A Prescription For the Health Care Crisis

With all the shouting going on about America's health care crisis, many are probably finding it difficult to concentrate, much less understand the cause of the problems confronting us. I find myself dismayed at the tone of the discussion (though I understand it---people are scared) as well as bemused that anyone would presume themselves sufficiently qualified to know how to best improve our health care system simply because they've encountered it, when people who've spent entire careers studying it (and I don't mean politicians) aren't sure what to do themselves.

Albert Einstein is reputed to have said that if he had an hour to save the world he'd spend 55 minutes defining the problem and only 5 minutes solving it. Our health care system is far more complex than most who are offering solutions admit or recognize, and unless we focus most of our efforts on defining its problems and thoroughly understanding their causes, any changes we make are just likely to make them worse as they are better.

Though I've worked in the American health care system as a physician since 1992 and have seven year's worth of experience as an administrative director of primary care, I don't consider myself qualified to thoroughly evaluate the viability of most of the suggestions I've heard for improving our health care system. I do think, however, I can at least contribute to the discussion by describing some of its troubles, taking reasonable guesses at their causes, and outlining some general principles that should be applied in attempting to solve them.

THE PROBLEM OF COST

No one disputes that health care spending in the U.S. has been rising dramatically. According to the Centers for Medicare and Medicaid Services (CMS), health care spending is projected to reach $8,160 per person per year by the end of 2009 compared to the $356 per person per year it was in 1970. This increase occurred roughly 2.4% faster than the increase in GDP over the same period. Though GDP varies from year-to-year and is therefore an imperfect way to assess a rise in health care costs in comparison to other expenditures from one year to the next, we can still conclude from this data that over the last 40 years the percentage of our national income (personal, business, and governmental) we've spent on health care has been rising.

Despite what most assume, this may or may not be bad. It all depends on two things: the reasons why spending on health care has been increasing relative to our GDP and how much value we've been getting for each dollar we spend.

WHY HAS HEALTH CARE BECOME SO COSTLY?

This is a harder question to answer than many would believe. The rise in the cost of health care (on average 8.1% per year from 1970 to 2009, calculated from the data above) has exceeded the rise in inflation (4.4% on average over that same period), so we can't attribute the increased cost to inflation alone. Health care expenditures are known to be closely associated with a country's GDP (the wealthier the nation, the more it spends on health care), yet even in this the United States remains an outlier (figure 3).

Is it because of spending on health care for people over the age of 75 (five times what we spend on people between the ages of 25 and 34)? In a word, no. Studies show this demographic trend explains only a small percentage of health expenditure growth.

Is it because of monstrous profits the health insurance companies are raking in? Probably not. It's admittedly difficult to know for certain as not all insurance companies are publicly traded and therefore have balance sheets available for public review. But Aetna, one of the largest publicly traded health insurance companies in North America, reported a 2009 second quarter profit of $346.7 million, which, if projected out, predicts a yearly profit of around $1.3 billion from the approximately 19 million people they insure. If we assume their profit margin is average for their industry (even if untrue, it's unlikely to be orders of magnitude different from the average), the total profit for all private health insurance companies in America, which insured 202 million people (2nd bullet point) in 2007, would come to approximately $13 billion per year. Total health care expenditures in 2007 were $2.2 trillion (see Table 1, page 3), which yields a private health care industry profit approximately 0.6% of total health care costs (though this analysis mixes data from different years, it can perhaps be permitted as the numbers aren't likely different by any order of magnitude).

Is it because of health care fraud? Estimates of losses due to fraud range as high as 10% of all health care expenditures, but it's hard to find hard data to back this up. Though some percentage of fraud almost certainly goes undetected, perhaps the best way to estimate how much money is lost due to fraud is by looking at how much the government actually recovers. In 2006, this was $2.2 billion, only 0.1% of $2.1 trillion (see Table 1, page 3) in total health care expenditures for that year.

Is it due to pharmaceutical costs? In 2006, total expenditures on prescription drugs was approximately $216 billion (see Table 2, page 4). Though this amounted to 10% of the $2.1 trillion (see Table 1, page 3) in total health care expenditures for that year and must therefore be considered significant, it still remains only a small percentage of total health care costs.

Is it from administrative costs? In 1999, total administrative costs were estimated to be $294 billion, a full 25% of the $1.2 trillion (Table 1) in total health care expenditures that year. This was a significant percentage in 1999 and it's hard to imagine it's shrunk to any significant degree since then.

In the end, though, what probably has contributed the greatest amount to the increase in health care spending in the U.S. are two things:

1. Technological innovation.

2. Overutilization of health care resources by both patients and health care providers themselves.

Technological innovation. Data that proves increasing health care costs are due mostly to technological innovation is surprisingly difficult to obtain, but estimates of the contribution to the rise in health care costs due to technological innovation range anywhere from 40% to 65% (Table 2, page 8). Though we mostly only have empirical data for this, several examples illustrate the principle. Heart attacks used to be treated with aspirin and prayer. Now they're treated with drugs to control shock, pulmonary edema, and arrhythmias as well as thrombolytic therapy, cardiac catheterization with angioplasty or stenting, and coronary artery bypass grafting. You don't have to be an economist to figure out which scenario ends up being more expensive. We may learn to perform these same procedures more cheaply over time (the same way we've figured out how to make computers cheaper) but as the cost per procedure decreases, the total amount spent on each procedure goes up because the number of procedures performed goes up. Laparoscopic cholecystectomy is 25% less than the price of an open cholecystectomy, but the rates of both have increased by 60%. As technological advances become more widely available they become more widely used, and one thing we're great at doing in the United States is making technology available.

Overutilization of health care resources by both patients and health care providers themselves. We can easily define overutilization as the unnecessary consumption of health care resources. What's not so easy is recognizing it. Every year from October through February the majority of patients who come into the Urgent Care Clinic at my hospital are, in my view, doing so unnecessarily. What are they coming in for? Colds. I can offer support, reassurance that nothing is seriously wrong, and advice about over-the-counter remedies---but none of these things will make them better faster (though I often am able to reduce their level of concern). Further, patients have a hard time believing the key to arriving at a correct diagnosis lies in history gathering and careful physical examination rather than technologically-based testing (not that the latter isn't important---just less so than most patients believe). Just how much patient-driven overutilization costs the health care system is hard to pin down as we have mostly only anecdotal evidence as above.

Further, doctors often disagree among themselves about what constitutes unnecessary health care consumption. In his excellent article, "The Cost Conundrum," Atul Gawande argues that regional variation in overutilization of health care resources by doctors best accounts for the regional variation in Medicare spending per person. He goes on to argue that if doctors could be motivated to rein in their overutilization in high-cost areas of the country, it would save Medicare enough money to keep it solvent for 50 years.

A reasonable approach. To get that to happen, however, we need to understand why doctors are overutilizing health care resources in the first place:

1. Judgment varies in cases where the medical literature is vague or unhelpful. When faced with diagnostic dilemmas or diseases for which standard treatments haven't been established, a variation in practice invariably occurs. If a primary care doctor suspects her patient has an ulcer, does she treat herself empirically or refer to a gastroenterologist for an endoscopy? If certain "red flag" symptoms are present, most doctors would refer. If not, some would and some wouldn't depending on their training and the intangible exercise of judgment.

2. Inexperience or poor judgment. More experienced physicians tend to rely on histories and physicals more than less experienced physicians and consequently order fewer and less expensive tests. Studies suggest primary care physicians spend less money on tests and procedures than their sub-specialty colleagues but obtain similar and sometimes even better outcomes.

3. Fear of being sued. This is especially common in Emergency Room settings, but extends to almost every area of medicine.

4. Patients tend to demand more testing rather than less. As noted above. And physicians often have difficulty refusing patient requests for many reasons (eg, wanting to please them, fear of missing a diagnosis and being sued, etc).

5. In many settings, overutilization makes doctors more money. There exists no reliable incentive for doctors to limit their spending unless their pay is capitated or they're receiving a straight salary.

Gawande's article implies there exists some level of utilization of health care resources that's optimal: use too little and you get mistakes and missed diagnoses; use too much and excess money gets spent without improving outcomes, paradoxically sometimes resulting in outcomes that are actually worse (likely as a result of complications from all the extra testing and treatments).

How then can we get doctors to employ uniformly good judgment to order the right number of tests and treatments for each patient---the "sweet spot"---in order to yield the best outcomes with the lowest risk of complications? Not easily. There is, fortunately or unfortunately, an art to good health care resource utilization. Some doctors are more gifted at it than others. Some are more diligent about keeping current. Some care more about their patients. An explosion of studies of medical tests and treatments has occurred in the last several decades to help guide doctors in choosing the most effective, safest, and even cheapest ways to practice medicine, but the diffusion of this evidence-based medicine is a tricky business. Just because beta blockers, for example, have been shown to improve survival after heart attacks doesn't mean every physician knows it or provides them. Data clearly show many don't. How information spreads from the medical literature into medical practice is a subject worthy of an entire post unto itself. Getting it to happen uniformly has proven extremely difficult.

In summary, then, most of the increase in spending on health care seems to have come from technological innovation coupled with its overuse by doctors working in systems that motivate them to practice more medicine rather than better medicine, as well as patients who demand the former thinking it yields the latter.

But even if we could snap our fingers and magically eliminate all overutilization today, health care in the U.S. would still remain among the most expensive in the world, requiring us to ask next---

WHAT VALUE ARE WE GETTING FOR THE DOLLARS WE SPEND?

According to an article in the New England Journal of Medicine titled The Burden of Health Care Costs for Working Families---Implications for Reform, growth in health care spending "can be defined as affordable as long as the rising percentage of income devoted to health care does not reduce standards of living. When absolute increases in income cannot keep up with absolute increases in health care spending, health care growth can be paid for only by sacrificing consumption of goods and services not related to health care." When would this ever be an acceptable state of affairs? Only when the incremental cost of health care buys equal or greater incremental value. If, for example, you were told that in the near future you'd be spending 60% of your income on health care but that as a result you'd enjoy, say, a 30% chance of living to the age of 250, perhaps you'd judge that 60% a small price to pay.

This, it seems to me, is what the debate on health care spending really needs to be about. Certainly we should work on ways to eliminate overutilization. But the real question isn't what absolute amount of money is too much to spend on health care. The real question is what are we getting for the money we spend and is it worth what we have to give up?

People alarmed by the notion that as health care costs increase policymakers may decide to ration health care don't realize that we're already rationing at least some of it. It just doesn't appear as if we are because we're rationing it on a first-come-first-serve basis---leaving it at least partially up to chance rather than to policy, which we're uncomfortable defining and enforcing. Thus we don't realize the reason our 90 year-old father in Illinois can't have the liver he needs is because a 14 year-old girl in Alaska got in line first (or maybe our father was in line first and gets it while the 14 year-old girl doesn't). Given that most of us remain uncomfortable with the notion of rationing health care based on criteria like age or utility to society, as technological innovation continues to drive up health care spending, we very well may at some point have to make critical judgments about which medical innovations are worth our entire society sacrificing access to other goods and services (unless we're so foolish as to repeat the critical mistake of believing we can keep borrowing money forever without ever having to pay it back).

So what value are we getting? It varies. The risk of dying from a heart attack has declined by 66% since 1950 as a result of technological innovation. Because cardiovascular disease ranks as the number one cause of death in the U.S. this would seem to rank high on the scale of value as it benefits a huge proportion of the population in an important way. As a result of advances in pharmacology, we can now treat depression, anxiety, and even psychosis far better than anyone could have imagined even as recently as the mid-1980's (when Prozac was first released). Clearly, then, some increases in health care costs have yielded enormous value we wouldn't want to give up.

But how do we decide whether we're getting good value from new innovations? Scientific studies must prove the innovation (whether a new test or treatment) actually provides clinically significant benefit (Aricept is a good example of a drug that works but doesn't provide great clinical benefit---demented patients score higher on tests of cognitive ability while on it but probably aren't significantly more functional or significantly better able to remember their children compared to when they're not). But comparative effectiveness studies are extremely costly, take a long time to complete, and can never be perfectly applied to every individual patient, all of which means some health care provider always has to apply good medical judgment to every patient problem.

Who's best positioned to judge the value to society of the benefit of an innovation---that is, to decide if an innovation's benefit justifies its cost? I would argue the group that ultimately pays for it: the American public. How the public's views could be reconciled and then effectively communicated to policy makers efficiently enough to affect actual policy, however, lies far beyond the scope of this post (and perhaps anyone's imagination).

THE PROBLEM OF ACCESS

A significant proportion of the population is uninsured or underinsured, limiting or eliminating their access to health care. As a result, this group finds the path of least (and cheapest) resistance---emergency rooms---which has significantly impaired the ability of our nation's ER physicians to actually render timely emergency care. In addition, surveys suggest a looming primary care physician shortage relative to the demand for their services. In my view, this imbalance between supply and demand explains most of the poor customer service patients face in our system every day: long wait times for doctors' appointments, long wait times in doctors' offices once their appointment day arrives, then short times spent with doctors inside exam rooms, followed by difficulty reaching their doctors in between office visits, and finally delays in getting test results. This imbalance would likely only partially be alleviated by less health care overutilization by patients.

GUIDELINES FOR SOLUTIONS

As Freaknomics authors Steven Levitt and Stephen Dubner state, "If morality represents how people would like the world to work, then economics represents how it actually does work." Capitalism is based on the principle of enlightened self-interest, a system that creates incentives to yield behavior that benefits both suppliers and consumers and thus society as a whole. But when incentives get out of whack, people begin to behave in ways that continue to benefit them often at the expense of others or even at their own expense down the road. Whatever changes we make to our health care system (and there's always more than one way to skin a cat), we must be sure to align incentives so that the behavior that results in each part of the system contributes to its sustainability rather than its ruin.

Here then is a summary of what I consider the best recommendations I've come across to address the problems I've outlined above:

1. Change the way insurance companies think about doing business. Insurance companies have the same goal as all other businesses: maximize profits. And if a health insurance company is publicly traded and in your 401k portfolio, you want them to maximize profits, too. Unfortunately, the best way for them to do this is to deny their services to the very customers who pay for them. It's harder for them to spread risk (the function of any insurance company) relative to say, a car insurance company, because far more people make health insurance claims than car insurance claims. It would seem, therefore, from a consumer perspective, the private health insurance model is fundamentally flawed. We need to create a disincentive for health insurance companies to deny claims (or, conversely, an extra incentive for them to pay them). Allowing and encouraging aross-state insurance competition would at least partially engage free market forces to drive down insurance premiums as well as open up new markets to local insurance companies, benefiting both insurance consumers and providers. With their customers now armed with the all-important power to go elsewhere, health insurance companies might come to view the quality with which they actually provide service to their customers (ie, the paying out of claims) as a way to retain and grow their business. For this to work, monopolies or near-monopolies must be disbanded or at the very least discouraged. Even if it does work, however, government will probably still have to tighten regulation of the health insurance industry to ensure some of the heinous abuses that are going on now stop (for example, insurance companies shouldn't be allowed to stratify consumers into sub-groups based on age and increase premiums based on an older group's higher average risk of illness because healthy older consumers then end up being penalized for their age rather than their behaviors). Karl Denninger suggests some intriguing ideas in a post on his blog about requiring insurance companies to offer identical rates to businesses and individuals as well as creating a mandatory "open enrollment" period in which participants could only opt in or out of a plan on a yearly basis. This would prevent individuals from only buying insurance when they got sick, eliminating the adverse selection problem that's driven insurance companies to deny payment for pre-existing conditions. I would add that, however reimbursement rates to health care providers are determined in the future (again, an entire post unto itself), all health insurance plans, whether private or public, must reimburse health care providers by an equal percentage to eliminate the existence of "good" and "bad" insurance that's currently responsible for motivating hospitals and doctors to limit or even deny service to the poor and which may be responsible for the same thing occurring to the elderly in the future (Medicare reimburses only slightly better than Medicaid). Finally, regarding the idea of a "public option" insurance plan open to all, I worry that if it's significantly cheaper than private options while providing near-equal benefits the entire country will rush to it en masse, driving private insurance companies out of business and forcing us all to subsidize one another's health care with higher taxes and fewer choices; yet at the same time if the cost to the consumer of a "public option" remains comparable to private options, the very people it's meant to help won't be able to afford it.

2. Motivate the population to engage in healthier lifestyles that have been proven to prevent disease. Prevention of disease probably saves money, though some have argued that living longer increases the likelihood of developing diseases that wouldn't have otherwise occurred, leading to the overall consumption of more health care dollars (though even if that's true, those extra years of life would be judged by most valuable enough to justify the extra cost. After all, the whole purpose of health care is to improve the quality and quantity of life, not save society money. Let's not put the cart before the horse). However, the idea of preventing a potentially bad outcome sometime in the future is only weakly motivating psychologically, explaining why so many people have so much trouble getting themselves to exercise, eat right, lose weight, stop smoking, etc. The idea of financially rewarding desirable behavior and/or financially punishing undesirable behavior is highly controversial. Though I worry this kind of strategy risks the enacting of policies that may impinge on basic freedoms if taken too far, I'm not against thinking creatively about how we could leverage stronger motivational forces to help people achieve health goals they themselves want to achieve. After all, most obese people want to lose weight. Most smokers want to quit. They might be more successful if they could find more powerful motivation.

3. Decrease overutilization of health care resources by doctors. I'm in agreement with Gawande that finding ways to get doctors to stop overutilizing health care resources is a worthy goal that will significantly rein in costs, that it will require a willingness to experiment, and that it will take time. Further, I agree that focusing only on who pays for our health care (whether the public or private sectors) will fail to address the issue adequately. But how exactly can we motivate doctors, whose pens are responsible for most of the money spent on health care in this country, to focus on what's truly best for their patients? The idea that external bodies---whether insurance companies or government panels---could be used to set standards of care doctors must follow in order to control costs strikes me as ludicrous. Such bodies have neither the training nor overriding concern for patients' welfare to be trusted to make those judgments. Why else do we have doctors if not to employ their expertise to apply nuanced approaches to complex situations? As long as they work in a system free of incentives that compete with their duty to their patients, they remain in the best position to make decisions about what tests and treatments are worth a given patient's consideration, as long as they're careful to avoid overconfident paternalism (refusing to obtain a head CT for a headache might be overconfidently paternalistic; refusing to offer chemotherapy for a cold isn't). So perhaps we should eliminate any financial incentive doctors have to care about anything but their patients' welfare, meaning doctors' salaries should be disconnected from the number of surgeries they perform and the number of tests they order, and should instead be set by market forces. This model already exists in academic health care centers and hasn't seemed to promote shoddy care when doctors feel they're being paid fairly. Doctors need to earn a good living to compensate for the years of training and massive amounts of debt they amass, but no financial incentive for practicing more medicine should be allowed to attach itself to that good living.

4. Decrease overutilization of health care resources by patients. This, it seems to me, requires at least three interventions:

* Making available the right resources for the right problems (so that patients aren't going to the ER for colds, for example, but rather to their primary care physicians). This would require hitting the "sweet spot" with respect to the number of primary care physicians, best at front-line gatekeeping, not of health care spending as in the old HMO model, but of triage and treatment. It would also require a recalculating of reimbursement levels for primary care services relative to specialty services to encourage more medical students to go into primary care (the reverse of the alarming trend we've been seeing for the last decade).

* A massive effort to increase the health literacy of the general public to improve its ability to triage its own complaints (so patients don't actually go anywhere for colds or demand MRIs of their backs when their trusted physicians tells them it's just a strain). This might be best accomplished through a series of educational programs (though given that no one in the private sector has an incentive to fund such programs, it might actually be one of the few things the government should---we'd just need to study and compare different educational programs and methods to see which, if any, reduce unnecessary patient utilization without worsening outcomes and result in more health care savings than they cost).

* Redesigning insurance plans to make patients in some way more financially liable for their health care choices. We can't have people going bankrupt due to illness, nor do we want people to underutilize health care resources (avoiding the ER when they have chest pain, for example), but neither can we continue to support a system in which patients are actually motivated to overutilize resources, as the current "pre-pay for everything" model does.

CONCLUSION

Given the enormous complexity of the health care system, no single post could possibly address every problem that needs to be fixed. Significant issues not raised in this article include the challenges associated with rising drug costs, direct-to-consumer marketing of drugs, end-of-life care, sky-rocketing malpractice insurance costs, the lack of cost transparency that enables hospitals to paradoxically charge the uninsured more than the insured for the same care, extending health care insurance coverage to those who still don't have it, improving administrative efficiency to reduce costs, the implementation of electronic medical records to reduce medical error, the financial burden of businesses being required to provide their employees with health insurance, and tort reform. All are profoundly interdependent, standing together like the proverbial house of cards. To attend to any one is to affect them all, which is why rushing through health care reform without careful contemplation risks unintended and potentially devastating consequences. Change does need to come, but if we don't allow ourselves time to think through the problems clearly and cleverly and to implement solutions in a measured fashion, we risk bringing down that house of cards rather than cementing it.

Please visit Dr. Lickerman's blog at http://happinessinthisworld.com to read other articles about achieving health and happiness. He can be reached at alickerman@gmail.com.

California Health Insurance Quote

In a world of growing unease, it is more important that ever to insure individual good health. The stress of worrying about the expense of health care and health insurance is enough, in itself, to make you sick. With health expenses spiraling out of control, making even basic health care seem too difficult for the average person to obtain, it is more important than ever to make sure your insurance is the best that money can buy for you. In California, and elsewhere, it is essential to do some research, to gain quotes for the amounts you might pay in health insurance, for the policy itself and at the time of service. Health insurance is one of the most important purchases you may ever need to make.

Whether you live in Los Angeles or Redding, San Diego or Sacramento, people in California tend to care about the same things: fresh air, clean water, and anything else necessary for good health. People in such diverse areas also know how wildly different health insurance rates might be based upon the needs and goals of an individual. Good consumers in California know that obtaining a california health insurance quote is the best way to find the best deal on health insurance. While company recognition and comfort with your policy are important, most often, health insurance purchases, in California and everywhere else, depend greatly upon the quote, upon the price. While good health is priceless, as we all well know, health insurance is not.

A California quote for health insurance gives the consumer the information they need to make an informed decision regarding the health and care of them as individuals, as well as the group of their families. Regarding the actual quote obtained for health insurance, it is important to compare like policies. One must read carefully under each policy what may be covered, as well as costs at the times of a scheduled doctor appointment or, in case of emergency, at the hospital. It is important, too, to address questions about choice of physicians, payment for pregnancy, pre-existing conditions, and countless other issues when determining which policy may be right for you and your family. Policies are as diverse as the families who need them, so it is essential to fully comprehend the details surrounding your health insurance quote, from what may be required of you, initially or at the time of service, as well as what may be required of your health professionals.

A health insurance quote, in California and throughout the United States, is the consumer's best access to actual health insurance information [http://www.gateinsurance.com/family-medical-insurance.html] regarding the standard of care and cost they may expect. In a time when our paychecks seem to be shrinking as the cost of our monthly bills rise, it is undeniably necessary to make the best choices possible when it comes to our financial concerns, as well as our physical care. In uneasy times, having the certainty of an official quote, a set cost for health insurance, can give the individual the peace of mind that truly brings good health. With a California health insurance quote, the individual is assured of exacting parameters of the policy on which they must depend. This speaks to the most basic of human desires - good health and financial security. You owe it to yourself to insure both.

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5 Expert Insider Steps to Begin Transforming Your Health & Body Today!

While yes, our team is born in a world of intense high athletic goals such as bodybuilding, it is not our goal to support people to become bodybuilders - FAR FROM IT!;-) So you can relax now!! But it IS our goal to share with you why the lessons from our experience of mastering human health & the body, & how developing a bodybuilder "mentality" for your own life can literally skyrocket you into a level of personal health you never thought possible, while showing you the shortcuts in how to get there! Sound good? Heck, it sounds GREAT to us, because we already know how it can CHANGE YOUR LIFE.

If you are serious about stepping into your greatness of feeling & looking great, take 3 minutes & glean our insight, because this is the single-most MISSING LINK that we see people repeatedly leaving out of their game plan to great health & why they continue to fail at achieving quality health for their lives.

When you have had an experience of taking your mental, emotional & physical self to the level that bodybuilding competition requires, as a coach for others it then allows you to see potential for your clients that they could never envision for themselves without you by their side AND TAKE THEM THERE, and that is the beauty of the gift that we REJOICE in offering others in order to achieve optimal health, energy, & joy for their lives. But to get there...to create a successful transformation of your health & body, you HAVE to begin INSIDE with our 5 MUST-HAVE Steps! Yes, that's right - the focus begins in the MIND. Time & again we see this process work, and it's our UNIQUE coaching psychology method that sets us apart, & why we are capable of producing jaw-dropping results with the level of motivational mentality we provide. You can have all the knowledge in the world, but if you fail to develop the DESIRE & MINDSET to IMPLEMENT it, you will never succeed.

Want the insider view to our winning approach to learn how to transform your own health & body? We're here to offer you the scoop because it's our desire to support you fully to achieve authentic, preventative health from the inside, out in your lifetime. So where do we begin? There is a prolific spiritual author named John Maxwell, maybe you've heard of him, maybe you haven't - but he writes of numerous spiritual topics & speaks on how we create TRUE transformation for our lives. Below we adapt his words for our article today because it's a brilliant synopsis of just why & how we work with clients to coach them through mastering their personal health, as there are so many levels to the process.

When we discuss transformation of the physical body, to be successful we cannot deny that mind, body & spirit are woven tightly together in our being & therefore EACH needs to be considered - not just one. Often people when wanting to conquer health or healing goals immediately BEGIN at the physical, they think weight loss, nutrition, exercise...but that is their first step to failure because they're joining the race before they've even laced their shoes!! When we fail to address mind & spirit in the health process we eventually lose the vision of why we're addressing the physical in the first place & sadly fall off course when interest wanes, times get tough, or we lose our way because the how-to's become unclear or appear out of reach. But if we start INSIDE & work OUTWARDS friends, GAME ON!!

Our 5 Expert Insider Steps to Transforming Your Health & Body

So these 5 KEY STEPS must be addressed in order to achieve a complete & SUCCESSFUL health & body transformation, and they must also be achieved in order as follows...

1. When you change your (health & body) thinking, you change your (health & body) beliefs.

If you think what you've been taught is healthy by the mainstream media is where your learning stops, then don't expect to achieve great illness-free, authentic preventative health because they don't teach proactive health approach, they teach reactive wait til you get sick & then act health approach. Begin to change your thinking to change your belief system about your body and health potential.

2. When you change your (health & body) beliefs, you change your (health & body) expectations.

Once you begin to expand your thinking, start to also seek out experts in areas of health & body who have shown & continue to show PROVEN ABILITY TO CREATE TRANSFORMATION RESULTS in their own health & body that you would like to emulate. Begin to sponge knowledge from them vs. what mainstream media claims leads to great health results, & you'll in turn raise the bar on what you expect from your own health. You'll see your new mentor/s are just ordinary people too like you, who decided to blaze their own health path about the quality of health they wanted to achieve for their life by taking the road less followed for their own health in life, and YOU CAN TOO - if you follow in their footprints.

3. When you change your (health & body) expectations, you change your (health & body) attitude.

Once your mind becomes opened by experts to your new health possibilities, you'll have a renewed attitude & confidence about your abilities & empowerment around your personal health & begin to realize that anything you put your MIND to, your BODY can achieve -with the right tools in your toolbox. And THAT is exciting!

4. When you change your (health & body) attitude, you change your (health & body) behavior.

Now that you come to the table with a revitalized health attitude of possibilities & an arsenal from your health mentor, your entire being & behavior begins to shift because your mentor connects you with your own personal ability to achieve great results for your health, and as that continues to happen over and over, your self-efficacy GROWS & GROWS around your capabilities to manage your own personal health, as you transition into your own personal mini-health-expert!

5. When you change your (health & body) behavior, YOU CHANGE YOUR LIFE.

Now that you've achieved health & body mastery, you will begin to see an entire energetic, mental & emotional shift in your life that FAR EXCEEDS the physical. Yes, you will look & feel great, but the ways optimal health radiate outwards to all facets of your life will be astounding, as you attain a personal joy in life thru health that you've never experienced before. No pills, no roller coaster of energy, no food cravings, no more blah approach to life, no more hiding from life within your own body,...you emerge a renewed person, ready to take on your full potential in this life.

This list is the perfect example of why health coaching with experienced experts not only WORKS, but offers you AMAZING, permanent results you could never envision or achieve on your own. With the support of your coaches seasoned & proven mentality of success in health & body transformation, you develop a similar mindset, outlook & body of knowledge in order to reach external goals of physical health & body success!

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Recreational after school programs

After school programs can be divided into 3 broad categories: academic,

recreational and social. Balanced development takes place when there is

compatibility between the physical, mental as well as the educational

achievements of the child.As the name suggests recreational after school

programs are based on a sport or recreation. Some of the more common

physical activities include football, swimming and basketball.Some clubs

offer programs like gymnastics, trekking and hiking. In this case,

youngsters are often given a short class in first-aid class also.

Recreational after school programs offer children an opportunity to let

off some steam and to destress themselves. The closed classroom atmosphere

and a day full of textbooks and writing cause the child to repress his

natural enthusiasm. He curbs his energy when he is required to sit quietly

in class and learn. Physical activity is an all-time low during such

times. This physical lethargy and inaction is countermanded by

recreational activities. Growing concerns of obesity and child diabetes

make it necessary for children to indulge in some strenuous exercises that

will allow them to work up some sweat.

Unlike educational programs, recreational programs do not tax the

mental processes. But, they do aid the learning process by making the

child more active. A child who is physically active is mentally fit, and

is able to focus his thoughts on the work at hand. Additionally,

recreational programs teach discipline, mechanics of teamwork and fair

play. These are important lessons in the growing process.

As more and more nuclear families emerge, the child faces greater

isolation. Many children shuttle between their classroom and their

bedrooms and do not have any meaningful relationships outside these.

Recreational programs offer ample avenues for socialization. This is a

place the child can go to and play even when his neighbor is not the most

welcoming. The Boy / Girl Scout programs are excellent recreational after

school programs. Lately, survival classes and camps have devised to

combine important survival skills with sports and games to educate

children on how to handle emergencies.

Like any good after school program, recreational programs are designed to

give children a safe area where they can indulge in some group activities

that interest them. This is one of the most effective ways to keep kids

out of the streets and out of trouble. But, one has to be careful when

enrolling children for recreational classes. The age of the child, his

temperament and his physical caliber has to be taken into account before

you choose the right program for your child.

Successful after school programs

What marks a successful after school program? What are the things that you

should look for when enrolling your child into one such program? Other

than the obvious advantage of learning something new, successful programs

incorporate many things that help the development of the child.

Development of social skills is one of the more important objectives of a

good after school program. In a recent survey, parents indicated that

while they do want their children to respect others, they also wanted them

to imbibe skills like getting along with other children and getting used

to children outside the immediate circle of friends. Many children find it

difficult to make new friends and get along with people outside their

group.

Good after school programs place special emphasis on security and safety.

They keep children out of trouble and keep them safe. A good after school

program should be fun, especially when the children are young. If the

activity is fun, you will not have to worry about keeping him interested

or motivated. To be effective, programs should be organized and

structured. They must also suit the age of the child. The child must be

aware of the purpose of the program, and must be convinced that they are

attending the programs to accomplish something.

After school activities and burnout

For millions of parents around the world, the day does not end with the school bell. There are still pictures to be painted, songs to be sung and games to be played. This all adds up to keeping children happy, safe and out of trouble. But, parents have to steer away from going overboard.

After school is not baby-sitting:

After school activities thrive only if it is backed by sufficient parental involvement. What would a soccer match be without parents cheering their little heroes from the sidelines?.

Research and choose:

Instead of convenience being the decisive factor, find out things that will interest your child. Once you select a program, get the fine print and find out what you have to contribute.

Free time:

Many children attend piano classes, followed by ballet and squeeze in some time for play dates in between just before they rush home in time for bed. This rigor is too much for a child. So, go slow.

When to quit:

Often, parents enroll their child in an activity to discover that he may not be the prodigy they thought he would be. This is the time to let go. Your child may not become the next wonder-kid. But, let him cultivate an interest that he enjoys. Remember, happiness and fulfillment are all that matter.

Over-scheduling kids

Several studies are expressing a growing concern that after school

programs are pressurizing kids to do too much too soon. They point out

that when a child's afternoon is filled with classes, trips, sports and

other forms of organized activities, kids do not really get the time to be

just kids. They are even being deprived of the cherished family time.

Undoubtedly, there are children who are being burdened with a schedule

that places too much demand on their time. This leads to increased levels

of stress on the child and the family. As regular studies cannot be

ignored, children are almost always on the run to achieve more. Such

children are really bearing a burden that is too heavy for their frail

little shoulders.

In an ideal world, all children would go home directly after school to

loving and caring parents who are waiting for the children to come home.

But the social and economic realities show that many children have to

attend after school courses because there is no one available at home. For

such children, these classes are a boon.

Parents should however restrain themselves from reading too much into

these activities. After school programs are complimentary in nature. They

give additional support. Therefore, their importance should also be

How to find after school activities

Start off by making enquiries. Nothing can beat the power of information.

Approach the school authorities first. Find out if they are offering any

after school activities. Get a list of the various classes that are

available in your school. In case the school does not provide any

extracurricular activities for the child, approach your neighbors. Collect

information about any after school programs, the quality of the courses

taught and the timings etc. Also, check out some of the community

resources. These may include places of worship, community centers,

Museums, libraries, the YMCA, The Boys and Girls Club etc.

After you have colleted all the necessary information, discuss the various

options with your child. Find out what his interests are. The best way to

find out what is most suitable is to ask your child. When little children

are too small, you cannot completely rely on their feedback. In this case,

monitor the development of the child on a regular basis. If the child

shows excessive resistance to an activity, it may be necessary to look for

other options. Always consider your family's schedule when planning the

extracurricular activities. If it is difficult for you to chauffeur your

child, you may want to employ tutors at home or conduct some activity at

Benefits of a good after school program

Children grow up in a society that demands expertise in everything. You

really cannot sit back and decide that learning from textbooks is enough

for the overall development of your child. It's the age of specialization

and your child cannot afford to miss out on this window of opportunity.

So, scour your locality for the most advantageous programs and enroll them

for the ones you think are the best.

After school programs are basically designed to develop a talent or a

skill that is ignored by regular schools. These programs could be

educational or recreational in nature. Whatever type they are, they

basically aim to keep the child active and interested.

The most important advantage of a good after school program is that it

widens your child's area of interests. He or she is introduced to new

things, sometimes interesting, sometimes challenging. Mastering a new art

form or a new skill increases the child's self-esteem. It also allows you

to introduce your child to new career options. A child attending a music

class may decide that she likes it so much that she wants to make a career

out of it in the long run.

Socialization is another great advantage of after school programs.

Children get to meet others who share their interests and make new

friendships. An acting class or a soccer class can be lots of fun. Many of

these programs coach children for performances or matches. Performing on

stage or playing a match can be a great experience for a young child.

After school programs keep your teenager busy. He or she thus has some

amount of protection from destructive habits like drugs and alcohol.

Surveys indicate that children who are kept busy through diverse absorbing

activities are less prone to abuse, depression and burnout. Significant

increase in achievement and attendance and a reduction in drop out rates

are other advantages of a good after school programs.

Most after school programs have children interacting with one or more

adult. This allows them to benefit from positive relationships with

adults. Children often find it difficult to confide in parents and

teachers, but may open up with other adults.

Many children are put into recreational after school programs so that they

reduce weight and remain healthy. A newly emerging trend shows that about

15% children below the age of 16 are obese. Parents who cannot put their

children on a strict diet resort to sports and games to burn fat. With

cases of child diabetes on the increase, this has become a prime focus of

many after school programs.

A good after school program has many benefits. It keeps the child

entertained as well as busy, and thus prevents children from becoming

addicted to TVs and PCs. By giving them ways to burn up their excess energy

and explore their creativity, after school programs help to shape the

overall personality of the child.

School based after-school programs

In an effort to keep children motivated and safe, the U.S. Government

sets aside a good amount of fund for financing after school programs every

year. A report by the U.S. Department of Education and Justice points out

that after school programs are very effective and is in the interests of

the society as a whole. Interestingly, it was found that Americans liked

providing school-based after school-programs in their community.

Other than safety, boredom and loneliness, the poor performance of many

students also led to the need for after-school programs that are based on

the school curriculum. Children coming from low-income families were found

to lag behind in reading and grammar after a long break in the summer.

Statistics prove that if school-going children are left unsupervised after

their school, the chances of poor grades and drop out are considerably

higher. The funds provided by the Government will allow rural and

inner-city schools to provide activities during the summer, over the

weekends and after school. These activities will take place in a

drug-free, safe and supervised environment.

Positive augmentation of critical skills is the prime focus of these

school-based after school activities. Thus they enhance the skill level of

the child. Most school-based programs offer assistance in math tutoring,

reading, comprehension and problem solving. Many programs provide engaging

activities that seek to prepare the students for college. Hands-on

experience is provided for children who want to invest in a career in

teaching. Access to telecommunication and technology and involvement in

music and art are other benefits of these programs. This becomes

invaluable, especially in low-income sectors where such activities are

considered to be a luxury.

As far as children are concerned, the snacks provided in after school

programs are an added incentive. School sponsored after school programs

are entitled to receive funds for snacks. The National School Lunch

Program is designed to do just this. Free or reduced price snacks will be

provided for children from schools that apply for it. The CACFP reimburses

expenditure depending upon the child's income status. But this is

applicable only till the age of 13. The funding that schools get depends

upon the area in which they are situated. A low-income area gets more

funding. Supper can be served to children below the age of 19. Longer

programs can provide both supper and a snack. With the participation of

non-profit private organization, it is possible to feed deserving school

children breakfast, supper and a snack.

Too much of school

When my mom finally decided to take that plum posting as a Divisional

Head, I knew I was in trouble. Her office hours stretched way beyond my

school hours. And anyway, I was privy to the many discussions my parents

had about 'Honey, what do we do with the kids?' Well, finally they struck

gold - an educational after school program. Won't that be just grand? Kids

are learning new things while parents are happily minting greenbacks!

And so, we went directly to another class after our school. The brochure

said that they would be 'using fun activities and innovative teaching

methods to fill the gap in your child's understanding'. I suppose they

meant that the teacher would write down the homework and we were to copy

it. At least, this is what happened most of the time. Of course, we didn't

tell our parents. How would that help? They'd simply get smart and shift us to a class that would actually make us solve our homework.

I hated the classes. Mostly, I was bored to tears or falling asleep.

After so many hours at school who'd want to spend the entire afternoon

with the same books? But, as a child, one had little choice in these

matters. Especially when one's parents were cleverly telling one that

mommy's salary will help get us that spanking new TV or that video game.

Lose some, win some!

Then, one day, my sister decided to rock the proverbial boat. She decided

she had enough of studying and refused to go to the after school program.

That's when my parents began to smell something stale. Shortly after that,

they put us in a better program (o, yes, another educational one). This

was bigger, brighter and somehow more fun. We had some interesting games,

and a COMPUTER too. Each of us got a chance to do something on the PC

(this, when PCs were just beginning to make their presence felt). We

somehow managed to blaze through our homework, most of which had to be

done by us. Then it was time to have fun. We had a little bit of

everything. Acting classes, speech, games and of course painting. Those

hours we spent splashing color on pages and laughing at silly jokes were

really the highlight of an otherwise boring day. Ironically, I began

looking forward to my after school program.

Now, so many years afterward, when I need to take up a job and leave my

own child alone till I get back, I know how important these after school

programs have become. Talk about history repeating itself! I just hope I'd

get her into a good one, and yes, it's going to be educational too.

After school activities for the overweight

Research and studies show that our children are growing fater by the

day. Many families all over America are struggling to keep the weight of

their children within reasonable limits. As a parent, I know that it's

nearly impossible for me to look into the tear-filled eyes of my son and

refuse food.

So, what's the alternative? Studies show that the number one reason for

obesity in children is not junk food and colas. It's actually TV.

Children tend to plop themselves on the sofa and munch away happily when

they are in front of the TV sets. But, once the set is off, their natural

buoyancy will lead the children to do stuff and to move their body. THey will then be diverted from eating.

Recreational after school activities are a must if you feel that your

child is beginning to put on undesirable fat. It is better to begin these

activities as early as possible. The more weight the child gains, the

harder he has to work to shed it. Football, swimming, skating and Karate

are just some activities he can participate in. Structured and disciplined

exercise is possible only when one is put into a formal environment. That

is why an overweight child simply HAS to be put into an after school

program of this kind.

EFFECTIVE MONEY SAVINGS TIPS

Saving is your best defense against bankruptcy. It insulates you from possible financial loss and gives you the ability to expand your finances and create a money-generating business machine that will help you earn extra.



Your potential to flexing your base income is augmented in ways that is not confined within the walls of basic employment. You can start up your own business, use it for loan purposes and earn interest on them while being used, among others.



But the basics of it all lies in saving – spending less than what you earn and keep something enough for future use and for unforeseen circumstances.



This article provides you with ways on how you can effectively maximize your financial resources and helps you manage your money by developing correct habits and outlook suitable for your goal.



Ø Wants and Needs – You buy items because you need them. A need is something you cannot take away from a person for these things are vital to his or her very existence and without them, they are categorically considered poor or deprived.



Food, shelter, clothing and transportation are the primary examples. In a modern world, car and phone gadgets are a necessary part of a busy working individual. However, unless you are receiving more than $10,000 per month, you basically won’t need to have a $40,000 to $50,000 luxury vehicle.



The same is true for your telephone media. Having your own cellular phone is necessary but keeping up with the latest model or buying the all the latest releases are not practical and earns you more points on plunging into a staggering financial downfall.



Ø Less Is best – Extravagance is the rule of the kings. While we sometimes need to afford a little affluence in terms of the food we eat, the body pampering devices and accessories, such as clothes and body-relaxing services, we also need to consider that these types of activities should only be reserved for special occasions and for cases when you have some excess left in your household budget.



Ø Spend Less; Save More – Spending more than what you earn or produce is a bad habit that most people get used to doing everyday.

Allocate a special percentage of your earnings to go into your savings accounts while spending the rest for your day-to-day expenses.

Unexpected charges, such as the visitation of your relatives or a house party due to a certain celebration will be there to stay so you need not make some leeway budget on them and save them should situation not arise.

TAKE CHARGE OF YOUR FINANCES: TIPS ON BUDGETING

With prices of commodities increasing day by day it is proper to make your very own strategic plan on maximizing your financial resources and making sure that every penny earned is well spent.



Make your move on coordinating your finances and list of expenditures that may affect the way you use your income and empower you on your economic stability as a working individual.



Your source of income, lifestyle, spending habits, current job and house location, cost of living, payables and loans determines your level of budgeting needs. Starting to take charge of your finances is one sure way of becoming successful in a field of self-fulfillment and success.



The following tips and recommendations will provide you details on how you can help yourself manage your finances and assume a new outlook to become responsible in your spending.



Ø Treat Math As Your Lifetime Partner – Do the entire math in your purchasing needs. Try to compare prices across your current location for the price of a range of grocery and household items you need in a day-to-day basis.



Save as much as you can in an item you are trying to buy. Chinese businessmen exercise effective buying techniques. They save as much as they can and usually purchase in bulk to increase their revenue index on the item they plan on selling as well.



Ø Gambling – Gambling tops the chart in making your life as chaotic as it could get. Gambling strips you off your finances and keeps you vulnerable from the threats of bankruptcy.



Ø Know Your Wants and Needs – Limit your spending on something which you are not in dire need of. According to a recent study, luxuries are second to gambling in terms of the degree of money-stripping capability.



Ø “Do Not Spend More Than you Earn” – Rags-To-Riches stories do not fail to mention this famous cliché. There is always truth to this phrase for you cannot live in a world where you consume more than what you can produce.



Ø Keeping A List – Making your own budget list is vital to your success to becoming prudent. A wise buyer needs to consider the amount of a certain commodity and how will it impact his life as an individual.



An unconscientious consumer would not care about what is being purchased as long as he or she has money to buy for them. Unless you are someone who has a considerable amount of wealth and income resources, you can not afford to disregard this recommendation and go ahead with your practice.

Budget Like Mom

Budgeting is truly the turf of most mothers. Aside from the traditional role imposed on mothers as the one who budgets the family finances, mothers have the instincts and foresights on what might happen in the future.



But how do moms really stretch the budget? She neither uses complicated formulas nor magic tricks but simple ingenuity and common sense. Peek in through moms’ secrets in budgeting and learn. Role modeling is a good way to encourage attitude, especially towards money.



1. She clearly knows where all the money goes. Usually it goes to child care apart from the housing, health insurance, food and clothing. It is unlikely for her to cut cost on her children.



2. She studies all options given to her in terms of child care. Before she decides, she examines all aspects like safety, health and education.



3. To understand more, she talks to local child-care specialists and works out schedules with her employer for bonding time with kids.



4. For working moms, it is double the effort. They take care of the house and the children and at the same time work. She incorporates practical ways to accomplish both roles.



• Wearing professional clothes than trendy ones.

• Stays elegant but simple through a combination of basic colors.

• Dry cleaning costs a hefty amount, so, she dons on wash-and-wear clothes.

• Tone down on accessories.

• She engages in a lot of do-it-yourself habits like in cleaning spots and ironing wrinkles in her personal wardrobes.



5. Moms always shop with a list in her hand to keep track of her budget and expenses. She makes sure she does not exceed. Also, she has no time for checking out tempting stuff at the shopping mall.

Ways to Make Cents at Home

In the midst of all these skyrocketing prices, come the how’s, ways and means to save money and earn extra.



There are creative but practical ways you can engage in to help the family save and at the same time earn extra. The things that have been sitting in your attic for sometime and those that become all too familiar and useless might mean extra bucks. This way, it saves you space, cleaning materials and containers. This reduces maintenance expenses.



Garage sale at home is a save-and-earn endeavor for starters. Look at the success of flea markets where people can buy almost anything at a lower price but large amount of income for vendors.



How to maximize the potential of flea markets and bargain sales to help you save? Primarily, a flea market is a place where almost all who have something to sell can sell for tremendously lower costs but good quality items. If you have the right tools and enough preparation for a day’s trip to a flea market, then you are ready to go with some handy tips:



1. Ready your tools, maps, measurements and cash:

• easy-to-carry tool kit with screwdrivers, pliers, tape measure, pencil, ropes, set of swatches, paper and plastic bags and boxes;

• floorplan measurements;

• maps, directions and phone numbers;

• bring enough cash and checks for high-priced items;

• dress yourself appropriately for bargain hunting.

2. Early birds usually get the best selections.

3. Keep a critical eye during shopping.

• Be ready to negotiate and haggle on the prices of items.

• Items sold here have greater possibilities, either you can redecorate or repaint them to make it look unique and attractive.



How to make this activity an earning endeavor? After your hands-on training in an established flea market, hope you took note of your observations and ideas; it is time to try out on your own.



Bear in mind five things crucial to garage sale success: location, date and time, variety of goods, organization/presentation, advertisements and prices.



• Spot a strategic location where people can access and drop by easily. Your house is the perfect venue for this. Weekends are the best to schedule your sale.

• During your cleaning session, take note of candidate items for the sale, label them (keep, for repair, must go) and give them a brand new look.

• Organize them well according to prices, use arrangement styles, decide on the tables, baskets and boxes for the items and decorate your venue with fabrics and other helpful materials.

• Lower your prices. The idea here is to dispose of the things but earn from them reasonably.

We are Family: Budget Tips for Today’s Familial Ties

If you are in charge of creating the family budget, chances are, you’ve had the unfortunate experience of having a brilliant budget plan that isn’t executed well. This happens to many families and couples, and with a little attitude tweaking, you can solicit the help of your family in making your budget work.



Create a family budget vision. Talk to your spouse and children about whatever budgetary constraints you are facing, or whatever financial goals you intend to set. By being completely honest about the bills and loans you have to pay, or your intention to save a certain amount of money for a family emergency fund (or a college fund, for that matter), you can help your family understand better your collective financial situation. This will allow them to change their perspective on purchases they make, and will help you make sure that whatever money crunching strategies you utilize won’t be counteracted by a subsequent spree by your teen.



Another good technique is to create a list of usual expenditures per member of your family. Together, identify which items you can do away with in order to save up some extra money from your monthly income. By doing this altogether, you are making your family participate better and see the contributions they can make into making your family’s finances better.



Should your child have the habit of continuously asking for money for minor and oftentimes unnecessary purchases, you can let your children learn to manage their own week’s allowance. With their limited money to budget, they will realize the value of money.



Put a cap on the amount of expenditures you make in a week. The best way to do this is set aside a fixed amount of cash that you will spend for a week. By putting this limitation on your spending, you are forced to prioritize spending on the most essential over other things.



Make it easy for your family to save more. How often do you eat out? Most family budgets are blown over because of the frequency of dining out and the accompanying exorbitant expense of that activity. Eating at home will reduce your expenses, not to mention allow for your family to bond over cooking at home. Do you spend on routine purchases like coffee and newspapers? Cut back on the latte and the paper, and put aside the amount you would otherwise spend. Your family’s collective saving will surprise you.



Lastly, don’t be afraid to create a most efficient driving route, as well as grouping together activities into one car trip. This way, you can save a lot on time and even on gasoline and car expenses.

Why Banking Works

When it comes to financial management, even business professionals reach a consensus as to what is the most effective, reliable, and secure means to manage your money, and that is through the bank. Your bank is an effective means to manage your bills payments, keep track of your transactions, receive your income and whatever extraneous cash inflow, and help you save effectively.



The last one is perhaps the most obvious feature of the bank that people do not take advantage of. A bank, being a financial intermediary, can actually help you save money efficiently. Here’s how.



First, you are required to keep what is called a maintaining balance in your bank account. This means that even if you make deductions in your account, the bank requires you to save a bare minimum in order to continue enjoying their services. And yes, that translates to a forced saving on your part.



Another feature of bank saving is the fact that you are free to continuously add to your account whenever you can. Otherwise, your money will remain safe in your bank. Moreover, while it’s staying in the bank, you are actually earning interest rates on your money.



What are savings interest rates? These are payments made by the bank to you for leaving your money in the bank. By depositing your money in the bank, your bank utilizes a portion of it in its loan operations where it subsequently earns through interest and loan charges. In effect, the income they receive trickles down to you, their source of money. This savings interest rate is actually an effective incentive system. Why so? If you save more money in your bank account through your deposits and savings, you end up receiving a higher return on the savings interest rate than other people would.



Banks have a threshold amount for you to be able to participate in the bank’s long-term, higher yield savings schemes. Time-deposit accounts, mutual funds and the like require you to leave your money untouched for a longer period of time. In exchange for the bank’s use of your money for a longer period of time, the percentages of interest return are double those that you would get in a regular savings account. You can add increments of a certain amount in order to increase the capital you invest in your time-deposit account or mutual fund. An increased account obviously translates to bigger interest gains.



Talk to your local bank about their savings schemes. They offer various mechanisms to encourage us consumers to entrust their money to them. In a bank, your money is in a safe place, and it is growing while it stays there.

Budgeting For Emergency Funds?

Emergency funds are considered to be a necessity as far as financial security is concerned, since it can provide one with financial resources that one can resort to and depend on when an emergency arises such that when one is sick and have the burden of paying huge medical bills, or unexpected home or major car repair.



When one has no emergency fund, one can be obliged to acquire debt on your credit card that might take several years to repay with interest that would later cost so much more.



However by putting an extra thirty to fifty dollars every month in an individual “emergency savings account” one can be secured with what emergency the future may bring. In doing this, it is recommended that one regards the emergency fund as an additional bill, to be punctually paid each month.



Yes, one can and should budget and allocate the extra money for emergency fund, as this is very significant when one refers to his “financial future”. Here, the goal is to create savings from budgeting your income; the emergency savings should ideally be equal to at least three months your living expenditures.



What's important is that you should steadily put a certain amount of money aside, and only use it for real emergencies.



Not like an investment, the success of one’s long-term savings funds does not really count on the amount of return or interests but on placing a fixed amount of money away constantly and steadily so to have immediate access to it at all times.



In spite of one’s financial status, the initial step in the process of constructing an emergency fund is by knowing where your money is presently being consumed or spent.



When one recognizes and determines where one’s earnings are spent, then it will be easy for one to choose and make a decision where to trim down expenses. In other words, budget.



Budgeting is putting or setting aside money for anticipated and unanticipated future use. It is here that one sets up a goal so as to save. So set an emergency fund as your goal.



Checking, savings, money market accounts and “certificates of deposits”, are great places to keep one’s cash that might be needed on quick notice.



The amount saved from budgeting can either go to your savings goal, emergency fund or both. One could utilize the money saved from budgeting financial expenses by saving half of it to your savings account and half of it for emergencies. This way, you achieve your goals in savings and at the same time put in funds for emergency use. It’s your choice.