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Money in the News: Living off $40k/year, Saving Money on Prescriptions, Housing Value Lost, Debt Settlements

Yahoo Finance posts about a Dallas mom who lives well off of $40,000/year.

I’m really not all that different from other moms. I take care of my home, my husband, my young son, as well as all the shopping and the family budget, too. What might make our family a little different from others is that we manage to live very comfortably without going into debt, and do so with only my husband’s income of approximately $40,000 per year. Here’s how we do it:

Health.com posts about 13 tips to help you save money on prescription drugs.

Even with insurance, drugs can be pricey. Without insurance, the cost may feel so exorbitant you may be tempted to skip or skimp on medication. Don’t. There are ways to rein in the cost of prescription drugs, and skipping medication can be disastrous and ultimately more costly than the drugs themselves.

The Consumerist posts about a woman who lived in a hotel room for 10 years and is just now checking out.

According to CNN, the woman worked in the Department of Housing and Urban Development. The free WiFi, security and housekeeping were attractive enough to keep her living in the room. She befriended staff to the extent that when she was hospitalized for a broken hip, the hotels’ general manager was there to greet her when she woke up after treatment.

Daily Finance posts that U.S. Homes lose $700 Billion in value in 2011.

The year-end housing news is sobering — U.S. homes are expected to lose more than $681 billion in value in 2011. But there’s an upside — that’s 35% less than the $1.1 trillion lost in 2010, according to new research from Zillow (Z), a real estate information marketplace.

The Digerati Life posts about the pros & cons of debt settlements.

While there are many options available for anyone who wants to wipe away their debts, all these options have their costs. If you do it yourself by living frugally and making sacrifices, you’ll get the best rewards by learning better financial habits, but it may not be easy until you get into the habit of living with a new fiscal diet. If you involve others — by inviting advisors, third party agents or companies in the picture — the cost is this: the dependence on someone else to resolve your problem (in many cases, it’s something you can work on yourself) and of course, there are fees you’d have to fork out for this help. Also, there’s the risk that some of these debt relief companies are going to give you minimal help for the money you pay; note that many debtors end up not making much headway with their debt problems when they end up signing with the wrong “professionals”.

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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