28 Feb
2011

Many people are turning to medical tourism to help reduce the costs of high medical bills domestically. Medical tourism involves traveling to another country in order to get lower-cost surgery or medication. For example, some people travel to Canada or the UK in order to buy less expensive medication. Others travel to Mexico, India, Thailand, or other countries for surgery. Some of these countries even have special English-speaking hospitals and clinics – sometimes staffed with US doctors – specifically to treat medical tourists. Some airlines and travel agencies even offer special deals or packages for people traveling for medical purposes.

Traveling to another country can save you thousands of dollars on medical costs, but it is important to also consider that medical standards vary widely. It is important to research your options carefully and to select a facility with a high level of care as well as qualified, experienced physicians. As well, when considering medical tourism, take the cost of travel and accommodations as well as follow-up care into account when determining whether the savings are worth it for you.

28 Feb
2011

Medical emergencies cause many bankruptcies and a great deal of financial devastation each year. A serious illness can leave you unable to work and also facing huge medical costs. If you don’t have insurance, especially, it can be devastating. Here’s how you can avoid the worst-case scenario:

1) Do all you can to get health insurance and disability insurance. It can be difficult if you do not have the cash or if you have pre-existing conditions, but do all you can to get the best insurance possible. Work with an insurance broker if you are having trouble or turn to your state’s resources to find some coverage.

2) Take good care of yourself. The majority of illnesses are preventable, according to experts, with good self-care. Maintaining a healthy weight, eating well, and getting exercise can help you live longer with fewer medical issues.

3) Use free medical resources. Talk to your doctor or pharmacist about low-cost generic medications, over-the-counter solutions, and free samples that can help you keep drug costs down. If there is a training hospital in your area, find out whether they offer a low-cost walk-in clinic for basic services. As well, talk to your pharmacy to find out what services they offer. Some pharmacies offer several services that can help keep you healthy – while keeping medical bills down.

28 Feb
2011

If you have a financial emergency – such as a sudden medical bill or vet cost – you may be tempted by high-interest emergency loans. However, due to their high interest, these loans should be used only as a last resort. Before taking out emergency loans, consider these ways of finding the cash you need:

1) Fundraise money. Many people set up Facebook and other social networking pages when they need to fundraise money for an emergency. Consider doing the same – other people may be willing to donate to help you out.

2) Throw a party to raise money. Throwing a party and charging a cover fee is a great fundraising event.

3) Sell some items. You may have items in your home right now – such as clothes or sports equipment you no longer need – that you can sell on auction sites to raise money for yourself quickly.

4) Tap into your skills. Inventory your skills. You may be able to barter to get the resources you need (such as offering your driving skills so that you can travel to get to an ill relative) or you may be able to use your skills in order to do some part-time work to raise the cash you need.

28 Feb
2011

Many people try working with a budget only to find that the idea does not seem to work for them. If this has happened to you, it is still important to develop a budget. Budgets help you save money and help you stay on track financially. If you find you can’t stick to one, here’s why:

1) You hate the idea of the budget. If you’re very opposed to the idea of a budget, it will be easy to abandon it by mid-month. Consider finding people who make budgets work and picking their brains about their success strategies. You may just be inspired enough to give it another try.

2) You’re choosing the wrong budget for you. There is no one-size-fits-all model. You need to personalize your budget so that it works for you, so consider whether you prefer an online or paper-based budget. Look up sample budgets online until you find one that sparks your fancy.

3) Your budget is not flexible. A rigid budget will never work, because while you are planning you have no way of knowing what will come up during the month. You need to set aside a small amount of “mad money” in your budget for fun, inexpensive purchases and a small amount for the unexpected – like that birthday you forgot.

4) Your budget has no goal. If you’re just budgeting for the sake of budgeting, you’ll have a hard time staying motivated and on track. Instead, really consider what budgeting can bring to your life. Will getting financial control allow you to buy your dream home or allow you to take that trip you’ve always dreamed about? Knowing what budgeting can do will make it more appealing.

5) Your budget is not realistic. If you’ve been living paycheck to paycheck or relying on payday advances it’s unrealistic to plan to suddenly save 50% of your income per month. Make small, gradual changes using your budget, keep track of your victories, and very slowly increase your savings amount each month.

28 Feb
2011

Even if you are finding it hard to increase your income, you can still save money – all while living below your means and living well. Here’s how:

1) Invest your time and resources in yourself and your career. Take classes, develop your skills, and market yourself so that you can maximize your income. Many people do not put money back into themselves, but this is a costly mistake. Investing in yourself can be a powerful way to improve your spending power and a good way to increase your income.

2) Protect yourself with a retirement fund, emergency fund, and insurance. Even if you have to tighten your belt in order to make payments on insurance, not having insurance can mean bankruptcy in the event of a sudden illness or other emergency. An emergency fund is also a must because it allows you to avoid payday advances and emergency loans in a crisis.

3) Pay yourself each month. Each month, it is important to put aside a little bit of money for savings. At first, this amount may be very small. By budgeting carefully and paying down your debts, you can increase the amount of money you can put aside. Your savings should go towards your emergency fund, towards longer-term investments, and towards any special purchases that you save for.

4) Borrow very little. Pay cash for what you need instead of charging. Huge debts infringe on your peace of mind and steal your money each month.

5) Forget about getting rich fast – get rich in the long run. Rather than focusing on making money fast, develop the habits that allow you to build wealth gradually. You will find the process helps you learn the money management basics that you will need to be wealthy.

28 Feb
2011

If your credit score is not up to snuff, you could be turned down for loans, jobs, and even apartments. Luckily, there are many things you can do to help improve your score:

1) Find out where you stand. Laws permit you one free credit report a year from each of the three credit bureaus. It is important to order these reports and find out what your credit scores are (this costs an additional small fee). You cannot assume that your credit is good – you need to find out the facts so that you can take action.

2) Dispute errors on your credit report. The vast majority of credit reports contain some errors. There may be accounts credited incorrectly to your name or some bill payments that you made on time that are marked as late. It is important to dispute these mistakes and to follow up to make sure that they are fixed. Failure to do so can mean that you end up paying for someone else’s debts.

3) Pay down your debts. Paying down your debt to credit ratio can dramatically increase your credit score. That is, if you have a few credit cards maxed out or close to it, paying down these cards should help you see a sudden increase in your credit score.

4) Avoid shopping for new loans and credit cards for a while. New loans and loan shopping can lower your credit score temporarily. Also, lenders do not like to see too much available credit or too many loans in your name. Focus on paying down your cards and keeping them active for the best results.

5) Set up a bill paying system so that you pay all your bills on time. Having automatic payments set up saves you time and ensures that you are not dinged for late payments.

27 Feb
2011

If you have been budgeting and saving aside money each month, you are taking the first important steps to financial success. However, you may be wondering where to put your savings. The best places may be:

1) Somewhere you can’t find it easily. Savings accounts at your bank seem like the logical place to put your savings, but keep in mind that while you want your emergency fund to be easily accessible, you don’t want it too accessible – especially if you tend to be an impulse buyer. Consider placing your savings in a bank account that cannot be easily accessed through any ATM. Some banks can arrange an account which requires you to transfer funds online or by phone before you can access your savings.

2) Money market accounts. These accounts earn more interest than savings accounts, but they are not federally insured, so they are more of an investment. Nevertheless, these accounts will make your money grow faster and will make your money a little less accessible for everyday shopping. Consider putting aside at least some of your savings into a money market account once your savings have started to grow.

3) Credit unions, not your usual bank. Rather than placing your savings in your regular bank (where you can easily access it through your debit card) consider opening up a new savings account at a new financial institution, such as a credit union. Credit unions usually have lower rates and it will be slightly harder for you to access your savings – especially if you leave your credit union debit card at home when you go shopping.

4) Online, where it’s a little harder to access. Again, online accounts have low fees or no fees and usually require you to transfer funds before you access your money.

27 Feb
2011

Car title loans are short-term emergency loans which use your car as collateral. These loans usually are for 30 days and they are attractive because they give you money quickly, and usually with no credit check or employment verification. If you own your car outright and need an emergency loan, car title loans are one option to consider.

However, it is important not to take car title loans lightly. These loans come with high interest rates, just like any other loan that does not consider your credit score. As well, since these are secured emergency loans, you run the risk of losing your car if you cannot repay the loan back at the end of 30 days or whatever the term of your loan is. For this reason, it is very important to never take out a car title loan unless you are completely sure you can repay it in full by the end of the loan term. Since payday advances are unsecured, they may be safer because you are not risking your assets and have comparable rates to car title loans.

27 Feb
2011

If you are expecting a refund on your income taxes this year, now is the time to plan. Without planning, it’s too easy to spend that money on less-than-important things. Here’s what you need to do in order to plan:

1) Determine how much you will get on your return. Your tax preparer can help you determine this.

2) Find a way to invest or save that cash. While it may be tempting to use that money on new purchases or even to pay off debts, if you currently don’t have an emergency fund, your tax return is the perfect excuse to set one up. If you do have an emergency fund, consider putting your tax return towards your debts.

3) Determine what you need to do next year to get a good refund. If your refund is too large or if you owe taxes, you might need to adjust your tax withholdings to ensure that you neither owe taxes nor enjoy less than you deserve from your paycheck each month. Talk with a tax prepare about next year’s tax strategy to determine your next steps for next year’s income tax season.

27 Feb
2011

Computers can cost quite a bit, whether you use them for work or play. Between Internet services, printers, printer cartridges, accessories, repairs, and other costs, it can cost hundreds of dollars to keep your computer functioning throughout the year. Here’s a few ideas for keeping those costs low:

1) Look into freeware. Low-cost or no-cost software online can help you use your computer effectively without paying hundreds of dollars extra for fancy software packages.

2) Protect your computer – but forget expensive extended warranties. It is important to protect your computer, but the best way to do that is with a good anti-virus, anti-malware and firewall package. These will protect your computer against security threats, especially if you run Windows (which is more vulnerable to attacks than Mac computers). Look for a reasonably-priced software package that offers an array of protection. However, avoid paying extra for store warranties and extended warranties. You can often save money by simply taking your computer into a low-cost per-hour repair service in the unlikely event it does break down.

3) Learn to do it yourself. Most communities offer free computer courses through libraries or community centers. These can be a great way to learn how to use your computer most effectively and even take care of basic problems without calling for expensive repair help.