Free Money Finance

Help for Young Adults Looking to Move from the Classroom to The Real World

Here's a piece that's billed as detailing how young adults are shortchanging their health care, but it's really about moving from college to the workforce and how people should maximize their work benefits during this time of life. The piece is courtesy of ARA Content:

Juggling Expenses and Making Ends Meet; New National Survey Shows Young Workers May Be Shortchanging Their Health Care

Young adults entering the workforce are faced with a juggling act of searching for jobs and calculating living expenses while trying to factor health benefits into the equation. A new national survey reveals that when it comes to their financial priorities, today’s young workforce is focused on cell phone bills, credit card payments and savings accounts – health benefits are not a top concern.

The recent survey of more than 1,000 employed men and women ages 18 to 24 found that 44 percent would rather pay their monthly cell phone bill than a health benefits premium. While young adults are taking some of the right steps, health benefits must be a consideration for the fastest-growing group of uninsured Americans. Roughly 30 percent of this population is uninsured in the United States according to the 2000 Census.

In response, Aetna and the Financial Planning Association (FPA) have launched “All About the Benefits,” an educational program designed to help young workers make health benefits a priority by providing the knowledge and confidence needed to make informed health benefits decisions. The program includes an interactive website, www.allaboutthebenefits.com, that provides tips, free videos, a podcast and audio profiles to inform decisions and provide entertainment along the way. The new program is an expansion of “Plan for Your Health,” an existing public education program sponsored by Aetna and FPA.

Allaboutthebenefits.com guides visitors through typical experiences with information and real world examples – graduating from high school or college, interviewing and starting a new job and budgeting for new expenses.

Ready for the Real World? Tips for Today’s Young Workforce

• School’s Out Forever! Now What? Typically, you're covered under your parents' plan until age 19 – and that's only if you're a full-time student. It’s time to bridge from your parents’ plan to your own. Don't despair if your parents can't help you pay for it – there are other health benefits options available. If you’re headed straight into the working world, your new employer may offer a benefits package that includes health insurance. If you just can’t get enough of learning and are headed to graduate school, many of them offer health plans that are run by the school’s health center or in partnership with private insurers. If all else fails, you can sign up for temporary coverage or purchase an individual health benefits plan.

• Let the Job Hunt Begin. While it might be more exciting to hear about a company’s vacation package and other add-ons, you should also keep in mind as you’re interviewing and accepting a job offer that a health benefits package is incredibly valuable. Find out if an employer offers health benefits to new employees, how soon you’re eligible for benefits and how much it will cost you. Having this conversation with an employer upfront will allow you to see the full scope of your health benefits options.

• Budgeting for Your Health. Choosing a health plan can be confusing for anyone and it takes a little bit of work to find a health benefits package that fits your medical and financial needs. Try to decide what elements are most important to you and go from there. It’s very important for you to determine how much will come out of your paycheck each month for your health benefits premiums to avoid being surprised when you get your paycheck. You’ll also want to consider how many specialists you typically visit in a year, any pre-existing or chronic medical conditions and how much you usually spend on prescription medicines.

• Work It! How to Enroll. One of the most important things you need to know after you've gotten a job is that you have a limited time to sign up for a health plan. Check out the options available to you and make a choice of plans by your employer's deadline. Once you have chosen a plan, be sure you understand when your coverage starts. If there is a waiting period, you might have to sign up for a temporary plan. If you have questions, go to your HR department or check your employer's website since your company selects the options available.

• Raising Your Health Benefits I.Q. Health benefits aren't only important when you get sick – they're also important to keep you healthy. In fact, many plans offer extra incentives to do just that. Make the most of your health benefits plan and check to see if your plan offers coverage for annual check-ups, discounts for exercise programs, flu shots, mental health services and vitamins.

Visit www.allaboutthebenefits.com for more helpful tips.

This piece also details the benefits of having benefits:

Not having health benefits can really hurt financially. Let’s say you fall and break your arm while skiing. Your total bill for prescriptions, a stay in the recovery room, X-rays and various other health care costs could add up to $8,000. Imagine having to pay for that out of your own pocket. Taking a gamble by not having health benefits jeopardizes your health and your wallet.
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A few thoughts from me on this:

1. Guilty as charged. I too under-valued my benefits when I was new to the workforce. It seems like a curse of being young. ;-)

2. That said, ignoring your benefits (at any age) can have big, bad financial complications. Take a few minutes to put some thought into selecting the benefits best for you. It could save you some big $$$$$$$$.

Save Money and Energy by Getting the Right Lighting

Here are some money saving energy thoughts courtesy of ARA Content:

From energy efficient lighting to energy-saving appliances, today’s homeowners are living in a new era when it comes to maintaining their homes. Now more than ever, diminishing energy supplies are taking a toll on the nation’s power grid, pushing gas and electric bills to all-time highs and forcing new energy regulations.

Understanding these changes and updating your home to comply may seem overwhelming and confusing at times, but starting small can result in time and energy savings that not only benefit you but have a positive impact on the environment too. To keep you out of the dark, the experts at Kichler Lighting suggest starting with your lighting.

“Research has found that if every U.S. household replaced their five most frequently used light fixtures or light bulbs with an Energy Star, energy efficient bulb, we’d collectively prevent enough pollution to equal removing eight million cars from the road,” said Jeff Dross, Kichler’s product manager for energy efficient lighting. “Because fluorescent bulbs use less energy and last longer than their incandescent counterparts, you save yourself time and money too, and with the advances in fluorescent lighting, your home’s aesthetics won’t suffer.”

Whether you live in an area where energy efficient lighting is mandated, or are just concerned with growing bills, Kichler offers more than 100 energy efficient, fluorescent products to meet your needs, and no longer does fluorescent lighting mean big, flickering fixtures that create an unflattering environment. Today’s energy efficient products use bulbs in the same color range as their incandescent counterparts, so you can’t tell the difference between the two. Plus, Kichler’s decorative energy efficient fixtures come in a wide variety of finishes and designs for every area of the home, so complementing existing home décor is easier than ever.

In a comprehensive energy efficient catalog, Kichler offers solutions for every room inside and outside the home and helps you understand the ins and outs of fluorescent lighting with helpful charts and consumer-friendly descriptions.

The company suggests keeping the following in mind when considering energy efficient lighting:

• Potential Cost Savings: Over time, energy efficient lighting will result in extra money in your wallet. You can calculate your potential savings based on how much electricity (watts) a bulb uses.

For example, if you compare the costs to light one 60W incandescent bulb for four hours a day all year against the costs for using a fluorescent bulb of the same quality for the same length of time, your costs savings would be $5.70 per year for every bulb used in your home. Just think of how many light bulbs you use each day and the total amount of money you’ll save!

• Longer Shelf Life: High-efficiency fluorescent bulbs last longer -- 10,000 hours compared with 750 hours for a typical incandescent bulb. That means you would have to buy 13 incandescent bulbs to equal the service life of a single florescent bulb.

• Changing Regulations: In some parts of the country, the government is regulating lighting in all new or renovated homes. To comply with revised codes, builders and homeowners must use florescent, energy efficient lighting. This is a trend that could sweep across other areas of the country over time.

• Energy Efficient/Energy Star Logos: Ask your local lighting showroom for help when looking for energy efficient lighting, or look for the Energy Star logo. Energy Star is a government/industry partnership designed to protect the environment. In 2004, Energy Star products saved consumers more than $10 billion. Most Kichler energy efficient products contain this distinction.

Making your home energy-friendly doesn’t have to be stressful. Starting with a simple change in lighting can save you time and money and put a fresh spin on your home décor. If you still have questions, Kichler’s energy efficient catalog is available free of charge at showrooms across the country, and a knowledgeable sales force is ready to answer any questions you may have.

For more bright ideas on lighting or to find a Kichler showroom near you, visit www.kichler.com or call (888) 659-8809.
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One quote that really stood out for me and bears repeating:

Research has found that if every U.S. household replaced their five most frequently used light fixtures or light bulbs with an Energy Star, energy efficient bulb, we’d collectively prevent enough pollution to equal removing eight million cars from the road.

Wow.

Five Easy Tips to Save You $1,500 a Year or More

Here are five good money saving tips courtesy of ARA Content:

You work hard for your money. By thinking carefully about how you spend it, you can cut down on unnecessary expenses. Here are five easy strategies for making sure more of your income stays in your pocket.

1. Pay Off Credit Card Balances Every Month

According to Yahoo! Finance, each American family carries about eight credit cards, with an average balance of around $9,000. About 60 percent of Americans pay credit card interest every month at an average rate of 14 percent annually, according to www.creditcards.com. If you pay your credit card bills off every month, you can actually save $1,260 annually, instead of paying it to your bank.

2. Dump Credit Cards That Charge Annual Fees

Many credit card companies charge their customers an average of $25 to $100 a year just for the privilege of carrying their card. If you have one of these cards, find one that won't charge you.

3. Avoid Bank Service Charges

Banks charge their account holders a variety of fees. But, you can save money if you take steps to avoid paying them.

First, if your bank charges you a fee for not keeping a certain minimum in your checking account, try linking your primary account to another account to avoid the charge. This can save you approximately $11 a month, or $132 a year.

Second, banks charge an average of $27.04 for every overdraft their customers make. Another source estimates that annually Americans write about 450 million checks that bounce. To avoid charges, keep track of your account so you can avoid writing overdraft checks.

Lastly, carefully look over your monthly statements and make sure your bank isn't charging you fees that you don't owe.

4. Shop Around for the Best Cellular Phone Service

According to www.LetsTalk.com, the average monthly cell phone bill is $60. That means the average user pays $720 a year for the convenience of "staying in constant touch" with family and friends. If you only use your cell phone for emergencies, or use only a small amount of your allotted minutes every month, consider switching to a prepaid cell phone. Most prepaid plans don't require a deposit or service, monthly rental, activation and termination fees. You can pay as little as 2 cents a minute, and you only pay for the minutes you use.

5. Cancel Unnecessary Subscriptions

Are you watching all the television channels you pay for? Consider canceling any cable or satellite channels you don't watch. Just eliminating one premium channel can save you an estimated $50 to $100 a year.

Also, if you don’t read all the magazines and newspapers to which you subscribe, consider reading them online. Canceling unnecessary subscriptions can save you between $500 to $600 a year.

Saving money can be much easier than making more of it. For more money saving tips, and information on many other personal finance issues, visit www.AssociatedContent.com, the ultimate destination site for high-quality user-generated content on virtually every imaginable topical subject.

Save Money on Medical Expenses by Buying Your Own Equipment and Medicine

Here's a way to save money on your medical expenses -- buy your own equipment and medicine. The details from Money magazine:

Hospitals charge a significant markup on equipment like crutches or braces, so you're almost always better off buying them on your own.

No kidding! It's the same thing as buying a Coke at a football stadium -- you can pay $3 for 20 oz. there or $1 for two liters at your local store.

I had a friend tell me that the same applies for some medicines (obviously not all -- and not even most.) In her case, the hospital had prescribed the equivalent of Advil (or some similar pain reliever) and was going to charge her roughly $4 a pill. She asked if she could just buy it at her local store and the nurse said "sure." She got the same response when they tried to sell her bandages at a huge mark-up versus what she would pay for them at Wal-mart or Walgreen's.

Save Money on Heating Costs

Here are some ideas on how to save on heating costs courtesy of ARA Content:

Winter can bring on a bitter reminder of potential heat loss in a home and ultimately, higher utility costs. Any leaky window or gaping door can affect your heating bill when temperatures drop. Fight frigid temperatures now by making sure your home is as energy efficient as possible. What exactly does that mean? Pella Corporation, a leading manufacturer of windows and doors, offers the following helpful information:

Quality wood, fiberglass or vinyl windows with multiple layers of glass (glazing) are more energy efficient than those with single panes or windows made from aluminum frames. For example, wood provides 1,100 times the insulating value of aluminum and double pane windows insulate almost twice as well as single glazing. Adding a third layer of glass to wood windows provides the ultimate in energy efficiency.

At a minimum when replacing windows, include Low-emissivity (Low-E) glass options to keep your home more comfortable and to help reflect ultraviolet rays that can fade interior floor coverings and furnishings. Thin, transparent metallic Low-E coatings on the inside surfaces of insulating glass permit visible light to pass through, and reflect some energy wavelengths. In the summer, this helps keep heat outside the home; in the winter it helps retain heat inside.

Another key for energy efficient windows is inert gas fill. By substituting a denser gas such as argon for the air in a sealed insulating glass window, heat loss can be reduced significantly. When a window is injected with argon - a natural, colorless, nontoxic gas - and paired with Low-E glass, its insulating qualities may increase energy performance up to 40 percent. Most quality window manufacturers offer argon-gas fill as an option. Pella pairs argon with Low-E glass for greatest energy efficiency. High-altitude Low-E insulating glass does not contain argon gas.

For energy-efficient doors follow these guidelines for best potential performance:

• Choose factory-assembled doors, rather than those built on site for greater reliability and energy performance.
• Weatherstrip and caulk around the whole perimeter of a door to ensure a tight seal when closed.
• Install quality door sweeps on the bottom of the doors if they aren't already in place to help block out wind and moisture.
• Remove old or peeling caulk around door frames and replace the caulk.
• Add a storm door to save energy. The addition of a storm door can reduce energy loss through the entryway by up to 45 percent.
• Follow the manufacturer’s recommended installation instructions to help the unit perform as designed.
• Don’t overlook patio doors. Treat them just as you would windows when evaluating your home’s energy performance. Type of glass, coatings and panes of glass all contribute to a patio door’s optimal performance.
• Consider energy-efficient fiberglass entry door systems with the look of wood grain, for greater protection from the elements with less required maintenance.

According to the U.S. Department of Energy, the average household spends about $1,500 each year on energy bills. By choosing products that meet ENERGY STAR guidelines, consumers can cut this by 30 percent, a savings of about $450 each year. Right now through the end of 2007, replacing windows or adding new storm doors may qualify for tax credits as specified in the Energy Policy Act of 2005. Good energy choices are not only good for the environment but good economics for all of us.

For more information on how you can improve energy efficiency with your windows and doors, contact a local Pella Window & Door store expert by calling (888) 84-PELLA or logging on to www.pella.com.
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We're in the process of getting a few windows replaced for just the reasons cited above (to keep the cold out) plus the fact that the glass is clouded. Kinda hard to see out of them that way. ;-)

Save Money on Prescriptions Buy Bidding on Them

Here's an interesting piece on how to save on drug prescription costs by bidding online for them courtesy of ARA Content:

Americans are paying more and more for their medications, with many seeing double-digit increases or more over the past decade. The changing landscape of brand names, generics and over-the-counter choices is confusing. And health insurance coverage is changing rapidly too. The trend is toward higher co-payments or co-insurance for traditional prescription card programs and consumer-driven health plans with high deductibles, meaning that out-of-pocket expenses are on the rise.

With all of these changes, cost is becoming more of a factor when consumers are ready to fill their prescriptions.

But, where to go to find lower prices and make more informed decisions? One site, BidRx.com, is a free Web site changing the way Americans buy prescription drugs. Just as online travel sites have revolutionized how consumers find inexpensive airfares and hotels online, BidRx.com has created an open and competitive marketplace where consumers can evaluate similar medications, comparison shop between pharmacies, receive electronic coupons for discounts from pharmaceutical companies and ultimately experience savings up to 85 percent or more when they put their prescriptions out for bid so they can compare prices and services from various pharmacies.

Omro Pharmacy of Omro, Wisc., is one of the pharmacies to does business on the site. “As an independent drug store, we’re always looking for ways to serve more customers,” says Ken Bressers, RPh, pharmacist and owner, Omro Pharmacy. “I think it’s really important that BidRx exists. It’s the first real way to find reasonable prescription pricing online. And, with BidRx.com, although we’re in a small town, our pharmacy can reach millions of American consumers and offer them medications at honest prices. That makes us feel good, and it keeps us in business.”

“I first heard about BidRx.com when I was checking a prescription price for my mom. I went to her regular pharmacy to find out their price, which was $26.99. For fun, I checked the same prescription on BidRx.com. I was shocked that the bid came back at only $8.64,” says Nancy Leatherwood, Oshkosh, Wisc. “It was a huge cost savings for my mom, who is on a fixed income. BidRx was so easy, I really recommend it for everyone. I’ll definitely do it again for my mom and for my own prescriptions. I had no idea that there could be such a huge range in medication pricing; it was a real eye-opener.”

If high health care costs are cutting into your family’s bottom line, it’s time to take action by shopping for prescriptions in a whole new way. It’s easy to participate. Visit www.BidRx.com and register on the confidential and secure site to learn more and start saving right away.
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Anyone used this? It's an interesting concept -- kind of like the eBay of prescriptions. Hey, if I could save $18 over and over again, I'd certainly give it a try. And we need more ideas like this to help keep health care costs under control.

That said, I think new ideas in health care like this one will take some time to catch on. People just aren't used to bidding for drugs online yet. ;-)

Ten Times You Can't Afford to Skimp

As you all know, I love to save money. But there's something to the adage that "you get what you pay for," especially when it comes to buying items in certain categories. With this thought in mind, I wanted to share with you Money Central's list of ten times you can't afford to skimp:

• Car maintenance.
• Classic clothes.
• Computer memory.
• Family safety.
• Health.
• Internet access.
• Home inspections.
• Mattresses.
• Teenagers' cars.
• When your ethics are at stake.

My thoughts on each of these:

1. Agree -- to a point. You want to keep your car running well, of course, but that doesn't mean you need to spend $40 at a dealership for an oil change. Many places charge $15 or less -- and what's the difference as long as the place is competent?

2. Agree -- to a point. Again, it depends on where you buy them. You can get good, classic clothes at many decent retailers. You don't have to buy everything (or anything for that matter) at a high-end retailer.

3. Yep. It's pretty cheap and without it, your computer can be very limited. Why spend $1,000 on a computer just to have it run slow (or not at all) because of limited memory?

4. Agree. Your family is more important than any amount of money.

5. Agree -- to a point. There's lots you can do to minimize health care costs. So get good care at the best price possible.

6. I think they're stretching on this one. Most people have access at work, so I think home access (or at least speedy home access) isn't really a "must have."

7. Agree 100%. I'm stunned by people who pay $300,000 for a house but won't fork over the few hundred dollars for an inspection. I wouldn't buy a home without one.

8. Don't get me started on beds. I've seen little correlation between high-prices and comfortable bedding.

9. Thank God my kids aren't driving yet.

10. Agree. Nothing is worth compromising your integrity.

Save Money on Prescription Drugs by Asking for an Older Pill that Does the Same Thing

Here's a way to save money on your medical expenses -- by asking for an older pill that does the same thing. The details from Money magazine:

If there is no generic version of a brand-name drug you're taking, ask your doctor about a therapeutic substitute or an older drug in the same category. A drug that has been on the market for more than 10 years will almost always have a generic version available.

My experience with doctors is that if you ask, they'll come up with a whole range of viable substitutes. But since most people don't ask, they don't even get to consider the options available to them.

Saving Money on Food, Part 3

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on food. Here goes:

• Shop for Groceries Once Every Other Week

• Shop on a Full Stomach

• Seven Ways to Eat for Free

• Skip Dessert when Eating Out

• Stop Drinking Bottled Water

• Two Good Money Saving Tips on How to Save While Eating Out

• Use a List when Grocery Shopping

• Use Your Freezer

Save Money on Prescription Drugs by Shopping Mom and Pop Stores

Here's a way to save money on your medical expenses -- by shopping mom and pop stores for your prescription drugs. The details from Money magazine:

The federal government doesn't regulate prices on drugs sold at pharmacies, so your costs can vary widely depending on where you buy. In New York City, for example, the price for 30 tablets of the widely prescribed antidepressant Paxil recently ranged from $97 to $180 at various stores. Call a sampling of pharmacies in your area. The best prices are often found not only at discounters like Costco and Wal-Mart but also at drugstores that aren't part of a chain, says University of Maryland School of Pharmacy professor Bruce Stuart. "They have full authority to set their own rates because they own the place," he adds.

I do not do this, but maybe I should. We simply use the drug store that's most convenient to our house. After all, why drive across town to a Costco to save a couple bucks? I guess it helps that we don't buy prescription drugs that often. If we did, It probably would be worth shopping around.

Save Money on Prescription Drugs by Getting Free Samples

Here's a way to save money on your medical expenses -- by getting free drug samples from your doctor. The details from Money magazine:

Drug companies give away tons of samples to physicians, so your doctor may be able to supply you with several weeks' worth of medication at no charge.

My wife does this all the time -- especially for kids' items to fight a cold, etc. Works like a dream.

By the way, the same tip works with your vet too. You can save a ton on Fido's drug costs by asking for free samples there too.

A High-Tech Way to Save on Health Care Costs

Here's a piece on how some people are using technology to save on health care costs courtesy of ARA Content:

The cost of healthcare in the United States has reached all-time highs. Individuals without health insurance coverage find themselves putting off a trip to the doctor to save money. Even consumers lucky enough to have health coverage are feeling the pinch.

Insurance co-pays continue to rise, and many companies are switching to health savings accounts, where employees put money into an account they can use to cover medical expenses. More and more, it pays to know the cost of your medical care before you head to the doctor.

Allison Scott has created a Web site that makes it easy for consumers to go directly to medical providers to get answers before they ever head to the doctor’s office. “I wanted to find a way to help patients make more educated healthcare decisions,” she says.

The Web site, Alijor.com, puts users in touch with doctors in their community. Individuals can post information about their condition, as well as other pertinent details on the site. Doctors can then respond with detailed information about their costs and services. The site is a convenient, hassle-free way for patients to find healthcare providers. Alijor.com also makes it easy for providers to find and communicate with patients they can assist.

“As health care costs rise, doctors are spending less time with each patient in the doctor’s office,” notes Scott. “On the Web site, patients can go into as much detail as they like about their problem, there’s no need to rush through the process.”

It takes less than 10 minutes to register on the site, and the process is completely confidential. Consumers choose a username and provide their ZIP code, but no other personal information is required. The site walks users through a questionnaire including information such as whether the patient will be paying cash or billing through insurance, how far the patient is willing to travel and the best days and times for appointments.

Once that information is provided, the patient describes their condition or the service they’re looking for. The request will be posted on the site for 14 days and doctors in the patient’s geographic area reply directly to them. Over 800 providers are currently part of the Alijor Web site. “The responses from the healthcare providers can give patients options they may not have considered, such as seeing a chiropractor instead of an orthopedic surgeon for a back problem or an acupuncturist instead of a neurologist for headaches,” says Scott.

Patients can also read profiles of the healthcare providers that highlight their background and experience. This information is helpful in making an informed decision. Another helpful tool on the site is feedback from other members who have used healthcare providers they found at Alijor. “Members can hear about previous patients’ experiences with a provider, as well as share information about similar symptoms or needs,” says Scott.

Take control of your healthcare costs. To create your personal profile and find a healthcare provider, visit www.Alijor.com.
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We're going to need to get more and more creative in the battle against health care costs. Otherwise, they're just going to keep going out of site. Ideas like this seem to be a step in the right direction and I expect to see more and more of them pop up in the years to come (though I also think there will be a process of adoption -- that it will take some time for people to latch on to new concepts like this one.)

Save Money on Drugs by Splitting Your Pills

Here's a way to save money on your medical expenses -- by splitting your prescription pills. The details from Money magazine:

High-dose pills are generally priced the same as their low-dose counterparts, so ask your doctor if you can safely split a higher-dosage pill in half. You'll save about $179 to $610 a year per prescription if you don't have drug coverage or 50% on your co-pays if you do.

I know this should go without saying, but I'll say it anyway: if you split your pills, be sure you're still getting the right dosage. As the tip says, be sure to check with your doctor before you split any medication.

Saving Money on Food, Part 2

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on food. Here goes:

• Have a Picnic

• How to Get Free Krispy Kreme Doughnuts

• Money Saving Tips for Grocery Shopping

• Save a Fortune on Coffee and Soda

• Save Money by Clipping Coupons (Why You Should Buy the Sunday Paper)

• Save Money on Food

• Save Money on Grocery Store Food Purchases

• Save Money on Higher Cereal Prices (50% or More)

• Save on Eating Out

• Shave $150 a Week off Your Grocery Food Bill

Save Money on Drugs by Ordering by Mail

Here's a way to save money on your medical expenses -- by ordering your prescription drugs by mail. The details from Money magazine:

Call your drug insurer, a.k.a. your pharmacy benefits manager, and ask if you can order your prescriptions directly from the plan. Typically you will save 15% to 35% on your monthly co-payments at the pharmacy, or nearly $90 a year on the average prescription.

Not a bad savings. Plus, there's an extra benefit -- you don't have to go out and pick up your drugs, they come to you. Certainly that's worth something, huh?

Save Money on Prescription Drugs by Buying Generics

Here's a way to save money on your prescription drugs -- by buying generic drugs when available. The details from Money magazine:

Whenever you can, opt for generic drugs, which on average cost less than a third as much as their brand-name counterparts, according to the National Association of Chain Drug Stores. If you're paying retail for one prescription a month, you'll save $863 a year by going with the generic version instead of the brand name. Got drug coverage? You'll still save $13 on the average prescription co-pay, or $156 for a year's supply. And don't forget about over-the-counter medications: By sticking to the no-name store brand, you'll save $100 of the $400 that the average American spends annually on over-the-counter drugs.

There are some BIG savings to be found by buying generic prescription drugs. And what's the difference? If the generic does the same thing, what does a name brand offer?

For more details, see Don't Pass Up Generic-Drug Savings. And for additional ideas on saving on prescription drugs, see these posts:

• Ask for Free Drugs

• Comments: Money Saving Tip: Ask for Free Drugs; Get Coupons

• Comments: Money Saving Tip: Ask for Free Drugs; Real-Life Example

• Save on Prescription Drugs

Saving Money on Food, Part 1

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on food. Here goes:

• A Holiday Suggestion (and Also a Money Saving Tip)

• Breakfast over Dinner

• Bring Your Lunch

• Brown Bag It to Half a Million Dollars

• Comments: Don't Let Restaurants Rip You Off

• Comments: Good, Better, Best Money-Saving Ideas: Groceries

• Comments: Money Saving Tip: Skip Dessert when Eating Out; Drink Water

• Don’t Let Restaurants Rip You Off!

• Good, Better, Best Money-Saving Ideas: Groceries

Save Money on Medical Expenses by Fighting Back if Your Claim is Denied

Here's a way to save money on your medical expenses -- fight back if your medical claim is denied by your insurance. The details from Money magazine:

Your insurer refused your claim? Fight back. Begin with a phone call to customer service, and if that doesn't work, put your appeal in writing. Document everything, including the times of calls and the names of the reps you spoke with. "Every plan has an appeals process that you must follow to the letter," says Robert Bland of Insure.com, a consumer information website. For more information, download the Kaiser Family Foundation's guide to handling disputes with your employer or private health plan (kff.org).

I can tell you from personal experience that this tip works. My wife has challenged numerous medical claims/denials during our marriage, and very often she gets it resolved to our satisfaction. The main issue seems to be the useless (and often mindless) bureaucracy that insurers use to track claims often results in many claims being automatically denied. I'm not sure, but I think this is partly by design. They reject a ton of requests and only finally pay up when people contact them. Seems like a built in way to "save" money for the company.

That said, when the insurers are contacted, they do give us the run-around, but quite often finally give in. Not always, but over half the time for sure. So if you have a bill, and especially a big one, it's worth it to fight back.

Five Ways to Avoid Holiday Overspending

Continuing our holiday-themed posts, here's a piece from Suze Orman on five ways to avoid holiday spending.  Her thoughts:

1. Double the cost of anything you buy with a credit card and don't intend to pay off when the bill comes next month.

2. Disorganization will cost you big-time.

3. Decline store card offers.

4. Handle your gift card with care.

5. You can't buy friends or love.

My thoughts on these:

1. Forget about doubling the price, how about "don't buy anything on your credit card that you can't pay off on the next bill" as the tip? As I've said before, letting your charges on a credit card go on and on (my just paying the minimum) can cost you a fortune.

2. Make and use both a budget and a gift list as much as you can. We certainly have a Christmas gifts budget and, for the most part, use a list when we shop.

3. It's just not worth the savings/hassle/time/credit check, so I pass too. Besides, there's something about completing a credit card application in front of a hostile line of shoppers that just says "not a good idea" to me.

4. Simply: be sure you know the ins and outs of your gift card when you receive it.

5. Aw, shucks, Suze. You're special to me too. ;-)

12 Saving Tips for the Holidays

Here's a list of 12 saving tips for the holidays from personal finance expert David Bach. His suggestions:

1. Start with a detailed list.

2. Use cash.

3. Shop online.

4. Compare prices.

5. Use coupon codes.

6. Cash in your reward points and frequent-flier miles.

7. Draw names from a hat.

8. Donate to a charity.

9. Host a potluck dinner.

10. Wrap with recyclables.

11. Accessorize.

12. Don't spoil the kids.

My thoughts on these:

1. We have a list that's made up of who we're buying for and roughly what we want to spend. We also have a suggested gift list for some of the people, but for some others, it's an "I'll know it when I see it" situation.

2. We use our credit card for as much as possible (which we pay off each month.) It all helps to put some extra cash in our pockets at the beginning of the year.

3. We'll probably do 25% of our shopping online -- most of it at Amazon.

4. You know me, I ALWAYS compare prices. ;-)

5. You know me, I ALWAYS look for a coupon code. ;-)

6. I haven't done this and don't really have that big of a stock of points to cash in anyway.

7. We have a couple (maybe) situations where we draw names from a hat, but not many.

8. I like to give as much as the next guy, but I think the "I gave a donation in your name" gift is kind of tacky. It's fine if someone wants to give me this sort of gift, but I don't want to give any. I do my giving separately and not disguised as a gift.

9. We attend one semi-potluck every year. I say "semi-potluck" since we don't have to bring food -- we bring a toy. A friend of ours has a Christmas party where she provides all the food and attendees simply bring a toy that the host then donate to Toys for Tots. It's the best party of the year (TONS of bad-for-you foods my wife won't let me eat usually) -- the must-attend party of the year.

10. Yeah, right. Next.

11. I think at this point, he ran out of decent ideas. How about cutting 10 and 11 and just making the post "10 Saving Tips for the Holidays?"

12. I agree with this one 100%. When I was a kid, Christmas was a present-fest (we'd each get 15 presents or so.) With our kids, we concentrate on a low number of nice gifts from us. They then have tons of other items roll in from grandparents, aunts and uncles, friends, etc. We let them open up several presents early since if we wait to open them all on one day, about 50% of them get opened and never played with (much) again.

Saving Money on College

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on college costs. Here goes:

• A Great College Money Saving Tip

• College for Half-Price

• How to Save on College Textbooks

• Save 50% on Education Expenses

• Save Big Money by Getting Good Grades in College

• Save on College Courses

• Save on College by Studying Abroad

Save Money on Medical Bills by Visiting a Retail Health Clinic

Here's a way to save money on your medical expenses -- visit a retail health clinic. The details from Money magazine:

Got an earache or upset stomach? Visit a walk-in clinic found at retail stores like CVS and Wal-Mart. Cost: about $25 to $100 for treating minor ailments, or about 25% less than the cost of care in a doctor's office, according to insurer HealthPartners. (But only 40% take insurance, so you may have to pay full price rather than just a co-pay.) Bonus: No appointment is necessary, and patients are usually in and out within 15 minutes.

A few thoughts here:

1. Is the quality of care the same as that of your "regular" doctor? Granted, you're not going here for heart surgery, but still you want to be sure the care is good.

2. Do the math ahead of time. A $15 co-pay is going to beat almost anything, isn't it?

3. I like the time element. It's hard to beat a 15-minute turn-around time.

Save Money on Holiday Lights

Here's a money saving tip I found in the December issue of Money magazine. For those of you who haven't yet bought/put up your holiday lights (probably not many of you left out there) or those of you who will buy holiday lights this year once they go on clearance (likely a larger audience), check out this suggestion:

Go for LED holiday lights: 10 strands eight hours a day for a month will ding your electric bill $0.72 versus $7.20 for regular mini bulbs.

It's not a great savings tip, but it fit the holiday time of the year so I thought I'd share it. Why's it not a great tip? Consider the following:

1. Do people really have ten strands of lights? We use three.

2. Eight hours a day? Our lights are on probably three to five hours.

3. Considering the above, the savings really, really shrink.

4. Besides, isn't $7.20 worth paying if you like the look better? It is even for a cheapskate like me. ;-)

Save Money by Looking for Medical Billing Mistakes

Here's a way to save money on your medical expenses -- look for mistakes on your medical bills. The details from Money magazine:

As many as eight out of 10 hospital bills contain errors, increasing the tab by 25% on average. Keep a log of every test and medication you get, and check it against your medical file, which you can order from the hospital's billing office. If you spot an error, send a certified letter requesting a corrected bill, and a copy of all documentation to your insurer.

These are some pretty compelling facts to me. 80% contain errors? Yikes! Increasing the tab by 25% on average? Double yikes! No wonder medical expenses are increasing at the rates they are!

I've written about this issue a couple times before. See Watch Medical Bills and Check Your Medical Bills, Part 2 for details.

And if you find a mistake on your bill, here are some suggestions for how to get it corrected:

• How to Get an Incorrect Medical Bill Corrected

• Another Way to Get an Incorrect Medical Bill Corrected

• A Third Way to Get an Incorrect Medical Bill Corrected

Save Money When a Store Messes Up by Asking for Something Bigger/Better at the Same Price

Here's a money saving tip that I simply love:

When a store messes up in some way, ask them to make it right by giving you something bigger/better at the same price.

Here's an example of what I mean from a co-worker's wife who ran into this situation and made the most of it:

Teresa went to a nursery and was going to buy four, 4-foot high evergreen trees for $45 each for an area near her garden. She picked the exact tress she wanted and called a clerk over to place a "sold" ticket on them. She then went back to the store's inside register and paid for them, shelling out a total of $180.

She went out and got her truck with a trailer and brought it to the front of the nursery. She then got a clerk and they walked to where her trees were (so the clerk could move them onto her truck.) But when she got there, they were gone.

After several minutes of searching, they found out that the shop's owner had sold them to another customer in the meantime and had even loaded them on a company trailer for delivery. Teresa asked how this could have happened as she had paid for the trees and even had the exact ones she wanted tagged to say they were sold. The owner didn't really have a good explanation but was adamant that the trees were already sold to the other person.

This is the part I love...

Seeing that she wasn't going to get her exact trees, Teresa spied an opportunity. She told the owner that she'd be willing to let "her" trees be sold to the other customer if he gave her four, 6-foot trees for the price she paid for the 4-foot trees (the 6-foot trees were normally $160 each.) he said "fine" and they had a deal. Everyone was happy!

What a story! By asking for something bigger/better (a 50% taller set of trees at a cost of $180 instead of the normal price of $640), Teresa got a GREAT deal. And the store, by being willing to make a customer happy, kept the business and earned a satisfied customer. Like I said, everyone was happy! ;-)

For more money saving tips, see 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money.

Saving Money on Clothing

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on clothing. Here goes:

• Ask for a Discount on Damaged Clothing

• Buy Higher Quality Clothing

• Classic Clothes

• Good, Better, Best Money-Saving Ideas: Clothing

• How to Handle "Dry-Clean Only" Clothes

• Save 50% on Clothes

• Save Money on Kids' Clothes

• Shop Now for Winter Clothes

• Shop the Men's Department

• Socks the Same Color

• Two Good Tips for Saving on Clothing Costs

Ways to Save on Your 2006 Taxes

Well, it's about that time of year again -- time to start thinking of compiling all those receipts, forms, records and the like and start working on completing your tax return. But before you start that in 2007, there are steps you can take now that could lower your bill come April 15. Here are thoughts on some easy ways to save on your taxes from Money Central:

• Charitable deductions.
• Use up your flexible spending account (FSA) dollars.
• Make your Jan. 1, 2007, mortgage payment on Dec. 31, 2006.
• Pay your taxes early.
• Medical and miscellaneous deductions.
• Maximize your pension or IRA contributions.
• Make those $12,000 gifts -- if you need to.
• Make the most from capital gains and losses.

My thoughts on these:

1. If you're going to make a huge contribution in January, why not do so in December? It could save you money this year -- then you have 12 whole months to work on how to save on next year's taxes.

2. Like they say, this isn't really a tax savings tip, but it's a reminder to spend all the money you set aside in FSAs.

3. I don't have a mortgage, so I can't take advantage of this tip. But as I've said previously, paying your mortgage early is a great way to save on taxes.

4. Even though I don't have a mortgage, I do have real estate taxes. And while my winter bill is due in February, I pay it early every December to get the current year write-off.

5. If you're close to hitting the amount you need to be able to deduct medical expenses, then pile as many expenses as you can into the year to max out your expenses. The opposite is true as well. If you're expecting 2007 to be a costly year regarding medical expenses, try to delay this year's costs into 2007 to get the number you can deduct as high as possible.

6. I have my 401k set up to automatically contribute the maximum every year.

7. If you want to, I'm accepting all $12,000 gifts FMF readers would like to send me. ;-)

8. I look over my investments every year at this time and decide whether or not to sell. I wouldn't sell an investment just for tax purposes, but if I needed to offset gain and at the same time wanted to ditch an investment, then I'll sell.

Save Up to 10% on Doctor Bills by Paying in Cash

Here's a way to save money on your medical expenses -- pay your doctor in cash. The details from Money magazine:

Most doctors lose thousands each year on unpaid bills and spend thousands on credit-card processing fees. If you're footing the bill, laying out the bucks in advance of treatment can get you a 10% discount on your bill, says Pam Deloney of the American Private Physicians Association.

Wow! 10% is nothing to sneeze at -- especially if you have some major medical costs. Now you have to have the money to be able to pay in cash (which could be a sticking point for some people), but if you do have it, 10% would be a nice savings simply for changing your method of payment.

8 Ways to Keep Overall Pet Costs Low

Here are eight ways to save on pet costs from Money Central (see the end of the article):

• Use low-cost clinics for shots.
• Get second opinions.
• Ask for samples.
• Shop around for meds.
• Don't cheap out on pet food.
• Keep their weight down.
• Keep your pet indoors or on a leash.
• Consider a cat -- or a mutt.

My thoughts on these:

1. We usually got our pets from the animal shelter and often they had shots at a reduced price. Not sure they do this or not anymore, but back in the day, it saved us a decent amount.

2. Just like you would for yourself, getting second opinions is a great idea for your pet -- especially when your vet is recommending that new $2,500 treatment.

3. Vets get a ga-zillion samples of food, drugs, treats, etc. from companies wanting them to push their products and my experience is that most vets usually share them freely just for the asking.

4. Not only shop around for your meds, but also ask for free samples (as noted above.)

5. Cheap pet food? My mom used to COOK for our pets. Later, when I was on my own and had pets, I always fed them the "good stuff" figuring it was cheaper that a vet bill from eating bad food. Besides, the makers of the better foods coupon heavily (or at least used to), so I never paid full retail.

6. Our pets were always big, but only a couple were fat. Maybe my chasing them (the cats) around with a toy car kept them in shape! ;-)

7. Our cats were always indoor only animals. We lived in a rural area, and the dogs would run free. Yes, we had to train them not to go near the road, but they were quick learners.

8. Personally, I like both cats and dogs, but let's face it -- cats are cheaper. And both kinds of animals are very cheap (or free) at your local animal shelter.

Saving Money on Car Expenses, Part 2

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing part two of ways to save money on car expenses. Here goes:

• Keep Your Car in Top Shape

• Keep Your Car Maintained

• More Car Saving Tips

• Only Change Your Car's Motor Oil When Needed

• Scooters: The Perfect Second Car?

• Should You Pay to Have Your Car's Oil Changed or Do it Yourself?

• The Best Ways to Save on Cars (Buy an Air Compressor)

• Will Rolling Down Windows Save Fuel or Not?

Save Money by Asking Your Doctor for a Discount

Here's a way to save money on your medical expenses -- ask your doctor for a discount. The details from Money magazine:

The rate that your doctor charges isn't set in stone. According to a 2005 Harris Interactive poll, about two-thirds of adults who negotiated for lower prices with a hospital or dentist succeeded, as did three out of five adults who bargained with their doctor. If you're paying out of pocket or face a high deductible, call your insurer's customer service number and ask about the rates it pays physicians in your area, which are typically lower than the sticker price set by providers. Then ask your doctor if he'll accept a similar amount.

My personal research says that 0.002% of people actually asks their doctor for a discount. Ok, I made that up, but I bet it's a small number. And yet, when they do ask, it sounds as if most of them are successful.

What a great (and easy) way to save on health care costs!

How to Regift

As I wrote last week, I am an advocate of regifting presents as long as it's done in the right way. And I'm not alone -- over half of Americans regift.

Well, wouldn't you know it, there's now a site that is all about regifting. Regiftable.com features regifting stories (most of them horror stories about regifting gone bad), a regifting 101 series, and thoughts on what to do if you don't want to regift. I'd like to share a few of their thoughts with you in this post. First, we'll start with a regifting story about the wrong way to regift:

I got married this year and I did the whole bachelorette party thing. At my party I was opening all of my scandalous gifts from all the girls. As I was opening one from my sister in-law I realized that she re-gifted a lingerie set that I gave her when she got married. And all the pieces of lingerie were ones she got at her bachelorette party. Isn't that tacky?

Yes, that is tacky. It certainly violates rule four of my 12 rules for regifting.

In their regifting 101 series, they suggest you ask the following questions when deciding whether or not to regift an item:

• Is the gift regiftable?
• How is the condition?
• Is this going to work?
• Do you have good intentions?
• How does it look?
• Can you handle it?
• Have you considered your options?

Basically it boils down to whether or not the gift is a nice present that the recipient will like. If so, regift it. If not, give it to someone who will like it or consider donating it to charity (where someone who wants it can buy it at a second-hand store.)

If you don't want to regift, here's what they suggest:

If you really want to give something valuable, give your time. Use your holiday spirit on activities such as gift wrapping for a charity or volunteering at a local food bank.  Give your friends and family members vouchers good for five hours of yard work, a batch of cookies, two car washes, or a weekend of baby-sitting.  The possibilities are endless!  In fact, we've made it easy for you to become a thoughtful, yet frugal, holiday giver.

The site then allows you to make your own gift certificate for free babysitting, a nice home-cooked meal, or whatever else you'd like to give to someone.  What a great idea!

We usually give at least one such item to each of our kids. It might be a trip out to their favorite restaurant, a day at the local arcade, or a special task such as painting their room a wanted color. This last one was one of the presents my daughter got last year and she absolutely loved it!

Thanks to Lifehacker for the original tip.

Tips to Avoid Bank Checking Account Overdrafts

Here are tips on how to avoid overdrafts to your checking account from USA Today:

• Balance your checkbook
• Ask bank about its order of check, debit processing
• Know deposits may take longer to clear than checks
• If you're charged fees, ask the bank to waive them
• Read bank's deposit agreement
• Sign up for a low-cost transfer from savings for overdrafts

Here's my tip: keep more in your checking account than the amount you write checks for. Sheesh -- is this issue really that difficult?

I guess it must be. According to the article, banks make $53.1 billion -- yes, that's "billion" with a "b" -- off these sorts of fees every year. Yikes.

Instead of giving your money to a bank, keep it for yourself. Saving Money on Banking has some ideas on how to do this.

Banks Work to Maximize Overdrafts

Here's another one for the "banks are working against us" file, this time from Consumerist where they note that banks cash big checks first to maximize overdrafts. A summary of the situation:

USATODAY research indicates banks typically process checks in order of highest balance, maximizing overdraft fees charged to the customer, critics contend.

"There is no excuse to process the transactions this way," says Jean Ann Fox of the Consumer Federation of America. "The only reason is to charge more fees."

So here's the situation. Let's say you have $500 in your checking account and you write checks for $100, $200, and $400 (BTW, I'm ignoring for the moment the fact that you should be in control of your money enough that you don't write checks that you don't have money for -- but that's for a different post.) Let's say the checks hit the bank on the same day and the bank charges you $25 for every "insufficient funds" check it processes. Here's how the bank will process the checks:

• $400 check hits first, leaving you with a balance in your account of $100.
• $200 check hits next, you have insufficient funds, you get charged an extra $25.
• $100 check hits next, you have insufficient funds, you get charged another extra $25.
• Net result: You get hit with $50 in fees.

Here's how they could process the checks -- if they wanted to charge you as little as possible:

• $100 check hits first, leaving you with a balance in your account of $400.
• $200 check hits next, leaving you with a balance in your account of $200.
• $400 check hits next, you have insufficient funds, you get charged an extra $25.
• Net result: You get hit with $25 in fees.

In other words, your bank is working to make itself as much money as possible. According to USA Today, this is quite profitable for the banks:

The order in which banks process checks and other debits determines the overdraft fees they charge. Those fees make up 90% of service charges on deposit accounts, and they're expected to yield a record $53.1 billion for financial institutions this year, research firm Moebs Services says.

Now, as I said earlier, you should be in enough control of your money that you're not writing checks for money you don't have in your account. But still -- what a rip-off.

Just remember that banks are businesses and they're out to make money for themselves. If you'd like to keep more of your money out of their pockets, check out Saving Money on Banking.

Saving Money on Car Expenses, Part 1

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing part one of ways to save money on car expenses. Here goes:

• 20 Ways to Save Money on Your Car, Part 1

• 20 Ways to Save Money on Your Car, Part 2

• 20 Ways to Save Money on Your Car, Part 3

• 20 Ways to Save Money on Your Car, Part 4

• 20 Ways to Save Money on Your Car, Part 5

• 20 Ways to Save Money on Your Car, Part 6

• Comments: Saving Money on Your Car; Tracking Maintenance

• Don't Use Your Car's Roof as a Desk

• Forget Saving Money: Drive Fast!

• How to Extend the Life of Your Car

My Rose Tally This Summer (and How Much Money I Saved)

This past summer I wrote Save Money on Roses (and Flowers of All Sorts for that Matter) detailing how I got started growing roses and how it saves me a bunch of money. I thought I'd give you a final update on just how well I did this growing season.

Before I get to that, let me say that yes, I am enough of a geek to count the number of flowers produced by each bush. I record these on a spreadsheet and compare them to what the bush produced in previous years. I know, I'm strange. It's just the competitor in me -- I want to beat last year's growth!

That said, here's my final tally:

I have 13 rose bushes in the front of my house (southern sun exposure -- great for growing) and this summer averaged 173 flowers per bush. Yep, over 14 dozen flowers PER BUSH. That's 187 dozen flowers that my bushes produced.

Now I have to admit, not all of these are high-quality, give-them-as-gifts flowers, but many were. I gave them to my wife (of course), neighbors, friends, co-workers and the like -- just to be able to make a person's day a bit better (everyone likes to receive flowers, don't they?)

So what would these have cost me, say, if I'd purchased all of them of $20 per dozen? That would be $3,740. Half of them at $20 per dozen? $1,870. Even just a quarter of them at $10 per dozen is still $468. Throw in all the fun, exercise, and sense of accomplishment, not to mention the value they add to our house (they make it look great), and growing roses (or any sort of flowers/vegetables) is a money-related tip I highly recommend.

Of course, we're now in winter and I put the roses to bed for the season. But I'll be back next year -- and shooting for 190 dozen flowers! ;-)

Simple Tip to Save on Heating Costs

Here's a simple but effective tip for saving on heating costs. It was left as a comment on my post titled Tips for Saving Money on Heating this Year:

I have personally found using a space heater to be a big savings. When you spend an extended time in one room (sleeping at night) you can lower the temperature for the whole house while keeping warm on a per-room basis. This works best for singles or small families.

Great idea! We do this in our basement where I have a small home office. Since the temperature is relatively stable down there no matter what it's doing outside, we block off all the vents to the basement and use a space heater in the winter to take a bit of the chill off. It works perfectly and we only pay for heating the area when we're actually down there (which is a fraction of each day.)

By the way, the reverse of this tip works in the summer too -- simply install a window air conditioner in the room where you sleep to keep it cool, and let the rest of the house warm up.

Saving Money on Buying a Car

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on buying a car. Here goes:

• 10 Common Car-Buying Mistakes

• Comments: Ten Ways to Protect Yourself from Used-Car Sales Tactics; Make Dealers Say No

• Good, Better, Best Money-Saving Ideas: Car Buying

• How to Save $10,000 on Your Next Car

• Save 50% on Buying a Car (Kind Of, But Not Quite)

• Save on Buying a Car: Four Steps to a Bargain on Wheels

• Saving on a Car Purchase, Buy Used

• Ten Ways to Protect Yourself from Used-Car Sales Tactics, Part 1

• Ten Ways to Protect Yourself from Used-Car Sales Tactics, Part 2

• Ten Ways to Protect Yourself from Used-Car Sales Tactics, Part 3

• Top 10 Car-Buying Mistakes

• When to Buy a Car

12 Rules for Re-gifting

As noted earlier this week, I've written positively on re-gifting a couple of times (see Is Re-gifting Okay? and Over Half of Americans Re-Gift, Do You?) and have had a fair amount of success with it (success defined as I got rid of a nice gift I didn't want and the recipient got a nice gift they did want.) So when I saw this piece from Money Central detailing their 12 rules for re-gifting, I knew I had to share/comment on it.

Let's start with their suggestions:

• Don't mention it, please.
• Do update the wrapping.
• Don't give hand-me-downs as regifts.
• Do keep track of who gave it to you first.
• Don't EVER regift these items.
• Do have the courtesy to clean your regifts.
• Don't give partially used gift cards.
• Do remember that regifts can be funny.
• Don't give something you've owned for a while.
• Do regift champagne.
• Don't give products from defunct companies.
• Do sell your gifts on eBay.

Not a bad list, but here are my rules:

1. Only re-gift new items. I would never give someone something I'd used and try to pass it off as new. Now I might tell them I tried it, liked it, and thought they'd like it too, but I'd be upfront about it.

2. Keep track of who gives you the item. Otherwise, be prepared to be embarrassed.

3. Only give gifts that you know the recipient will like. As such, if you know the person will like a fruitcake, it's ok to give them a fruitcake.

Basically my rule is to give a present that 1) I would like to give (the type of quality I would like) and 2) in a way that I would like to receive it. It's the whole "do unto others" rule. I have found that if you simply do that, you'll be ok no matter what gift you give.

BTW, I don't mind receiving re-gifted gifts either.

Smoking is Costing You a Fortune

I've certainly done my share of asking people to stop smoking. For reference, see:

• Don't Just Quit Smoking, Take the Next Step

• Stop Smoking

• Stop Smoking, It's Killing the Nation's Finances

• Stop Smoking -- It's Killing Your Finances

But it's been awhile since I've brought up the topic and I found this piece on the high cost of smoking, so I thought I'd revisit the subject.

As you might imagine, the article is filled with tidbits on how much smoking is costing you. I'm going to hit just the highlights. We'll start with the bottom-line:

The costs add up: Cigarettes, dry cleaning, insurance -- you can even lose your job. A pack-a-day smoker burns through about $29.40 per week, or more than $1,500 per year. That's a fat house payment or a nice vacation with the family. A 40-year-old who quits smoking and puts the savings into a 401(k) earning 9% a year would have an extra $250,000 by age 70.

And this is only the cost of the cigarettes themselves! There are tons of other costs that smokers incur as well (more on those later.)

Here are a few details on the cost of smoking:

The financial consequences of lighting up stretch far beyond the cost of a pack of cigarettes. Smokers pay more for insurance and lose money on the resale value of their cars and homes. They spend extra on dry cleaning and teeth cleaning. Long term, they earn less and receive less in pension and Social Security benefits.

And now, being a smoker can not only mean you don't get hired -- you can get fired, too: Weyco, a medical benefits administrator in Okemos, Mich., after announcing it would no longer employ smokers, fired four employees who refused to submit to a breath test. Recently it began testing the spouses of its employees, too, levying a $180-a-month surcharge on those who don't test clean.

The National Workrights Institute estimates that more than 6,000 companies refuse to hire smokers.

So, now do I have your attention?

The article goes on and on, documenting how smoking costs smokers in a variety of areas. These include:

• The cost of cigarettes themselves.
• Lost value on car trade-ins.
• Lost value on home sales (or at least costly treatments to get them "clean").
• Higher costs on life insurance.
• Higher costs on health insurance.
• Lost savings on homeowners insurance (non-smokers often get a discount.)
• Lower lifetime job benefits (they die before they earn as much as non-smokers.)
• Lost wages (smokers earn anywhere from 4% to 11% less than nonsmokers.)
• Bad breath, yellow teeth and smelly clothes are just a few of the personal side effects of smoking, and all cost money to correct.

Finally, here's one other striking stat that I just had to share:

We pulled some online quotes on 20-year term life insurance (a $500,000 policy) for a healthy 44-year-old male through BudgetLife.com. The range for a nonsmoker was $635 to $ 840 in premiums per year; for someone smoking a pack a day, the prices skyrocketed to as much as $4,410 per year.

Here are a few of my personal thoughts/observations on smoking:

• Smoking really is costing smokers a fortune. Of course, it's their money to spend, but I think few realize how much it does cost. For instance, people can smoke all their lives and then complain they can't afford to retire the way they want to. I suggest they re-read the information above.

• Here's just one example of how much it costs. Let's say you earn an average of $40,000 a year for 40 years of your working life. A smoker earns 7.5% (average of 4% and 11% numbers quoted above) less during these years. That costs smokers $3,000 a year. At 9% over 40 years, this equates to over $1 million.

• My parents have smoked all their lives and despite my mother having breast cancer, they have been unable to quit. I understand it's addictive, but at some point you have to realize the health and financial benefits of not smoking are so great that you MUST stop.

• When my parents moved out of their home of 20 years a few years ago (to a newer home), they removed the pictures from the "white" walls. It was unbelievable to see the color difference between where the pictures had been (still white) and the non-picture areas (brown/yellow) due to all the smoke through the years. It's sickening to me that we all were breathing that polluted air for all those years.

• Your health is even more important than your finances. If you won't quit to save some money, please consider quitting to save your life (or at least extend it.)

Saving Money on Car Insurance

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on car insurance. Here goes:

• Another Advantage of Education: It Saves You Money on Your Car Insurance

• Buying and Saving on Car Insurance

• Save on Car Insurance

• Save on Car Insurance, Again

• Ten Ways to Save Money on Car Insurance

How to Give Great Gifts When Money is Tight

Let's face it, some people simply don't have a lot of extra money sitting around and when the holidays come up, it puts them into a financial bind. But there are alternatives to putting a bundle on your credit cards -- a bundle that it takes you months to pay off -- that will allow you to give great gifts for a fraction of what you might spend otherwise. The key is to think out of the box a bit. Here are some suggestions from MSN Money on how to give great gifts when money is tight. We'll start with their ideas on how you can trim your overall gift costs a bit:

• Agree to exchange cards instead of gifts with friends.
• Have a potluck instead of an elaborate feast that requires you do all the work (and grocery shopping).
• Make do with last year's decorations and clothes, or swap with friends.
• Persuade your extended family to draw names rather than have everyone buy everyone else a gift.
• Boot the adults and give gifts only to the kids.

We've done both of the last two and it has seemed to work. At some point, everyone's just giving gifts because they feel guilty if someone gets them a gift and they don't return a present. But once someone suggests "let's cut back," many people are relieved and happy it was suggested.

Next, MSN Money lists several more ideas to cut holiday spending:

• Cruise the deal sites.
• Use your spare change.
• Check your credit card rewards.
• Sell last year's misfires.
• Scope out your job perks.
• Look for two-for-one deals.
• The gift of photos.
• Regift -- carefully.
• Make a charitable contribution.

There are some really, really good ideas here. Personally, we use the regifting idea quite extensively (I've written about it in Is Re-gifting Okay? and Over Half of Americans Re-Gift, Do You?) and used the two-for-one deals too (buy a magazine subscription and get one to give as a present.)

We also often buy in bulk and get a great deal. Recently, there was a sale of a book we wanted to give to several people on our list. The cost was $12.99 for one book, but they had a quantity discount offer. We bought 15 of them, paid $8 each, had them signed by the author (who was in the store), and got a $5 gift certificate from the store for spending over $100 to boot. Not bad!

So, what other money saving ideas are out there? I'm sure you all have a ton of great suggestions. Please share them in the comments below.

Save Money on Taxes by Making an Early Mortgage Payment

Here's a great money saving comment left on my post titled The Year-End Personal Finance Moves You Should Make:

Another solid year end financial move (for those with a mortgage) is to make your January 07 payment in Dec 06. It will result in added interest that you can deduct on your 06 tax bill. Granted, you will (potentially) have less to deduct next year, but a dollar today is worth more than a dollar a year from now!

I used to do this every year when I had a mortgage and do the same with my real estate taxes now. Yes, I want to cut my taxes as much as possible THIS YEAR -- and I'm sure I'll find some more things to deduct next year. ;-)

Besides, making an early mortgage payment could save you a bit on interest as well! And while you're at it, why not just make an EXTRA payment to help you pay off your house early?

Saving Money on Appliances

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on appliances. Here goes:

• Are Tankless Water Heaters a Good Deal?

• Comments: Money Saving Tip: Maintain Your Stuff

• Drying Clothes

• Good, Better, Best Money-Saving Ideas: Appliances

• How to be a Savvy Bargain-Hunter when Buying a Major Appliance

• Maintain Your Stuff

• Save on Appliances

Saving Money on Banking

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on banking. Here goes:

• Balance Your Check Book

• Be Careful What You Buy in a Bank

• Check Your Bank's Math

• Comments: Even a Small Leak Can Empty Your Money Bucket Quickly

• Common Banking Mistakes

• Review Your Statements

• Where to Buy Your Checks

The Best Foreign Country for Retirees

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best foreign country for retirees:

The Best Foreign Country for Retirees: Mexico

A warm climate and a lower cost of living plus access to quality medical care make Mexico a favorite retirement destination. The Lake Chapala area, about 25 miles south of Guadalajara, is home to a large community of U.S. and Canadian retirees. You can't count on Medicare south of the border, but there's no shortage of well-trained doctors and modern health-care facilities. And you can still receive Social Security benefits when you live outside the U.S.

I've actually written on this topic quite a bit. For the masses out there who aren't saving enough for retirement but still want a great (or at least decent) standard-of-living when they retire, moving to a foreign country is a great option. For more details, see these posts:

• Best Financial Tips from FMF Readers, Part 7: Retire Overseas

• Comments: Best Financial Tips from FMF Readers, Part 7: Retire Overseas

• Comments: Best Financial Tips from FMF Readers, Part 7: Retire Overseas, Part 2

• Save Money: Retire in Panama

• Retire in Style South of the Border

• The World’s Best-Kept Retirement and Investment Secret

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

The Best Way to Lower Insurance Costs

Here's another item on Money magazine's list of 25 rules to grow rich by. Today's tip lists the best way to lower insurance costs:

When you buy insurance, choose the highest deductible you can afford. It's the easiest way to lower your premium.

It's the open secret of the insurance game: File a claim, your premiums go up. For that reason, it's in your interest – as much as possible – to shoulder small damages out of pocket.

For home insurance, raising your deductible from $500 to $1,000 could save you 25% on premiums, according to the Insurance Information Institute.

Yep, it's a good tip. We have our deductibles as high as possible.

Of course, if you follow this advice, you need to be sure to have the money to pay the deductible set aside in your emergency fund in case a big claim arises and you need to take advantage of the insurance coverage.

For more tips on saving on insurance, see these posts:

• Another Advantage of Education: It Saves You Money on Your Car Insurance

• Buying and Saving on Car Insurance

• Save on Car Insurance

• Save on Car Insurance, Again

• Ten Ways to Save Money on Car Insurance

• 16 Ways to Slash Your Health Insurance Rates

• Comments: Getting Homeowner's Insurance (And Saving Money Too)

• Get Healthy and Re-Quote Insurance

• Getting Homeowner's Insurance (And Saving Money Too)

• Good, Better, Best Money-Saving Ideas: Insurance

• Some Insurers Pay You to Get Healthy

Save Money on College by Graduating in One Year!

Here's a piece that a reader emailed me quite some time ago (thanks, Blaine) about a college student who graduated college in one year -- thus saving himself a boatload on college costs. The details:

David Banh, an 18-year-old from Annandale, just graduated from the University of Virginia in one year. With a double major.

His college education, almost entirely covered by a patchwork of scholarships, cost him about $200. And he sold back textbooks for more than that. Now he's starting graduate study at U-Va. with a research grant.

So at this point, he's technically running a profit.

The key for him? He got 72 hours of credits from Advanced Placement classes taken in high school. That's a great way to save a boatload of money -- and a tip I wrote about in A Great College Money Saving Tip.

Yeah, this is a bit over-the-top even for me. And, yes, he's obviously very smart and determined, so the tip won't work for everyone. That said, it does show what can be done if someone puts his/her mind to it. Even if your child did a version of this and "only" saved one year of college, that would still be a very significant savings.

For more college savings tips, see these links:

• College for Half-Price

• How to Save on College Textbooks

• Save 50% on Education Expenses

• Save Big Money by Getting Good Grades in College

• Save on College Courses

• Save on College by Studying Abroad

Save Money by Paying Your Credit Card Bills on Time

Here's a simple money saving tip:

Pay your credit card bills on time to avoid those costly late fees.

I know, I know. It's a personal finance 101 tip. But a lot of people just aren't getting it. Here's what I found in the December issue of Kiplinger's magazine:

In 2005 more than one-third of credit card holders paid late fees as high as $39, reports the Government Accountability Office.

More than one-third? Yikes!

As high as $39? Double yikes!!!

I think I've gotten burned on this one time in the past 15 years (during an extremely busy time and I missed the payment date by two days.) $25 later, I learned my lesson. (Yes, I tried to get it waived, but they weren't going for that.) So what I do now is put my bills in a special pile and pay them all within a week of getting them. The measly interest I lose by paying early is nothing compared to the fees if I'm caught late every once in awhile. (Not to mention the fact that paying them in groups helps me save time -- which is worth something as well, of course.)

Free Money Finance Top 10 Most Hated Posts/Themes: #2 Moving to Save Money

Now we're getting to the topics people REALLY hate! ;-)

Virtually no one likes my advice regarding saving money by moving. For examples of what I mean, see these posts:

• Move, Save Money, Become a Multiple Millionaire -- All in One Step

• Yes, Moving to a Cheaper Cost-of-Living City Can Make You Rich

• How Moving to a Cheaper Cost-of-Living City Can Make You Rich

• 8 Cheap Places You'd Want to Live (And How to Find More)

• Top Jobs: Where the 6-Figure Jobs Are

Now let me make a few comments that will hopefully make my position a bit clearer as well as make this topic a bit less hated:

1. It's your life and your money. If you want to spend it living in an expensive city, that's your choice.

2. It's a LOT more expensive to live in some cities than others -- there's no way to argue with the math. And, yes, the salaries may be higher in these cities, but they are no where near being high enough to make up for the big cost-of-living differences. (If you don't believe me, read through my posts listed above.)

3. There are other, non-financial reasons to live in one city rather than another. Maybe you want to be able to buy a cheeseburger at 3 am. Maybe you like the "culture." Maybe your family lives there. These all may be worth something that you can put a dollar amount on. And whether or not you've thought about it, that's what you're doing -- saying it's worth paying more to get these benefits of living in a certain city.

4. You may "like" living in one area of the country or one city and think you won't like living elsewhere. Then again, maybe you will like it elsewhere. I've lived in rural Iowa, Indianapolis, Cincinnati, Washington DC, Pittsburgh, Nashville, and Grand Rapids.  They've all been different, but I've liked living in each one (for different reasons.) I think when people say they couldn't live outside a certain city that the real story (for most people at least) is that they really just haven't tried very many alternatives.

5. In the end, it's just an idea -- just like all my other posts. You can take it or leave it. However, if you do open your mind a bit to the possibility and if you run the numbers, you'll see how much you can truly save by moving to a less expensive city.