Five Costs You Should Not Cut
Are you looking for ways to trim expenses? There are a lot of different
reasons to be worried about money and spending these days. Cutting back on
unnecessary outlays is always a good idea, but make sure you don’t chop out
important budget items in the process. The Iowa Society of Certified Public
Accountants explains which costs should not be cut.
Hold on to Health Insurance
Health care costs for individuals and families are skyrocketing, with
workers spending $1,600 more on average for premiums on family coverage than
they did 10 years ago. Whether you work for a company that offers employee
health care coverage or you pay for your own insurance, you have likely seen
your out-of-pocket costs rising steadily in recent years. If you and your
family are in good health now, you may be tempted to cut back on this
expense, but don’t do it. It’s impossible to know when a medical emergency
may strike, and having insurance ensures that you or a family member will
receive proper care that does not bust your budget.
Don’t Skip Prescription Drugs
The cost of prescription medications can take a big bite out of your monthly
budget, so many people are skipping some medicines or scaling back on
others. This can not only endanger your health, but also cost you more
later, if a treatable medical problems gets worse. Instead of skipping
doses, try other cost-cutting approaches, including asking your doctor or
pharmacist about cheaper generic alternatives. In addition, many drug
companies offer assistance programs for those who can’t afford their
medications. You can find out more information about them at
www.rxassist.org.
Keep up with Car Repairs
Just as it’s important to maintain your good health, it’s also wise to keep
your car working in top form. That’s because the money you spend now could
save you much more later. By getting a regular tune up you can prevent more
expensive problems from happening. Keeping your tires inflated properly, for
example, can cut down on fuel costs and help avoid accidents on slick roads.
The price of any number of preventive steps can actually be a good
investment.
Be True to Your Retirement Savings Routine
During tough times, should you be setting aside retirement savings that you
may not need for many years? The answer is a resounding yes. Even if you are
only able to put away a few dollars a week, that nest egg will grow over
time, and the more money you save, the more earnings potential you will have
if you invest wisely. Even though it may be a challenge to keep up with your
retirement savings now, it’s much easier to build your nest egg over time
than to do it in a hurry in the last few years before retirement.
Don’t Forget Emergency Savings
In addition to your retirement savings pool, it’s a good idea to save as
much as possible in a separate account for any potential emergency. If you
do lose your job during this recession or fail to get a loan for a car or
other necessary purchase because credit is tight, even a small amount of
back-up savings will come in handy.
Your CPA Can Help
If you have questions about reining in expenses or getting the most out of
your dollar, remember that your CPA can offer sound insights to assist you
in your decision making. Turn to him or her for advice on all your financial
questions. If you are looking for a CPA, go to
www.findanIowaCPA.com.
