<p>OR also does not have sales tax–I think they’re one of the few in the western US & attract some big purchases. When we were there, we just bought a pair of tennis shoes (because I had forgotten mine in the hotel room & they claimed no one found them). Oh well, that was pretty much all we lost for that trip, so that was pretty good!</p>
<p>I see insurance as peace of mind. My folks paid for years but never (at least in my lifetime) had a claim of any kind. We have paid premiums and in the past 3 years, we’ve had three claims–all paid. We had an inland hurricane (= straight line 100 mph+ winds) which took some shingles off our roof and damaged aluminum siding the back. We got a new roof and completely resided house (they couldn’t match the color to do only the back). Total about $25,000 (easily more than we’ve paid in premiums). S1 driving our hand-me-down 12 year old, almost 200,000 mi car spun out on black ice and totaled it. Got a check for >$3500 (thank you Toyota) + money he paid for rental car. We have insurance on S2’s musical instruments. One was stolen from a locked locker (with other smaller stuff). Insurance replaced the instrument = ~$1500 (for 3 yrs. x $75 premium).</p>
<p>I have known many who have paid premiums forever and never made any claims. We did have a burglary & our homeowners policy waived our deductible & paid up to the maximum for our stolen jewelry (it was limited because we didn’t separately list any of the jewelry). Auto insurance is very important, especially since there are so many uninsured & underinsured drivers out there, causing a lot of harm & damage. I’m less convinced about hurricane insurance–we have been purchasing it but our legislature recently emptied the hurricane relief fund because they needed it for other needs–not sure what will be there when we need it. 
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<p>I am leaning toward not bothering to continue H’s insurance after he retires, since we will have his pension & the other expenses will be under control. We shall see.</p>
<p>I love the insurance we get from our credit cards–it has been useful for the extended warranties on the computers, trip cancellation, eyeglasses that were washed to sea, retainers that went through the washer & dryer, car rental collision damage waivers! Best of all, I don’t have to pay any premium for the coverage!</p>
<p>My DH and I saved a ton of money when our kids were young by working separate shifts. None of our children ever went to daycare. Relax–I am not totally against daycare, just the price you pay for quality care. We were fortunate enough to have jobs that allowed shift work. My DH was “Mr. Mom” and he LOVED every minute of it! Our kids had constant stimulation, lots of love, exhausted parents, and we saved a ton of money. This allowed us to take any time off that was offered as the kids got older. This allowed for cross-country ski trips (a family passion) and extended summer vacations. We look back and think about how special that time was and how lucky we were to spend it with our children.</p>
<p>We don’t make a ton of money but we are comfortable. We take small vacations because we live in an absolutely beautiful place–a place everyone else likes to come to for vacation. We save the money for a big vacation every 4-5 years. But I must embarrassingly admit, we want room service, golf reservations and a room with a view–totally worth it even if I have to drive an older car (my work commute is 10 min).</p>
<p>There are certain things we should pay a premium for, but for everyone it will be different. Find what you love (like we’re always telling HS kids) and spend your disposable income on it–why not?</p>
<p>Yup, there are a handful of states with no sales tax (lucky you) but perhaps make it up in income or excise tax. However, individual cities/counties can levy sales taxes. </p>
<p>And while there are a few states with no sales tax, Ohio is not one of them.</p>
<p>Hmmmm…no state income tax in TX. Plus very low housing costs, heating, etc. Come on down!</p>
<p>No sales or income taxes in NH. It’s the Live Free or Die state. We have moderate housing costs and heating costs this winter should be brutal. Property taxes are fairly high but you can control those by choosing the size of the house that you live in.</p>
<p>How does NH fund its state budget, BCeagle? Does property tax include cars, electronics, furnishings or anything like that besides homes/land?</p>
<p>Hmm, Dad II’s post made me think. We all are griping about paying college tuition, but at least that is going to pay people who also live and work in the US. I guess we are “buying American” :)</p>
<p>NH funds its budget from property taxes and business taxes. Cars are taxed at the local level - I’m not sure whether the state taxes them too. NH is a libertarian state that doesn’t spend a lot of money on things like schools, social services, government, higher education, etc. As an example, state legislators are paid $100/year.</p>
<p>State SAT scores are generally well above the mean and the participation rate of high school students taking the SAT is high (75%). The unemployment rate here is 5.3% (US Bureau of Labor Statistics). So the state is doing reasonably well outside the brutal weather this winter.</p>