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John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Household Expenses: Do You Have FORO?

December 15, 2014 12:24 am

A recent National Foundation for Credit Counseling® (NFCC) poll reveals that the overwhelming majority of consumers surveyed (92 percent) have a fear of running out of money, or FORO.

Root causes of this fear vary. Sixty-four percent of respondents fear they will not having enough money to pay monthly bills, 14 percent fear not having enough funds to comfortably retire, 11 percent fear having enough for unplanned expenses, and 3 percent fear not being able to finance their children’s education.

Finding stable financial ground today will relieve stress and allow planning for future needs to begin. To get started, the NFCC suggests that consumers put the following five steps in place:

1. Begin saving - People without a well-funded savings account are living on a slippery financial slope, as unplanned expenses are inevitable. When money is tight, saving is often low on the list of priorities. To remedy the situation, consider living on a cash basis – people who pay with cash typically save 20 percent over their previous spending with plastic. Pretend that any raise, bonus, birthday money or other windfall money never happened and instead direct it toward savings. Aim to build up the rainy day fund to equal one month’s salary, as this should be sufficient for most short-term emergencies.

2. Track spending
- A leak can’t be plugged until it has been identified, and finding a financial leak starts with tracking spending. Have everyone in the family who spends money write down their spending for 30 days. It is critical to include incidental spending, as small leaks can add up to be big problems. At the end of the period, have a family council to review the spending, making joint decisions as to how the money should be spent moving forward. Make necessary cuts and allocate the money toward the categories that the family determines are most important. The unity that results from this type of decision-making process will likely produce a greater level of success, as everyone will be moving in the same direction.

3. Create a cash-flow calendar
– This is perhaps the easiest step, but will increase financial awareness. On a calendar devoted to finances, record all sources of income and the associated paydays. Next, note which bills are due to be paid during the various pay cycles. If there’s not enough money available to meet a debt obligation on its due date, call the creditor and find out if the date can be moved. This will prevent overdrafts, late payments and fees.

4. Decrease debt - Debt is expensive. Face the financial facts, write down and total the existing debt and associated interest paid each month. The totals may be shocking, but will hopefully spur action. Ignoring the problem will only make matters worse. If help is needed to create a realistic debt repayment plan, reach out to an NFCC member agency.

5. Set goals - Make a list of short-term goals for the next 12 months. Make a separate list of long-term goals. Now go back and include dates and dollar amounts with each goal and decide which can realistically be met. Goals that aren’t achievable only serve to discourage and potentially derail the entire plan. Knowing the objective, timing and financial commitment necessary to meet the goal will bring a sense of purpose to overall spending decisions.

Source: NFCC

Published with permission from RISMedia.


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Healthcare Plans: 3 Questions to Ask

December 12, 2014 2:18 am

Whether dealing with a new plan or a renewal of an existing plan, there are many factors patients should consider before taking action, including deductibles, co-pays and drug costs. Patients should also take into account which physicians and facilities are covered under their health insurance plan, and the cost for receiving treatment out-of-network so that they make informed health care decisions. Additionally, patients should make sure to ask their physicians whether they are participating in plans they are considering.

“We want to make sure Americans choose a plan that is right for them and their families in terms of cost and coverage,” says Robert Wah, MD, president of the American Medical Association (AMA). “It is very important that patients look beyond the big print, color-coded plan designations and prices of insurance plans and check the small print details before making their selections.”

The AMA urges patients to thoroughly review all aspects of the plans they are choosing in order to prevent interruptions in care and higher out-of-pocket costs. Consider the following:

1. Are your family's doctors in the plan? If not, what will you have to pay out-of-pocket for office visits or other services your doctor prescribes? Is the plan's directory of participating physicians up-to-date and accurate? Are there physicians on the list who are still accepting new patients?

2. What does the plan cover? What percentage of your health care costs will you have to cover? If so, how much and can you afford it? How much will you have to pay out-of-pocket for the medicines your family needs? Will you be able to use hospitals, labs and other facilities that are convenient to where you live or work? Does the plan provide access to a sufficient number of specialists that you need?

3. Does your primary care physician have to receive permission from the insurance company to refer you to a specialist? Does that rule include specialists you see regularly for a chronic condition? Does the insurer use penalties or incentives to induce physicians in the plan to limit referrals in any way?

Source: AMA

Published with permission from RISMedia.


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