How To Settle Your Medical Debts For Less

The following is a post by MPFJ staff writer, Kevin Mercadante, who is a professional personal finance blogger, and the owner of his own personal finance blog, OutOfYourRut.com. He has backgrounds in both accounting and the mortgage industry.

Even if you have health insurance, you can still be saddled with medical debts after a major procedure.

It can run anywhere from a few hundred dollars to many thousands, to even tens of thousands. If you have no health insurance coverage at all, they can easily hit six figures. As a rule, you can’t make them go away, but you can settle your medical debts for less than what the providers are asking.

Here are five ways that you can work to at least reduce your medical debts.

Review your insurance payments

Anytime you have any kind of medical claim, and especially a big one, you should always carefully review all the documents to make sure that all insurance payments have been properly made. This is a tedious job, no doubt about it, but you have to match provider bills with insurance payments, and make sure that each is paid.

Never assume this to be the case – both medical providers and insurance companies make mistakes on a regular basis. It is entirely likely that certain payments have either been denied without your knowledge, and also that some charges may have been double-billed. Look for any such occurrences, and as soon as you discover them you need to call both the provider and the insurance company and force the issue.

When it comes to insurance payments, you have to be your own best advocate.

Offer to settle for less than the full amount owed

Assuming that all of the bills have been properly paid by insurance, you can offer to settle any remaining balances for less than the full amount. Medical providers will often do this in an effort to collect outstanding payments as quickly and easily as possible.

You can do this simply by contacting the medical providers finance department and proposing a settlement for less than full amount. There will be a give-and-take process, so you need to be prepared. Offer less than you are ready to settle for, knowing that the provider will naturally seek a higher amount. You want to negotiate the balance as low as possible, but it will likely be higher than your initial offer.

Two things to keep in mind in trying this approach:

1. The provider will want the money as quickly as possible, so don’t even make the offer unless you have the cash to settle.
2. All agreements of the lower amount must be confirmed in writing before you send any money.

On that last point, negotiating a lower settlement amount is a business transaction. With any business transaction, all agreements must be confirmed in writing. Verbal agreements won’t hold up in court.

Set up a payment plan with the lowest payment possible

If you don’t have sufficient cash to settle a balance due for less than the full amount, the next best approach is to set up a payment plan. Fortunately, most medical providers will do this without much resistance. They just want to get paid, and will work out a payment agreement in order to make it happen.

But just like settling the debt for less, setting up a payment plan is also a negotiated event. That means you should always offer a lower payment than you are prepared to pay. The medical provider will likely counter with a higher monthly payment – after all, they want get paid as quickly as possible. Expect to meet somewhere in the middle, and that amount should be a payment you can comfortably afford to make.

Once again, make sure that your agreement is confirmed in writing before sending any payments.

Throw yourself on the providers mercy!

As extreme as this sounds, I actually mean just that. If you have a medical debt that is impossibly high based on your finances, you need to contact the medical provider and let them know as soon as possible. Sometimes they will work with you, sometimes they won’t. But it’s always worth a try.

If your financial situation is really is poor, and you can document it, the medical provider just might deeply discount the debt, or even forgive it completely. Not only do providers occasionally recognize severe hardship cases, but if it is evident that they will never be paid they might just write off your debts so that no more time and effort is wasted.

Admittedly, it’s a long shot – but one well worth trying if there are no other options.

If the debt is too large – that’s what bankruptcy is for

Speaking of options, if the debt is clearly unserviceable, and you can’t get any sympathy from the provider, you may have to consider filing for bankruptcy. Let’s say that you make $50,000 per year, you have a family support, no substantial savings – and a $100,000 medical debt. What are the chances that you will ever pay that back?

If the situation is that obviously lopsided, filing for bankruptcy may be the only alternative. In fact, excessive medical debt is one of the most common reasons why anyone files for bankruptcy.

Hopefully, you have decent health insurance and can work out other options. Bankruptcy will of course negatively affect your credit for many years to come, so it should be held only as a last resort.

How about you all? Have you ever had to deal with a very large medical do? What did you do to settle it, or did you completely pay it off?

Share your experiences by commenting below!

***Photo courtesy of http://www.flickr.com/photos/phalinn/8116034974/sizes/n/in

Credit Card Myths: Debunked

The following is a guest post. Enjoy!  If you’re thinking of getting a credit card, there are probably a few misconceptions that are often stated as fact. While there’s often a grain of truth in the common myths, it’s best to get a good idea of what you are going to be expected to do as a credit card owner. If you need a bit of financial help before payday, a credit card can be a good option. When used correctly, they can help to build your credit score – but only consider applying for one if you are sure that you are able to maintain repayments on what you spend, plus the interest. Here are some credit card myths set straight: The advertised rate is what I will get This isn’t necessarily true – the typical APR is not always offered to applicants. The rate is affected by your income, your credit rating and your current financial circumstances. If your credit rating is poor, you will be offered a much higher APR – or perhaps won’t be offered a card at all. A spokesperson from Yorkshire Building Society suggested: “Set up a regular savings account and shop around to make sure you get the best rate. Ensure that you are on the electoral roll as this can improve your credit score. Review your day-to-day spending to see if you can make any cuts to increase your savings, then set up a budget for essentials and stick to it.” It’s okay if I go over my credit limit as long as I pay it back before payment is due Different lenders will charge different prices for exceeding your credit limit. Lenders can also boost your interest rates if you go over your credit limit – even if it’s just for a day or so. If I try to check my credit rating, it will hurt my credit score You can check your credit rating whenever you want – it’s a good idea to check it before applying for a credit card so you can be sure that you will be accepted. You can check your credit report with any of the major credit providers, such as Experian. Lenders will not be able to see that you have checked your score when they view your report. It’s okay to apply for multiple credit cards at once Whilst applying for multiple credit cards at once doesn’t hurt your credit rating, every lender who views your report will leave a ‘hard footprint’. This means that lenders can see if other lenders have checked your credit report and lots of footprints looks poor. I’ve not had a credit card before, so my credit report is bound to be fine This isn’t true – there are some payments which can include (but are not limited to) utility bills. If you are taken to court over council tax arrears, it can affect your credit score too. As long as you use it responsibly and always make sure that you don’t use more than 70% of your credit each time, there’s no reason why you can’t own a credit card.

4 Ways To Make Secret Shopping Worth Your Time

The following post is by MPFJ staff writer Travis.  Travis is a customer blogger for Care One Debt Relief Services, and also appears weekly at Enemy of Debt.  Travis candidly shares his personal journey to pay off $109,000 of credit card debt and the tips he’s learned along the way. As a father and husband he provides a unique perspective on balancing debt, finances, and family.

Most people are very interested when I tell them I am a secret shopper.  They are intrigued by the possibility of making some easy money.

But, when I tell them that the average secret shopper job pays about $15, their eyes glaze over with disinterest.

The most frequent complaint from people when they first look into secret shopping or have even tried it once or twice is that it’s not worth the time and effort. Sure, there is the occasional financial institution visit that pays $45, or the very infrequent free night in a hotel, but most of the jobs are pretty low paying.  There are some tricks, however, that can make secret shopping very much worth the time and effort.

1. Don’t Drive Out of Your Way

Almost all the shops I do are in close proximity to places I visit often anyway such as my place of employment,  the mall, or the Walmart where I shop for groceries.  When I first started, I would drive all the way across town to do a job at a fleet and farm store.  Between the 90 minutes it took out of my day, and the gas needed to drive there and back it just wasn’t worth it.   I never make a special trip to do a secret shop.

2. Group Shops Together

The services I use give me several dates to choose from for each shop.  I will coordinate several shops (even across different services) in the same area on the same day.  For example, last month I did a shop at a nutrition store and a medical scrubs store on the same day that were in the same shopping plaza.  It’s right next to my place of employment, so I just did them on my way home from work.  Two shops, one location, zero extra drive time.

3. Seek Bonuses

When shops are not picked up, some services will offer bonuses.  Recently there was a job at a cell phone store that paid $18.  When it didn’t get picked up by the due date, a $2 bonus was offered.  After a few days it was increased to $5, then $10, then came the Holy Grail of secret shopping:  the “make me an offer” email.  My offer to do the job for a total fee of $35 was accepted.  I could have gone higher, as I saw the last location increased to a total pay of $60 before it got picked up!

4. Incorporate Shops Into Your Life

There’s a buffalo wing restaurant and sports bar near our home that my wife and I like a lot.  They also happen to be registered with one of the secret shopping services I use.  If I see a shop available, I’ll schedule it for a Friday and make it part of a date night.  Time with my gorgeous wife AND get the dinner for free?  It doesn’t get any better than that!

This month I will be paid $105 for the four jobs I did last month.  I spent about an hour in the stores, and another hour entering the shop data into their website.

That’s over $50 an hour.

How about you all? How does Secret Shopping sound to you now? Have you ever tried it?

Share your experiences by commenting below!

***Photo courtesy of https://www.flickr.com/photos/149902454@N08/34587191230/sizes/l

The Good, The Bad And The Hare Brained

The following is a guest post. Enjoy!

‘You only live once’ is a motto that many people live by. Determined to get the most out of this brief time on the planet, lots take out loans to pay for the must-haves in life. Some of these choices are wise, others, well, require a little more thought.

Here are just a few of the main reasons why people apply for personal loans, including a few cases where you’d be forgiven for holding your head in your hands in disbelief.

Paying for a wedding

Understandably, no one wants to spend the happiest day of their life in jeans and T-shirt or treat their guests to a round of sandwiches after the ceremony. Nor do they wish to honeymoon at the local caravan site, so many apply for a personal loan to cover wedding expenses such as clothes and catering or the honeymoon. In recent years, Middle East destinations such as Qatar and the UAE have become popular post-wedding getaways.

On the flip side, some of the wackier borrowers out there don’t just use the loan to pay for the wedding. They use it to pay for an overseas bride as well, including transport costs!

Home improvements

The first thing some people do when they step into a nice new home is knock a few walls down and whip paint over the hideous colors the previous owner has decorated the house in. Extensions, refurbishments or even plain expensive repairs are all reasons why many people step into the bank manager’s office.

But then there are others who would rather live in a spaceship than a home. Courtesy of a personal loan, die-hard Star Trek fans have been known to transform rooms of their house into something resembling the U.S.S. Enterprise. That’s life, but not as you and I know it.

Starting up a business

Although there are business loans available for budding entrepreneurs, determined to get their hands on as much capital as possible some people also take out a personal loan to invest in their business. Passionate about their new endeavor and the prospect of profits, they feel the extra debt is worth it.

Of course, there are businesses and there are businesses. Some out there are buying rare or exotic animals on the Internet, such as poisonous snakes, and selling them at a profit (normally prices that cover the loan repayments). Others choose to buy rare antiques with their loan and, again, sell that at a convenient, loan-covering price and then some.

Settling debts

Some people are lousy with credit cards and bills and end up taking a personal loan to cover such debts. Felling debts in one almighty swoop like this, though, helps because they can reconcile them into a single, more manageable payment.

However, there are times when people should avoid spending the bank’s money, such as on gambling. On a roll on the horses, greyhounds or the blackjack table, some actually apply for personal loans hoping to repay it with the drop in the ocean from their theoretical gains. Not the best of ideas is an understatement.

If you’re looking to get the most out of life and need to request a personal loan, think carefully about the reasons for doing so. Life is for living, most certainly, but worrying about how to make loan repayments after living for the moment is no way to spend your days. Borrow sensibly and the future remains yours, financially and non-financially.

Carnival of Financial Independence – 32nd – October 12th, 2013 Edition

Welcome to the 32nd edition of the Carnival of Financial Independence, a selection of the best articles related to Financial Independence this week. If you would like to be included next week, please submit your post via Blogger Carnivals.

Thanks for stopping by and enjoy the great reads!

Travel and Lifestyle

Pauline @ Reach Financial Independence writes I can’t complain – I realize that I have complained a lot lately about how slow things have been and how frustrating it is to deal with Guatemalan bureaucracy and the red tape. But really, there are many reasons why I can’t complain

SFB @ Simple Finance Blog writes How to Get Ready (Financially) For a Baby – Now that you got the good news and are eagerly awaiting the arrival of your bundle of joy, you will soon realize that the nine month long period is never enough to be fully ready for a baby.

Mike @ Personal Finance Journey writes The Financial Benefits of Sharing a House – How sharing a house or apartment can benefit you financially and save money for bills rates and repayments.

Christopher @ This That and The MBA writes 3 Money Mistakes I’ve Made and How to Avoid Them – If y’all remember my first post here, I confessed that while I’ve never been in debt, until recently I had absolutely no credit history. While I consider that my most major money mistake, I’ve made a few more that I’m sure others could learn from.

Little House @ Little House in the Valley writes The Heat and the Home: Why Solar Panels Are a Good Idea – By installing a solar panel over your home, you and your family will be making a wise and morally responsible decision to be symbiotic with the natural world.

Amy @ Money Mishaps writes Are you Throwing Money Away? If You do These 3 Things, Yes – Science magazine just published a study that found that, if you are poor and also mismanage your money, it is possible that you might be able to make good financial decisions but more than likely you have trapped yourself into a vicious circle and cannot.

Lisa E. @ Lisa Vs. The Loans writes The Future You – Are you making life easier or more difficult for Future You? What things do you need to sacrifice in order for Future You to be content?

Harry Campbell @ Your PF Pro writes Is Going Green Worth It? – I’m not sure what’s so attractive about farmer’s markets but I love going just to check out all the cool vendors, sample food and of course I usually end up buying a ton of stuff. Farmer’s markets in my area have evolved from selling just groceries to all different types of products like cheeses, butter, nuts and even restaurants are getting in on the action now.

Miss T. @ Prairie Eco Thrifter writes How Denim Can Be Bad for the Environment – How we spend our money on consumable goods should match the things we are concerned about in life. The environment is one of my biggest concerns, and as such I want to do what I can to help keep it healthy. Buying well-made, American-made denim jeans is one way I can make a difference, and hopefully you can too.

Lauren @ L Bee and the Money Tree writes Budgeting an Irregular Income – How We Make It Work – Budgeting an irregular income doesn’t have to be as complicated as it seems. Here are some tips for keeping it easy for you and your family.

Crystal @ Married (with Debt) writes 7 Money “Things” I’m Thankful For – Lately I’ve been bummed/stressed/anxious about money. That’s because we just finished up our first month living on only one income. My wife is/was a teacher, which means she can be paid over twelve months for work done over nine.

Eva Baker @ TeensGotCents writes Ted Talks and Ignite – Influence Your Community – Spark an idea – but make it quick! Ignite is a shorter version of the TED talk and is a great way to share ideas and influence your community!

Wealth and Passive Income

CAPI @ Creating a Passive Income writes The Importance of Knowing Your Net Worth – Most people may not necessarily know what their net worth is. Your net worth is the difference between the value of what you own and what you owe.

SBB @ Simple Budget Blog writes Balancing Act – Why Reconciling Your Bank Accounts is so Important – Balancing your bank accounts is an important part of your budget. Don’t believe us? Read here to learn why it can help you.

Matt @ Budget Snob writes Guard Your Retirement Income with these Comprehensive Tips – One sad fact that all people nearing or already in retirement have to deal with today is that income during retirement is lower than it has ever been in the last 60 years.

Corey @ 20s Finances writes Why You Should NOT Calculate Retirement Income off based on Income – When calculating how much you need in retirement, you should not use your current income. Find out what you should use to be prepared.

Emily @ Evolving Personal Finance writes The 3 to 6 Month Emergency Fund – The 3 to 6 Month Emergency Fund

Jon @ Novel Investor writes Roth IRA Rules: Everything You Need To Know – The Roth IRA has its advantages. But is it a good fit for you? This guide covers everything you need to know about the Roth IRA rules and more.

JC @ Passive-Income-Pursuit writes Dividend Update – September 2013 – It was a record month of dividends that ended up covering over 27% of my monthly expenses. Building up a passive income stream is great as it just continues to build month after month and will eventually lead to that all important FINANCIAL INDEPENDENCE!

Ben Luthi @ The Wealth Gospel writes How Giving Can Make Your Richer – Cites a study showing that those who give, whether money or with other means, tend to be more successful and earn more money

Anton Ivanov @ Dreams Cash True writes The Best Finance Books of All Time – This list of the best finance books is a great place to start learning more about personal finance and investing. There is so much to learn from these 10 awesome books!

Daniel @ Make Money Make Cents writes The Boom in Posh Pawnbrokers – If you watch any TV at all you have probably at least glanced at some of the myriad Pawn reality shows that have become so popular as of late. Cash poor but asset rich Americans are turning to pawn brokers for short-term loans, something that has been dubbed “high-class pawn brokering.”

Real Estate and Investing

Mrs. Accountability @ Out of Debt Again writes 6 Common Mistakes to Avoid with Annuities – Annuities are one of the most popular investments made by investors under 44 years of age.

Chuck @ The Tortoise Banker writes Protect Your ASSets and Income – Generating meaningful wealth is tough enough, doing it more than once is enough to break anyone. Follow these important tips to assure you put a buffer between the world and your income and assets.

Monica @ Monica On Money writes Government Shutdown: Everyone Needs An Emergency Fund – At this point, we all know about the Government Shutdown and how much it affects us directly and indirectly. But for now, on the positive side, this is a reminder to reflect on our own personal finances.

Maria @ The Money Principle writes The Best Ways to Start Investing While Still in College – It is never too late to start investing so you may as well start while in college; still have to do it right.

Roger the Amateur Financier @ The Amateur Financier writes 6 Investment Strategies to Generate Retirement Income – A guide to methods to generate retirement income with the money that you save during your life, covering things like regular withdrawals, interest, and annuities.

Holly @ Club Thrifty writes And……We’re Renting a Home – We have not found a house we want to buy….we were renting a home instead.

Brian @ Luke1428 @ Luke1428 writes Our Nightmare on Rental Street: Evicting a Tenant – Rental real estate investing offers tremendous financial benefits. One of its darker issues is dealing with tenants that refuse to pay the rent. Here are some lessons I learned by going through such an experience.

Daisy @ Suburban Finance writes Buying Your First Home – Home buying advice for buyers to follow for a successful purchase of a home.

Rich @ Growing Money Smart writes What is a Stock? – What is a stock, is one of the first financial lessons I taught my kids!

Mr. Frenzy @ Frenzied Finances writes Moving Out: When You’re Ready to Buy a Home – Home-owning can quickly turn into a nightmare when not prepared. There are several factors to consider when deciding when you’re ready to buy a home.

Debt Guru @ Debt Free Blog writes Mortgage Hunters: How to Find an Affordable Mortgage – Are you looking for ways to secure an affordable mortgage? It may seem daunting, but it is actually quite attainable, so long as you know where to start.

Michelle @ Diversified Finances writes Renting Out A Spare Room For Money – Have you ever thought about renting out a room in your house? We have thought about it and we currently do rent out a room in our home.

Danielle @ Saving Without a Budget writes Buying a Home? These Tips will make it Easier – Even though it is a bigger dream than ever before, home ownership is still a dream for many Americans.

Lenny @ Best Money Saving Blog writes Investments That Aren’t Really A Very Good Investment – Everyone wants to make as much money as possible with as little effort. That is not always possible of course and, when it comes to financial planning, you need to be aware that all investments are definitely not created equal.

Hadley @ Epic Finances writes As stocks approach record highs, the market is looking rather complacent – As the market nears a historic high on the S&P 500 some analysts are concerned that it is looking a bit complacent. Maybe even bored.

Lily @ Paying Debt Down writes How to Invest like an Old Pro (even if you’re a Young Amateur). – Something that your Wall Street broker never wants you to find out is that investing like a Pro is actually pretty easy. The fact is, practically anyone can put together a portfolio that’s well diversified with stocks, bonds and other investments with only a small amount of effort.

Self employment and Career

Grayson @ Debt Roundup writes When Opportunity Knocks – I had an opportunity to score a new to me Jeep Wrangler. I thought about it and ended up getting a used auto loan. There are some reasons why and I lay them out here.

Don @ Money Reasons writes Was the Removal of the Uptick Rule Stupid? – The “Uptick Rule” was removed back in 2007 after a pilot study said that no manipulations occurred.This is what the pilot study found “The general consensus from these analyses and the roundtable was that the Commission should remove price test restrictions because they modestly reduce liquidity and do not appear necessary to prevent manipulation.

Hank @ Money Q&A writes 7 Steps For Financial Success To Build A Solid Future – Achieving financial success is a great part of the American dream, but it’s not easy to do if you aren’t focused on the goal. Real financial security doesn’t come about by accident. These careful steps for financial success will help you build a solid financial future.

Jon Haver @ Pay My Student Loans writes 3 Biggest Money Mistakes Recent Graduates Make – Your student loan is the most important thing you have to worry about. It’s the worst debt you can have. Why? Because it’s non-forgivable. If you run into trouble, become unemployed or have your wages garnished for some reason, the student loan stays right where it is, and even accrues more interest, making your life even more miserable.

Lazy Man @ Lazy Man and Money writes Government Shutdown – Emergency Fund Win! – For our family a prolonged government shutdown is more financially dangerous . My wife’s military status means she has to work to pick up the slack from the government workers who are prohibited from working in a shutdown. Because the government can’t pay people in a shutdown, she’ll get IOUs from the government.

Sam @ Grad Money Matters writes Making Money on Etsy – Thinking about who your target customers is very important when thinking about how you will make money on Etsy. Advertising on young women’s blogs but your target market is grandparents is not exactly the wisest thing to do. This is most likely just wasted money since your target market most likely will never see your advertisements.

Michelle @ Making Sense of Cents writes $12,334 in September Side Income – Time for Self-Employment – I definitely reached my September goal and passed it by a good amount. September was a great month for income, and I was able to add a few new clients, and there are also a couple of new services that I am offering as well.

Natalie @ Debt and the Girl writes Building my Brand in Freelance Writing – I consider myself extremely lucky. I have had this blog for over a year and its finally a place that it making money.

Alexa @ Single Moms Income writes How to Write a Blog Post in Twenty Minutes – As a freelance blogger one of your big income factors is your speed. If you charge $20 for a blog post and it takes you an hour to complete it you’ll only make $20 an hour. If you can complete two or more blog posts in an hour you’ll easily be able to make $40 an hour or more.

Harry Campbell @ The Four Hour Work Day writes “Unpaid Vacation vs. Regular Vacation “ – One of the perks of having a day job is getting paid when you go on vacation. Most companies start employees off by giving them 2 weeks of vacation plus holidays but that never seems to be enough. A lot of employers(especially in my field: engineering) are actually starting to give an extra week around Christmas time to New Years since not much work gets done during that time anyways. So that’s about 3-4 weeks of combined vacation and holidays for the average worker.

Sustainable PF @ Sustainable Personal Finance writes What Would You Do With a Financial Windfall? – As a freelance writer, I occasionally end up with what might be considered a windfall. A large project might fall in my lap, or a rush job that I can charge a premium for.

Tushar @ Earn More and Save writes 5 Ways to Earn Money on the Side – You’re busy. I get it. You want to earn extra money but don’t have enough time to dig through a pile of ideas to find the perfect one. Luckily, choosing a side job doesn’t have to be hard. You can and should do something you enjoy to bring in money on the side.

Bargain Babe @ BargainBabe.com writes Is Living at Home After College Better Than Paying Rent? – Is Living at Home After College Better Than Paying Rent? offers tips on saving money every day.

Dollar @ Easy Extra Dollar writes Start An Online Business – A successful an rewarding business can really be a dream, giving you both the ability to work from home and an income. However just like any other business, beginning an online business that will show success is going to take some effort and planning.

Cat Alford @ Budget Blonde writes The Government Shutdown and The Extreme Importantance of Emergency Funds – If you’ve been reading my blog for a few years, you might know that I was a United States park ranger before I moved to Grenada. I was an interpretive ranger, which meant that I worked at numerous sites around Richmond, Virginia creating history programs and giving battlefield tours. It was really awesome.

Saving and Simple Living

Don @ MoneySmartGuides writes Saving Money and Saving the Environment – Regardless of whether you feel that the global warming phenomenon is real or made up, you cannot argue that we throw away and waste a lot of stuff.

Marissa @ Finance Triggers writes Saving Money on Gluten Free Products – Gluten is wreaking havoc on diets these days. Most people think that this is a new trendy diet, and while it is not really a new ailment, but one that has been plaguing people for years.

Andrea @ So Over This writes 3 Tips for Saving Money on Your Internet – Anyone who pays for Internet knows how costly it can be to stay on top of the bills each month, especially in a society that leaves a lot of web surfing to be desired.

Bob @ Dwindling Debt writes Is there a Money Wasting Hole in your Budget? – The possibility that you have flaws or holes in your budget is actually quite high and, sort of like a leak under your sink that you do not know is there until you start smelling the stink of rotting plywood, you probably haven’t even noticed them.

Stuart Laing @ Daily Money Bucket writes The Easiest Way To Get Started Saving – Despite your best intentions, it’s really easy to delay the time when you start saving. So here’s the easiest way to get out of the rut and start saving.

Tushar Mathur @ Everything Finance writes Ideas for Cheap Halloween Costumes – Whether you’re thinking of putting together a cheap Halloween costume for your company potluck or needs some ideas for Halloween costumes for your children

Corey @ Steadfast Finances writes Money Doesn’t Grow On Trees: What to Do When You Need More Cash – It’s a horrible feeling when you’re short on cash but still have the household bills to pay. You’re probably starting to worry about how you are going to afford them, as skipping payments could cause irreparable damage to your credit rating. Unfortunately, money doesn’t grow on trees – but there are a few things you can do to get more cash and make it through your monthly bill cycle.

Connie @ Savvy With Saving writes How To Save At Starbucks – If I have one vice when it comes to money, it is coffee. While I try to be frugal, I still need my morning cup (or two) of coffee everyday.

Kurt @ Money Counselor writes Add $100,000 to Your Nest Egg AND Indulge Your Taste for Lattes! – I’ve discovered a way you can boost your nest egg by $100,000 over 40 years without denying yourself a single thing you can pay for with cash. A scam? Nope.

Mr.CBB @ canadianbudgetbinder writes Bust our Budget: September 2013 Budget update: Canadian Budget Binder Budget Spreadshee – Get a copy of our free excel budget spreadsheet that we use in the CBB family. Although a budget is not meant for everyone if you are serious about getting your finances back on track and want to use a simple budgeting system to get you there check this one out and see if it’s right for you. In September we spent more than we earned. Come find out why and how we handled the situation. Happy Budgeting.

Thank you for reading, have a great weekend!

-Jacob

***Photo courtesy of http://www.flickr.com/photos/zeevveez/8451896693/sizes/m/in

How to Save Money When Hiring a Tradesman For Your Home

The following article is by MPFJ staff writer, Miss T from Prairie Eco-Thrifter. If you want to learn how to live your dream life in a sustainable, healthy, and money savvy way, check out her site here.

I don’t know about you, but I find there are times when something breaks down around the house that is beyond my “handyperson” skills.

I mean, I think I’m pretty handy around the house when it comes to simple repairs and maintenance, but even I know when something is out of my league. An expert is needed when the job is difficult, needs tools I don’t have, or when the job is covered by law like electrical work. This is when you need to think about hiring a tradesman.

Tradesmen have, rightly or wrongly, earned a reputation for charging through the nose for just turning up. I remember several years ago when I hired a plumber for the first time, discovering that he charged more than my doctor! Anyway, whatever the reason people believe that tradesmen are expensive, when you need one, you don’t have a lot of choice. There are, however, several ways you can save money when hiring a tradesman and this is what we’ll look at here in this article.

First, Know When Hiring Someone is Required

Make sure you understand when a job demands more than your skills allow; it is going to cost you a whole lot more cash to fix your mistakes than it would have to have just hired the expert in the first place. Be realistic; know your limitations and hire the tradesman when necessary. Playing around with something you don’t fully understand like electricity, can be dangerous as well as expensive. Some renovation and repair work needs to be completed and signed off by a qualified person by law. You can save yourself time and money by hiring the professional to do the work.

Check Their Certifications

When looking for a tradesman, it’s really important to check their credentials. That friend of a mate’s neighbor might do electrical or plumbing work on the cheap but is he properly trained, qualified, insured and licensed? Never employ anyone who cannot show you their license. Always ask about the level of insurance they carry as well as what warranties and guarantees they offer. It can be really expensive having to fix up the bad workmanship of an unqualified tradesman. Always get any certificates of compliance that are needed for the work you have done, so that you are able to prove the work was carried out according to legal requirements.

Before you make the phone call to any tradesman, make sure you really do need one. Any licensed electrician can tell you of numerous occasions when they had been called to a home to fix something that wasn’t broken in the first place; and of course, they still want to be paid for the call-out. This is simply wasted money, so don’t get caught out like this.

Some of the most common unnecessary call-outs occur when a power socket was reported to have failed but it was actually the appliance plugged into it that was faulty; always check with a different appliance. If a light doesn’t turn on, check the bulb before calling an electrician. If all your power goes off, check the fuse box as it might just be a switch that needs flicking back on, or again, it might be a faulty appliance. If a toilet won’t flush, check that the faucet hasn’t been turned off. If you find a leak during a rain storm, check that the gutters aren’t blocked.

Get Written Quotes From Several Different Sources

The best way to save money when hiring a professional is to get quotes from different tradespeople. This ensures that you know exactly how much the job will cost you before work is started but also allows you to select the best person for the job, based on price. Common advice is to never go with the cheapest or the most expensive but to choose a quote from the middle of the range. This is why it’s a good idea to get at least three or four quotes for comparison.

Any quotes you get need to be in writing to be reliable and for you to be able to hold the tradesman to the quoted price. You also need to have an understanding of exactly what is covered by the quote to avoid any nasty little surprises at the end. Asking lots of questions will not only help to understand what is involved in the quote but can often also give you a better impression of how the tradesman works.

Hiring a tradesman can be fraught with problems and I’m sure you know of people who have horror stories to tell about their own experiences. By following these few tips on how to save money when you need to have a professional do some repair or maintenance work for you, you can be confident that you will get a good job while keeping cash in your pocket.

How about you all? Have you ever hired anyone to do work around your house? How did you make sure they were both reliable and affordable?

Share your experiences by commenting below! 

How To Make Extra Money As a Part-Time Tutor

The following is a post by MPFJ staff writer, Kevin Mercadante, who is a professional personal finance blogger, and the owner of his own personal finance blog, OutOfYourRut.com. He has backgrounds in both accounting and the mortgage industry.

If you need to make extra money, one of the best ways to do it is as a part-time tutor.

This is a business you can start that will require no upfront capital, in addition to the fact that it plays into your natural skills and talents.

The income that you can earn as a part-time tutor can be very generous too. Where I live, tutors who work with high school students charge anywhere from $30-$50 per hour. You wouldn’t have to work too many hours, in order to make a decent part-time paycheck with that kind of hourly rate.

What to teach

This is probably the single biggest obstacle to anyone who is considering tutoring. But, it is best resolved by choosing the subject were you have the most aptitude and interest.

Choose a subject where you are particularly strong. Math, science, and writing seem to be the perennial favorites. In fact, there will be a stream of students that you can tutor in those subjects. Others include foreign language, history and even certain specialty subjects.

Music is another popular subject area for students. This can involve everything from singing to the various musical instruments. If you have any talent with a particular instrument, you can tutor students who are learning to play, and need help beyond the training they are getting in school.

Moving beyond academic subjects

When it comes to tutoring, don’t think strictly in terms of school-age students. There are adults looking for training in a variety of different subjects. Many adults learn better in a one-on-one situation, than in a group setting like a classroom. And they will be willing to pay you to provide that one-on-one training.

Subject areas can be vocational. If you can teach business topics, like bookkeeping, administration, bill collecting, basic computer usage, public speaking, sales, and the various popular software programs for business, you may find clientele in the business world.

There can also be a market for personal tutoring. Teaching English as a second language is one very large possibility. An entire industry is building up based on this very subject. You can also teach a foreign language that you know – French, Spanish, Korean, German, or any one of a number of Asian languages.

Music and musical instruments are another area where you can become a tutor for adults. Many adults begin learning a musical instrument late in life, and need someone to work with them closely in order to master it.

What to charge

Earlier, I provided the pay range for tutors in my area, but you’ll have to test your local market to determine exactly what the range is. Check websites for tutors in your area, as well as the classified ads and Craigslist. You may have to call in on some ads in order to find out what their rates are, as many will not list them in the ad itself.

You can also check with local schools and ask for flyers that could provide more information. Once again, it will be worth making a few phone calls speaking to tutors themselves to find specifically what they charge and also what services they provide.

Where to find clients

If you are looking to tutor students, finding clients can be as easy as contacting the schools in your area. Decide what age group you will specialize in – elementary school students, high school students, or even college students. Contact each of those schools to let them know you are available for tutoring. Prepare a one-page flyer that will explain your services, and even your rates. You may decide to leave your rates out, and have the issue discussed when a prospective student calls you.

If you’re going to tutor in the adult/business market, finding clients will be more complicated. Definitely advertise on Craigslist – the ads are free, and a lot of people go to that site now that local newspaper classified advertising is fast disappearing.

You may also want to create flyers that you can place in senior citizen centers, grocery stores, Laundromats, apartment complexes or anywhere that will allow you to post them. If you’re looking specifically to provide services for businesses, you may have to find a way to contact them directly. This may mean contacting them through their websites, or even calling to offer your services.

If you are prepared to invest some money on the marketing side, you can even do a direct mail campaign. Mail your flyer out to businesses in your area that are likely to need your services. It will cost you for stationary and postage, but you will be approaching a very specialized market with a relatively high level of response.

Converting it to a full-time venture

If you can begin building a business as a tutor on a part-time basis, there really is potential to convert it into a full-time venture. This can be particularly true if you can tutor into a business niche. It’s often just a matter of finding enough clients, and increasing the number of billable hours that you spend each month tutoring.

Once you get your marketing going, you can begin getting a substantial amount of referral business if clients are satisfied with your work. Between continued marketing efforts and ongoing referrals, you may be able get enough business to start doing it full-time. And since the marketing will be running essentially on automatic pilot, you’ll be free to perfect your craft as a tutor, and to concentrate your efforts in giving the best performance that you can. That will lead to still more referrals.

Not everyone is cut out to be a full-time teacher in a school, but many people have the qualifications and talent to become a personal coach – which is really what a tutor is.
If you have a passion for being a tutor, jump in and get started. Push it hard, and you could be launching an entirely new career for yourself, as well as a business venture that would give you much greater control of both your time and your income.

How about you all? Have you ever considered tutoring as a business venture?

Share your experiences by commenting below! 

***Photo courtesy of http://www.flickr.com/photos/tulanesally/3349979270/

Why I’m Renting For 10 More Years

The following post is by MPFJ staff writer, Catherine Alford. Cat is a freelance personal finance writer who blogs at www.BudgetBlonde.com. 

All around me, friends and family members who are my age are buying houses, but there’s just no way I’m ready for that yet. I’m actually a little bit jealous of them because houses mean putting down roots and getting nice and settled in life.

However, even though I’m craving some stability, I would never take back the experiences I’ve had over the past two years. Moving to the Caribbean was the opportunity of a lifetime, and it’s completely changed my life in more ways than one. Now that this journey is coming to a close, it’s time to look towards the future, leave the apartment we’ve called home for so long, and move on to a different life.

However, we are definitely still going to rent, probably for about 10 more years, and here’s why:

1.    We’re Moving Too Much

Like I said previously, in just a few months, my husband and I are moving back to the United States. Then, a few months after that, we are moving to a totally new city. We have no idea what that city that will be, but his medical school will notify us 4 weeks ahead of the move date. We’ll live in that city for two years, and then my husband will do residency interviews. Again, we won’t know where we’ll be living until match day (where 4^th year medical school students find out where they will be completing their residencies.) Then, we’ll move again for 3-4 more years and possibly again if my husband wants to do a fellowship.

Not only is that a crazy amount of school and training, but it’s a lot of moving. The housing market, although it’s getting stronger, is still to delicate for me to be interested in making an investment and hoping to sell in just two years. Even during the height of the real estate boom, houses still needed a few years to really, truly appreciate enough to make a profit.

2.    We Want to Make a Huge Down Payment

When I buy a house, I want it to be a really comfortable financial decision. I don’t want to agonize over closing costs or fixing a water heater or buying a new roof. I want to have enough money saved to put more than 20% down. Also, I do not want to take out such an enormous loan without a massive savings account that’s there for emergencies.

Plus, if you think about it, we’ve already purchased a big, imaginary house with my husband’s medical school loans, and we’re really going to have to concentrate on paying off the $300,000+ that we’ve accrued. While some people will pay off mortgages at that price, we have to pay off my husband’s education before even thinking about taking out an amount that big again.

3.    Landlords Handle the Difficult Tasks

Being married to someone in the medical field is much like being married to a police officer or a firefighter. Their schedules are crazy and hard to predict. If there is something that needs to be fixed in the house, chances are my husband won’t be able to help me. For that reason, it’s extremely convenient to rent because a landlord is responsible for all of the big repairs. Sure, we are helping them build their investment without making one of our own. However, they would be giving us much needed peace of mind, something that we desperately need during this hectic time in our lives.

4.    It Makes It Easy To Explore & Move

Even though there are many downsides to moving constantly, it can also be fun and exciting. Renting, although there are contracts, is much less permanent than buying a home. If a new work opportunity came up or my husband wanted to do a fellowship across the country, we could pick up and do that. In many ways, I feel like owning a home weighs you down and prevents you from freely pursing many opportunities. I’m sure there is a great feeling of ownership when you have a piece of Earth to call your own, but for right now, I’m craving the ease and flexibility of a rental.

I truly hope to be a homeowner one day, even though it will be many years down the road. Still, I look forward to finally picking the city that we’ll call home for many years and either finding or building our dream home. I’m still a little jealous of the path that many of my friends have taken in terms of home ownership. Yet, even though their path looks nice and safe, I’m also kind of enjoying my bumpy ride.

How about you all? Do you currently rent? Or, if you are a homeowner, what are some things that you love and hate about it?

Share your experiences by commenting below! 

***Photo courtesy of http://www.flickr.com/photos/csessums/4589510413/

$109.82 Giveaway – Community and Charity 10% Monthly Blog Income Give Back # 25 – October 2013 Edition

The 10% give back giveaway fun rolls on for the month of October!

In case you missed the first 24 editions of the 10% Blog Income Give Back, after doing some thinking at the beginning of October 2011 about what direction I want this blog to grow and evolve towards in the future, I decided that any income made from this blog would have more significance to me at a personal life values level if I knew that a portion were being given back to the following places:

• 1) The readers – Obviously, without you here to read my articles and interact with my ideas, there would be no blog in the first place (let alone blog income). As such, it is only fitting that you receive a portion of any blog income.
• 2) Charitable organizations – If you’ve read my blog before, you know that I’m a big believer in donating a portion of my money to charity. Each year, I donate between 5-10% of my income to the National Multiple Sclerosis Society as part of the Bike for MS fundraiser that I do. Beyond the good that is done by donating your money, getting used to contributing to charity is also a good practice to emulate the actions of affluent individuals (T. Harv Eker discusses this in his book, Secrets of the Millionaire Mind, which I would definitely recommend reading if you have a few hours).

Because of these considerations, I’ve decided that each month going forward, I’m going to give away 10% of my net (after-tax) blogging income/profit to My Personal Finance Journey readers (5%) and to charity (5%). Listed below is how the process will work:

• After each calendar month passes, I’ll tally up my net blog income and determine what Dollar value correlates to 10%.
• I’ll post the giveaway (similar to this post you’re reading now), and you’ll have approximately 2-3+ weeks to enter.
• Once the giveaway is over, a grand prize winner will be announced, and that winner will then select what charity they’d like to have 5% of my blog income sent to. Once the giveaway entry window ends, I’ll send out the money to the blog reader winner(s) and personally drop off the charity donation, if possible.
• So far, I’ve been very happy with the success of the October 2011 – September 2013 give backs. Listed below is a summary of what we’ve accomplished so far with the give backs.
  • Current total given to charity = $2,218
  • Current total given to blog readers = $947 

Details of October 2013 10% Blog Income Giveaway

How to Enter the Giveaway – Deadline to Enter is 11:59 PM, October 31st, 2013

Like previous months, I’ve decided to use the RaffleCopter giveaway management tool to handle sign-up facilitation for this giveaway, so simply go through the steps listed in the widget below to enter the running for the prize and accumulate entry points.

There is no limit to the amount of points you can earn. If you refer 10 subscribers – your name will have accumulated 170 entry points! Or, if you link to the giveaway more than once, you can accumulate those 10 entry points multiple times. You can also retweet the giveaway and/or share other My Personal Finance Journey articles via social media sites once per day. In the event of a tie, I will be using a random number generator to select the winner.

Important instructions: After you complete an entry method, make sure to click and fill out the “I Did This” or “Enter” button in the widget so that I have a record of your points.

a Rafflecopter giveaway

Remember, the deadline for entries will end at 11:59 PM, October 31st, 2013 (a little over 3 weeks from today – the start of the give back). Good luck to you all! Please contact me if you have any questions. After the deadline for entries passes, the winner (one with the most points accumulated) will be contacted via email to receive their prize.

How to Save Money With the Heating and Cooling of Your Home

The following article is by MPFJ staff writer, Miss T from Prairie Eco-Thrifter. If you want to learn how to live your dream life in a sustainable, healthy, and money savvy way, check out her site here.

Did you know that heating and cooling your home takes more energy than other household systems and accounts for between 45 and 55 percent of your utility bills, on average? This means that it’s an area where you could be able to save some money and often all that is needed is just a few simple strategies or changes put in place.

I’ve found that the simpler something is to use, the easier it is to set and forget, and this applies to many of the methods we use these days to heat and cool our homes. I mean, back in the days when the only form of home heating was a wood fire, you had to keep loading in those logs or the fire would go out and the warmth would go with it! This meant that you were very aware of just how much energy was being used, especially if you were the one chopping the wood!

The Whole-House Approach

The trick to saving money with heating and cooling in the home is to adopt a ‘whole-house’ approach. It is simply not effective to just focus on one room or area of the house; it is important to think of the building as one entity. It is possible to enjoy a saving in cash, as well as those nasty environmental emissions, of between 20 and 50 percent.

Don’t Forget to Optimize the Thermostat

The simplest strategy, and one you have probably heard before, is to adjust the thermostat that controls the temperature in the house. Just by lowering it 2 or 3 degrees in winter and raising it the same amount in summer will quickly show up as savings in next your utility bill. Now, I don’t like sitting around the house feeling cold in winter or sweltering in summer, but I’ve implemented this strategy and truly haven’t noticed much difference.

The thing is, you probably won’t even notice those few degrees’ difference either, on most days. In winter, if you are feeling a little cool, go add another layer of clothing; you really don’t need to be sitting around the house in short sleeves anyway. In summer, if you’re feeling a bit warm, grab a cool drink with loads of ice to help cool yourself down. These are much cheaper options than fiddling with that thermostat.

There are times when you don’t need to have the house cooling or warming to the extent that you do when everyone is home and hanging out. The ambient temperature at night certainly doesn’t need to very warm because everyone is snuggled up in their nice warm cozy beds. Save money by setting the thermostat lower during the night and set the timer to raise the temperature an hour before the first person gets up in the morning and an hour before the last person usually goes to bed at night. You will be amazed at the savings just this one simple strategy will achieve.

Likewise, when there is no one home during the day, the empty house certainly doesn’t need to be as warm as when people are home. Again, set the timer to reduce the heat before the last person leaves and to raise the temperature about an hour before the first person in the household is expected home. If you have pets indoors during the day, buy them a coat to keep them warm. Always use the ‘auto’ setting rather than the ‘on’ setting; this allows the appliance to cut in and out to maintain the set temperature, so there are times when it isn’t using power. The ‘on’ setting keeps the unit working constantly, obviously using much more power.

Keep Up With Appliance Maintenance

Air conditioners and furnaces have filters to keep the air clean and these get pretty dirty from time to time. Mark a date on the calendar to clean the filters every month and you will again notice a big saving off your power bills. The appliance has to work harder, using more power, when the filters are clogged and dirty.

Make sure that all the supply and return vents, baseboard heaters and warm air registers are clear and are not blocked by carpeting, furniture, drapes or anything else. Allow a free-flow of warm or cool air into and around the room to get the full benefit, with the least input of power. Don’t shut off vents to some rooms as this actually causes the unit to work harder, using extra power in doing so. When using exhaust fans in either the bathroom or the kitchen, make sure you turn them off after you have finished. Leaving them running unnecessarily is just wasted money.

Drapes / Window Dressings Are Your Friends!

A couple of years ago we fitted heavy drapes in our house, on all the windows that face south. During winter, they are open during the warmest daylight hours to let the warmth of the sun in and closed from mid-afternoon to morning to help maintain the warmth indoors. In summer, we keep them closed when the sun is on that wall of the house but open them late in the afternoon, as well as the windows, to catch the cool afternoon and evening breezes we are lucky enough to get here. We have had two winters and one summer since the drapes were fitted and the difference in our power usage was incredible. The savings have already paid for some of the drapes!

Buy Energy-Efficient Appliances

When you need to replace heating and cooling appliances, look for the most energy-efficient models that suit your purpose. These days it is quite easy to compare different models with the Energy Star rating system. These few simple strategies will really help you save money with the heating and cooling of your home and your household will also be helping the planet.

How about you all?

Share your experiences by commenting below! 

***Image courtesy of http://prairieecothrifter.com/wp-content/uploads/2013/08/iStock_000019284584XSmall-300×193.jpg