Monthly Archives: January 2009

File your taxes early (& cheap)


photo by 427

We should be receiving our W2s in the mail in the next couple weeks. I always try to file within two weeks of receiving all of my paperwork. It’s better to get it out of the way, right?

Be sure you’ve collected all of your documentation, including W2s, interest paid to mortgages and student loans, interest earned on financial assets, education expenses, medical expenses, and more. MSN Money has a helpful list of tax documents you’ll need to collect.

Some of these documents will come from your employer, lender, or financial institution. Other information (such as medical expenses and education expenses), you are responsible for tracking throughout the year. You may be required to offer proof if you’re audited, so be sure your numbers are correct.

Once you’ve gathered all of your documents, you don’t have to pay an accountant to get your taxes filed. Here are some alternative tax-filing options that will cost you a fraction of the price of a tax-preparation service:

Check with your library, church and employer.

Many times you can get free tax advice or professional tax preparation services from these organizations. Also check with your employer. They may offer tax preparation services as a fringe benefit.

Ask family and friends.

If you know your tax return is going to be complicated (for instance if you recently inherited a large sum of money), it may be best to get help from a professional. Before you head to an expensive tax prep service, ask around to see if you can find someone who prepares taxes out of their home.

A friend or family member may know someone with experience. Chances are their rates will be more affordable than a service. Just be careful. Ask for credentials and references to make sure your tax information is in good hands.

Do it Yourself.

If your return is simple, don’t be afraid to do it yourself. It may seem intimidating, but I think you’d be surprised how easy tax software is to use.

E-filing your federal tax return is free at the official IRS website (if your income is under $56,000 a year) or  TurboTax (for simple returns). You’ll have to pay to file your state return if you choose this route.

You can also purchase tax preparation software that suits your needs. We will be using TurboTax this year. It’s relatively cheap (about $40 for the version that includes federal & state filing for personal tax returns). It’s also incredibly easy. It guides you through filling out the forms in simple terms, and helps you determine if you qualify for certain deductions.

No matter how you choose to file your taxes, make sure you keep a hard copy for your records filed with all of the pertinent documents. Though I scan and file most documents electronically in pdf, tax returns are the only thing I keep in hard copy. You never know when you’ll need them.

Frugal extras that bring me joy

Between the economy, the freezing temperatures throughout the country, and the post-holiday blues, everyone can use a pick-me-up right now. I know I can.

In the past, I often used money as a method of cheering myself up. If I was feeling down, I’d spend. But that only led to guilt and more depression when I realized I was broke.

It’s possible to treat yourself without breaking the budget. Here are the little extras I splurge on when I’m feeling down.

Gourmet coffee

It would be too expensive to drink gourmet coffee every morning, but sometimes we buy enough beans for one pot. For about $3, we create our own coffee house at home.

Movies

Most of the time we rent from RedBox (which is usually free with a code), but sometimes we see a movie at the cheap theater for $2 or splurge on a matinee for $5. Watching a good movie with my husband takes me back to the days when we first started dating.

Dessert

Sometimes after dinner we go out to a local bakery for a cup of coffee, and we split a slice of pie. For about $6, we’re out of the house enjoying something sweet.

Cooking fancy meals

If we’re craving a restaurant meal, we buy the ingredients in the grocery store and try to make it ourselves. Cooking together is fun, and it’s so much more rewarding to enjoy a meal you made yourself (not to mention cheaper).

What frugal extras bring you joy?

Menu Plan & Grocery Round Up: 1/17-1/23

Despite the extra healthy snack foods on our list, this week’s total was back within our budget. Yay!

Our total for the week was $54. And I feel like our cart was stuffed!

Here’s our menu plan for the week:

Saturday: Chicken & vegetable pot pie (We used a store-bought pie crust to make the recipe easier, and substituted heavy cream for 1% milk to make it a little healthier. And of course I limited my portion size.)

Sunday: Stuffed manicotti (We omitted the beef and added spinach to the stuffing instead. We also left out the butter, and used low-fat cheeses.)

Monday: Sandwiches/leftovers

Tuesday: Beef tacos with refried beans

Wednesday: Grilled chicken sandwiches

Thursday: BLTs with baked oven fries

Friday: Homemade pizza

Looking back over this menu, it doesn’t include the healthiest of meals. But I find that as long as I’m careful with portioning, I can avoid eating too many calories for the day.

For more menu plans, visit OrgJunkie.

Be wary of liquidation sales

I came across this video, and I couldn’t resist posting it.

Just as I suspected, liquidation prices aren’t necessarily the best deals. No matter where you’re purchasing an item, make sure you’ve done your homework to ensure you’re getting the lowest possible price.

In the end, the supposed “percentage off” is less important than the final price. Always shop for the lowest final price, not the largest percentage off.

Avoiding unnecessary medical procedures that aren’t covered by insurance

A few months ago, I wrote about a surprise bill I received from my dentist. Even though my insurance covers X-rays, preventative exams & two cleanings a year, I received a bill for an extra X-ray that wasn’t covered. I decided to keep a closer watch on the procedures being performed on me in future visits and ask more questions about my insurance coverage.

Today I had an eye exam. Before the exam, the optometry tech asked if I’d like to have my retina scanned and photographed. The procedure would allow them to see underlying problems with my eyes. I asked if the procedure was necessary for someone my age, and she acknowledged that it probably wasn’t completely necessary, but that they recommend it for patients of all ages.

I was upfront with her. “I’m here for an eye exam and a contact lens fitting,” I said politely. “Can you tell me what my insurance will cover, and please let me know if you plan to perform any procedures that won’t be covered?”

The point isn’t to refuse all treatment that isn’t covered. I just want to know what is and isn’t covered so I can make informed choices about my health care.

I knew that my eye exam was covered, but I wasn’t sure what exactly that included. I also had a feeling that anything related to contact lenses would not be covered.

She looked up my information and told me what I already knew — the eye exam was covered completely, but the “contact lens fitting,” which is necessary to get new contacts, would have to come out of my pocket. That’s ok, because my employer offers an HRA, so I will be reimbursed.

She was surprised to discover that the retina scan was actually covered 100% if I elected to do it. Well, ok. If it’s covered, why not?

I’m glad I asked. If it wasn’t covered, I wouldn’t have wanted to be billed for it. I’m also glad I didn’t refuse the procedure without knowing. I want to take full advantage of my health insurance benefits.

Though the total cost of the exam was over $300, I paid $63. The contact lens fitting was $75, but I’m also a member of a vision discount plan in addition to my insurance, so I received a small discount.

I’m a little miffed about the high cost of the “contact lens fitting.” Basically, all it entailed was the doctor asking me if I’m comfortable with my current lenses, poking a new set of lenses into my eyes, and giving me a sales pitch about the new, more expensive brand. I have another appointment in two weeks, at which point he’ll ask if I like the new brand, give me another sales pitch, and finally write my contact lens prescription. It just seems like $75 is a little ridiculous for that. Whatever, though. I guess that’s the price I pay to wear contacts.

Consider being an active participant in your medical care. Always ask for more information about procedures and insurance coverage. It’s sad but true that many providers will push unnecessary services onto patients despite the fact that they aren’t covered by insurance.

Never refuse a necessary procedure just because you don’t want to pay out of pocket. Your health should always come first. Just be sure that you’re not paying out of pocket for a procedure that you don’t need.

photo by chrismar

TGIF Round Up: Totally Fried Edition

Do you ever have those weeks where it feels like it’s just piling on one thing after another? That’s the kind of week I’ve had. One thing after another.

I’m adjusting to my new schedule, which includes an hour at the gym before I come home every night. Losing that hour has had a surprising impact on my productivity in the evening. By the time I get home, all I want to do is relax.

I’m working on a new routine so I can get things done at home when I’m finished working out.  Hopefully this adjustment period passes quickly! All this constant rushing is exhausting!

And now for a round up:

  • On Simplicity shares simple ways to start enjoying today. This is definitely something I need to work on. One of my resolutions was to stop looking ahead to the next big thing. These tips helped me find joy in the little things right now.
  • Wise Bread offers tips for avoiding recession weight gain. When money’s tight, it’s tempting to load up on cheap, unhealthy convenience foods, but you can eat healthy without spending a fortune!
  • Pecuniarities has some great ideas for burning extra calories in daily life. Moving a little more every day is really all it takes.
  • Budgets are Sexy questions whether pet insurance is a worthwhile investment. My advice? It’s better to self insure with an emergency fund and skip the monthly insurance premiums for a policy that most likely won’t pay up.
  • Money Ning shares tips for traveling on a budget. Now really is the best time to book your trip if you want to travel cheap. Prices are super low right now, especially if you’re not traveling somewhere warm. :)

I’ll be relaxing this weekend, and hopefully using as little brain power as possible. Hope you do the same! Happy Friday!

Spending money to lose weight … is it worth the investment?

photo by nataliej

All over the blogosphere, I’ve been reading posts with very helpful ideas for frugal weight loss. I’ve even written on the topic myself (basic budgeting can help you lose weight without spending money). I once lost 40 pounds without a gym membership or any special equipment (though I did spend a fortune on convenient diet foods at the grocery store, but that’s another story). I absolutely agree that it’s not necessary to spend money to lose weight.

In the past few weeks, though, I’ve made a few investments in my health to make it easier for me to get in shape. I joined a gym, bought new running shoes, and added healthy snacks to my grocery list.

All of these decisions were pretty tough for me. The last thing I want to do is spend extra money if it’s not necessary. At the same time, getting back in shape is important for my health and my happiness.

When it comes to weight loss and frugality, everyone is different. Back when I had more free time, less stress, and a faster metabolism, these types of investments weren’t necessary to help me lose weight. The past 6 months have been a struggle for me, though, as I battle time constraints, a slowing metabolism, and the absence of expensive diet foods. I made the decision that if I was going to meet my fitness goals, I’d need a little help.

A little over a week into my fitness resolution, I’ve lost 3 pounds. I’m feeling healthier, working out every single night after work (with no painful blisters on my feed), and making healthier decisions about what I eat. I absolutely believe that the investments I made have made all the difference.

If you live far away from your support network, maybe joining a weight loss support group like Weight Watchers would be helpful for you. Maybe you work long shifts and investing in some convenience foods would help you eat healthier. You may have to make some sacrifices in other discretionary spending to balance your budget and reach your financial goals, but you can make it work. With planning and budgeting, it really is possible to have it all.

I’ve been careful not to go overboard, though. We haven’t dipped into our emergency fund to purchase fancy exercise equipment or spent a ton of money on a “get thin fast” diet plan. We also haven’t reduced our debt and savings contributions every month.

So far I’ve spent $20 for the first month of my gym membership, $40 on new shoes, and about $10 extra on groceries for the week (I’m working on reducing that). The shoes were a one-time investment, and I’m wearing them only to the gym to increase their lifespan.

Frugality is as much about balance as it is about budgeting. After weighing the pros and cons, I decided it was worth it to me to spend $30 a month on my health. I also determined that with a few cuts here and there, it doesn’t have to delay our savings and debt goals.

The bottom line is that you have to do what works for you in your budget. If there’s absolutely no room in your budget for diet aids, then you have to improvise. We have a little wiggle room, and I’d rather invest a little money in my health now so I’ll be more likely to live long enough to enjoy the money I’m saving for retirement. :)

Keep tabs on your health insurance claims

We’re all aware of the dangers of identity theft these days. Most people keep a close watch on their bank accounts, credit card statements, and credit reports to ensure they’re not being victimized. This week I had a scare that made me realize my credit report isn’t the only way my identity could be stolen.

A few months ago, I received a letter from my health insurance provider warning me that a recent claim had been denied. Aside from the fact that I hadn’t recently filed a claim, I was alarmed because I had never even been to the hospital where the claim was filed. It was also filed on a date before my insurance was even active.

I called my health insurance company, and they apologized and assured me that it was a mistake that I didn’t have to worry about. I tore up the letter and forgot about it.

Last week, I received another letter with the same message. Only this time, it was for a separate service at the same hospital two months later.

I called my insurance again. This time, they looked up my information and said, “Yes, I see a claim filed at _______ Hospital on August 15.”

It told them I’d never been to _____ Hospital. In fact, it’s not even located in the state where I live.

The woman on the phone verified my name and address, and said that yes, this claim had been filed in my name with my information. She also verified the second claim from two months before, the one that I had been assured was a mistake that I didn’t need to worry about.

“You’ll have to call the hospital and find out why they’re filing claims in your name.”

Um, no. “You’re telling me that it’s my responsibility to look into fraudulent claims? I don’t think so.”

When I said this to the customer service rep, she acted irritated and transferred me to the claim dispute resolution department.

Um, thnx. You probably should have done that in the first place, lady.

After verifying my information, I was put on hold while the dispute resolution rep called the hospital to find out why this was happening.

After 5 minutes on hold, I was relieved to find out that it was a clerical error after all. No one had filed the claim in my name with my information. Someone with the same last name and health insurance provider as me filed a claim, and it was accidentally put into the wrong file in the computer system. They corrected the error and assured me that I wouldn’t receive any more notices.

I’m confused how this could happen not once, but twice. But I’m relieved that it wasn’t an issue of identity theft.

From now on I’ll include my insurance claims information on my watch list. Because I rarely need medical care, I don’t check my insurance information very often. This error was in my file long enough that I started receiving nasty letters about it. It could have led to the denial of legitimate claims if I had a medical emergency at some point before the error was sorted out.

I plan to keep a close watch on my account in the future to ensure that there are no problems with my health insurance when I really need it.

The second most frugal way to buy contacts

The best way to save money on contacts is to wear glasses instead. You can get a great deal at online discount stores like Zenni Optical, and a good pair of glasses will long outlast your supply of contact lenses.

I’ve had the same pair of glasses for two years, and they’re still in great shape.

As much as I’d like to give up contacts, I just can’t get over my discomfort with glasses. My lenses magnify my eyes, making me look pretty silly. So I only wear my glasses in the evening and at home.

I have an eye exam scheduled for this weekend, and it’s time for me to order new contacts. In the past I’ve ordered them from the same place where my exam is done. This time, I’m doing some research to find a better deal.

Here’s what I’m doing to make sure I pay the lowest price possible:

I’m taking my prescription with me.

I’ll have my doctor write a prescription for my contacts so I can shop around online and in stores for the best price.

I’m checking prices everywhere.

I’m not thrilled with the prices at 1800contacts.com, so I’m checking prices at Wal-Mart, Costco, and other places to find the absolute lowest price.

I’m looking for online coupons.

There are a ton of coupons for online contact lens dealers. I’m finding the best ones so I can figure them into the online prices for a real comparison.

By shopping around, I’m hoping I can get a 6-month supply for $75. The best I’ve found so far is $100 for a 6-month supply. Hopefully I can do better than that!

Where do you buy contact lenses?