Time to stick it
Iopened my mail and felt a cold stethoscope to my nether regions: My health fund was giving me a tickle. It happens every year. Over the past decade consumer prices have grown 20 per cent … but health insurers have jacked up their premiums by 54 per cent.
Oh, that’s cold!
If you pay for private health insurance you know that around this time each year your fund sends you out their ‘drop your dacks and hold your acorns’ letter. Spoiler alert: next week they’re going to jack up your annual premiums – with some funds hiking by as much as 5 per cent!
So let’s talk about what you can do about it.
First, if you can afford it, most funds allow you to pre-pay your premium and lock in the old rate.
Yet let’s be honest: health insurance is bloody expensive, so it’s worth your while to spend an hour or so checking to see if you’re getting the best deal … or if you even need it (if you’re under the age of 31, or you’re earning under $90,000 a year as an individual or $180,000 as a family, you may not need it).
So here’s what I do for my family: First, I purchase top-level ‘comprehensive’ private hospital insurance.
Second, I don’t purchase extras or ‘combined’ healthcare cover. Reason being, most extras policies cost you hundreds of bucks extra per year … whether you claim or not. Don’t believe me? Ring your fund and request an annual claim statement. Then ask, “If I switched to a comparable ‘hospital only’ policy, how much would I save each year?”
Third, I do my research on privatehealth.gov.au. That’s the government website and it’s weirdly good. It allows you to compare your current policy against others. Most importantly, it compares every fund on offer – unlike those comparison sites (like iSelect and Comparethemarket) which only list funds that pay kickbacks.
So this week it’s time to turn the tables on your fund, and get them to bend over and show you how flexible they really are.
Tread Your Own Path!
MY AUSSIE BOYFRIEND SHOULD PAY FOR EVERYTHING
Dear Moneybags,
I have a boyfriend of a few months who is Australian (I’m Indian) and in my culture it is customary for the man to pay for dinner, or at least ‘do the dance’ and insist that he pays. I am financially stable and can afford dinner but I would at least like the offer. It’s not like he doesn’t pay sometimes, it’s just that when I reach for my phone he doesn’t protest. What should I do to explain that doing the dance is polite where I come from?
Shiraz
Hi Shiraz,
Come on.
It’s just you and me.
You don’t need to play the games with old Barefoot.
It’s not really about the money, is it Shiraz?
It’s that you believe that a man proves that he cares about you by spending his money on you and treating you like a princess.
I’m not saying that’s wrong. It’s just what you believe.
Yet what is wrong is that you’re telling me about it … and not the poor bloke!
He’s wandering around the parking lot looking for a co-share Uber thinking he’s giving you respect and equality … but you’re waiting for the horse-drawn carriage!
When my wife and I began dating, we did this merry-go-round … but in reverse.
I thought I was being chivalrous by wanting to pay for everything.
Yet, as an independent woman, she thought I was a backward country boy (and still does, actually).
We sorted it out, though. We had to. After all, no relationship can thrive if you’re on the wrong bus.
What did we do?
We set up a monthly Barefoot Date Night.
So, Shiraz, if you are serious about this bloke, you need to tell him that’s how you expect love and validation to be shown. Don’t blame it on your culture – and don’t feel shame. Just tell him.
Good luck.
I LOANED MY FRIEND $500,000 … HE HASN’T PAID IT BACK
Hi Scott,
About four years ago I trusted a long-time friend enough to lend them over $500,000 to renovate and sell his house. After renovating, he and his partner had a contract signed to sell the house, but it fell through. They couldn’t afford to relist the house, and ended up signing over the house to his brother in return for having a bridging loan paid off. Since then I have had a negligible amount of the money paid back to me. At the time I loaned this money I was in a bad way emotionally and not thinking clearly, so the only evidence I have is my bank statements. I’m still in regular contact with this ‘friend’, and he says he’s intending to pay me back soon, but
I’m not seeing any hard evidence. My psychologist suggested I write to you to see what you recommend – so do I try to get my money back?
Michael Hi Michael,
What a horrible situation to be in! You must feel a bit taken advantage of … and perhaps a bit powerless.
If I were in your shoes, I’d stop talking to your friend and start talking to a lawyer.
I opened my mail and f elt a cold stethoscope to my nether regions: My health fund was giving me a tickle.
Your lawyer will want evidence of the money transfers (you sending money to him, and the small repayments you’ve received), together with any email or text conversations you’ve had regarding the loan. They may also want a supporting letter from your psychologist.
Then they’ll send them what’s known as a ‘letter of demand’, which is exactly what it sounds like: “Pay back the money by a certain date or we will commence legal proceedings.” Ideally, you’d hope to be able to settle this via mediation before going down the costly court route.
Either way, until the money is repaid in full, I’d strongly suggest you do not speak to this person.
REVENGE OF THE MATHS NERD
Hi Barefoot,
Following the steps of the Barefoot Investor, I have turned a crippling financial anxiety into a point of personal strength. I was a pure mathematics undergraduate who could integrate the most obscure of orthogonal projections, but I seemingly couldn’t change the trajectory of a $12,000 credit card debt.
You made me realise that CommBank’s ‘present’ of a credit card on my 18th birthday was the worst thing I could have received. It’s now blended! In all seriousness, thank you.
Simon
Hi Simon,
Thank you, thank you, thank you. Often when I’m talking to educators about getting money taught in schools, I get cornered by the ‘Maths Mafia’ who assure me that financial literacy is their bag.
And when they do, my heart sinks a little.
That’s because I firmly believe that managing your money successfully is more about literacy eracy than it is about numeracy. Money ney is a language, and if you don’t know w how to speak it you won’t understand nd it … and you’ll be manipulated d by fast-talking behavioural marketers arketers who do. Your story proves it.
P.S. Thank you to the thousands of parents arents and kids who took the time to apply to be part t of my next book.
Judging by the he quality of the kids who responded, this is going to be my best book yet.