When you marry, there’s a lot to think about — and a lot on your mind. Sometimes, it’s easy to let some of the money stuff slide. However, this isn’t always the best idea. After all, things change once you say “I do.” Here are 5 money things to think about when you marry:

1. Beneficiaries

It is important to understand that who you have designated as your beneficiary on a life insurance policy or retirement account matters. A lot. Indeed, your listed beneficiary supersedes whatever you have in your will. That means that, even if you make a will naming your spouse as your sole “heir,” if you haven’t changed the beneficiary information, your spouse won’t get your assets. The first thing you need to do is change your beneficiary information if you want your spouse to inherit your accounts.

2. Double-Check Retirement Account Contribution Eligibility

If you have been contributing to a Roth IRA, you need to understand that there are limits to your income. Once you make a certain amount of money, you can no longer contribute. If your combined income puts you above the limit, you have to stop contributing to your Roth IRA.

Also, realize that you can’t take the student loan interest tax deduction if you have a certain combined income. You’ll want to check on that as well.

3. Tax Withholding

Figure out what your new tax withholding should be, now that there are two of you and an extra exemption. You don’t want too much withheld, because you don’t want to give the government a big interest-free loan. However, you also don’t want to withhold too little and end up owing. The IRS offers a great withholding calculator to help you out.

4. Insurance

Double check your insurance policies as well. You can choose to get insurance benefits from one or the other of you if you have a job. You can also go with a co-insurance option. Consider what’s available to you, and explore your options. You might want to combine benefits, or it might make sense to keep them separate, depending on the plans offered by your respective employers.

You should also consider life insurance. You should each have life insurance now so that your spouse is protected if you die (and you are protected if your spouse passes on). Consider disability insurance as well, if you think that you are at risk for a financial setback due to an inability to work.

5. Debt Repayment

If you are keeping your money mostly separate, it might not be so important to come up with a joint debt repayment plan. However, if you are combining your finances, you need to revamp your debt plan. Now, you have other debts to consider. All the debt should be on the table, and you should work together to come up with a plan to pay it down as quickly as possible.

With honesty and communication, it should be possible for you to start your married life off on the right financial foot. But you do need to talk to each other and come with a joint plan of action.

Once again, concerns about the viability of the U.S. dollar are on the rise. And, indeed, worries that the financial system could be in trouble are plaguing many. As a result, there has been a move toward looking for ways to hedge against a possible fall for the U.S. dollar.

In some cases, there has been an increase in an interest in using local currencies. Some cities are introducing their own local legal tender for business transactions. The idea is to provide a currency that isn’t constantly being devalued by the Federal Reserve. But local currencies aren’t the only alternatives cropping up: Some states are toying with the idea of accepting gold and silver coins as currency — rather than relegating them to the status of collector items.

Gold and Silver as Currency

The State of Utah last year signed a law that recognized gold and silver coins (as long as they were U.S. Mint creations) as currency. Not only does this provide some individuals with another method of payment, but it also provides a tax break for some. In Utah, the coins are treated as U.S. dollars for tax purposed — getting rid of the capital gains tax that comes when you invest in physical gold. This is a big deal for some, since physical gold — other than jewelry — is taxed at the 28% capital gains rate for collectibles.

When using gold and silver as currency, each state decides how it wants to accept it as legal tender. While states (unlike localities) can’t create their own currencies, they can, under the Constitution, choose to allow “gold and silver Coin a Tender in Payment of Debts.” And more states are following Utah’s lead. In Utah, gold and silver can be considered in terms of their market value, based on the weight of the coin and the fineness of the materials. So, with gold above $1,700 an ounce, a one-once Gold Eagle coin is suddenly quite valuable when used in trade in Utah.

Hoarding Gold and Silver Coins

It is unlikely, though, that many people will suddenly begin carrying around pouches of gold and silver coins to make payment for the basics of life. Carrying around that sort loot can make you a target for thieves. Additionally, it is quite inconvenient. Instead, it is more likely that hoarding will be the method of choice. While the U.S. dollar and economic system remains intact, those concerned about what’s next are far more likely to hoard up the coins for use later.

However, if you are interested in buying gold and silver coins as an investment, you will need to be careful. The recent run-up in price for precious metals has led to a number of gold scams cropping up. You don’t want to be taken in by these scams. Before you purchase any coin, you need to make sure you are doing so from a reputable dealer. Understand the costs involved as well, since you will likely pay a premium. You can also buy these coins from the U.S. Mint.

As with all things in our society, norms and behavior for the job hunt change over time. This means that what employers expect from job candidates is different from what it was 10 or 15 years ago. And, with the influence of the recession, employers can afford to be picky. After all, there are hundreds of applicants for many jobs.

If you are searching for a job, you need to target that job. Gone are the days of mailing out generic resumes on special paper. Instead, you need to consider what the employer wants, and direct your efforts toward showing how you fit the profile. Here are some of the more modern tips for looking for a job:

Personalize Your Resume and Cover Letter

First of all, it’s better if you can find out the name of the person who is likely looking at your information. Most cover letters are written as emails, with resumes attached. As a result, there is a chance that you know the name of the person looking through the resumes. Using “Dear Sir or Madam” is no longer acceptable, and “To Whom It May Concern” is rapidly falling out of favor.

Tailor your resume and your cover letter to the employer. This means that you might need to alter both of these documents a little bit before you send them to prospective employers. Take a few minutes to adjust your resume and cover letter to reflect the company’s requirements before sending it off.

Illustrate Your Accomplishments

Instead of creating a long list of duties under each job heading, keep it short and to the point. Use action words to show what you have accomplished. “Saved the company 20%” and “Organized a social media marketing campaign that increased customer retention” look better than “assisted in quality assurance” and “worked on marketing projects.” Pick three or four accomplishments, and highlight them under each job title.

Use Keywords

Read the job description to find out what the employer is looking for. You can then identify keywords and phrases, and use them in your cover letter and resume. That way, you will be able to better show how closely you match the qualifications for the job.

It’s also worth noting that you can use such keywords in your social media profiles online. Many employers have started looking online for potential recruits, as well as using social media to screen job applicants. If you are conversant in your industry, and your social media profile reflects your interest and knowledge, it can support your resume.

Treat the Interview as a Business Conversation

You do want to know about the company, but shoving your hours of research in the face of the interviewer isn’t generally recommended. Instead, be knowledgeable, but have a business conversation. When invited to ask questions, ask relevant and insightful questions, and keep your answers concise and applicable. Show you are a good fit by letting them see your knowledge and abilities, without the need for you to explicitly mention all the effort you put in to research.

Understand the business side of things, and showing how you can contribute is very valuable these days. You can do that with a carefully crafted resume and cover letter, and by being ready for a job interview.

As of this writing, gold futures are very close to $1,700 an ounce. For gold bugs who think that gold can only go up, up, up, it is tempting to run out and invest. However, before you decide that the gold market is your ticket to wealth and happiness, it is important to think about the situation, and consider some of the realities associated with investing in gold.

Where Will You Keep It?

Your first issue is this: Where will you keep your gold? When you invest in gold stocks or gold ETFs, this isn’t much of an issue, since you aren’t buying physical gold. However, if you decide to invest in physical gold (watch out for scams), something needs to be done with that gold.

You can either have it shipped to you — incurring costs — and store it yourself in a safe or safety deposit box, or you can have someone else store it for you. There are a number of companies that will store gold for you, issuing you serial numbers for individual gold bars or issuing you a statement of how much gold you own in a pooled account. You will probably have to pay a storage fee when someone else keeps the money for you.

Tax Implications When You Sell

If you are investing in gold stocks, you don’t have to worry too much about the taxes. Gold stocks are treated just like any other stock — you are taxed at whatever capital gains (long-term or short-term) rate you qualify for. However, gold EFTs and physical gold are another story. Instead, you are taxed at the collectible capital gains rate, which is currently 28%.

For those who have jewelry, though, it is possible to sell without paying any taxes. It’s important to double check the tax implications of the gold you are investing in. If you see gains, and you want to profit from them, you need to know where you stand with taxes.

Is Gold in a Bubble?

Another question you have to ask yourself about investing in gold is whether or not you believe gold is in a bubble. There are some that believe that gold could plunge quite quickly — especially if the Federal Reserve decides to raise rates (unlikely given the recent pledge to keep rates low through 2014) and if the economy begins to recover. If gold is in a bubble, and if that bubble bursts, it could spell disaster for those counting on gold to reach $2,000 or even $2,500 an ounce.

Gold bugs, of course, believe that this is the “new normal” and that we will continue to see gains by gold. With the problems of economic instability around the world, and low interest rates possibly leading to high inflation (gold is often seen as a hedge against inflation), many think that gold can only go higher.

You have to decide what you think is likely to happen. Buying now may mean that you can make more if gold continues to rise, but if gold is in a bubble, you could see huge losses if the gold bubble bursts.

Bottom Line

Gold can be a helpful part of a diverse portfolio. However, it is important to understand the issues related to investing in gold so that you can go in with your eyes opened, and prepared for the risks that exist.

As a business owner, it’s important that you protect your assets as much as possible — and this often means insurance. It’s important to understand what insurance options are available to you, as well as understand the limitations to your personal insurance. This is especially important if you have a home business.

Do I Need Business Insurance if I Work from Home?

One of the first things you need to do is figure out whether or not your personal insurance policies will cover losses due to business activities, or cover business items. Check your policies. In some cases, your homeowner’s policy won’t cover damage to your home office. Some policies specifically exclude business supplies that you keep in your home.

Additionally, realize that a vehicle that you drive for business purposes might not be covered under your auto policy. You need to contact your insurance agent, or read the policy, so that you understand what, exactly, is covered.

Types of Insurance Business Owners Should Consider

Whether you run a home business, or whether you own a business that operates elsewhere, it’s important to make sure that your assets are protected. Consider your individual needs, and determine whether or not any of the following policies might be necessary in your situation:

• Business Owner’s Policy: This type of insurance policy is a blanket approach to coverage, including property and vehicle insurance, as well as liability and business interruption coverage. This bundled approach can, in some cases, be cheaper than buying several policies.
• General Liability: If you want protection in the event that your business causes damage to other property, or causes bodily injury. Even home-based business owners should consider this type of insurance.
• Worker’s Compensation: If you have W-2 employees, you need to have this type of insurance policy.
• Property Insurance: This insurance will protect your business property, from the building in which your business in housed, to office equipment. You can be protected from losses related to a number of situations.
• Commercial Auto: If your company has its own vehicles, this type of insurance is a must. It can help protect you from losses due to damage to the company vehicles. You can also get non-owned liability coverage if your employees are required to use their own cars for work activities.
• Business Interruption: If something happens that prevents your business from operating, this type of insurance policy can help. You can have your earnings protected, receiving payouts that can help you get back on your feet while you get your business going again.
• Errors and Omissions: Also called professional liability insurance, this type of insurance is aimed at helping protect you from losses due clients claiming that you failed to properly render professional services, or that or advice damaged them. Financial planners, lawyers, insurance agents, consultants, accountants, salon owners and others should all have professional liability insurance.

Consider your business, and the needs you have. You want to make sure that you are protected, and that your business will survive if things become difficult. With the right insurance policies, you can ensure that you are ready for almost anything.

There’s a lot of buzz right now about the release of Suze Orman’s Approved Card. This prepaid debit card has a lower monthly fee than most other prepaid debit cards, but it still charges you for accessing your own money, and charges a host of other fees besides.

One of the things that does make the Approved Card substantially different from other prepaid debit cards, though, is the fact that the information on your spending habits is going to be reported to TransUnion. While this is a great marketing move, and Orman is talking it up as part of her “revolution” to change the way credit is reported, in practical terms this report means nothing. The information sent on to TransUnion is going to be evaluated to see if such data could be useful in the future, but it won’t do anything for your credit score right now.

Prepaid Debit Cards Won’t Improve Your Credit Score

In recent years, with the proliferation of prepaid debit cards and prepaid credit cards, it can be easy to become misled and think that your prepaid debit card is going to help you improve your credit score. However, it’s important to understand the distinction. Your prepaid debit card is not a credit card product. Prepaid debit doesn’t require you to make regular payments. All you are doing is spending your own money.

If you are looking for a way to improve your bad credit score, and you can’t get credit through a bank or an unsecured credit card, you might want to consider a secured credit card. These are actual credit products, and your regular payments will be reported to the credit bureaus and help your credit score.

However, it’s vital that you not become confused when comparing these financial products. Prepaid debit cards and secured credit cards appear similar at first glance. They both operate as you expect plastic forms of payment to act, and they both require that you pay money up front to use the card. And both financial products charge fees.

When you sign up for one of these cards, you need to consider what you need it for, and you need to make sure that you understand the differences between the two cards. If you sign up for a prepaid debit card — no matter what sort of “anonymous data” is going to a credit bureau — it’s not going to help your credit score. It just isn’t. If you are trying to rebuild your credit, a prepaid debit card isn’t going to help. You’re just going to pay fees to access your own money.

Eventually, with good financial behavior, a secured credit card turns into an unsecured card. You can raise your limit, and get a card that will help your credit score even more. If your credit really is that bad, a secured credit card, though loaded with fees, can help you repair your credit and build a better history in a way that a prepaid debit card never could. No matter who’s shilling for it.

One thing that we discovered in 2011 is that the consumer is alive and kicking. Consumers forced Bank of America and other big financial institutions to roll back plans for a $5 monthly debit card use fees, and they made Bank Transfer Day a big success.

Big banks, which received federal aid even while sticking it to taxpayers with rising fees and less than favorable terms, are finding that consumers are a little more discriminating. With bank profits on the rise again, and consumers showing a level of pickiness in choosing where they will put their money, it looks like 2012 might be the year of perks.

Sign Up Bonuses

Sign up bonuses are back, especially with credit cards. Banks are offering credit card customers $100 and $200 for signing up for their credit cards. Some banks are even offering checking account bonuses for those who open new accounts. With customers abandoning ship in favor of smaller banks, the big banks are trying to lure new account holders.

Lower Loan Fees

Interest rates are at record lows right now, and banks want customers to come back in and borrow money. Mortgage rates are especially low, which makes refinancing particularly attractive. However, refinancing can be expensive, what with all the fees added on.

In order to encourage consumers to refinance, many banks are reducing their closing costs. Some are even waiving a refinancing fees so that you will choose them.

Less than Perfect Credit Required

Just after the financial crisis, banks tightened credit requirements. No one wanted to take a chance on a consumer that might default. However, a few years later, with signs of economic recovery showing through, and the savings rate a little higher, many banks are ready to take a bit of a chance.

Credit card offers are going out to those with less than perfect credit, and lending standards for other loans have also eased a bit.

Choosing the Best Bank for You

All of these efforts by the banks to woo consumers represent an opportunity for you. You can find access to the best perks and the best deals if you are willing to shop around. Indeed, some banks might even waive fees on your accounts if you are willing to stick with them. If you have multiple accounts at a financial institution you might be able to convince the bank to waive monthly fees or minimum balance requirements. It never hurts to ask.

In the end, you have the power. You are the customer. While banks do have the right to try and make money, you also have the right to vote with your wallet and take your business elsewhere. Consider the perks being offered, as well as the long-term costs/savings involved with moving your money. Make a decision based on what works best for you in terms of finances and in terms of convenience. Then, stick with the bank that promises to offer you the best value for your money — and creates less of a chance of putting you at risk for new fees.

Image source: Coolcaesar via Wikimedia Commons

The year is almost over. Tax season is just starting. As you gather your documentation, pull up the IRS web site, and prepare to fill out your tax return, take a few minutes to consider your situation and determine whether or not you might have someone else prepare your tax return.

Deciding to Turn Tax Prep Over to the Accountant

A few years ago, I switched from being a sole proprietor to setting up as a LLC. We’ve also, over the years, added investments and retirement accounts to our financial establishment. As a result, our taxes have become increasingly complicated. Back in the day, I did our taxes, filling out the 1040, the Schedule C and all the other Schedules and Forms required of our situation. But once we added the LLC, and I realized I would need to fill out a Form 1065 and a Schedule K-1 to go along with our other income tax forms, my heart sank.

Am I capable of doing it myself? Sure. Do I want to? Certainly not.

As our financial establishment began increasing in complexity, and because tax laws change each year, it became time consuming, even with the help of tax prep software, to put together my tax return. I decided to give the accountant a try. He immediately found three tax deductions and one credit that I had missed — even with the help of tax software.

On top of that, he made everything go much smoother. He was able to prepare my return fairly quickly, while I sat there, and he ran a few different scenarios that we could try with my taxes in order to see what might work best. The accountant does cost about $200 more than the home and business (plus state filing) tax prep software, but he more than makes up for it with the tax savings. And it saves me time and frustration.

What You Need to Bring to Your Accountant

The biggest hassle when figuring your taxes is gathering all the documentation for your tax deductions and credits, as well as for income. However, if you do this throughout the year, it really doesn’t take too long. I keep a separate folder for all my tax-related receipts, and my personal finance software helps keep track of everything else. I keep all of my 1099s, and the forms mailed in from my mortgage lender and my husband’s school, in a folder to take in with me. It’s all ready to go, so it doesn’t take very long to assemble.

Some might say that, since it doesn’t take me long to get together my documentation, I might as well do my taxes on my own, since the hardest part is over. But, for me, that’s not the hard part. I hate taking the time to fill out the forms, and I hate comparing the instructions from the IRS with what I’ve done, as well as double checking the tax software’s work.

Turning it over to a professional just provides me with a little more peace of mind, and it means that it’s one less thing that I have to do. And, in the grand scheme of things, having that one less thing to do can mean a lot more than saving a couple hundred bucks.

What do you think? Do you do your own taxes?

Hopefully, you are preparing for a Merry Christmas! I’m pretty much all done with my Christmas shopping, but there are still a few stock stuffers I need to get. Part of the fun with Christmas is looking in the stocking. There usually isn’t anything fancy in a stocking, but there are usually a few fun things to pull out.

If you are looking for some ideas for stocking stuffers, here are a few things to consider:

1. Candy: A handful of miniature candy bars, hard candies or other candy can be great in a stocking. And don’t forget the candy cane!
2. Fruit: Traditional Christmas fruits include oranges, apples and pears. Add these to the stocking. Who knows: Maybe the recipient will take a break from the candy to enjoy something a little healthier.
3. Collector cards: Each year, I buy two or three packs of sports cards and put them in my husband’s stocking. He’s always loved sports cards, and it’s still fun for him to go through them and see what inside. There are also cards for a number of other collectors, including Dragon Ball Z, Lord of the Rings, and more.
4. Action figures: Sports, movies, TV shows and other action figures can be used as great stocking stuffers.
5. Wallets/money clips: Small money-holders like wallets, coin purses and money clips can be great stocking stuffers. You can also give small clutches (for the ladies) in a stocking as well.
6. Movie tickets/gift cards: Stuff the stocking with movie tickets and/or gift cards. This can be a fun way to give the recipient a night out. Restaurants, stores and theaters are great activities.
7. Christmas ornaments: How about a gift that can be used immediately? An ornament can be a great stocking stuffer, and the recipient can hang it right up on the tree — and think about you every year when putting up the tree.
8. Accessories: Whether you are giving fashion accessories or cell phone accessories, these can be great additions to any stocking. Bracelets, earrings, headbands, scarves, gloves, ties and other accessories can be fun to receive. And, of course, covers and earbuds for iPhones and iPods make great small items for the inside of a stocking.
9. Journal/notebook: Provide a small journal or notebook as a stocking stuffer. Include a nice pen, and the recipient will be ready for anything, no matter where he or she goes.
10. Small trinkets: Small trinkets, if the recipient enjoys having small mementos or items for display, can make good stocking stuffers. A small glass or crystal figure, or a small decorative box, can add a lot to the Christmas spirit.
11. Stuffed animals: Give someone a warm and fuzzy gift. There are a number of small stuffed animals, many of them only four to eight inches tall — perfect for snuggling into a stocking.
12. Candles/scented wax: A nice-smelling candle, or potpourri, or the scented wax used in decorative warmers, can make a great stocking stuffers. You can also give diffusers that work with oil and wood sticks, or incense (or incense burners).

One of the ways that you can improve your career is to use the power of a network. Career networking can provide you with inside information on who’s hiring, and provide you with an “in” when you apply for jobs. The right networking strategy can help you learn about where the jobs are — and how to get them. At the very least, your career network can provide you with people willing to provide you with references and letters of recommendation.

Of course, before you can take advantage of a career network, you need to build one. Here are a few of the people that can be of benefit in your career network:

• Co-workers: Past and present co-workers can be great additions to your career network. Forge good relationships with those you work with, and keep in contact with a few of your co-workers from past jobs. Those you associated with in the past — especially if they have moved on to new companies — can be great resources.
• Bosses: Your boss can put in a good word for you if you apply for other jobs. Past bosses can also make great additions to your career network. As your current boss or former boss moves on to better things, you might be the first one recommended for promotion or as part of a new team.
• Alumni: Keep up with alumni from your university days. Many alumni networks can help you find jobs, and keep you in the loop in your industry. I have actually received work as a result of an alumni connection.
• Business association members: Get active in your local business community, or reach out to wider organizations. Guilds, Women in Business groups, local Chamber of Commerce meetings and other organizational events can be great ways to meet career network contacts.
• Family: Your family members can also make great network members. They hear things, and if you mention that you are looking for a job, it is possible to get an “in” somewhere. Don’t neglect your family connections when it comes to career networking.
• Friends and neighbors: Local friends and neighbors can also make valuable members of your career network. When you are looking for a job, you can let them know what you’re looking for, and they can tell you what’s available, and put in a good word for you with their own connections.
• Online acquaintances: Many of the people I work with are people I have never met in person. By carefully considering which networks you join, including LinkedIn and other professional networks, you can grow your career network.

I’d rather have experiences than things. I’d rather go out to eat than have a new trinket that sits on the bookshelf gathering dust. I like creating memories more than fingering inanimate objects. As a result, I am more likely to give other people experiences as gifts — which means that I give out a lot of gift cards.

Giving a gift card, though, doesn’t mean that your gift has to be bland. In fact, you can give unique presents when you gift experiences. Here are some ideas for giving experiences this Christmas:

• Restaurants: Some of the most popular gift cards are those to restaurants. Choose a restaurant that you know the recipient has wanted to try, but hasn’t got around to, yet. Or, if the recipient is adventurous, provide a gift card to a restaurant he or she would never consider without your help.
• Lessons: There are a number of ways you can give lessons to others. Gift certificates that allow someone to take a helicopter pilot lesson, or a gift certificate to a series of cooking seminars can be appreciated. What does the recipient like doing? What would he or she like to learn? Provide a little nudge in that direction.
• Adventure: Not too far from where I live is a company that offers the chance to experience the feeling of skydiving, without skydiving. Those types of experiences can be a great deal of fun. And, of course, there are real adventure-type experiences, like actual skydiving, bungee jumping, rock climbing, and rafting.
• Entertainment: Movie tickets, theater tickets, and game tickets can also make great experience gifts. I once gave my brother and his wife a gift card to the local theater company. They could use it on any show they wished, throughout the year. It turned out to be a great date night for them. Amusement park passes, cruise gift certificates and more can also be fun entertainment-based gift certificates.

Carefully Choosing Gift Cards

Of course, you do need to be careful when giving such gifts. It’s important to find out about expiration dates, as well as terms and conditions. Some gift certificates can’t be used on certain shows, while others might be restricted to certain days of the week, or times of the year. Make sure that you understand the fine print before giving such gifts.

Also, you want to make sure you are getting the certificate or gift card from a reliable source. In most cases, if you purchase the gift from the source, there isn’t much of a problem. However, if you get a gift card from an online discount site you need to make sure you are dealing with a reputable seller. Some gift card sites guarantee the cards you buy, while others accept no responsibility, and you have to be on the lookout for scammers.

Bottom Line

Gift cards and certificates can make great gifts. You can give an experience that the recipient will enjoy and remember for a long time. Such experiences can have a greater impact than mere stuff.

For many, it’s open enrollment time. Whether you work for “the man” or work for yourself, this is the time of year that insurance companies allow you to evaluate your plan — and change your coverage. If your health insurance company is offering open enrollment right now, it’s a perfect time to consider high deductible health plans.

When you raise your deductible, you reduce your monthly premiums, and have the chance to save quite a bit of money.

Advantages to a High Deductible Plan

One of the biggest advantages to the high deductible plan is that you have lower monthly premiums. With a high deductible, you are expected to pay more out of pocket for your health care. As a result, you pay lower premiums since the health insurance company isn’t expected to pick up as much of the bill. If you are experiencing a monthly cash flow squeeze, a lower premium can really help free up some of your money.

Another advantage is access to a Health Savings Account (HSA). The HSA is a special savings account that allows you to save up money for health care expenses. The money grows in an account and comes with tax advantages. Your contributions to your HSA are tax-deductible, and the money in the account grows tax-free — as long as you use the money for qualified health care expenses.

With a HSA, you have the ability to get more benefit from your own health care dollars. Switching to a high deductible plan can really help you save money, improve your cash flow, and prepare for the future.

Downsides to Paying a Higher Deductible

There are, of course, downsides to paying a higher deductible. Even though you pay less in monthly premiums, you still have to pay more up front for your health care. So, you might pay a higher amount when you see the doctor, or pick up a prescription. Plus, if you have a major health concern, you will have to pay a larger portion of the cost before your health insurance kicks in. If you have a deductible of $5,000, this means that you will have to pay $5,000 for your own costs (except preventative care) before the health insurance kicks in.

If you plan to use a high deductible health care plan, it is vital that you have enough money to cover the deductible. Build up your emergency fund to cover it, or make sure that you put the savings from your monthly premiums into your HSA to ensure that you are ready in the event of an emergency.

Note that families and individuals with regular health care visits or chronic conditions may not be best suited for a high deductible plan. These plans work best for those who are in pretty good health, and who have few health care needs. If you make a lot of visits to the doctor, or have a large number of prescriptions, you might spend more each year because of the deductible.

Bottom Line

In some cases, a high deductible plan can financially benefit you. You can reduce your monthly health insurance costs, as well as receive a tax deduction if you pair your high deductible plan with a Health Savings Account. Run the numbers, though, and make sure that a high deductible plan is really the best course for your situation.