More Thoughts on Traveling...

Other budget-conscious travel tips:

• Consider traveling in the US! If you don’t want to bother with currency exchange rates and the weak dollar, take a look at the historical sites, national parks, and other attractions near or far from your home.
  
• What you previously considered a one-stop trip can be a two-stop trip or more. For example, a week in San Francisco can easily include a journey to California’s wine country in Sonoma and Napa Valley. A trip to Las Vegas can include a side trip to see the Grand Canyon—the two spots are only about 4.5 hours apart.
  
• If you’re flying somewhere in the US, consider using regional airlines. They may not take you straight to the airport in the heart of the big city, but they will get you an hour outside of your destination (remember to factor in travel time… If you end up an hour outside of New York City, it will potentially take you longer than an hour to get into the city due to traffic etc).
  
• Fly on weekdays instead of weekends. It’s usually cheaper.
  
• If you’re driving, map out your trip. The American Automobile Association has an online resource, TripTik, which will let you lay out your route. Then, a website like gasbuddy.com can help you figure out where the cheapest gas stations along the way are located.
  
• Consider having lunch be your main meal when traveling. Lunch is usually cheaper than dinner. Also, if your family is not big on breakfast, consider saving on breakfast and having a simple bagel or muffin instead of a large breakfast brunch. This will allow you to spend more on lunch and dinner.
  
• Consider having your pet stay with a friend instead of at a kennel while you are gone. This, of course, might require some pet sitting on your part in the future to pay back your friend’s generosity, but if you are responsible and like animals, this shouldn’t be a problem.
  
• Vacation with family and/or friends. Get a rental house instead of a hotel—more privacy and more homey while saving money at the same time!
  
• If you’re thinking about taking a cruise, look online for cruise specials and discounts. They’re everywhere, especially in what has traditionally been considered the off-season for your destination.
  

Travel doesn’t have to be super expensive. And if you’re still worried about costs yet are yearning for a weekend get-a-way, consider a night or two at a bed and breakfast within a four or five hour drive from your house. Not only will you be supporting regional economy but you might discover something you never knew about your state/area!

Internet Sources for Cost-Effective Vacations

A friend of mine recently told me to start checking out sites such as Priceline and Hotwire when shopping around for travel deals, both on business trips and personal vacations.

Some things I noticed while reading:

• Use Priceline to bid on four star hotels to get them cheaper. Unfortunately, you won’t find out the name of the hotel until your credit card has been charged; however, it’s all part of the adventure, right?!
  
• Don’t expect the best room that the hotel has to offer. Sometimes, hotels give Priceline customers less-desirable rooms. Priceline denies this, but there are many common complaints to this effect.
  
• You cannot make any cancellations or other changes once your bid is accepted and your credit card is charged.
  
• The ‘Winning Bids’ tab on the Priceline website or BiddingForTravel.com will give you ideas of how/what to bid.
  
• You can use sites such as Orbitz, Priceline, or Kayak to bid on airplane tickets.
  
• For group bookings, try Priceline’s reverse bidding service, where you specify what city/dates/number of people you want to book, and Priceline gives this info to hotel managers, who come back with their best offers for you. Even if you do not go with one of these bids, the service is still free.
  
  The bottom line? Don’t be afraid to shop around and do internet research before committing yourself to anything. It's summertime and people are looking to GO. Before you join the hordes at the beach, consider going somewhere unique and check out any deals that might be available. Then pack your bags and get ready to relax and have some fun!

See the attached articles below for resources and advice on how to use discount sites.

Things to keep in mind... When checking out Hotwire, bid lower than Hotwire. When booking a trip, consider having a Google map open as well as Tripadvisor and Hotwire/Priceline open at the same time to ensure you are booking in the right location.

http://www.nytimes.com/2009/01/13/business/13road.html
http://buzzmodo.typepad.com/buzznovation/2006/06/business_intell.html
http://current.newsweek.com/budgettravel/2009/02/priceline_is_bloggin.html (my favorite)
http://www.concierge.com/cntraveler/blogs/perrinpost/2008/11/super-hotel-dea.html

Managing Credit

Whether or not you have debt, it’s still important to manage your credit. If you have debt, you certainly don’t want any more, and if you are debt-free, you definitely want to remain that way if at all possible. Back in the day it was simple to manage your credit. There were no such things as credit cards—the proprietor of the town store knew who you were and gave you credit off of your good name. Today, your name won’t get you credit, but it will get you a credit card with a credit limit. The temptation always exists to buy on your credit card and pay later—after your paycheck, at the end of the month, whenever. Don’t fall into the plastic trap!

Tips for managing your credit:

• Have ONE card. I repeat: have one card. Having more than one card can lead to purchases you won’t remember when your bill comes, or to spending too much money or trying to hide purchases. Having a second credit card that you don’t use to build your credit is a myth. If a card sits unused for too long, sometimes credit card companies will cancel it. This isn’t good for your credit, the same as not paying bills on time isn’t good for your credit.
  
• Pay off each month. Strive to pay off the full amount each month. If you can’t, pay off as much as you can, then spend less the next month so you can get caught up and pay month by month, instead of letting interest and unpaid bills pile up each month.
  
• Read the fine print. Don’t get scammed into something that seems like a good deal with low interest rates but after the first few months turns into high interest rates and other charges. Credit card companies are not necessarily your friend—don’t fall into the trap of believing that they are.
  
• Pay ON TIME. Don’t let late fees get you, because they can cripple your payments and finances.
  
• Avoid cash advances. Payday lenders prey on people who have no other options—if you have another option, do not do a cash advance. Interest rates on cash advances are often ridiculous because the people who need them need money right now so badly that they will take anything. Then, when your paycheck comes, you lose a significant chunk of change in interest payments.
  
• Watch limits. Don’t go over your spending limit. Period.
  
• Review your statements. Make sure someone else isn’t using your card without your knowledge, even a partner or child. Make sure you know where your money is going.
  

The bottom line: responsible behavior is the key to having a credit card. Don’t be afraid, but be aware of what’s out there so you can make informed decisions regarding your credit and spending habits.

Finding Your Way Out of Debt, One Step at a Time

Sometimes, people trick themselves into thinking that getting out of debt is easy. All I have to do is pay off my $300 credit card bill, you think. You forget that this month you have to pay your water bill, cable bill, electricity bill. Maybe it is summer and the weather is scorching hot and muggy (sound familiar?) and the air conditioning has been on more than usual. Maybe your son needed new soccer cleats. Maybe you had an unexpected expense pop up. Whatever the case, what previously was something you were going to pay off in total is now something that you can’t afford to pay; this month, you think, I’ll just pay the minimum. NEXT month I’ll pay it all off. Then next month you have a $450 bill, plus whatever is left from this month, plus interest. Uh-oh… what now?

In paying off debt, the thing to remember is that when making money to pay off your debt, you have to make MORE than the debt amount. Debt accumulates interest. This can get expensive. Some things to consider when dealing with debt:

• There is no ‘magic bullet’ that, when shot, will annihilate all of your debt. You got yourself into debt—you are responsible for getting yourself out of debt.
  
• Set a clear intention. You can’t keep putting debt off. Your intention must be focused: this month, I am going to pay off $250 extra on my college loans. Set a goal and stick to it.
  
• Establish a budget. You will not be able to continue living frivolously if you want to pay off your debt. You’re going to have to create a budget… Think about it. A budget doesn’t have to be the end of comfortable life as you know it. Start by seeing what you can eliminate—eat out two times less a month, and put that money towards paying off debt. Instead of getting your hair done every month, go every other month. Instead of hitting the outlet malls with your girlfriends for a shopping spree, go out and hear a live band at a local park for free. Encourage your husband to spend less on pricy electronic gadgets that you don’t really need. Put all the money you would be spending but are not towards paying off your debt. Then look at ways to cut costs. Is it cheaper to buy the supermarket brand than another, pricier brand? Will your family even taste the difference? Probably not. Then use the money you’re saving to pay off debt.
  
• Set yourself up for success. If, in your quest for budgeting, you take away everything you enjoy doing, you will be miserable and resentful and you will fail. It doesn’t have to be like that! Start small and work your way up.
  
• Focus on ONE DEBT AT A TIME. Try to eliminate your SMALLEST DEBT FIRST. This way, you will see your success and say “I can do this!!”. Then you can conquer your other, larger debts.
  
• Celebrate your debt-vanquishing victories (without shopping). Spend an afternoon at the park with your family. Treat yourself to homemade banana splits. Anything fun you can do without spending loads of money is great.

The Savings Game

Although the past decade or two has been marked with a frivolous “I’ll get to it later” attitude towards savings, the current economy has been causing people to take a step back and realize that future financial security is a necessity. In fact, there are many, many excellent reasons to save, including the following:

• Retirement—who wants to have to go back to work after realizing they didn’t save enough to retire? No one. Take steps NOW to ensure that you can enjoy your retirement and plan today for things you want to do then, like traveling, visiting grandkids, etc.
  
• Big ticket items—back fifty or sixty years ago, the attitude was “I save for it… Then I buy it.” Until recently, our attitude has been more “I buy it… Then I pay for it.” This is the wrong attitude to have. Buying everything on credit is not the soundest financial practice. Save up money to buy something, and then you won’t have to take out as big of a loan. And the more you pay upfront, the less interest you pay on a loan. Let’s face it—wouldn’t you rather save the money, pay for something in full, and skip having a loan and interest payments?
  
• Rainy day fund—you can never see the future, but you can prepare for it. Your goal should be to have 3-6 months worth of spending money saved up. However, an ideal situation would be to save and pay off your debt. That way, you can pay off what you owe and provide for your future. If something unexpected happens, you’ll have a little tucked away just in case.
  
• Education—whether it’s for you, your partner, or your children or grandchildren, education is an excellent savings goal. You don’t want your child to get to their senior year of high school and realize that because you put off savings, they are going to be saddled with mountains of debt for years to come.
  
• New house—there are many reasons why you might want to move: new job, new town, new state. The more you have saved, the less you have to borrow.
  
• FUN & FREEDOM!!! There may come a time when you want to buy yourself something nice, or take a second honeymoon, or buy a motorcycle. Who knows! Whatever the case, having the money to treat yourself will make you a whole lot happy and make your dream more realizable. And having money in the bank makes you free… Free to choose what you want to do, where you want to go, what you want to leave your children once you’re gone. Saving is worth it. You want to put together a plan for your future—and then you want to make it happen. Saving money can help you do this.
  
  Some savings tips:
  
• Start small
  
• Get a free 401(k) match—sometimes, employers will match what you put in your 401(k) (up to a certain amount of money). Take advantage of this! One day you will want to retire (although that day may be tomorrow, saving up for it will make it more possible!)
  
• Replace old (bad) habits with new ones—as financial advisors, we cannot say this enough. Stop buying expensive coffee every day and instead buy quality grounds and make yourself a cup at home. Have manicure parties with your girlfriends instead of getting manicures done every week. Don’t buy something on credit; buy it when you have the money to pay for it in full.
  
• No automatic deductions—with automatic deductions, you don’t see how much money you are spending because it magically gets taken out of your account each month. Be constantly aware of your spending habits. Don’t spend more than you mean (or need) to.
  
• Friend challenge—challenge a friend to a savings contest. Go out for ice cream to celebrate, or do something that both of you enjoy. This way, everyone wins.
  
  Savings doesn’t have to be hard. But money will not magically appear in your bank account unless YOU put it there. Begin today to have a happy, secure, and free tomorrow.

Stepping into Financial Leadership

You must be the one to make the decision and take charge of your financial life and well-being because no one else is going to do it for you. However, this doesn’t have to be a scary process! Follow the steps below to ‘feed the pig’ and ensure that you will have a healthy and happy financial life well into the future.

1. Bust the fairy tale myth: no one will come to take care of you. You’re going to have to take the initiative and do this on your own. There is no fairy godmother to lead along the path of financial success.

2. Be willing to learn: in a recent survey of the financial literacy of high school schoolers, 60% of high school seniors failed a basic economic literacy test. Don’t let this happen to you or you family! Take charge of your life and make saving a habit. Start with your children when they’re young so saving will be a life-long behavior for them.

3. Delegate: think about hiring an advisor. However, keep in mind that your advisor should educate YOU. If you have any questions or concerns, you should never feel afraid or intimidated to share them with your advisor. If you are, then you are not with the right advisor. Don’t be afraid to shop around for an advisor. An advisor should be someone you’re comfortable with, not someone who makes you feel scared to ask for advice. Also, make sure the advisor is concerned first and foremost with your goals. You are the most important person in the advisor/advisee relationship. Don’t ever doubt that!

4. Lead by example: be a financial leader, not a follower. Don’t be afraid to share what you have learned with your friends and family. Being a financial leader will not happen overnight, but once others start to notice your helpful financial habits, they will be able to follow your example.

5. Be on PURPOSE: you have to know your financial goal and want to achieve it.

6. Never say never: set your sights HIGH and keep working; don’t worry about a super-strict timeline.

7. Make savings a habit: make small changes. Saving is like dieting—take it slow!! Pick a dollar amount per week that you want to save and then stick with it.

Consider other ways to save money, like drinking from the tap instead of paying for bottled water all the time. See my previous blogs for more savings tips.

And remember… Success breeds success. Start small and see where you end up!

Widening Your Financial Perspective

When thinking about prosperity, it is important not to be too narrow-minded. This will only limit your success and will not allow you to reach your full prosperity potential.

Take a look at the four cornerstones of prosperity:

1. Clarity of intention: you must actively WANT prosperity. Prosperity must be an actualized goal… It cannot be something that you are half-hearted about obtaining.

2. Conscious choice: once you have clarified your intention (to be prosperous!) you must make a conscious choice to invest, NOT spend your money. In order to be prosperous, you must have money available to invest. It may seem simple, but it’s very important to monitor your spending and contribute your money towards your investments and your future prosperity.

3. Sustainability: your money will outlive you. What do you want to leave to your dependants—debt or prosperity? Investing now to become prosperous later could help sustain your family after you are gone. Also important in today’s world is the sustainability of the economy. We must begin to take care of the Earth so that our descendants will have an Earth to live on. What we do today (with our money and with our world) will impact future generations. It is time to begin making wise and healthy choices, and to stop hurting both our financial pocketbooks and our environment.

4. Enoughness: when is there enough? If there’s never an end to our quest for ‘more,’ is there peace? This is not to say that you should stop trying to further yourself and better your circumstances, but there has to be a point where you can relax and be happy. If you never achieve this point, you will always be frustrated and living with a focus only on the future instead of living in the moment and enjoying yourself.

Some of us are trading our life energy for money!! It’s important to take a step back and ask yourself ‘Do I feel good about who I am?’. The answer may not always be what we want it to be, and in that case it is important to take a step back and widen our perspective from just accumulating money—look also at prosperity and happiness. What’s the point in having piles of money if you’re not enjoying your life and are always striving to get more money? Take your time. Enjoy yourself, your life, and your family.

Be a Fox!

There are many different reactions to today’s economy. Three of the most common are listed below (see if you can categorize yourself):

• The ostrich: preserve the status quo and hope for the best
• The bull in the china shop: blindly cut expenses across the board
• The fox: use the downturn to make your business more effective, so you are in better position to move quickly when the economy rebounds.
  
  Ideally, who should you be? The fox! If, instead of resisting the economy and hoping the recession ends soon or panicking and slashing expenses, we all tried to use the recession to make us better business owners and businesspeople, we would all come out of this downturn positioned to get ahead of our competitors.
  
  It is important not to fight the change. Instead, trust the change. Financial markets move in cycles, just like the earth, the moon and the seasons. This is the truth. If you resist truth, you’ll never feel prosperity. Pain fuels change, and truthfully both we and our country have needed to change for some time now. Given this recession, we can look at our past behaviors, see what may have lead to the current state of the economy, and learn to avoid these types of behavior in the future.