Save money in the next three weeks

Kevin · � #1 � 12-11-2008, 11:56 PM

Any members here from US have to deal with this?

Quote:

Jo-Lynne Shane is furiously looking for ways to spend $500 in the next three weeks. If she doesn't, that money will disappear at the stroke of midnight December 31.

Shane, a mother of three who lives in a suburb of Philadelphia, Pennsylvania, has that much money left in her family's healthcare Flexible Spending Account. By the rules of the IRS, any money she doesn't spend by the end of this year vanishes.

"If you don't use it, you lose it," said Shane, who gives cost-cutting tips to other mothers on her blog, Musings of a Housewife.

She admits that it can hard to focus on finances during the holiday season. But if you don't want to lose money in the next three weeks, follow these five tips from health insurance experts.

1. Flexible Spending Accounts (FSA)

2. Vision benefits

3. Elective surgeries

4. Prescription drugs

5. Wellness requirements
...

CNN: How to save money in the next three weeks

Mad Scientest · � #2 � 12-13-2008, 09:31 PM

There are a number of companies and government agencies that work under these types of rules. They set up a budget for the year and allocate a given amount of funds for each department. The spending of those departments cannot exceed that amount. However if they do not spend it, as stated they can lose it. Worse if they don�t spend it all next years budget could be reduced. Naturally there is no incentive to try and save money.

And yes this is a dumb system.

Kevin · � #3 � 12-13-2008, 09:56 PM

Quote:

Originally Posted by Mad Scientest

Worse if they don�t spend it all next years budget could be reduced.

It doesn't make any sense.

Arrowwind09 · � #4 � 12-14-2008, 03:30 PM

Quote:

Originally Posted by Kevin

It doesn't make any sense.

Well, not making sense, Its an American tradition, Kevin!

Mad Scientest · � #5 � 12-14-2008, 05:50 PM

Apparently this is a �book keeping procedure�. It allows a company to close out their accounting books at the end of the year and start fresh the next year.

But you are right it makes no sense and from a practical stand point, and it can even be counterproductive. But then accountants live in their own unique little world which is sometime devoid of common sense.

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