Don’t Cut These Costs!
 By Terry M. Blair

Most families are constantly looking for ways to trim their expenses. And cutting back on unnecessary spending is always a smart idea.

But, be careful and thoughtful as you chop your costs. Certain important items in the family budget should be off limits to cost cutting, except in the most extreme financial squeeze.

Here are five costs you might be tempted to cut during tight times. But don’t. Cutting these expenses will simply cost you much more in the long run.

1. Prescription Drugs
Purchasing prescription medications can take a big bite out of your family’s monthly budget. But skipping medications can be dangerous to your health. And family members who scale back their prescriptions may face even more costs if a treatable medical problem worsens.

So, instead of going without the medications you need, find ways to save money on all of your family’s prescriptions.

One way is to ask your physician or pharmacist about generic alternatives that cost less than brand-name drugs.

Another cost-cutting measure is to use the AFS Association Rx Card Program. It gives you access to a prescription savings card that’s accepted to more than 55,000 pharmacies nationwide, including Walgreen’s, Wal-mart and thousands of independent pharmacies. The Program offers four tiers of savings. And you can choose from two plans:

• Individual for only $13.95 per month
• Family for just $23.95 per month

2. Vehicle Repairs
Think of vehicle maintenance and repair as an investment, not an expense.

By keeping your vehicle in tiptop shape, you’ll save money in the long term and have peace of mind that your transportation is reliable. Here are a few things you should do for your vehicle:

• Get regular tune ups
• Keep tires properly inflated
• Change the oil regularly
• Keep all fluids at proper levels

AFS Members can reduce their vehicle expenses significantly with the Auto Coupon Book. This booklet helps you save on:

• Repairs and parts
• Batteries and tires
• Brakes, mufflers, shocks
• And much more

The booklet offers more than $1,000 in valuable offers on automobile care products and services from nationwide service centers such as Jiffy Lube, Meinke, Firestone and Maaco.

3. Vehicle Insurance
Don’t tempt fate by dropping your vehicle insurance when money is tight. Scrimping here could cost you big time if you have an accident that totals your car or, even worse, someone is injured in a crash.

As an AFS Member, you may qualify for special program rates on auto insurance from Travelers. Here are some features the program offers:

• Low, competitive rates for AFS Members
• Quick, over-the-phone insurance quotes
• Convenient payment options
• No down payments
• 24-hour claim reporting hotline

4. Savings Plans
When finances are tight, is it still smart to set aside retirement or college or emergency savings? Absolutely.

For retirement, putting away even a few dollars each week will help your nest egg grow over the years.

Saving for a child’s college education? Again, just a few dollars saved from every paycheck will add up over time.

And emergency savings? If you lose your job or the water heater fails or a medical emergency arises, your backup savings can come to the rescue. And having that cash aside will prevent you from charging the expense on a high-interest credit card.

So, don’t cut your savings plans during tough financial times.


(Posted July 2010)

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