Bucksome Boomer: Money & Life on the Way to Retirement

I Fell off the FSA Tightrope in One Month

by Kay Lynn on January 27, 2012

Using the medical flexible spending account (FSA) is one way we stretch our budget every year. Each December, I carefully consider the expenses we will have (prescriptions, doctor visits, dental cleanings, etc.) and then add some extra for unknown.

It’s a tightrope balance between selecting too much and risk losing the money or not enough. This year I fell off the tightrope already!

An Unplanned Expense

During my quarterly cleaning appointment earlier this month, my dentist decided to call in a specialist for one troublesome area. He sent me to a periodontist for help with a problem around one tooth which is a dental implant.

Next week I’ll be having gum surgery including getting a bone graft. The cost is large; I could have gotten dentures three times over for the money that has been spent on this one tooth over the years for a root canal, crown, implant, new crown and now this surgery.

My goal is to keep my teeth throughout my lifetime so this procedure was the only option.

Insurance Fortune

If I had known about the surgery last month, I would have allotted the maximum amount for my FSA. Instead, it’ll be gone next week and I’ll be paying all other out of pocket medical expenses with after tax dollars.

But there is one bright spot. My dental plan pays $1,500 in benefits per year which this will use completely. That’s not the good part.

The good news is that this year my employer is changing insurance carriers February 1st so I get another $1,500 for the year.

Emergency Funds Work

The remaining several hundred dollar balance after FSA and insurance will come out of our emergency fund. You know that account with money in it just waiting for life to throw a wrench in your plans.

If you don’t have one of those accounts, before you start sending every extra penny to pay off debt or buy a new shiny toy start saving! You really need at least three months income set aside at a minimum.

We can’t control every expense or plan for every problem in life. What we can do is be ready for it!

Do you have an emergency fund? When have you needed to use it?

photo by: Old Sarge

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Recession romance : Frugal recipe to show your love

by Suba on January 25, 2012

Valentine’s Day is 3 weeks from now, a period when we spend billions of $ to “prove” our love. For me personally, I would rather not have a lot of money spent on meaningless gifts. Over the years, my husband has tried getting me the dozen roses or expensive jewelry, but has now come to realize that I value the simple things when done with genuine thought and feeling.

There are plenty of frugal date ideas to make Valentine’s Day special without tearing your wallet to shreds. But for me, the recipe that hits the heart every time has three simple ingredients – Appreciation, Care and Respect.

Show your appreciation

DH gets up early that day and makes me my favorite breakfast and a hot chocolate which is all ready by the time I wake up. We have a relaxed breakfast in the patio just enjoying each other’s company.

While he gets ready for work, I cook some of his favorite dishes and add a note to his lunch bag saying how much he means to me.

Sometime during the day he sends me an email with all the things he appreciated about me the past year and what our being together means to him.

We both get off work early (and if you know my husband you will realize what a significant event this is, for him to leave work at a sane hour). He usually brings home a bouquet of flowers and my favorite brand of chocolate.

We then spend time cooking a delicious meal together which we then have at home in candlelight with some wine.

The point I’m trying to make is that we both spend time trying to appreciate each other and express that rather than buying expensive gifts. From my point of view, the effort DH puts in to prepare breakfast for me, send me a note expressing his love and generally showing me how much I’m appreciated is better than any gift. We all lead busy lives and it is very difficult to appreciate our partners every single day (and honestly, sometimes, I don’t feel very appreciative of him ).

Show that you care

If there is anything that is bothering your spouse, set some time aside to talk about it. We try to gloss over the problem by buying flowers or some other stuff. Show that you care about how he/she feels. After a few years, we get very comfortable with each other and take the other person for granted. This would be a good time to ask yourself how much your spouse means to you. Take some time to think about how he/she has made your life better and the happiness that they bring you. Do not take your spouse for granted.

If you are giving a gift, make it thoughtful rather than flashy. Give something that you make or even write a note about how much your spouse means to you.

Show your respect

We might be in a relationship, but each of us is a unique individual. Your way of doing things might be different than your spouse’s. Accept that; cherish them for who they are.

Showing someone that you love, respect and care for them will go a very long way. Use Valentine’s Day as a day to renew your appreciation of one another and show your spouse what he/she means to you rather than as another day to burn a hole in your pocketbook.

What is your plan for the Valentine’s Day?

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Home Insurance: The Importance of Getting a Cheap Deal

by Guest on January 25, 2012

Getting the appropriate cover for your home is more important than ever, particularly for young families. As assets such as electronics, clothing and jewellery rise in number and more memories are associated with simple items scattered across the home, it becomes increasingly important for people to consider home insurance from Castle Cover.

However, with a few top tips, this expense needn’t be one that you notice coming out of your bank account. There are certain things you can do to make sure you get the best value for money, safe in the knowledge that you’re protecting the assets you’ve worked so hard to get.

Firstly, avoid making any claims on your home insurance unless you really have to. Fewer claims means a lower premium in the long term, so check if your insurer offers no-claims discounts that could save you a lot of money on future premiums.

Also be sure that your home is as safe and secure as it can be, as much for your own safety as insurance purposes. Fitting the best-quality locks on all doors and windows is a good place to start, before threading a burglar alarm around these points. Furthermore, look out for a local Neighbourhood Watch scheme and join it. Many people forget to fit and regularly test smoke alarms, even though these are often free from the fire service or a few pounds to buy at most).

Increasing your excess is also a great way to lower your outgoings, especially if you believe your house to be particularly secure. For those unaware of how excess works, it is the amount the individual would have to pay out on a claim before the insurance is worked into the deal; the higher the excess is, the lower a premium will be.

Insurers also give better and cheaper home insurance premiums if the house you are protecting is always occupied. Just remember that many insurance deals will not cover a house after a 30 day period of absence, such as if you are on holiday for a month or more.

Finally, ensure you shop around, particularly through online search engines. Insurers send renewal quotes though these are unlikely to be the cheapest you can get, so compare in as much detail you can; new customers are often offered better rates.

This post is brought to you by Castle Cover.

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Weekend Scoop: Disappointment Edition

January 22, 2012

Were you disappointed when Mark McGuire admitted he used steroids? It tarnished his records and entire career and turned many fans away. That’s how I felt recently about a personal finance guru. Not only did Suze Orman pitch a questionable pre-paid debit card but what took the cake for me was the way she handled [...]

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Delay Your Gratification and Grow Rich

January 19, 2012

Have you ever seen those commercials for a certain law firm that exclaim, “It’s my money, and I want it now!!” This pretty much sums up our nation today. We are all scrounging for the next materialistic item, and we don’t want to wait for it. We want it now! Credit cards are in the [...]

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