Explain Finances

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.

The Stock Market Is A Game

As a kid, have you ever played the board game Monopoly? This is a game that deals with properties, banks, infrastructure, and millions of colorful dollars.

Like in Monopoly, the stock market is a game in which you have to decide the buying and selling of your properties. Although in the case of the trading business, you are making stock market decisions.

The money you collect in Monopoly when you have circulated the whole board game would be the dividend or the payment in the stock market. The amount of the money you collect would be determined by the properties you have in the game. Just like in the stock market, the more shares you have, the larger amount of money you would be given.

When you are getting bankrupt in the game of Monopoly, you have the power to sell your colorful houses or building when you need to regain your finances. Just like in your stocks, when the market falls, you have the authority of which shares to sell out and which shares to retain.

In winning the Monopoly game, you are obliged to keep your properties before the construction of your houses and hotels. You would lose to your challenger if you sell these properties to him even for twice the normal price of your property. Just like in the stock market, making lots of money does not mean you are successful in what you’re doing. In order for you to win with your stocks, you should be able to double your property to give you a higher dividend of shares.

In playing the board game, you need an opponent to start the game. It’s your opponent’s job to prevent you from owning many properties and collecting large amount of money from him and from the bank. Just like in the stock market game, there are also factors that prevent you from the success of your shares. These don’t necessarily have to be other investors, but it could be the taxes you are obliged to pay or the interest of your stockbroker from your dividend.

Playing the game of the stock market could be done even with just a little amount of money. Just like in the board game, all you have to own are colorful play-money for you to own properties and collect more money in the future.

Although the trading system could be compared to the board game, you should take the stock market seriously. Why? Because this is real life and real money is at stake.

Getting a retirement plan

Are you considering getting a retirement plan? This is a good investment on your part since this will greatly help you sustain your quality of living even after you have already retired and your main source of income is gone.

The 401K plan

The 401k plan was named after the Internal Revenue Code’s section 401k. This specifically permits employees of companies that are qualified to put aside tax-deferred funds every paycheck period. The plan enables the plan holder a lot of flexibility by allowing the holder to determine the amount they will contribute to the plan and they also have the power to determine where their savings will be invested. Although a setback of this kind of plan is that it does not specify in the start the amount of money that the employee will get after he retires.

Regular contributions

As an employee, you can decide how much you will set aside and contribute to the retirement plan. According to law, you can legally put up to 15% of your yearly earnings into the plan as long as it does not exceed $10,000 which is the limit set by law. Your contributions will be pre-tax; this means that amount you will contribute will be deducted from your salary before the income tax is calculated. This is done so that employees with very high salaries will not take advantage of the tax benefits provided by the plan.

Track record of the plan provider

Before getting a retirement plan, it is important to look at the track record of a prospective plan provider. Find out how long it has been operating in the business. Look at the types of clientele that they serve and assess if it will be suitable for you. Mull over their retirement plan and its overall services carefully. Do they report regularly and do they have proof of investment success? It is also crucial that communicating with them will be easy and convenient on your part. Ask them if they have a website and if their representatives are always on call.

Information Dissemination

How does the retirement plan provider inform you, the potential client about their programs? Do they use software interactive programs, seminars, or print ads? This will give you valuable knowledge about the plan and help you decide whether you will take the plan or not.

Knowing the retirement plan provider’s background will ensure you of getting the best service available. Be careful in choosing the terms of the plan as well so that you will not have a hard time fulfilling your obligations. Remember to set aside part of your money so that when the time comes, you will be prepared.

How to Save Money on Gifts

Giving gifts does not have to be spendthrift. As the old adage goes, It is the thought that counts. This goes to show that people can start cutting back on gifts that would cost them hundreds of dollars. It is best to opt for things that may not be that expensive but would definitely bring joy and amusement to the one who will receive the gift.

So, if you want to give gifts but with a tight budget, worry no more because there are many ways to cut back on the prices but still be able to give gifts that will be deeply appreciated.

Start a Gift Closet

If you have not done this before, try to do it now. Shop for gifts the whole year-round. This would mean less hassle and less expense, a definite money-saver.

The point here is that if you do not plan in advance, you will end up spending more.

You could try buying gifts at bazaars, special sales, and out-of-town trips, which you can deposit in your gift closet. In this way, you can buy the items at a much lower price than it would be sold for during the holidays.

However, to make sure that you do not give the same gift twice, you should make an inventory of all your gifts. This will also allow you to keep tabs on what you have in your stock.

Alternatively, apart from stockpiling gifts, collect wrapping paper, ribbons, and other accents as well. A gift is better appreciated when it is beautifully wrapped.

Be Creative

Nothing could be more amusing than a gift that was specially made by the person who gave the gift. Personalizing you gifts is far better than commercially made items. In this way, you do not only create a smile to the one who will receive the gift but would also cut back a large amount from your expenses.

Organizing Tip

One of the best ways of saving money on gifts is to be organized with the process. That is, before going to the store to shop for the gifts, always bring with you a shopping list. It should be stated there the names of the person to whom you will give the gift and the budget for each person.

The bottom line is that gifts should not be expensive. What matters most is that you have thought of the person on that very special day and thats enough to make them feel they are special to you.

How to avoid credit card pitfalls?

Seeing people buying food or shopping clothes using credit cards has been commonplace these days. The phrase “Charge it!” has become a favorite expression of card users, and has been commonly heard in shops, dining places, and elsewhere.

After all, who does not want to use these credit cards? Easy to use, these sleekly-designed cards can be used to buy practically everything in commercial establishments regardless of how much (or less) money does one carry money in his wallet. Short of cash and hungry? No grocery supplies? Going to a party but no money to buy that dress you’ve been drooling for? No problem! Your good ol’ credit can care of that for you. No worries.

Credit Cards: Not Free Money

But wait. A credit card spree may be fun, but that doesn’t free you from responsibilities in paying the expenses you incurred from using your credit card. Credit cards, after all, are interest loans in disguise. Typical credit cards ask for a number of charges, including:

“A finance charge, which is an interest charge for the unpaid portion of your monthly bill;

“An annual membership fee;

“Or if you’re paying after the deadline, there is also a late payment fee which could have a higher interest rate.

In fact, many credit-card holders face credit-related problems. Poor purchasing decisions, lack of information on credit card fees, and disregard for upcoming credit payments are among the reasons why many credit-card users are often hard-pressed in paying their debts. Some are not even able to pay for the actual purchases they made, just barely managing to pay credit card company charges.

Before you get drowned in a sea of debt, here are some tips to help you manage your credit-related expenses:

“Be credit smart. Applying for a credit card application means you are ready to assume the responsibility for paying your credit. You and only you - not your parents, spouse, or whoever - is responsible for that.

“Use your credit cards wisely and sparingly. Remember: Paying goods and services using credit cards are more expensive than using cash or checks. Credit payments include interest and other fees. Use credit cards as sparingly as possible. If you really need to use credit cards, carry only the cards that you will actually use.

“Use credit only if you are sure you can repay it. Paying your debt on a credit card using another does not count.

“Avoid impulse shopping on your credit card.

“Use credit for money emergency only.

“Seek credit counseling as soon you see financial problems on the horizon.

Ideas for a Retirement Party

If youre planning your bosss retirement party or maybe your parents, here’s a list of things you need to know before you pull out that party hat.

1. Have a party theme

Think of a party theme that everyone could enjoy. One of the most enjoyable retirement party themes is old and useless things. You could ask the guests to bring gifts that are practically of no use or old. You could also have an alarm clock smashing ceremony, where the retiree gets to smash an alarm clock because he doesn’t need to get up anymore.

2. Be aware of the retiree’s interest

Take note of all the interest he has. You could, for example, set the tables in various themes or stages of his life. The retiree might be a baseball card collector, a volunteer firefighter, and a Sinatra fan. You could set up a table for each of his activity or interest. You could also set some tables with him being depicted as a father, brother and son.

You could also scan pictures of him collected all through his working years and as a family man. Run it in a presentation program e.g. PowerPoint and have it run throughout the party. This would give the guest a more complete picture of the retiree. Burn the pictures on a CD and have it as a gift or souvenir.

3. Put Together a Roast in Video

Roasting the retiree is great, but it could be better if done before hand. In that way the interviewee’s can edit or redo the roast till they’re satisfied. Plus, the retiree gets to keep a copy of the roast.

4. A Quiz Show

You can setup a ‘quiz show’ type program in which the friends and family get to answer questions on the retiree. Questions include anything and everything about the retiree. If the gathering is mostly co-workers, you may limit the questions pertaining to work and hobbies. If the guest is mostly friends and relatives more personal questions would be great. Small prizes may be given away to correct answers.

Be sure that there are a lot of questions. Make sure that most of the questions are easy, but include a few stumpers. If the questions are all hard, it might not be too fun. Have the questions entertaining also. Allow the questions to reveal some of the retiree’s personality and hobbies.