Wealthy Wednesdays

I decided to use Wednesdays to write about building wealth.  I was an Economics major in undergrad and I work in finance now so I love sharing little tid bits with my family and friends about saving and more importantly managing money.  So in true busy wife fashion…let’s jump right in shall we?  Does your job offer a flexible spending plan?  If so, and you’re not taking advantage of it you’re missing out on free money.  Flex Spending gives you the opportunity to take PRE-TAX earnings and use them for qualified expenses.  You can use the money for prescriptions, co-pays, daycare, adoptions costs, over-the-counter medications and the list goes on. (Important to note: the gov’t may be changing the allowance for over the counter medication next year 2011).  For a hypochondriac like me Flex Spending is the best thing since creation.  I have a cardiologist, primary care physician, chiropractor, optometrist, dermatologist…you name it…I got it.  I have a $40 co-pay everytime I got to see one of these doctors and that can add up very quickly over the course of a year.  I reviewed my online bank statement at the end of 2009 and estimated how much I spent in health care costs and I rounded down and put that amount towards my Flex Spending Account for 2010.  It’s important to get an accurate idea of what you will spend as Flex Spending has “use it or lose it” rule.  Any monies not used at the end of the year are forfeited.  I get six new sets of contacts twice a year so it’s important for me to have these monies available.  Every plan is different; some come with debit cards that you can give right to the pharmacist or your doctors’ office.  Other plans require you to pay and then submit your receipts so it is important to contact your Benefits Administrator to get the details about your plan.  Want a rough estimate of what your new paycheck will look like after you take out Flex Spending?  Head over to www.paycheckcity.com and view their salary calculator, you can put in special deductions and see what your final paycheck will look like.  Hope this helps.  Come back next Wednesday for another tip.