Ahhh! The Money Crisis

This post is from guest blogger Brenda Schmerl:

Every day, it seems the financial news just gets more alarming — first, it was skyrocketing gas prices; then, the stockmarket took a dive; and finally, warnings from some leaders that an economic meltdown looms if we don’t bail out the big financial companies — to the tune of $700 billion! It’s hard not to get apprehensive whenever you turn on the news — so if you’re feeling extra nervous about money, we’ve got the tips you need to help calm you down.

I also want to know how all this financial turmoil is affecting you. Are you changing the way you spend and save? Are you trying to sell or refinance your house? Maybe you're looking to get a new job — or are worried about the one you've got? Add your comments here!

Health Benefits that Benefit You…And Your Wallet

In the middle of the night my husband had an allergic reaction a couple of weeks ago to one of the ingredients in our favorite restaurant’s “secret ingredient barbecue sauce.” He needed to get to the emergency room asap, but (since we don’t have a car) he was hesitant for me to call an ambulance. “How much do you think our insurance will cover,” he managed to muffle out of his growing-by-the-second lips. Once again, we found ourselves nickel and diming our health benefits

According to Tracey Baker, a Certified Financial Planner, there are easier (and less itchy) ways to save money with your health plan. There are key financial decisions that we can make to put as much as $4,000 back in our bank accounts. Oh, what I could do with $4,000!

1.       Save with Mail Order

Many health plans offer discounts if you use mail-order pharmacies for routine medications. You could get a three-month supply of your drug but only pay for a two-month prescription.

2.       Go Generic

Last year, the average brand name prescription drug cost about $85 more than the average generic.  By switching just one prescription from a brand name drug to a generic, you could save more than $1,000 a year.

3.       Visit Your Doctor Online

Some doctors offer online consultations, which are often more convenient than in-person visits.  Talk to your doctor or your insurer to find out how to use online visits properly.  Virtual doctor appointments save you gas money, too!

For more information on making smart health benefits decisions at every stage of click on the “Navigating Your Health Benefits” tool at www.PlanforYourHealth.com.

I’m a “Little Lamb”

That's right. When monthly bill time rolls around, I get quiet, preferring to let my husband initiate the paying of them. I'm the most casual (yes, I'll admit it) checkbook balancer you'll ever meet. And, since I'm being honest here, I'll tell you that I cringe at the thought of talking with the bank or creditors about my money over the phone. I'm that girl who has a 401K, but I couldn't tell you how much is saved in it.

According to Susan McCarthy, financial adviser and author of The Value of Money, these characteristics (and a host of others that are too embarrassing to mention) make my money personality a "Little Lamb." Sounds nice.

But, "nice" isn't what you want to be when it comes to your money, notes McCarthy. I need to be assertive. I need to be outspoken. I need to take charge (and not just of the fun money stuff like bargain shopping for new summer sandals ... eh, which I need to do tomorrow!). I need to be an active member in my money matters; not a passive onlooker watching money float in and out of my pocketbook.

To bring it back to animals (as oddly-fitting as it may be) -- instead of a little lamb, I need to be a lively lion. I started working on changing my money personality a few days ago by checking in on my 401K. It was actually a pleasant surprise. And, when bill time comes back around in a few weeks, I will get the ball rolling instead of waiting for that nudge.

Is that a roar I hear?

What's your money personality and would you change it if you could?

My Mom's Number One Money Lesson: PAY CASH

When my dad gave in and co-signed a JCPenney store credit card for me on my 17th birthday (in his defense, I had spent months begging him for this present), my mom was red-hot mad. Back then I didn't understand why she was angry. "What's the big deal?" I asked. "I have a job. I'll just pay the balance in full every month." She told me that in 10 years I'd regret that store credit card. She was right -- I'm still making payments on it!

Mom learned the hard way: She amassed thousands of dollars of credit card debt over 15 years when she herself was younger. To this day, she is working hard to whittle away at that debt. One day when I was in college, I realized how much the obligation -- and not just the money -- troubled her. She pointed to her floral living room set (the one we only sit on during special occasions) and said, "That's not mine. Neither is the Nissan Maxima in the driveway." In my naivete, I asked her whose stuff it was -- she'd had both for well over five years -- if it wasn't hers. "It's Visa's," she said. We both laughed, but I understood what she was really saying. When you work so hard, you want your stuff to be your stuff, not the bank's or a credit card company's.

I've finally learned my lesson and am pleased to say that, while I have them for emergencies, I haven't used any of my credit cards for frivolous/everyday purchases in three years! It hasn't been easy, as I've had to forgo many fun things -- dinners, movies, clothes -- that I couldn't afford with cold hard cash. But I've grown to appreciate the things that I do have because I know that they're really, truly mine, and not some financial outfit's. I earned them myself through my own hard work.

What did your mom teach you about money that will stick with you forever?

Watch your pennies and your dollars will take care of themselves

"My Dad often stated this to my sisters, brothers and me, when we wanted to buy something frivilous; as my Dad remembered struggling through the great depression in the 1930s."

Submitted by Q&S Club Member ladyfancy