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Personal Finance from the Broke Perspective

State Disability Insurance vs. Private Disability Insurance: Which Is Right for You?

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Disability insurance
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Did you know that according to The Social Security Administration, 1 in 4 workers will become disabled during their working years? If you sustain a disability, both state or federal disability insurance and private disability insurance are viable options to lessen your economic hardship. Navigating the intricacies of disability insurance can be quite challenging so we’ll give you an overview of your options to know which is best for you.

State Disability Insurance

State disability insurance is only available in select states including California, Hawaii, New Jersey, New York, and Rhode Island. These programs are for claimants who are totally disabled claimants on a short-term basis. Each state has different requirements to be eligible for their disability insurance programs. Some typical parameters for eligibility include the length of time you have worked for your employer, how long you’ve been disabled before you can apply, and what percentage of your salary will be paid out. If your state doesn’t offer insurance, you may qualify for federal Social Security Disability Insurance.

Social Security Disability Insurance

Social Security Disability Insurance (SSDI) is only available to those who have paid into it. This means that you have contributed through payroll deductions. SSDI is available for people with both short-term and long-term disabilities. According to The Patient Advocate Foundation,  “To receive SSDI, your application must show that you can no longer work in your previous occupation, you cannot adjust to a new work environment, and your disability prevents you from being able to return to work for at least a year.” There are no time limits for how long you can receive benefits.

Private Insurance

Private insurance is paid for by the employee in the form of premiums, usually collected monthly or deducted from your paycheck. Private companies sell many different types of disability insurance, so it’s important to review your plan. Most private insurance will allow for partial disability. Unlike SSDI, there usually are time limits for how long you can receive benefits for private insurance, depending on whether you have short-term disability or long-term disability insurance.

Since most private insurance is tied to your employer, see if you can take your insurance policy with you if you leave your employer. If your private insurance is portable, you’ll continue to pay the premium, even if you leave your job.

Can I Receive Multiple Benefits?

Short-term injury
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Yes, in some cases you can receive benefits from SDI or SSDI and private insurance. The amount that you receive from SSDI or state disability insurance will not decrease. However, private insurance policies may decrease your payout of benefits based on the amount that you are receiving from state disability insurance or SSDI. So, your monthly amount of benefits may be the same. Again, every private plan is different so contact your insurance company about your plan.

Are Benefits Taxable?

SSDI are typically not taxable income. The same is true for state disability insurance. If you are receiving unemployment benefits when you apply for disability however you may be taxed. This is because unemployment benefits are taxable and your disability insurance is seen as a substitute for you unemployment benefits. Private disability insurance is also not taxable because your premiums are paid with wages that have been taxed.

Can I Transfer My Policy?

As a rule, disability insurance can’t be transferred to another person. It is possible to designate a representative who manages your care. They may need to be interviewed or go through additional steps to manage your benefits for you.

If you move, your SSDI can be transferred to a new state. Of course, state disability insurance requires you to live in eligible states. Private insurance should also be notified of a move.

Choosing The Right Disability Insurance

Choosing insurance right for you
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Now that you have an overview of the insurance options that may be available to you, you can make an informed choice about which is best for you. You can always contact your state or social security office for more information about state and federal programs. An injury lawyer or your employer’s HR department may also be able to assist you.

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Are Your Money Saving Strategies Actually Costing You Money?

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Especially with inflation, many Americans are trying to cut back on spending. A 2023 Experian study found that 66% of Americans actively seek ways to trim expenses from their monthly budget. But what if we told you that some of your money-saving habits are actually costing you money? You could be approaching saving money all wrong. Let’s take a look at your money-saving strategies and whether or not they’re actually costing you more than they save.

1. Ignoring Price Per Unit

trying to save money at grocery store costing you more than you think
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I am personally guilty of this. When money is tight, I tend to buy the cheapest things I can find at the grocery store. That said, I often fall into the trap of buying small quantities that are actually more expensive than if I spent a few more dollars on larger quantities. So, it’s important to look at the price per unit to determine if the item you’re buying is actually a good deal. Otherwise, your money-saving strategy could be costing you more in the long run.

2. Overbuying in Bulk

Buying in bulk isn't always a money saving strategy
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The same is true for buying everything in bulk. First, what is realistic for you and your family to use or consume before the product spoils or expires? Then, do a little math and make sure that the bulk price is really saving you money. Many stores like Costco, Sam’s Club, and BJ’s don’t have amazing deals on everything just because they are bigger quantities. To get the best deals on items, research prices on Flipp to see prices at other stores in your area.

3. Just Buying Something Because It’s on Sale

If you’re only buying items on sale, you might actually be paying more. For example, a name-brand peanut butter on sale could still be more expensive than the store brand. Additionally, if there is a sale in-store it’s likely that you can save even more by stacking manufacturer coupons and rebates on apps like Rakuten, Ibotta, Shopkick, and Fetch. Check out videos on social media from well-known couponers for the best tips.

4. Hanging onto an Old Car

If you just bought an old car or are hanging onto a clunker, you may be wasting money. Gas mileage alone on an older car could be costing you money. Plus, if you’re putting money into repairs, you are probably spending more than the car is worth.

5. Avoiding Doctors and Dentists

Dentist visit
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While paying for insurance deductibles is expensive, ignoring preventative care isn’t a good money-saving strategy. You could be missing treatable health conditions by putting off visits to the doctor or dentist. While no one likes going to the dentist, good oral health can health prevent costly procedures like root canals.

6. Ignoring Quality of Purchases

Just because the clothes on Shein are inexpensive doesn’t mean that they are a good deal in the long run. If you consider cost per wear, a better quality garment may be worth the investment. You can always get better quality clothes at the thrift store or on the resale market to cut costs. The same is true for household items. There are things you should invest in so that they stand up to wear like quality pots and pans.

7. DIYing Repairs

DIY home repairs costing you more money
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It’s tempting to think that you can save money on home repairs by doing it yourself. Yes, professionals are expensive, but larger projects often require an expert’s knowledge and skill. So, next time you have a leak in your roof, don’t try and fix it yourself unless you are equipped to do so. Any mistakes you make could cost you a lot more to rectify.

Reevaluating Your Money-Saving Strategy

Sometimes saving more money is about changing your mindset. Spending the least amount of cash doesn’t mean that you’re saving money in the long run. You may actually be paying more for simple things like grocery items if you buy smaller quantities. Or if you have to replace a winter jacket every year because you purchased one that was poor quality over time you are probably spending more money. So, make your purchases wisely and do your research to get the best deals that actually save you money.

What is your best money-saving strategy? Let us know in the comments.

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Backpacking on a Budget: 10 States Where Your Dollar Goes the Farthest

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Planning an affordable backpacking trip in the US
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The United States might not be the first place you think of in the world for an affordable backpacking trip. However, there are so many iconic cities to visit and natural wonders to explore. While some places in the states are not as backpacker-friendly as others, there are many that are affordable and easy to navigate. Here we’ll discuss 10 states where with a little planning your dollar goes the farthest.

1. Louisiana

According to Statista, Louisiana is the most affordable state to backpack through in 2024. Results were based on the cost of three budget meals, a dorm bed at a hostel, two transportation rides, one paid cultural attraction, and three cheap beers as part of an entertainment budget. Not only is Louisiana affordable, but it also offers many cultural opportunities. There are also many backpacking trails and national parks throughout the state. Whether you’re looking for an experience in nature or you’d rather stroll the streets of the French Quarter, Louisiana has something for everyone.

2. Florida

Affordable backpacking in Florida
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If done the right way, backpacking through Miami Beach can be affordable. Many of the city’s hostels are a stone’s throw from the beach. There’s also a free trolley throughout the city. Dining can be expensive in South Beach, but you can find many affordable meals in Little Havana. As far as inexpensive nightlife, the Wynwood design district has affordable bars and clubs.

3. Nevada

While you may not think of the city of Sin as being an affordable place to backpack, as long as you stay off of the Strip in Vegas there are many affordable options for travelers. Accommodations and food in the Arts District or Freemont Street are more affordable. Plus, there are awesome outdoor adventures outside of the city. You can hike through Red Rock Canyon and further north there’s the Valley of Fire State Park. If you do visit Las Vegas, take advantage of free activities like the botanical gardens or gallery of fine art inside The Bellagio.

4. Michigan

Affordable backpacking in Michigan
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Especially in the Upper Peninsula, Michigan is a beautiful state to backpack through. There are gorgeous trails, lakes, and isolated beaches to see throughout the state. Since most of your backpacking adventure will be centered around the outdoors this state is an affordable trip. There are several options for accommodations including tents, cabins, and lodges. For a fun excursion, check out Mackinac Island.

5. Ohio

Backpacking in the Midwest is very affordable. Ohio is full of hills and valleys and is home to the Allegheny Plateau stretching across the southern and eastern parts of the state. Between Akron and Cleveland is Cuyahoga Valley National Park. There’s also Hocking Hills which is known for sandstone caves.

6. Tennessee

Downtown Nashville
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You could spend a lot of time backpacking through Tennessee. If you stop in Nashville, the home of country music, make sure to spend some time in the honkey tonks on Honkey Tonk Highway. While Nashville proper is expensive, if you stay outside the city, you can save money. Surrounding towns like Franklin have plenty to do as well. You can take a tour of the Jack Daniels distillery or eat at iconic restaurants like the Loveless Café. Cumberland State Park is also a popular destination for backpackers.

7. North Carolina

There are several destinations in North Carolina that are good for backpacking on a budget. The best places to visit are the Boone and Asheville areas. Downtown Asheville has a vibrant arts, music, and brewery scene. You can also find affordable accommodations like camping sites or cabins outside the city in smaller towns like Boone.

8. Arizona

Backpacking through the Grand Canyon
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Of course, an iconic backpacking trip is to explore the Grand Canyon. You can take advantage of guided ranger-led hikes of the South and North Rim. As far as lodging there are many affordable options and there is a shuttle service throughout the national park.

9. Illinois

Nestled in Southern Illinois between the Mississippi and Ohio Rivers, the Shawnee National Forest is a popular destination. You’ll find hickory forests, wetlands,  canyons, and a variety of other geological features. If you’re looking for a challenge, the 200-mile Great Chicago Thru-Hike is on many bucket lists.

10. New York

New York City
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While New York City isn’t very affordable, it can be done on a budget. Focus on to-go food like pizza and bagels and free attractions to affordably backpack through the city. You can stroll through Central Park, visit Chelsea Market, and see where the ball drops on New Year’s Eve in Times Square. For nature enthusiasts, the Appalachian Trail has more than 2,100 miles of rolling hills and peaks.

Affordable Backpacking Through The US

With so many options right here in the States, you don’t have to go to Europe to have a backpacking adventure. These 10 locations can easily be explored for less than $100 a day. With research and planning, you can affordably backpack through breathtaking landscapes and iconic cities.

Where have you backpacked through and what is your next trip to?

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