Master the Art of Saving

Everyone deserves the peace of mind that comes with access to an affordable health care coverage plan. Ironically the medical industry agrees as it turns out that not having medical insurance is officially against the law and now results in heavy fees. While affordable health care coverage does exist, understanding how much money you could stand to be charged might just be the motivation you need to start finding a plan. As of January 2016, you are now required to pay a variable amount of fees on your 2016 federal incomes tax filing as part of the penalty of not being covered. Here is a list of the most common fees you stand to bear if you don’t have medical insurance.

Circumstantial fees – If you fail to get yourself covered, fees can be calculated differently depending on your living situation. This can be calculated as a percentage of either your household annual income or a pre-determined amount for each individual in your household that is not covered with insurance. Thus, lower income families with few children will not be hit as hard as their wealthier counter parts. As you file your income taxes, you’ll be required to pay a fee if you went over 3 months despite having the funds. Visit “HealthCare.gov” to estimate your particular fee.

The Fee has risen – The fee for 2016 has risen by over 100% since 2015, from 325$ per person to 695$ per person. For families with a low income, this difference could be highly significant, so it is worth it to make sure you avoid this unnecessary cost. However, if 2.5% of your income exceeds 695$, you’ll end up paying that amount instead. Thus, your income is what will decide your fee above all else.

Time counts – Fees are calculated on a month by month basis. Thus, the more months you go without health coverage of any form, the more you can expect to pay with respect to the maximum amount. It is important that you make sure each member of your family is covered as there are no exceptions to the law unless you have mitigating circumstances.

Exemptions are available for some – Those with especially low incomes or other mitigating circumstances can be eligible for exemptions. However, it is never worth it to assume that you qualify without doing the due diligence. Check with “HealthCare.gov” to find out whether you truly do qualify to not pay the fee, and to be sure you may want to speak with a representative over the phone.

Sign up ASAP – The new law has been in effect since January 31^st of 2016. So if you haven’t signed up for a coverage plan yet, you best begin now before you start accruing even higher fees. Before heading to “Healthcare.gov” however, you may want to shop around for the best dental insurance plans. Combining overall health insurance and dental insurance is one fast growing method of saving big. Some private coverage plans include dental insurance as part of an all-inclusive plan. If you have children, this can be a hugely important financial move.

If you are new to the world of personal money management, then you have probably turned to online resources (like this one!) for ideas about how to write your budget. Looking at sample budgets can be highly informative, especially if you have no idea what you are doing. However, it is important to be aware that the sample budgets you see on websites might not be realistic for your circumstances.
There are two reasons for this. The first is that your income may be quite different from those used in sample budgets. The second reason is that certain expenses look very different depending on where you live. Here are three expense categories that are heavily influenced by location.

1. Groceries

Geographic location plays a significant role in determining the prices that grocery stores assign to their items. Supermarkets in suburban areas tend to have lower prices than the markets and bodegas common in cities. This is partially due to the fact that larger stores can often get greater discounts from distributors than smaller stores can. When you write your budget, pay attention both to what your family eats and to the average price of food in your area.

2. Homeowner’s Insurance

Depending on where you live, the available home insurance plans and their respective costs vary greatly. Insurance agencies calculate rates based on the likelihood of damage being caused by weather and crime, as well as by how much it would cost to rebuild after damage. That means if you live in a hurricane-prone area, it is likely to be reflected in your insurance rates.
However, you do not have to be resigned to paying an arm and a leg just to have coverage. Contact a local insurance agency to find out how rates are determined in your area, as well as how you can customize your plan to get the best fit for your family. Local agents are well-equipped to help you since they are familiar with your area’s unique attributes. If you can negotiate a lower rate, your budget will thank you.

3. Transportation

No matter where you live, you need to get around somehow. For some people, getting from Point A to Point B is as easy as lacing up their tennis shoes or hopping on a bicycle. For others, it requires a hardworking vehicle and lots of gasoline.
When you write your budget, you need to consider your modes of transportation and how much they cost. A commuter in Los Angeles, CA might pay almost twice as much for gasoline as a commuter in Harrisburg, PA. Someone who walks to work every day but takes long car trips each weekend might ultimately incur higher transportation costs than someone who always takes the bus but generally sticks around town.
Budget for Your Place in Life
It is always helpful to keep in mind that your budget has to reflect your lifestyle, not someone else’s. Preexisting templates are useful for learning to budget, but you have to alter them to fit your needs. It takes a lot of trial and error to work out a system that works for your family, and locational differences are a major reason for that. Remember, no matter how many snags you hit along the way, having a budget is 100 percent worth it!