Do Your Homework on Health Insurance

I'm starting a new job in a few months, so health insurance will be a big question to tackle. Here are some of my thoughts on the subject.

Right now we use private health insurance. We have a pretty good policy, but we still have a yearly deductible, copays, and coinsurance. Plus, some of our benefits are somewhat limited.

The company I'm going to work for has a group policy from precisely the same insurer. The big question is whether that policy is better (and/or cheaper) than our current policy.

The company's policy has lower copays, no yearly deductible, and more thorough benefits. However, it will cost us more per month in premiums (not to mention what it will cost the company).

Which is better/cheaper?

What I plan to do is make a spreadsheet that calculates different health care costs that we've paid in the past couple of years. Luckily, we track our expenses with Microsoft Money, so this should be relatively easy. Then I will add in the cost of our current health insurance. This will show the current total cost of health care for us.

Then I will do the same kind-of calculations, trying to project our future health care costs. Our insurance premiums would be higher, but some out-of-pocket costs would be lower. That will tell me what it would cost us to change to the company's group insurance policy.

In the end, I'm hoping that one plan or the other comes out the clear winner. That should make it an easy choice to decide whether or not to switch to the company's policy. I'll definitely be posting the results here, so be sure to check back. I'll also post the template I use to calculate this, so you can try it yourself, if needed.

Learn About the "Seller's Gift" for Buying a Home

Are you thinking about buying a home? Having trouble with cash for closing?

You should check out this website. It's just a 29-year-old guy explaining how he bought his home in Texas with only $70 cash. Well, he actually wrote checks for a few hundred dollars right before the closing, but he got a check in return at closing for everything but $70.

The secret: the seller's gift. Basically, he asked the seller to give him $4,000 to cover closing costs. This money is then rolled into the mortgage, and he didn't have to come up with all that cash at closing. Neat, right?

I think this is the same type of thing that people do for improvements to homes they buy. I believe it's akin to a "carpet allowance" or something of that nature. Basically, you finance the house + the extra "gift." The buyer then can do what he wants with that money. In this case, the guy used it for closing costs.

Take the Bus to Save Money

Does your community have a bus system? What about the local university?

I'm lucky enough to live in a town with two bus systems: one run by the city, and the other run by the university. This means that almost anywhere you want to go can be accessed by bus (and a little leg power).

Why do I bring this up? Because taking the bus can save you some serious money.

Think about all the costs associated with owning a car (or two, or three!). You pay for the car, plus insurance, maintenance, gas, taxes, registration, etc. This adds up significantly. Even for a cheap car and low insurance rates, the total cost can easily add up to $300+ per month!

What would your life be like if you did away with one car? Could you share a car with your spouse? If your city has a bus system, you can easily use that. Not a problem, right?

So do yourself a favor and check into public transportation. Your wallet will thank you.

Check for Student Discounts

I live in a college town. Several of the grocery stores in town offer a 5% discount, with a student ID. Thus, we basically don't pay sales tax on our groceries. Cool, right?

Have you ever checked into discounts like this? You might be surprised what you can find. Some stores may not publicize them, but would give them when asked. So ask.

At our grocery store you have to link your student ID to your store loyalty card. I guess this makes it easier for them to track. But it also makes it easier for us. I don't have to actually show my ID any more. And my wife gets the discount when she's alone too.

Save Money at Union Station

Do you ever travel to Union Station in Washington, DC? Want to save some money?

Just go to the Union Station website and print out this coupon. It allows you to save 15% at select retailers and dining places. I don't see a limitation to the coupon, so you could probably even use it every day. At the very least, it could save a little off a quick meal on your trip through the place. Why not give it a try?

Get DVDs for FREE

If you're looking for free DVDs, check out redbox. These are the big red boxes that you might see in McDonald's, your local grocery store or drug store. They let you rent newly released DVDs for $1 per night.

So how do you get one for free? The key is to visit Inside Redbox and check out their free redbox codes. Yep, they list tons of free codes. Go to the redbox, select the DVD you want, enter your promo code, and you'll get a free night's rental. If you bring the DVD back before 7 PM the next day, you'll owe nothing.

Ok, here's disclosure for you: I got paid nothing for this post. But I tried this out myself the other day, and I got to watch a newly released DVD for free. It was awesome. Just be sure to return it on time, or they'll start charging $1 per night after the first day.

Sell Your Old Stuff on eBay

One classic problem that everybody has is too much stuff. It fills up your drawers, your cabinets, and your closets. But what to do with it?

Sell it on eBay.

We just cleaned out a closet and sold a few miscellaneous items. We cleared $100 (after taking out shipping costs) with our old stuff. Cool, right?

Here's what to do:

1. Find an item (or set of items) to sell.
2. Photograph it well (several pictures, if needed).
3. Pack it up in a box for shipping.
4. Create an eBay account (if you don't have on already).
5. Add your item, using the size & weight of the box to estimate shipping costs for buyers.
6. Sit back & wait for the bids to roll in.
7. Once the auction is done, get paid by the seller (PayPal is easiest).
8. After payment, ship the item out.

Come on, you can't tell me this isn't easy. OK, so it's intimidating at first. But I guarantee you'll get the hang of it.