Editor: Crass Cash

September is life insurance awareness month (yes there is such a thing). With that said there are two basic rules for life insurance in my non-professional opinion.  

1. Only buy life insurance if you have dependents.  This would mean that you have a wife or kids or an elderly relative that depends upon you for their lively hood.  What would happen to them if you died?  That's how you need to look at it.  If you don't have anybody effected by your death (financially that is) than you don't need it.  Note this also applies to people who have student loans that are co-signed by their parents. 

2. Only buy term life insurance.  It's been proven repeatedly that you can increase your net worth and flexibility by buying term life insurance and then taking the difference between that amount and whole life insurance and investing the rest.  Here's how it works:

term life insurance: $50 a month
whole life insurance: $450 a month
*this leaves you with a difference of $400 a month to invest with.   Take the $400 each month and invest it in ETFs for both domestic and international.  If you're within 10 years of retiring you should be putting it into bonds funds.  This assumes that you have the emotional stability to not sell when your portfolio drops by 50%.  If you don't, put it all into bond funds. 

Author: Andy Raybuck

Medical debt is one of the major reasons behind bankruptcy filings. If you despise bankruptcy from the core of your heart, then you only have one option, and that is to keep medical debts under control.

2015 has just begun. This year, promise yourself to keep your medical debts under control. Take prompt action when a sudden medical emergency takes place. Make sure your health care expenses don't burn your wallet like the previous years.
 
8 New year resolutions to reduce medical debts in 2015

Here are the 8 new year resolutions you can make to keep medical expenses as low as possible.

 1. Don't procrastinate. Take care of your medical bills as soon as you can.
Make a pledge to pay off medical bills as soon as you can. If it is not possible for you to clear your medical debts at once, then at least pay as much as you can. Your goal will be to stop hospitals from   sending bills to collection agencies. Remembers, if delinquent medical debts appear on your credit report, then your credit score will surely drop in 2015.

2. Let go of your ego and ask about the charity programs.
Several hospitals have financial aid or charity programs. Don't hesitate or feel embarrassed to ask about them. These programs can help to pay off medical debts fast. If the person at the front desk doesn't know anything about the financial aid, then contact the hospital's billing department.

3. Ask for a discount if it is that necessary. Negotiate hard.
When you don't qualify for financial aid, make sure you ask for a discount. Get in touch with the manager of patient accounts and find out if you qualify for a discount. If that too is not possible, then negotiate for an affordable repayment plan.

4. Eat healthy food, exercise and be hygienic.
The idea is to avoid meeting doctors and going to hospitals. And you can do that when you stay healthy and physically fit. Have a proper diet and exercise every morning. Stay in shape and be hygienic. A lot of diseases crop up from germs. Kill those germs and take proper care of your health to avoid medicines and medical debt.

5. Don't take treatment from an out-of-network provider.  
Health and wealth – both are precious to you. This is exactly why you have bought and renewed health insurance plans. Your insurer has already negotiated with the in-network providers so that you've to pay a small amount for treatment. So, when you get sick, make sure you receive treatment from in-network providers. Out-of-network providers will charge more for the same treatment.

6. Check your bill once. Don't rush to pay the bill instantly.
The billing department can make a mistake. So, before paying the medical bills, check and find out:
·       If your name, address and other contact details are fully correct.
·       If the amount they're charging is correct.
·       If the insurance information has been properly listed.
Have patience. It is difficult to get your money back once the bill has been repaid. So don't make that mistake.

7. Use your emergency savings fund to pay off your medical bills.
Whenever you're a dealing with a huge amount of medical debt, the first thing you need to do is use your emergency fund prudently. If you've not saved for your rainy days, then don't panic. Discuss your problem with your friends. Think about the innovative ways to deal with the situation in the best possible manner. Don't even think about using your credit cards to pay off medical bills. The accrued interest on the outstanding balance will increase your debt and ruin your credit. That will be a complete financial disaster.

8. Seek help from a debt relief organization when you feel helpless.
There is nothing to be ashamed of when you're unable to manage medical debts on your own. Search online and find out a good debt relief company. Explain your problem to the debt negotiators. They'll try to bring down your overall debt amount.

Make a resolution to not neglect your health and medical debts in 2015. Stay updated about the healthcare reforms and take right steps to take maximum advantage of them. Make sure you've a clear idea about your health insurance plans. Find out what's included and what's not. Sometimes, even smallest details cost you a lot of money on health care expenses. 

Editor: Crass Cash

Your 20s:
1. Save at least 10% of your income as soon as you get a job. 
2. Start a budget so that you can spend less than you make.
3. Start a Roth or Traditional IRA.
4. Start reading books about ETF investing.
5. Setup an Emergency Fund.  Make sure to have 6 months worth of expenses in readily available cash at all times. 

Your 30s:
1. Calculate how much you'll need in retirement. 
2. Adjust your savings rate to meet the amount that you'll need to retire.  
3. Get the right mixture of investments.  Start investing in bonds and learning about them. 
4. Make sure your credit report is squeaky clean. www.annualcreditreport.com
5. Get a non-commissioned professional insurance agent to look at your isurance needs. 
6. Do your estate planning and write up a will. 

Your 40s:
1. Diversify your investments: stocks, bonds, real estate
2. Setup your children's college savings plan, if you have no other debt than your mortgage. 
3. Keep your lifestyle in check.  You might be making the best money of your life, so don't let "lifestyle inflation" creep into your budget.  Live like you did when you were saving plenty of money. 

Your 50s: 
1. Look at paying off your mortgage and make sure you have no other debt. 
2. Check up on your projections and savings for having enough for retirement. 
3. Look at potentially getting long-term care insurance. 
4. Start transitioning your stock market assets to bond assets as the stock market hits new highs.  

Your 60s: 
1. Look to see how much Social Security is going to give you.  Don't rely on Social Security or a pension for your retirement.  But if you've made it to your 60s with it still being around you can now at least see how much they'll give you.  Treat this as your slush fund.  If you get it great, you can splurge, but if not you'll still be fine. 

*This is really just the tip of the iceberg as to what you really need to do, but it's a good start.  If you haven't done this then you need to get on the ball!