Money Management

Medication is something you often can’t skimp on. Read on for ways to save on it. 

When it comes to personal financial matters, you may believe in cutting costs whenever possible. As such, you might opt to do the bulk of your eating at home rather than pay a premium for restaurant meals and takeout. And you might choose to live in a smaller apartment rather than spring for a larger one that costs more in rent.

But if there’s one expense you might feel like you don’t have much control over, it’s medication. You need your medications to stay healthy, but you don’t necessarily get to choose which ones you take. For example, if your thyroid doesn’t function properly, you may need thyroid medication to avoid issues like extreme fatigue.

Still, there are steps you can take to lower your medication-related spending. Here’s how to free up money to save in the process.

1. Switch to generics

Many of the drugs people take routinely come in generic form. If you’re not currently taking the generic version of the medication you’re on, ask your medical provider if it’s possible to switch. WebMD says that generic drugs can cost up to 85% less than brand-name alternatives.

2. Get your pills in bulk

There are certain medications you might take for a limited period and others you might take on a long-term basis. For those in the latter category, see if your insurance allows you to order your pills in bulk through a mail-order pharmacy. You may be able to save money by getting 90-day supplies instead of 30-day supplies.

3. Ask your provider for free samples

It’s not uncommon for pharmaceutical company representatives to give free samples of their drugs to doctors. If you’re looking at an expensive medication, before you head to the pharmacy to fill a prescription, ask your provider if they have any samples lying around. Getting even a few free doses could shave a lot off of your costs.

4. Get your free yearly physical to make sure you actually need all the pills you’re taking

Most health insurance plans give enrollees an annual physical at no cost. During your physical, you can expect your doctor to examine you and run bloodwork. It pays to take advantage of this option, because your bloodwork may reveal that there’s a medication you’re on that you no longer need. And shedding a prescription could mean saving big time.

5. Look for discount programs online

Filling your prescriptions at your local pharmacy isn’t always the most cost-effective bet. And if you don’t have insurance — or don’t have very good insurance — it might even be cost-prohibitive. It pays to look at online pharmacy programs and see what the costs there entail.

Amazon’s pharmacy program, for example, allows Prime members to save up to 80% on the drugs they take. Amazon also has a program called RxPass that allows you to fill as many eligible prescriptions as you need for just $5 a month.

Medication is not the sort of thing you want to skimp on. But it is the sort of expense that can wreak havoc on your budget. If you employ these tips, you might manage to lower your costs and spend less on staying healthy this year.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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Mortgage rates could continue their decline this year. Here’s why they might fall and how to prepare for an improved housing market. 

Home prices have soared over the past few years, and mortgage interest rates have risen rapidly, making home price affordability the worst in about four decades.

But the latest 2024 housing predictions from Redfin indicate that relief for home buyers has already begun and may continue throughout the year.

The company recently said home prices would decline by 1% in the second and third quarters, with no change in the rest of the year. And while that might not be a massive shift in home prices, considering the average home price has jumped 27.7% over the past three years, it’s certainly welcomed news for potential home buyers.

Redfin says the drop in home prices will come as more homeowners list their houses for sale. Zillow echoed this recently, noting that homeowners already locked into low interest rates will change their minds about waiting for low rates to return and will instead accept current rates as the new normal and list their homes.

Adding to the good news for potential buyers is that Redfin believes mortgage rates, which have already begun to decline recently, will continue to slowly slide lower.

Interest rates will be lower, but still above 6%

Redfin thinks the Federal Reserve will begin cutting interest rates at the beginning of the summer and make two or three cuts this year, which will push down mortgage rates, but still keep them above 6%.

And Redfin isn’t the only one predicting that mortgage rates will retreat. The Mortgage Bankers Association said a few months ago that rates would be 6.1% by the end of 2024 and could fall to 5.5% toward the end of 2025.

Interest rates have already begun falling recently, as the market anticipates the Federal Reserve is finished hiking the federal funds rate. That’s already provided some relief for potential home buyers and has spurred some renewed interest in the housing market.

This makes it all the more important for potential buyers to shop around when looking for a mortgage lender right now. Taking the time to talk to a few lenders could help you score a lower interest rate.

I spoke to a mortgage lender months ago who said a potential client of his got a better rate with another lender, and told me that his company may not always be able to offer the best rates. Even he didn’t know how his competition could offer a better rate.

Two things to do to prepare to buy a house

Buying a home is one of the most significant expenses you’ll ever take on, so your personal finances should be in the best shape possible before you commit to it.

Here are two big steps to take to get ready for an improved housing market:

Save as much money as you can: This may seem like an obvious move to make before buying a home, but there will be many costs to buying a house that go beyond your down payment. For example, you’ll likely have closing costs, property tax payments, insurance payments, and moving costs. While some expenses may be rolled into your monthly mortgage payment, moving expenses and household repairs won’t be.Pay off debt: This is as important as building up your savings because lenders want to see that you’re not overextending your finances. If you have a car loan and a few credit card accounts, paying most or all off before applying for a mortgage could help you receive a larger home loan and a better interest rate. Rocket Mortgage says most lenders want a debt-to-income ratio of 43% or less.

As a potential home buyer, I’m keeping a close eye on mortgage rates and following my own advice about paying off debt and saving money. I’ve seen a shift in my local housing market, albeit a small one, and noticed home prices are beginning to cool in some neighborhoods.

If these patterns continue, and rates continue to fall, maybe those of us waiting on the sidelines will finally be able to remove the “potential” designation from our potential home buyer label. Here’s to hoping for better deals in 2024.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.

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