Tag Archives: lessons learned

Always track your rebate claims

In February, I bought a year’s supply of contact lenses at Costco after searching for the best price. One of the main reasons I decided to go with Costco was the $20 rebate on a year’s supply, which brought their price down to the lowest.

Costco allows online rebate claim submission, and it was pretty simple. I filled out a form with information that was readily available on my receipt. I figured it would be several weeks, maybe even a couple months, before I received my check, so I kind of forgot about it.

Yesterday it was time to replace my contacts with a new pair of lenses. For the first time since I’d submitted the claim, I thought about my rebate. It had now been over two months since I submitted it, and I haven’t received a check.

I logged onto the Costco site and checked the status of the claim using the claim number they emailed me. It was so easy that I couldn’t believe I hadn’t checked it before. According to their records, the check was sent on March 17 and should have arrived 7-10 business days after that. It didn’t.

When I called the rebate hotline, they were extremely helpful. Within about 5 minutes they were able to determine that my rebate check had been sent and returned to them. The customer service rep assured me that a new check would be in the mail by Monday sent by certified mail to ensure delivery.

While the hotline was extremely helpful in resolving the problem, I can’t help but wonder what would have happened if I hadn’t thought to check on it. It’s only $20, an amount that many people might not bother to follow up on. If I hadn’t called last night, I probably never would have received a check.

It would have been nice if they had recognized the problem and resolved it without a call, but to be fair I don’t really expect them to track that sort of thing for me. It’s my money, after all. If I don’t care enough about it to track it, why should they?

People who regularly submit rebates for Walgreens and other stores usually have intricate systems for tracking this sort of thing. I don’t regularly submit rebates (only when I happen to buy a product that offers one), so I easily could have let it slip my mind.

When I bought my computer, it came with a $200 rebate. You better believe I tracked that one. I sent the required materials by certified mail to ensure that they weren’t lost, and frequently checked the status on my claim until I received my check. After all, $200 is a lot of money.

But $20 is just as important when it comes to getting a little money back after a purchase. It’s so easy to submit and track rebates these days, there’s no reason to lose track of that money. I takes more trouble to clip coupons than it did to log in and check on that rebate, and coupons usually only save cents. I would be careful to keep track of a $20 bill; why lose track of a $20 rebate?

My biggest financial mistakes in college & what I learned

Now that I’m frugal, it’s hard not to look back on the choices I made in the past with regret. Luckily, I came to my senses pretty early in life. I could have done a lot more damage throughout my 20s if we hadn’t decided to change our lifestyle before we got married. But I’d be a lot better off if I’d avoided the mistakes I made in my teens and during college.

In the hopes that others may learn from my mistakes, here are the biggest financial mistakes I made before and during college:

I didn’t save for college.

I got my first part time job at 15 years old. I paid for my own car insurance and gas, but other than that I had no bills or responsibilities. I didn’t save a single penny. Where did my money go? I blew it on stuff that I didn’t need.

What I learned: Plan ahead for the things you want. We’re saving now so we can pay cash for our trip to Europe, we’re already saving for retirement, and we’ll start saving early for our children’s college educations.

I didn’t apply for scholarships.

I only applied for a couple scholarships. My grades were above average, and I was active in the school newspaper. If I had taken scholarships more seriously, I would have qualified for at least a few.

What I learned: A little extra work can save you a lot of money. Scholarship applications are the college equivalent of coupons, menu planning, and other frugal pursuits.

I took out private student loans to cover living expenses (and lived extravagantly).

My parents paid my rent, and federal loans covered my tuition. I was responsible for food, car insurance, and utilities. My job at the student newspaper took up a lot of time, but I managed to work part-time my junior and senior year. If I had worked more and lived frugally, I wouldn’t have needed to borrow high-interest loans. Now I’m stuck paying $20,000+ at 8%.

What I learned: Don’t borrow to live a lifestyle you can’t afford. It also taught me the importance of fully understanding all of my financial decisions before making them. I didn’t know what I was getting myself into, and now I’m paying the price. I wish I could take back my decision, but I’m stuck with these loans. Forever.

I ate out constantly.

At least 75% of the money I spent in college went to restaurant food. This wasn’t good for my bank account or my health.

What I learned: Eating out is expensive and unhealthy! Not only did I drain my bank account, but I gained weight. I appreciate how little we spend on food and how much healthier we are now that we menu plan and buy groceries.

I charged up credit cards and only made minimum payments.

Some of my credit card debt was due to a car that broke down every other week one summer. I didn’t have the money to pay for the repairs, but I had an “emergency” credit card.

Only $1,000 of my $5,000 in credit card debt went to car repairs, though. The rest? Couldn’t tell you. I have no idea where that money went. Probably pizza, clothes, DVDs, and bar tabs. I never missed a payment, but I only sent the minimum. It wasn’t until I graduated, after three years and who knows how much interest paid, that I got serious about paying them off.

What I learned: Plan ahead for emergencies and avoid credit cards. I lived in fear that my car was going to break down because I knew I didn’t have money to cover it. I feel so much better now with an emergency fund. It also taught me about interest rates. You can make minimum payments for your whole life and never make any headway. I’ll apply this lesson someday when we have a car payment and mortgage.

It could have been a lot worse. I had friends with twice as much student loan debt and $20,000 in credit card debt. Yikes.

What are the worst financial mistakes you’ve made and what did you learn?

Time for new tires — or why I’m glad we have an emergency fund

new-tires
photo by kalebdf

Last week Tony took the car in for an oil change and brake check. I wasn’t expecting the news he gave me when he came home. One of our tires had a bubble and needed to be replaced immediately. The other three were on their last legs and needed to be replaced as well.

Our car only has about 20,000 miles, so we weren’t expecting this for some time. There was a time when a surprise like this would lead to panic and, most likely, debt. I didn’t have $200-$500 available for new tires at any given time, so I would have charged it on a credit card (unless my cards were maxed out).

This time it was a surprise, but that doesn’t mean we weren’t prepared.

Every month, we save $25 for car expenses. We’d accumulated about $90 in that account since using it to pay for maintenance before driving to Indiana in December.

The $90 would help, but it wasn’t enough. If we replaced all four tires, it would cost about $450.

I wanted to be sure that it was necessary, though. After all, the tires only had 20,000 miles on them. We knew we needed to replace the damaged tire, but I wanted to make sure the other three really needed to be replaced before taking money out of our emergency fund. We did the penny test and discovered that the back two tires were still okay.

We decided to replace the front two tires. We’ll monitor the tread and condition of the two back tires to make sure they’re still safe, and try to save up the money to replace them within the next few months.

We called for quotes at three different places — AAA, Wal-Mart, and Firestone. Firestone was the cheapest by about $100. The total for two new tires at Firestone was $215 with installation and other fees. Because we save additional money for car expenses, we only had to use $125 from our emergency fund. No big deal.

This is the first time I’ve had to tap the emergency fund, and I can’t tell you how glad I am that we have it. Before our emergency fund, I lived in constant fear that something like this would happen (and it always did). Our emergency fund made a normally stressful situation much easier.

I also learned that we’ve been too lax about tire safety. Just last weekend I drove over 100 miles on those tires — and one of them probably already had a bubble. I’m so thankful that I didn’t blow a tire going 70 miles per hour on the highway. Yikes.

From now on, we’ll keep a closer watch on our tire pressure and tread and check for tire problems, especially before long drives.

Reducing stress a little at a time

I’ve got a busy couple of months coming up. We’re taking a mini-vacation to Washington DC at the end of the month, then we’re expecting several visitors in March and April. In addition to that, I just found out I’ll be going on a business trip at the end of March.

When I get busy, it’s more important than ever that I keep stress levels down. I find the best way to reduce stress is avoid it by staying on top of this a little bit at a time. Even if it’s something small, every little bit helps.

Here are some of the little things I do to keep things running smoothly and reduce stress:

  • Make my lunch and lay out my clothes before bed to avoid rushing around in the morning.
  • Spend 15 minutes a day tidying up to avoid a major mess at the end of the week.
  • Do one load of laundry every night to avoid a pile-up.
  • Plan a menu for the week.
  • Avoid letting clutter pile up on flat surfaces (tables, shelves, etc.)
  • Keep a small notepad with me to make notes and monitor my to-do list.

Avoiding stress a little bit at a time works for me. What little things do you to to avoid stress when you’re busy?

Personal finance is romantic

love-and-money
photo by jeeked

I know I said yesterday that love and money have nothing to do with one another. That’s not entirely true.

It’s true that love doesn’t cost money. There’s no reason to spend any money on love. But money can certainly affect your relationship, especially when you’re having financial problems. It can increase fighting, distract you from the important things, and even lead to divorce.

I know, most people don’t consider budgeting to be a very romantic concept, but money problems can wreak havok on even the healthiest of bonds. Working together to get your finances in order is one of the best things you can do for your relationship.

It fosters a sense of teamwork.

There’s nothing more bonding than setting mutual goals and working toward them together. Teamwork is good for any relationship. It heightens closeness, especially when you succeed together.

It decreases (or eliminates) financial arguments.

Couples fight about money than any other thing. Most of these arguments stem from differences in how you and your partner handle money. But when you take the time to outline your goals and rules together, it allows you to get on the same page about money management.

Maybe you still won’t agree completely, but talking it through allows you to find common ground and set mutually agreed upon rules. Though we don’t completely agree about every aspect of money management, Tony and I have never fought about money. We set the rules, and we know what to expect from one another.

It decreases money stress, allowing you to focus on other things.

Anyone who has experienced money troubles knows it can be hard to focus on anything else when your finances are a wreck. Your finances won’t be perfect overnight, but when you take control and start to work toward financial goals, you at least feel more in control. You’ll suddenly realize your mind is much freer to think about more positive things, like how much you love your partner.

It allows you to accomplish your dreams together.

Whether your shared dream is to own a home, take your dream vacation, start a family, or own your own business, getting your finances in order is the first step. There’s nothing more romantic than achieving your dreams together, and fixing your finances can help you make that happen.

This Valentine’s Day, take some time to look at your finances — your mistakes, your accomplishments, and your goals. It may not seem like a romantic way to spend the holiday, but it’s one of the best things you can do for your relationship.

Thoughts from a first time investor

At the beginning of the month, we started contributing to Roth IRAs. We were both so excited to be getting our retirement savings started. Now about a month later our accounts are already down $1.60. No, that’s not a lot, but when you only have $100 they don’t have far to fall.

My point isn’t to whine about the $1.60. I knew going into this that the stock market is volatile, and that we’d see some downturns — especially right now. The point isn’t what’s in my account today but what will be in my account in 40 years.  It’s just a strange realization as a first time investor.

I’m used to putting money away in a savings account. The interest isn’t much, only 2.4% right now. But at least when I put $50 in my savings account, I know that $50 will be there next month. My savings account is about security, not income, so it doesn’t bother me that it will only earn a few cents.

Now that we’re investing in the stock market, it’s difficult to realize that some of the money I put in is already gone. It just doesn’t seem right after years of saving for security. It’s discouraging to know that my money could be growing in a savings account — at the very least staying put — but in my retirement account it’s being slowly whittled away.

It’s also tough to know that I won’t see that money again for 40 years. I like knowing that our emergency savings is there if we need it. The same isn’t true for our retirement accounts. We can’t pay bills with that money if we get into trouble. Investing for retirement doesn’t feel like saving — it feels like paying another bill.

Saving is fun for me because I love to watch our money grow. The more money that accumulates in our account, the more secure I feel. I can’t say the same for our retirement accounts at this point. Right now investing is anything but secure. Not only are we losing some of the money, but we can’t touch it for 40 years.

I’m sure I’ll get used to the difference as we continue to contribute. I also know that this is nothing compared to people who have seen their investment accounts cut in half in the past 6 months. I guess I’m just really beginning to understand the investment process in a way that I didn’t understand it before.

How do you keep your spirits up as the stock market goes down? Do you avoid looking at your accounts? Maybe that would be best for now.

The results of my search for low-priced contact lenses

I agreed to let my optometrist write my prescription for newer lenses instead of the older ones I’ve been using. I like that the new ones are monthly instead of bi-weekly lenses. I also found they were more comfortable than my old lenses, and the office assured me that they would end up costing roughly the same amount per year as my old lenses.

However, I made sure I would be able to change my mind. Since the lens brand is part of the prescription, they told me they could only write it for a certain brand. I was nervous about finding a good deal on the newer lenses, though. I made sure that if I decided after doing some comparison shopping that the new lenses were just too expensive, I could call the optometrist’s office and have them write me a new prescription for the old lenses. They said that would be fine.

Before I left the office, I had them price a year’s supply of contacts with my insurance discount and any rebates. The original price was $250 for a year’s supply or $62.50 per box. A 20 percent discount through my insurance would bring the total to $200.

There was also a $50 mail-in rebate for a year’s supply. However, I would need to mail in my receipt and proof of purchase, and then wait for a check. With discounts and rebates, the total would be $150 or $37.50 per box. Not great, but I guess it could be worse.

When I asked for my prescription, the manager of the optical office said I should let him know if I found a lower price. He said sometimes he’s able to match prices. Good to know, though I didn’t end up taking him up on it.

Next I checked at 1800-contacts.com (which  powers WalMart.com contact lens sales). I was not impressed at all. Their price was $50 per box. They offered an automatic $30 discount for a year’s supply, which would bring the total to $170 or $42.50 per box.

Today I checked Costco. The regular price was $32.25 per box. They also offered an electronic rebate of $20 for a year’s supply. The final price was $109 or $27.25 per box. That’s $90 less than I would have paid out of pocket at the optometrist’s office, and $40 less after all the discounts and rebates they offered.

For the record, I also priced my old lenses just for comparison’s sake. A year’s supply at Costco would have cost $112. So I actually saved $3 by going with the new, high-tech lenses. :)

It seems like a lot of money in a lump sum. However, since they’re monthly lenses, it works out to about $9 a month. It doesn’t seem too expensive when you think about it that way.

I feel bad for all those years that my parents ordered my contact lenses directly through the optometrist. Even with discounts and rebates, it’s usually just not the best deal.

I was also surprised to find out that 1800contacts isn’t as great a bargain as I thought. I think a lot of people order through them without shopping around, because they market themselves as the lowest-priced contacts dealer. 1800contacts were actually more expensive than the optometrist’s office, though. Just thought that was interesting.

Just remember, there’s almost always a better deal out there if you’re willing to do some leg work.

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

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.