Posted: April 5th, 2012 | Author: Joe | Filed under: Lifestyle | Tags: Frugal Lifestyle, Insurance, Investing, Saving Money, spending, Tips | 5 Comments »
A recent stay at a “Boutique Country Hotel” got me thinking about the meaning of minimalism vs. simplicity and how they relate to personal finance.
It all began with our hotel room. It was a renovated riverside hotel from the 1800′s, with a curious mix of old and modern. The floor boards were the wide, plank floor boards common in 19th century construction, while the bathroom featured a state of the art Jacuzzi.
This is what our shower looked like, only ours had no shower head.
The decor was sparse, yet modern too. There was a flat panel television and one piece of post-modern art on the wall that consisted of one-quarter of an old tire, a piece of chicken wire mesh, and various other castaway everyday items all fused together in a loosely triangular shape and painted black.
But what really made an impression was the shower.
It was a standing rectangle large enough for a single person and was comprised of an Italian marble wall on two sides, and glass on the remaining two sides. It was, quite simply, a beautiful shower and elegant in its minimalism. Until I tried to use it, that is.
Once I stepped inside I realized just how minimal the design truly was. There was no shelf for holding soap or shampoo, and the faucet control only turned one way, from lukewarm to hot. There was also no showerhead. The water simply fell from a perforated plate in the ceiling. I had no place to stand out of the way of the water to lather with soap or shampoo.
It was at this point that I thought, minimalism is one thing, but what good is it if it’s not useful too?
This is when I realized I really favor simplicity over minimalism. Our modern lives have become so clutter and full or noise and distraction that there truly is a psychological benefit from simplify our lives. There’s also a financial benefit too.
Here are a few financial benefits to simplifying your life.
- One retirement account means less fees and less time spent managing various options. It also means that all your available funds are better focused, which magnifies the effect of compounding interest and dividends.
- Fewer retirement funds in a single retirement account means even less time managing the account, less fees and more focused returned.
- Fewer savings and checking accounts means less overhead and time in managing them and keeping track of your money. It also means your money is more focused and earning even more compound interest.
- Rolling all your insurance needs into one provider makes tracking your policies easier, and usually gives you a multi-policy discount on the premiums.
Are you sensing a theme here?
Generally speaking, simplifying your life makes you more efficient and frees up more time to do what you love.
Many people seem to be focusing on minimizing their lifestyle, standard of living, etc.. but that may be missing the point. I think it’s far better to streamline and simplify your life – make it easier to do the things you really want – than it is to simply downgrade your life.
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Posted: March 21st, 2012 | Author: Joe | Filed under: Insurance | Tags: How To, Insurance, pet care, pet insurance, save money, Tips | No Comments »
As discussed in previous posts, the availability of pet insurance provides pet owners with options that were previously reserved for only humans, but such options can come at significant cost.
If you’re like me, and think a pet is a wonderful thing but you prefer to not live a life of debt for him, here are some tips for limiting the vet bill while skipping the insurance.
Seek out low-cost vet clinics for routine shots. Many vets offer them once or twice per year. You can also call your local chapter of the The Humane Society of the United States. You may even get information from your local animal control department.
Get a second opinion for non-emergency conditions. You might even want to check out the Merck Veterinary Manual online for detail about your pet’s condition and treatment possibilities.
When it comes to medication, shop around and ask for samples. Many vets have small, sample size packs of medication that may suit your pet’s need, or at least cut down on the total bill. Also check around on the Internet at sites like Discount Pet Medicines.
Don’t ignore long-term factors either. Cutting costs today on cheap pet food can mean big bills down the road. I had a cat when I was younger who went into full blown kidney failure on a Friday. It being a weekend, our regular vet was closed which meant going to an animal hospital. (read “big money!”)
Anyway, it turns out that the cheap food we had been giving him for years was loaded with “fillers”, like clay. Over the years this led to kidney and urinary tract problems. All told, my parents spent close to 4 figures on that incident and the cat lived for another 8 years or so but we all could have saved a lot of time and money had we known to skip the cheap food.
Also, research breeds and pets before you decide. Dogs make twice as many trips to the vet as cats, and there are a host of chronic problems and hereditary diseases that plague specific breeds. At the very least, you should know what you’re getting into.
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Posted: March 19th, 2012 | Author: Joe | Filed under: Insurance | Tags: Insurance, pet insurance, tips How to | 2 Comments »
This is a great time to be a pet in America! Diagnostic procedures and treatments that were once available only to humans are now available to pets, and many once fatal conditions are now treatable. That’s the good news. The bad news is that it can be quite costly. This can present a bit of a dilemma for the pet owner. While a certain condition may once have been fatal, it left few options and less financial impact for the owner.
Now, the owner is often placed in the difficult position of placing a dollar amount on the life of their pet.
Americans spent $12.2 billion on veterinary care in 2009 alone, according to the American Pet Products Association (APPA). Insurers are advertising through with American Kennel Club and Petco Animal Supplies, and companies like Google and Office Depot provide pet coverage as an optional employee benefit.
Veterinary Pet Insurance, one of the oldest insurers, reported an average annual rate of revenue growth of 26.8% since 2008, and had $149 million in sales in 2007.
The cost of pet insurance over the life of the average pet can run as high as $6,000, but that’s a small price to pay for the peace of mind for many pet owners.
Deciding whether pet insurance makes sense for you is a personal decision. If you’re the type of person who sees your pet as an extension of yourself and an integral part of your family – one for which you would go to any cost (literally) to save, then pet insurance should be a consideration.
Here are some tips for buying the best pet insurance if you decide it’s the right move for you and your family.
Pet insurance comparison and shopping around.
Shopping around is a must, just like buying anything else – competition is your friend, when you’re the customer. Policy coverage and premiums can vary greatly, so look at the whole package and not just the premium.
Compare pet insurance policies by the following:
- monthly premium/annual cost
- deductibles
- coverage
- payout caps
- co-pays
Watch for payout caps that are limited by year or life of the pet. You could easily end up paying for a policy which you’ve already maxed out. That would leave you with no means to provide care for your pet and having to pay premiums – the worst of all possibilities.
Ask about multi-pet discounts.
Check with your employer to see if they offer any discounts or pet insurance as an employee benefit.
Pet insurers should also be registered with your state regulators, so you can check up on their legitimacy.
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Posted: March 13th, 2012 | Author: Joe | Filed under: Insurance, spending | Tags: Health insurance, Insurance, pet insurance, spending, Tips | 3 Comments »
I brought my cat in to see the vet a week ago, and since it was a new vet I had to fill out a form with relevant information regarding my pet. One thing that caught my eye was a space for pet insurance policy information. I had never considered it before, but this got me wondering:
Is pet insurance a good idea?
Treatments and diagnostic routines that were previously only available to humans are now available for pets. Conditions that were once fatal are now possible to treat, albeit at costs that run into the 1,000s.
The cost of Pet Insurance can be as high as $6,000 over the life of your pet, but chances are that you would never claim that much in reimbursement costs.
A few years back, my wife and I experienced our 1st financial tipping point which was triggered by a trip to the veterinary hospital for our cat. While that experience prompted us to take a long, hard look at our finances and eventually started us down the road of financial overhaul and debt-free living, we never once thought that health insurance for our pet was a solution.
After careful consideration of pet insurance this time around, we’re taking a pass on it but there may be cases where it makes financial sense. Here’s why it might make sense, and why it’s probably not worth the money.
When Pet Health Insurance Might be Worth it.
If your pet is at high risk to suffer from expensive diseases and the thought of having insurance gives you peace of mind, then you may sleep better at night knowing that you would be covered in such an event.
If that’s you, then you want to be absolutely sure you understand the terms and conditions of the policy and be positive you are getting the coverage you need.
Why Pet Health Insurance is Typically Not Worth the Cost.
Pet insurance is typically not the money saving proposition it seems once you factor in deductibles, co-pays and reimbursement caps. Pre-existing conditions and hereditary conditions are typically excluded from coverage. Some insurers do cover such things, but expect to pay a higher premium due to the increased likelihood of payout. Coverage for older pets carry higher premiums or are sometimes not available. Some insurers simply refuse to cover pets older than 9 years.
Read this cautionary tale from Wise Bread to see one case when pet health insurance is not really worth it.
If your pet is not a purebred, and not subject to an increased risk of serious and costly disease, then you are probably better off skipping the insurance, and saving the amount you would be putting toward a premium. Take that money and automatically save it every month in a savings account (such as the ING Direct savings account ). It will be like paying the premium but you get to keep any interest from the bank and in the very likely case that you wouldn’t file a claim, you get to keep the money too… perhaps for your next pet. Think long term. 
Bottom Line: Is Pet Insurance Right For You?
The choice of whether to purchase pet health insurance is a personal one. You have to determine just how far you are willing to go for your pet. If you’re the type of person who would “do anything” to save Fluffy – no matter what the cost – then you may seriously consider health insurance for your pet. This is especially true if the alternative is going into debt.
However, if you’re a more pragmatic sort of person who is willing to provide good, basic care for your pet but find yourself thinking, “it’s only a cat/dog, and he’s had a good life” when faced with the prospect of a 4 figure vet bill, then you’re best off by taking a pass on the pet insurance.
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