Hmmm. I just read all these comments, and I'm not sure anybody put it in the simple terms that my family used in making our decision to have a high-deductible plan: If you have your out-of-pocket maximum amount in your bank account (HSA or otherwise), then a high-deductible plan is a good idea. In a year when you don't require much health care, you save oodles of money because of lower premiums; if you have a bad health year, you know how much you might get hit with, and you know it's not going to put you in the hole because you have it in savings.
If you don't have your out-of-pocket maximum in the bank, it's risky to sign up for a high-deductible plan, obviously. You cannot predict when illness or an accident might strike.
That's all -- sadly, the most affordable insurance option is, in my view, only really feasible for someone who has savings.
You mention that store managers have some discretion when it comes to discounts and that certainly was true where I worked. I worked in retail furniture for 7 years, and the markup was very high. There was always room for a discount and nearly anyone that asked for one in order to complete the sale was given something.
(Not sure if your still taking questions)
I have a split loan 80/20 first loan is $245,000 (5.8%) and the second is around $58,000 (8.5%) both are fixed rates. I'd like to pay it off quicker so what route makes sense or combination of payment options. Paying extra monthly or paying 1 extra payment at the end of the year or making biweekly payments. I'd really like to take care of the 2nd loan early b/c of the high interest rate. And refinancing is not an option b/c of the lack of equity in the house.
So true all of it and great timing that I checked Twitter and picked up the link to this post... I have just (about 4 mins ago) resisted purchasing an extra pressie for a relative, after I distributed them today (whilst kids were out of sight - Santa still visits our house) and thought it looked rather sparse this year. Each year I have reduced and reduced, and the 'gift giving guilt' or rather the lack of gift giving kicked in. I made myself a promise no impulse purchases. I loved the observation about general buying, it is very true. There is such an abundance of things for sale, and the spending momentum has kicked in, that to purchase a few 'must haves' for your own use is so easy to do. I approach shopping very practically all year round. I never shop blind and always make a note of what has been purchased. Great post! Jo (simplybeingmum - family life simply done)
i LOVE VHS....
I THINK IT IS BECAUSE OF ALL THE REASONS YOU SAID, SOME MOVIES YOU JUST CANNOT FIND IN ANY OTHER FORM..I GO TO HALF PRICE BOOKS AND GET THEM FOR A BUCK :-)
Being a worker in the retail business. And formally in real estate, I can tell you that there are enough people out there that will never stop their very bad spending habits. So I don't think those of who chose to become more frugal, are going to cause the recession to get worse. I was in the Title end of Real Estate long enough to know that there are a huge number of people who will continue no matter what to keep burying themselves in debt to have, have, have.
I actually purchased two homes, cash, in the last year. I sold a lot of real estate in Arizona at "the top" in 2005 and 2006, and purchased a home and loft in Illinois in 2009 and 2010, both in cash. I actually paid for them with the gains from my "bubble" real estate. Afterward, I secured two HELOC loans against each respective property. I bought the first property distressed and had it re-appraised after 6 mos., so my current LOC = my original purchase price. So, between both homes I have about 91% available on my HELOC, which had no closing or appraisal costs and is currently under 4 percent. Thus, I have no mortgage, no debt, but nearly all of my equity available to me at less than 4% interest if I need it, which I don't.
With respect to the "write off," if you are high income you lose some of it and if you take a standard deduction you likewise don't get the benefit. Also, the average person in real life is a terrible investor. It is a complete fiction that the average Joe is going to out and successfully invest the savings from paying off a mortgage. What if you lose the money you could have used to pay off your mortgage? Most people lost money "investing" in junk bonds, the internet bubble and the real estate bubble (i.e. "flippers"). They will continue to lose money in the next bubble or shell game that comes along. Most people basically lose money at most investing endeavors. You do not lose paying off your mortgage. Even if your home does not appreciate greatly, or was not the perfect buy, you save hundreds of thousands of dollars in interest, live rent free and can sell down the line if inflation takes off in the future and your house appreciates greatly.
Thank you for sharing your CSA experience. I'm a vegetarian who joined a CSA this year and love it. For two people we get a large share every other week, and have never had a problem with the food we get or using it up. I live in South Florida, so I can get local food year-round, and it's great hearing other stories.
@ Sean M Kelly, thanks for posting re thinking about the benefits to others of whatever your passion may be. I am fortunate enough to have a great job with people I respect and like, that also pays enough to not have $$ worries. But my passion is a different project, and sometimes finding the energy to work on it post-job is tough. Your words are a tremendous help, because completing my project will help a specific set of people (very much so, I think). So, now I have a new tool to keep me focused and energized and working toward completing my passion project. Thanks again, Sean!
What I like to do is drive around a neighborhood near our home and look at the Christmas lights. SO, if we are driving home from dinner, I'll just say "Hey, since we're in the neighborhood, let's check out some of the Christmas lights here." He ends up enjoying up - in spite of himself!
Oh, and of course if you have 2 identical pair each with a run in one leg you can cut off the offending leg of each pair and wear what you have left. I did this often when I worked in an office.
We held a Swap Meet at our Community Center after reading the article in the Better Homes & Gardens magazine. Over 20 people attended, even had some kids. It turned out great and they are now asking to do it again.
I set a WARNING for hotwire users. I tried to book a 3 star hotel and got a 1 star hotel. Because there is no standard for star ratings, they can name any hotel any star level. They claim that other sites also give it the same star level, but they are owned by the same company. Everyone else claim it as a 1 star hotel, even the hotels own website. This is how they save you money, they give you a lower quality hotel and claims its better. There is a reason they don't give you the hotels name, because you wouldn't book it otherwise. Please do a little research and you will find many other people with the same complaint as me. Plus try to deal with the customer service line, and you will be told, "It's your problem." Great, Right? Just saying, please do research before you book through them and I am positive you will use another site.
You forgot one VERY important issue. Let's say you have a $5000 deductible, and god forbid, you have a bleeding ulcer and have to go to the hospital to get it repaired. You get surgery. The drawback, in 30 days, you will have to come up with $5,000. You could call the hospital and get payment terms, but then you will have to pay your monthly insurance premium and the monthly hospital bill. Unless you are rich enough to pay the hospital bill off in 12 months (at $400 a month in addition to your premiums), you will probably be paying it for a couple of years. If you have an second ulcer in the next year, you will probably be filing for bankruptcy. The hospital bill plus your premiums would make your company plan at $1400 start looking good. The best time to get a high deductible plan is when you are young 20-30 and are working and making a good living (say as a contractor on a 1099) and single. For most families it is a bad option especially because most deductibles are per individual so a family of 3 could actually have a $15,000 deductible when you add them together.
You make a very interesting point with the Coffee Shop Test. I've heard a lot of "What is it that will make you jump out of bed" and this tactic just does not work. You would be surprised to see how the desire to sometimes run away from something can make you jump out of bed for basically anything other than that :p
Though it is very rare that you would be tempted to pause reading a great book to overhear someone else's conversation...definitely worth a thought....
Congrats! There's nothing like having passion for your work. I remember when I'd just started at my first computer programming job, thinking, "I sure hope they don't figure out that I'd do this work for free, just to get access to the computers."
I make my homemade peanut butter with a food processor using no-salt dry roasted peanuts @ $2/pound wherever I can get them. I add nothing else.
I freeze the peanuts first to keep them from getting overheated during the chopping process. I do not time the process. Instead, I wait until the ground peanuts are fine enough to get splattered on the sides of the bowl and disappear from the center. At that point, the peanut oil is released and makes the peanut butter smoother. I keep the peanut butter in the fridge to keep it from separating. Even then, at 35 degrees, some peanut oil separates.
Lots of great ideas....I agree, you have to think outside the box....no need to shell out a lot of money.....here are some more along those lines! Keep up the great blogposts on Wisebread!
Ha! like this very much, i shall try it some time when i'm off.
Hmmm. I just read all these comments, and I'm not sure anybody put it in the simple terms that my family used in making our decision to have a high-deductible plan: If you have your out-of-pocket maximum amount in your bank account (HSA or otherwise), then a high-deductible plan is a good idea. In a year when you don't require much health care, you save oodles of money because of lower premiums; if you have a bad health year, you know how much you might get hit with, and you know it's not going to put you in the hole because you have it in savings.
If you don't have your out-of-pocket maximum in the bank, it's risky to sign up for a high-deductible plan, obviously. You cannot predict when illness or an accident might strike.
That's all -- sadly, the most affordable insurance option is, in my view, only really feasible for someone who has savings.
You mention that store managers have some discretion when it comes to discounts and that certainly was true where I worked. I worked in retail furniture for 7 years, and the markup was very high. There was always room for a discount and nearly anyone that asked for one in order to complete the sale was given something.
Yep, me too...I thought the same thing and was let go today after 15 years of dedicated service and no disciplinary issues. You never know.
Ms. Julie Rains,
(Not sure if your still taking questions)
I have a split loan 80/20 first loan is $245,000 (5.8%) and the second is around $58,000 (8.5%) both are fixed rates. I'd like to pay it off quicker so what route makes sense or combination of payment options. Paying extra monthly or paying 1 extra payment at the end of the year or making biweekly payments. I'd really like to take care of the 2nd loan early b/c of the high interest rate. And refinancing is not an option b/c of the lack of equity in the house.
So true all of it and great timing that I checked Twitter and picked up the link to this post... I have just (about 4 mins ago) resisted purchasing an extra pressie for a relative, after I distributed them today (whilst kids were out of sight - Santa still visits our house) and thought it looked rather sparse this year. Each year I have reduced and reduced, and the 'gift giving guilt' or rather the lack of gift giving kicked in. I made myself a promise no impulse purchases. I loved the observation about general buying, it is very true. There is such an abundance of things for sale, and the spending momentum has kicked in, that to purchase a few 'must haves' for your own use is so easy to do. I approach shopping very practically all year round. I never shop blind and always make a note of what has been purchased. Great post! Jo (simplybeingmum - family life simply done)
i LOVE VHS....
I THINK IT IS BECAUSE OF ALL THE REASONS YOU SAID, SOME MOVIES YOU JUST CANNOT FIND IN ANY OTHER FORM..I GO TO HALF PRICE BOOKS AND GET THEM FOR A BUCK :-)
Being a worker in the retail business. And formally in real estate, I can tell you that there are enough people out there that will never stop their very bad spending habits. So I don't think those of who chose to become more frugal, are going to cause the recession to get worse. I was in the Title end of Real Estate long enough to know that there are a huge number of people who will continue no matter what to keep burying themselves in debt to have, have, have.
I actually purchased two homes, cash, in the last year. I sold a lot of real estate in Arizona at "the top" in 2005 and 2006, and purchased a home and loft in Illinois in 2009 and 2010, both in cash. I actually paid for them with the gains from my "bubble" real estate. Afterward, I secured two HELOC loans against each respective property. I bought the first property distressed and had it re-appraised after 6 mos., so my current LOC = my original purchase price. So, between both homes I have about 91% available on my HELOC, which had no closing or appraisal costs and is currently under 4 percent. Thus, I have no mortgage, no debt, but nearly all of my equity available to me at less than 4% interest if I need it, which I don't.
With respect to the "write off," if you are high income you lose some of it and if you take a standard deduction you likewise don't get the benefit. Also, the average person in real life is a terrible investor. It is a complete fiction that the average Joe is going to out and successfully invest the savings from paying off a mortgage. What if you lose the money you could have used to pay off your mortgage? Most people lost money "investing" in junk bonds, the internet bubble and the real estate bubble (i.e. "flippers"). They will continue to lose money in the next bubble or shell game that comes along. Most people basically lose money at most investing endeavors. You do not lose paying off your mortgage. Even if your home does not appreciate greatly, or was not the perfect buy, you save hundreds of thousands of dollars in interest, live rent free and can sell down the line if inflation takes off in the future and your house appreciates greatly.
Thank you for sharing your CSA experience. I'm a vegetarian who joined a CSA this year and love it. For two people we get a large share every other week, and have never had a problem with the food we get or using it up. I live in South Florida, so I can get local food year-round, and it's great hearing other stories.
@ Sean M Kelly, thanks for posting re thinking about the benefits to others of whatever your passion may be. I am fortunate enough to have a great job with people I respect and like, that also pays enough to not have $$ worries. But my passion is a different project, and sometimes finding the energy to work on it post-job is tough. Your words are a tremendous help, because completing my project will help a specific set of people (very much so, I think). So, now I have a new tool to keep me focused and energized and working toward completing my passion project. Thanks again, Sean!
What I like to do is drive around a neighborhood near our home and look at the Christmas lights. SO, if we are driving home from dinner, I'll just say "Hey, since we're in the neighborhood, let's check out some of the Christmas lights here." He ends up enjoying up - in spite of himself!
Oh, and of course if you have 2 identical pair each with a run in one leg you can cut off the offending leg of each pair and wear what you have left. I did this often when I worked in an office.
My grandmother used to braid them and sew them into a rug to use by the back door.
i would choose #11 double it every day and become a millionaire.
We held a Swap Meet at our Community Center after reading the article in the Better Homes & Gardens magazine. Over 20 people attended, even had some kids. It turned out great and they are now asking to do it again.
I set a WARNING for hotwire users. I tried to book a 3 star hotel and got a 1 star hotel. Because there is no standard for star ratings, they can name any hotel any star level. They claim that other sites also give it the same star level, but they are owned by the same company. Everyone else claim it as a 1 star hotel, even the hotels own website. This is how they save you money, they give you a lower quality hotel and claims its better. There is a reason they don't give you the hotels name, because you wouldn't book it otherwise. Please do a little research and you will find many other people with the same complaint as me. Plus try to deal with the customer service line, and you will be told, "It's your problem." Great, Right? Just saying, please do research before you book through them and I am positive you will use another site.
Did it go to a short sale?
You forgot one VERY important issue. Let's say you have a $5000 deductible, and god forbid, you have a bleeding ulcer and have to go to the hospital to get it repaired. You get surgery. The drawback, in 30 days, you will have to come up with $5,000. You could call the hospital and get payment terms, but then you will have to pay your monthly insurance premium and the monthly hospital bill. Unless you are rich enough to pay the hospital bill off in 12 months (at $400 a month in addition to your premiums), you will probably be paying it for a couple of years. If you have an second ulcer in the next year, you will probably be filing for bankruptcy. The hospital bill plus your premiums would make your company plan at $1400 start looking good. The best time to get a high deductible plan is when you are young 20-30 and are working and making a good living (say as a contractor on a 1099) and single. For most families it is a bad option especially because most deductibles are per individual so a family of 3 could actually have a $15,000 deductible when you add them together.
News flash! There is fecal bacteria on your toothbrush! Please stop brushing immediately!
You make a very interesting point with the Coffee Shop Test. I've heard a lot of "What is it that will make you jump out of bed" and this tactic just does not work. You would be surprised to see how the desire to sometimes run away from something can make you jump out of bed for basically anything other than that :p
Though it is very rare that you would be tempted to pause reading a great book to overhear someone else's conversation...definitely worth a thought....
Congrats! There's nothing like having passion for your work. I remember when I'd just started at my first computer programming job, thinking, "I sure hope they don't figure out that I'd do this work for free, just to get access to the computers."
I make my homemade peanut butter with a food processor using no-salt dry roasted peanuts @ $2/pound wherever I can get them. I add nothing else.
I freeze the peanuts first to keep them from getting overheated during the chopping process. I do not time the process. Instead, I wait until the ground peanuts are fine enough to get splattered on the sides of the bowl and disappear from the center. At that point, the peanut oil is released and makes the peanut butter smoother. I keep the peanut butter in the fridge to keep it from separating. Even then, at 35 degrees, some peanut oil separates.
Lots of great ideas....I agree, you have to think outside the box....no need to shell out a lot of money.....here are some more along those lines! Keep up the great blogposts on Wisebread!
http://lifelessonsmilitarywife.blogspot.com/2010/12/its-gifts-from-heart...
Thanks, Linsey. Happy Holidays to you too!