Save Money on Food
Saving money on food is an important consideration when you are at these amusement parks.  Discounts can be found on admission tickets, but for food it gets a bit more difficult.  Prices are typically overinflated and every option in the park is expensive.  Since the parks don’t offer any cheap alternatives, you have to make up your own to cut back on costs. Here are a few ways you can save money on food:

• Bring your own water bottle and refill it in the bathrooms or at water fountains.  This alone will save you $10 or more per person. 
• Bring snacks to munch on at the park instead of investing in $5 pretzels and popcorn. Check whether the park allows you to bring in food from outside.  If not, make sure you hide it really well : )
• Eat a hefty breakfast before you leave for the park, bring along some sandwiches for lunch, and then on the way home stop for a late dinner.  You will save at least 50% of your bill by avoiding the food at these amusement parks.
• Share meals.  Many amusement park meals (especially Disney) have large meals that are great for sharing.  If you must eat at the park, share the meal between two people and save some money.

Save on Admission
With food costs under control on your amusement park trip, the next way to save is to look at admission prices.  Whenever possible, book large amusement park trips, such as Disney, Universal Studios or even Busch Gardens and Williamsburg in the off season.  Even just the last couple of weeks of school are a great time to get discounted prices on admission tickets.  Most of these parks, especially Disney parks, do not sell discount admission tickets to agents any other time. 

If you have to go during peak season check to see if any organizations you’re a part of offer discounts. For example at Disney, military members get discounted rates and AAA offers lower rates for multi-day passes.  Anyone can usually save a little money by purchasing tickets ahead of time through the park website instead of at the gate.

Buy a Package Deal
Another way to save on admission prices to amusement parks is to inquire about package deals. In order to draw in the tourists, hotels that service theme parks sometimes offer free or highly discounted park tickets if you’ll stay at their hotel. Do your homework to be sure this is a good idea, obviously it’s not worth cheap tickets if your hotel room is too expensive. In addition to searching for advertised deals, you can even inquire with hotels that aren’t publicizing the package.

Avoid Buying Souvenirs
As you probably already know everything at amusement parks is overpriced, souvenirs included. The best way to remember your trip is by taking pictures with family and friends. When you get back home you can turn the pictures into a wide variety of souvenirs. A guy at work used his photos to order a mouse pad with a picture of his family at Disney, much better than a cheap trinket if you ask me, and also cheaper than loading up on expensive souvenirs.

These tips should help you save money on your food and theme park tickets while on your summer vacation. Remember, spending less money doesn’t mean having less fun. It just means you’re paying less for your fun and that you might even be able to afford more of it!

Check back soon for the next travel finance article where we’ll look at saving money on plane tickets.

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Best Travel Deals
Finding the best travel deals has become even more important lately with high gas prices making it more expensive for everyone to travel.  As the summer vacation season approaches and you begin to make plans for your family trip, use the tips from this vacation guide to help stretch your dollars.  Whether you’re going to Disney World, the beach, or on a big camping trip there are always ways you can save money or get a better deal on part of your vacation.

Planning Your Trip
A big part of saving money on things like hotel rooms and plane tickets is researching prices, comparing your options and planning ahead.  Although planning a vacation can be a lot of work up front, it’s usually worth the extra work for the money you save.  Not only that, having a good plan can save you time once you’re actually on your vacation and help you get more out of your trip.

Researching Your Options
The Internet has made it so much easier to shop around for travel deals and get better prices.  For example, a Kiplinger article on travel websites lists some of the best resources for planning and saving on vacations:

• Kayak.com
• FareCast.com
• WebFlyer.com
• TripAdvisor.com
• LateRooms.com
• Orbitz.com
• Priceline.com
• CruiseCompete.com

You can use these sites in conjunction with the topics we’ll cover below to have fun this summer without spending all of your hard earned money.  You can sign up for free daily updates to receive each of the money saving articles below either in your email inbox or your feed reader as they’re published.

• Save Money at Amusement Parks
• Save Money on Airline Tickets
• Save Money on Hotels
• Save Money on Rental Cars
• Best Travel Rewards Credit Cards
• Planning, Saving, & Budgeting for Your Summer Trip

Follow along the different ways you can fit a trip into your budget.  As you do the research and start planning a vacation you may even have fun just figuring out what you’re going to do and building the anticipation of the trip!

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Many people unfortunately rely heavily on credit in school because they don’t have much money coming in. However, once you graduate and find a job you’ll finally have a regular income. Not only will this allow you to start paying off the debt you might have accumulated during your college years, it may also mean you’re eligible for cards with better features. Here are some tips to follow as you search for the best credit card for a new college graduate.

Tip 1:  Upgrade your Credit Card

If you have a student credit card, chances are the interest charged on unpaid balances is higher than it needs to be. In order to offset the higher risk of students defaulting on credit card debt, student cards tend to have higher rates and lower credit lines.

Although student lines of credit are excellent to have during school to help to establish a credit history, now that you have a salary coming in, you’re likely eligible for a new card that offers more benefits.  Things to look for are a lower interest rate and a rewards program.  Of course the quality of card you’re eligible for will depend on your credit score.

Tip 2: Don’t Close Your Student Line of Credit

Many people make the mistake of closing their student line of credit because they have a better line of credit opened.  Ironically, this is a move that could actually cause your credit score to drop.  The problem is that lenders look for long term credit history on your credit report since a credit history helps establish your ability to repay on time and makes companies more willing to extend you credit. 

You can check your current report for free once a year with AnnualCreditReport.com.  You can also check out your FICO score in addition to your credit report at myFICO.com.  There is a fee for the service but they do offer a free trial.

Tip 3: Watch Out For Balance Transfers

With your lower interest rate on a new credit card, you may be tempted to move your existing student credit card balance to a new line.  This may not be a bad idea but watch out for the high balance transfer fees often in place.  You also want to look for a card that offers a low APR on balance transfers (even a 0 percent APR) so you save money.

Tip 4: Use Credit Responsibly

Now that you have a better credit card in your hand use it wisely.  Don’t create more debt for yourself with irresponsible spending.  As a new college graduate, you are likely looking for a home, furnishings, a car, or even to start your own business.  You’ll have plenty of opportunity to spend money, if you charge things on your card make sure you have the cash to cover them.  Pay off your credit card each month to continue to build a credit history and to avoid interest charges.

Tip 5:  Research Your Credit Card Options

There are many different cards available with a wide array of different card features.  Make sure you research your options before applying for a new card. You can call up your current card provider, explain your situation, and ask what cards you’re eligible for now that you have a regular income.

There are many sites online that you can use to review and compare different credit cards.  Some of the things to look for are:

• Low APR on purchases
• Low APR on balance transfers
• Low Balance transfer fees
• No Annual fees
• Cash Back options
• Travel rewards
• Gas rewards
• High Rewards earning limits
• 0% APR deals on card purchases and balance transfers

College Graduate Finance Guide
This article wraps up the personal finance tips for college graduate series.  Here is a summary of all the financial topics we covered:

• Investing for College Graduates
• Health Insurance for College Graduates
• Student Loan Tips
• Spending & Budgeting for College Graduates

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Insurance Deadlines
Often times your plan will allow for a two week or one month window after the life event in which you can update their medical, dental, and vision benefits.  My employer gives us 31 days from the date of the event to make the necessary changes. 

New Baby or Job Changes
It’s not just weddings and graduations, bringing home a summer baby or a spouse’s seasonal job change are also considered life events.  We had our son in the summer and I took three weeks off after he was born.  When I got back to work I was swamped trying to catch up from being gone for so long.  I didn’t realize I only had a week left to add him to my insurance plan and only discovered on the last day that I was almost out of time.

Update Your Benefits
Luckily I got him added under my benefits, if I hadn’t we would have been required to wait until the next open enrollment.  He would have had to stay on my wife’s insurance plan which was much more expensive than mine. So if you have exciting family events happening this summer be sure to check with your Human Resources department to maintain your family members health insurance coverage.

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When I studied project management, I learned that every project is bound by three constraints: time, quality, and cost.  If you want something done in a short amount of time and done well it’s going to cost you. quick + easy = expensive.

Fixing the Refrigerator
One morning last week we discovered our refrigerator had stopped cooling so we made some hasty phone calls to repairmen in our area.  When I asked a co-worker for a referral, he suggested I just fix the problem myself.  With a fridge full of food, no free time, an irritated wife, and zero desire to troubleshoot and learn about fridge repair I quickly decided it was a job for a professional. 

Two hundred-twenty dollars and a cool fridge later, I’m still happy with my decision.  More and more I’m starting to realize the benefit of hiring others to take on tasks I would have attempted myself in the past.  If I was interested in fridge repair I’d get a job at a small appliance repair shop or start one myself.

Do it Yourself vs. Hiring Someone
One bad thing about trying to do everything yourself is that your to-do list never gets any smaller.  You always have more things to do than you have time for and it gets discouraging. I’ve started working on a list of things I’m going to hire out. 

You should make a list as well.  Don’t get hung up on whether you can afford it or not.  Make the list and start pricing how much each thing would cost.  Some things may be out of you price range but maybe some won’t.   You don’t have much to lose, give the affordable ones a try.  If it doesn’t work out, stop outsourcing it.  If it does, you’ll have more time to focus on the important things in your life and your to-do list will get a little smaller.

Money Articles
Speaking of more time, I had a little more time to check out money articles this week, here are some I enjoyed.  

It’s graduation season and time for new seniors to think about their financial future. Generation X offers job hunting tips for new college graduates and My Dollar Plan is gathering financial advice for graduating seniors (and giving away an Amazon gift card).  I’m also covering some financial tips for college grads.

Gas prices just keep going up, boo!  My Money Blog suggests a way you can hedge against the rising prices, the Dough Roller looks at some online tools for finding low gas prices, and a while back I covered some of the best gas credit cards.

Many people are watching for their economic stimulus rebates, My Two Dollars thinks they’ll means higher taxes in the future.  If you’re wondering why your rebate check was smaller than expected read about the Treasury Offset Program. If you still haven’t gotten your rebate yet find out how to check on your economic stimulus payment.

From The Money Writers:

– Lazy Man has a brilliant business plan, we wish him well.

– Brip Blap offers 7 tips for simplifying your life.

– Million Dollar Journey compares retirement account options in Canada and the US.

– The Digerati Life offers some ways to earn extra income with odd jobs, here are three other ways to make extra money in a recession.

– The Sun takes another look at online savings & checking interest rates.

From The Money Blog Network:

-No Credit Needed talks about the financial realities of having a new baby. Babies are neat but also expensive!

– The Mighty Bargain Hunter asks whether using money as a reward for good behavior is a good idea.  Why can’t kids just behave all the time : )

– Free Money Finance recommends why you should stay invested in the market.  We just keep buying lower,…and lower,…. and lower : )

– Five Cent Nickel reminds us of the blockbuster total access gift card promotion. It used to be they were offering a 30 day trial of blockbuster total access, now it’s a two week trial. 

– Get Rich Slowly looks ahead to planning his life for early retirment.

– Myscha at WiseBread writes about saving the planet when you least expect it.

– Consumerism Commentary discusses the importance of certification when hiring a financial planner.  When we hired someone to look over our finances we went with a certified financial planner (CFP).

– All Financial Matters reminds us why putting our money into stocks should be a long term investment.

Elsewhere

-Blueprint for Financial Prosperity takes a look at your options for online discount brokers and The Simple Dollar has twelve tactics for tackling debt.

– Last week Money Smart Life was featured in the Cavalcade of Risk, Festival of Frugality, and the Carnival of Personal Finance, thanks to the hosts!

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-Wear every last piece of clothing to delay paying for the laundry

-Ride my bike everywhere so I wouldn’t have to pay for gas

-Keep the heat turned as low as possible

-Eat breakfast in the dark to save on the electric bill

-Use water on my cereal so I wouldn’t have to buy milk

–Buy the cheapest beer possible, no matter the taste

-Eat the cheapest food possible, rice & beans almost every night

Any of those sound familiar?  I’m sure you could give many more examples of ways students save money.   The question is, now that you’re finished with school do you still have to live like a broke college student?

Making Money
Once you start your first job you may feel like you’re rolling in the dough.  You go from making zero money to earning a regular income every payday.  Although it may not be much, it’s a lot more money than you’re used to having.  As my parents used to say, your money may be “burning a hole in your pocket”.  You’ve been scraping by for years and now you may be eager to buy the things you’ve needed or wanted but couldn’t afford.  Before you go out and blow your new income on a shopping spree think about the following story.

Starving for Money
A man is rescued from a desert island after four years of surviving on nothing but coconuts and fish.  He’s taken to an all you can eat buffet and gorges himself on the food he’s dreamed about for the last 48 months. His body goes into shock at the massive amount of food he’s taken in. He becomes very ill, his bodily systems shut down, and he almost dies from the health repercussions.

See any parallel there between that guy and a new college graduate who finally earns money after 4 years of being broke and goes on a spending spree?  Of course you won’t die from overspending but you can literally kill your financial future for years to come if you go on a buying binge.

One of the greatest assets you have as a recent college graduate for building your financial future is the value of compound growth over the next several decades.  How you choose to spend, save, and budget your money now can determine whether you struggle with money for the rest of your life or have the financial freedom that many people only dream about.

Your Financial Future
If you’re a single adult earning a salary your options for building wealth are pretty promising. You don’t have to support anyone else. Your money doesn’t have to pay for diapers, engagement rings, or your spouse’s credit card bills.  You don’t have to discuss with anyone how you’re going to spend your money or why. 

Your money is all yours to do what you wish, just don’t blow it.  You likely won’t always have this kind of financial freedom so spend your money wisely now.  Here are some tips on how you can maximize the amount of money you keep in your pocket.

Avoid buying that brand new, flashy car.  If you believe it is a good investment, realize that just driving it off the car lot decreases it’s value tremendously.  Additionally, use an auto loan calculator to show you just how much you are paying for the car with interest included.

Avoid expensive rent.  Do you need to live downtown in that luxury apartment?  The fact is, that’s cash you are spending that you may not need to.  Look for a lower end apartment that fits your needs and pocket the rest of your money.

Do think about cheap real estate options.  With the real estate market so affordable right now, chances are good you’ll be well on your way to making a sizable investment long term if you buy now.

Look for a roommate.  Sharing the expenses of owning a home or renting an apartment is a great way to save plenty of money.

Avoid credit card debt.  While credit cards can be a good financial tool if used properly, they can also get you into a lot of trouble financially if you abuse them.  In a later article we’ll cover some of the best credit cards for college graduates.

Managing Your Money
In addition to saving money on your biggest expenses like cars and rent and avoiding credit card bills, there are a few other key points to managing your money.  You’ll want to simplify things by following a system to plan and track your spending. You’ll also want to protect yourself also unforeseen events with an emergency fund and insurance.  Here are some details on these money tips:

Create a monthly budget and stick to it.  Figure out how much you’d like to spend, how much you need to spend, then find a happy medium.  Be realistic, don’t create a budget you won’t follow. Use your mobile device to record your spending and use software like Quicken, or even a simple spreadsheet, to track and analyze it.  Watch out for things like eating out, bar tabs, and buying gadgets those add up faster than you realize.

Build an emergency fund available to you in an easy to access savings account.  Use these funds instead of a credit card when you need money. Open an online savings account with ING Direct or Washington Mutual.  Setup a direct deposit to start building up your fund right away.

Use online banking to stay on top of all of your balances and to know where your money is really being spent.  You can download your transactions into your financial software to make tracking your spending easier.

Buy health insurance to protect you from catastrophic expenses and medical debt in the event of a major health issue.  Make sure you have adequate auto insurance to cover your liability in the event of an accident.

College Graduate Finances
Leaving university for a job in the real world is a pretty exciting time.  The money that comes with a job is nice after being a poor student for years.  If you can combine the frugal tricks and habits you learned in college with the spending, saving, and budgeting tips we’ve covered you’ll be able to have fun with your newfound cash and still build a financial future for yourself.

For more financial advice for college graduates see the articles below:

• Paying off student loans
• Investing tips
• Buying health insurance

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One of the keys to avoiding situations where your doctor’s visits or prescription drugs aren’t covered is to familiarize yourself with your insurance plan’s Summary Plan Description (SPD).  The Department of Labor describes the summary plan description as a

“document that tells participants what the plan provides and how it operates. It provides information on when an employee can begin to participate in the plan, how service and benefits are calculated, when benefits becomes vested, when and in what form benefits are paid, and how to file a claim for benefits.”

Ask your Human Resources department for a copy of your SPD, the Employee Retirement Income Security Act (ERISA) requires plan administrators to provide plan participants with this information. Understanding what your medical plan covers and the medical care options before going for health services will help you get the most out of your insurance.

Insurance Coverage Examples
Of course every plan is different but here are some examples of ways that I can save money by smart use of my insurance plan:

Lab Work and X-Rays
There are actually two ways lab work and/or an x-ray claim can be processed.  Lab work and X-rays may be part of an office visit exam or performed in a hospital setting and billed as out-patient services. If it’s part of an office visit exam, they’re paid at 100%, subject to $25 co-pay.  On the other hand, if it’s an outpatient services at an in-network hospital I may be subject to the $400 annual deductible first, and then responsible for a 10% coinsurance for any remaining balance due.

In this case, using independent in-network labs, such as Lab Corp, will help save me money.  Independent lab charges are covered at 100%, subject to the provider’s office visit co-pay. Whereas labs affiliated with a hospital are covered under outpatient services which will cost me more.

Quitting Smoking
 I’m not a smoker but I walk past co-workers every day out on their smoke breaks.   Smoking is an expensive habit, not only because of the cost of cigarettes but also due to the associated health issues. I’ve never been through the process of trying to kick the habit but I know it’s not an easy task, and it’s not cheap.

What many people don’t know is that our medical plan provides for one prescribed full course of treatment for employees or a covered dependent.   An example of a full course of treatment might be 12 weeks of the Patch along with Chantix and possibly an anti-depressant medication.   All of these drugs are covered at 100% by our insurance plan when prescribed by a healthcare provider and submitted to a local in-network retail pharmacy. 

$4 Generic Drugs
In some cases it may be cheaper to buy prescriptions directly rather than through our insurance plan. At some stores you can buy a 30-day supply of more than 300 generic drugs for $4 per prescription fill or refill.  These can offer cost savings when comparing against the cost of the medical plan co-pay.   Examples of stores offering discounted generic drugs are Wal-Mart, Sam’s Club, Target, Kroger, and HyVee.

For instance, in our plan a prescription for the diabetes drug called Metformin, a 30-day supply requires a $10.00 co-pay (Tier 1).  However, using one of the pharmacies listed above, the co-pay for this generic drug would be $4.00, a cost savings of $6.00.

Not only that, even if a pharmacy doesn’t participate in a formal program some stores, such as CVS Pharmacy, might match the $4 price if you request it. K-Mart also offers a 90-day fill for $15.00 on specific drugs. 

Health Care Cost Summary
If you familiarize yourself with the ins and outs of your insurance plan, you can save money on your medical costs by making sure your health care is covered.  Planning ahead takes time but it can definitely save you money.  Here are some more tips on planning ahead to help avoid huge medical bills.

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If you meet the qualifications and want to know when you’re getting your rebate check, the IRS has put up a site called “Where’s my Stimulus Payment” that allows you to check on it’s progress.  (Update: The IRS has also setup a rebate hotline so you can inquire by phone, 1-866-234-2942) In order to find out the status of your rebate on the website you’ll have to provide the following:

• Your Filing status
• Social Security Number
• Number of Exemptions on your 2007 tax return

It may not be much help, it wasn’t for me.  I got the message “We are sorry. Specific information about your Stimulus payment is not available.”  The possible reasons they gave for not having any status on the stimulus payment were:

– Your payment may still be coming, but has not yet been scheduled
– You did not file a tax return for 2007 or your return is still being processed

I know I filed for 2007 so I figured it must be that our payment hasn’t been scheduled yet.  I checked out the stimulus payment schedule page and realized why they don’t have any information on our rebate yet.

“Stimulus Payments are being issued on a schedule according to the last 2 digits of the primary social security number (SSN) shown on your 2007 tax return. ….  Payments will be made by either direct deposit or paper check, consistent with how people filed their 2007 tax return.”

We paid our taxes via direct deposit so we should be on the fast track but my social security number doesn’t match the first set of criteria so we’ll have to wait a little longer:

Unfortunately if you paid your taxes with a check, the stimulus payment schedule stretches out until July

Avoiding Tax Scams
Spammers are trying to take advantage of the stimulus payment rush and sending out fake emails posing as requests for more information from the IRS.  According to this tax scam article the emails look very authentic but if you follow the links they contain you’ll be taken to a mock IRS site.

Any information you enter there could be used for identity theft purposes so don’t click on any links in emails about the tax stimulus payments, instead type in irs.gov if you want to visit IRS site.  If you do receive one of these fraudulent emails, you can forward it to phishing@irs.gov.

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Investing in Your Future
Although it may seem daunting, if you approach your college loans as an investment rather than a burden it could help you get rid of your debt.  If you think about it, you’re not much different than a business that borrowed thousands of dollars in startup money.  You took out student loans to fund your professional training, now that you have the needed skills you can earn the money to pay back the debt.  First we’ll take a look at making your payments while managing your cash flow.

Student Loan Consolidation
Many small businesses use a variety of funding sources when getting started such as credit cards, personal loans, and money borrowed from friends and family. Once they begin earning a steady income, one of the things they might do to lower payments and simplify the expense is to consolidate their debt into one payment. 

Since college students in search of school money will also frequently use an assortment of funding sources, student loan consolidation may help simplify your college debt repayments.  Consolidation can also reduce your monthly payments, for example you could go from owing $200 a month on three different loans to owing $200 on one.  Obviously, you still have the same amount of debt and you’ll actually pay more interest over the long term. Another reason to consider loan consolidation is if you have loans at several different interest rates, you might be able to role them all into one loan with a better rate.

Lowering Your Payments
Of course, not all college graduates get a job right away, just like not all businesses are profitable right away.  There may be a period of time after graduation when little or no money is coming in. Even though cash flow may be tight, you still have to pay back the money you borrowed.  One thing you might look into is lengthening your student loan term, which should reduce your monthly payments.  Of course this will actually increase the amount of interest you pay over the life of the loan but can help your cash flow in the short term.

Delaying Your Payments?
One advantage that college graduates in debt have over small businesses trying to pay back startup loans is that repayment rules are a little more flexible for students.  If you haven’t landed a job yet and run into trouble making your monthly payments you can sometimes work with the lender to get a deferment, which allows you to hold off regular payments.  If you don’t qualify for the defermentthere’s also something known as a forbearance which lets you temporarily postpone regular payments, typically for a shorter period of time than the deferment.  Although these methods allow you to put off payments the interest on your loan will still be accruing.

Paying Off Your Loans
So far we’ve looked at cases where money is tight right out of school and you need help repaying your debt.  If, on the other hand, you do find a job and have money you can put towards making extra payments on your student loan then go for it.  The money you borrowed to go to school was an investment in your future earnings power.  If you see the results of that investment right out of school and start paying down your loans then your break even point on the money you borrowed will come sooner.

Don’t be discouraged if you can’t afford to accelerate your loan payments, your degree should pay for itself eventually.  Many students wouldn’t have been able to afford a college degree without borrowing money. You’re basically using leverage, borrowing money from the government at relatively low rates, to invest in an education.  You then use those skills to earn a higher salary and pay off the money you owe over an extended period. 

Student Loan Summary
You can use methods such as student loan consolidation, deferments, and forbearance to help manage the amount you pay for student loans as you’re getting on your feet.  Once you have an established salary, paying down your loans will reduce the amount of total interest you pay and help pay off the debt faster.

For more financial coverage for college graduates here is information about health insurance and investing tips for people just out of school.  Check back for the next article on spending and budgeting tips.

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Unlike consumer debt which accumulates over time, large medical bills can literally pop up overnight. An overnight hospital stay – depending on tests and treatments – could easily cost several thousand dollars.  The frustrating thing about medical debt is that it’s causes are often out of our control.  We don’t choose to get in an accident, have our appendix burst, or inherit a family health condition.

That being said there are things we can do to reduce the risks of medical problems. In addition, understanding the health care coverage we have and preparing our finances for the worst case scenario can help avoid massive amounts of medical debt.

Your health is potentially your biggest financial issue and like most financial crises, it’s tough to find solutions when you’re facing an emergency. Use the suggestions below to help prevent and prepare for big medical bills.

Improve Your Health
The Centers for Disease Control reports that 66.3 percent of non-institutionalized U.S. adults aged 20 or over are overweight or obese.  Getting involved in a personal or group weight loss program and actually cutting pounds will significantly lower your health risk factors. Quitting smoking and limiting alcohol intake are other good moves to make, but consult your primary care physician first to map out a strategy. 

Review your Health Insurance Coverage
If you are insured through an employer or buy your own coverage as a self-employed person, investigate what that coverage actually provides in everything from minor emergency room visits to major catastrophic diseases, such as heart problems or cancer. There’s a good chance those benefits change – and have probably decreased – year-to-year. 

Check your Disability Coverage
If you were sick and unable to work for a lengthy period of time, when would your disability coverage kick in and how long would it pay your living expenses? If you are self-employed or don’t have this benefit at work, you should discuss it with an expert.

Create a Health Care Spending Strategy
Granted, it’s tough to ask how much a hospital’s tests, medications and procedures are going to cost if you’re strapped unconscious to a gurney. But everything in a hospital has a price – everything from tissues to MRIs. Talk to your primary care physician about ways to save on costs during office visits and prior to any planned hospital stays and also talk about extended payment options if you feel you’ll need one.

Talk to a financial planner or health care insurance expert about ways to scrutinize hospital bills so you can refuse unnecessary items during your stay. Once you have these ideas written down, make sure the person you’ve designated as your health care power of attorney has them so they can act in your stead if you’re incapacitated. One more thing – these are particularly important questions to ask if you are moving an elderly relative into a nursing home or assisted-care situation where everything from aspirin to adult diapers carries an inflated price.

Create a Tax-Advantaged Savings Strategy
You may have the option to put money into flexible spending accounts (FSAs) at work and/or set up health savings accounts (HSAs) as part of your enrollment in a qualified high-deductible health plan. Unlike FSAs, HSAs allow balances to be carried forward year-to-year, growing on a tax-free basis as long as they’re used for medical expenses – this way, you can accrue a fairly large nest egg against uncovered expenses while you’re still healthy. Get some advice from an expert on how to best use one or both kinds of accounts if you have those options available to you.

Build a Health Insurance Emergency Fund
An emergency fund – separate of your main emergency fund – would be useful to cover the deductibles and co-insurance on your health insurance if you don’t have an HSA in place. Health insurance policies will list a “total out of pocket” amount on the coverage page, which can run thousands of dollars – try to keep this amount in reserve.  

This post is produced in association with the Financial Planning Association (FPA), the leadership and advocacy organization connecting those who provide, support and benefit from professional financial planning.

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