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A carpenter uses a set of house plans to build a house. If he didn’t the bathroom might get overlooked altogether.
Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without any plan at all.
Not very smart of us, is it?
A money plan is called a budget and it is crucial to get us to our desired financial goals.
Without a plan we will drift without direction and end up marooned on a distant financial reef.
If you have a spouse or a significant other, you should make this budget together. Sit down and figure out what your joint financial goals are…long term and short term.
Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with.
A budget should never be a financial starvation diet. That won’t work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before any spending.
Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the internet. Just use any search engine you choose and type in “free budget forms”.
You’ll get lots of hits. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with the final result and feel like it’s something you can stick to.
Mention the word “budget”, and people’s eyes tend to glaze over. Budgeting isn’t the most exciting activity in the world, and on the surface it is extremely limiting. We don’t like it when other people try to tell us how to spend our money, and even setting parameters of our own may seem too much.
What many of us do not realize is that a budget is the ticket to financial freedom. It restricts what we spend each month, but in the long run it allows us to get more out of our money. Instead of frittering funds away on things we could comfortably do without, we can save up for emergencies as well as things we enjoy.
Here are ten tips for creating a budget, setting priorities and keeping tabs on spending.
1. Be realistic. All too often, we create the perfect budget on paper, only to completely blow it in practice. This is frequently because we are not realistic about our expenses. It may help to save all receipts for a month before you start on your budget. That way you can evaluate how much you’re really spending and avoid budgeting too little for any given item.
2. Remember the little things. Eating out every day instead of packing your lunch might not seem like a big deal, but it can really add up. The same is true for many of the habits we have. Cutting back where practical can save you more money than you might think.
3. Lower your bills when possible. A good place to start is with your cable bill. Do you really need all of those movie channels? What about your cell phone bill? Would a less expensive plan meet your needs? Knocking a few dollars a month off of your bills could leave you with hundreds of extra dollars each year.
4. Get the whole family involved. A budget affects the entire household, so everyone should have a say. You may have to make changes that everyone doesn’t agree with, but they will be more likely to accept them if you listen to all input. Family members may also have ideas that you wouldn’t have thought of on your own.
5. Give everyone an allowance, not just the kids. Setting reasonable limits for discretionary spending will help prevent your budget from being derailed.
6. Make sure the necessities always come first. Budgeting for entertainment and other wants is important, but if push comes to shove, food, water, clothing and shelter are the most important things. Budget for these and the things that enable you to work (such as transportation) first.
7. Include savings in your budget. Saving up some money for emergencies is crucial for every individual and family. Try coming up with an amount to save each month and include it in the budget before any non-necessities.
8. Keep track of all expenditures. Save receipts or write down every expense so you can compare your actual spending to your budget. If you spend less money than budgeted, consider allocating more to savings. If you spend more money than you planned, you need to either watch your spending more closely or make adjustments to your budget.
9. Avoid using credit cards irresponsibly. Buying on credit will result in less spending of money in the short run, but you will have to pay it back with interest unless the balance is paid in full each month.
10. If you get extra money, use it wisely. Consider putting it directly into savings or using it to pay down debt. Spending it on something you want might feel good, but that doesn’t help your overall financial picture.
There was a time when road trips were among the best vacation options for those on a budget. But with rising gas prices, they have become much more expensive. Even so, many vacationers still enjoy hitting the road and seeing the sights along the way. When planning a road trip, it is crucial to estimate gas costs as accurately as possible. If you just guess, you could find yourself halfway to your destination and out of money! Here is how to determine approximately how much you will have to spend on gas.
1. For at least a couple of weeks, keep track of your gas mileage. The easiest way to do this is to fill up and reset your trip odometer. The next time you get gas, fill up again and write down how much gas it took to fill up and how many miles you drove.
2. Divide the miles driven by the amount of gas used. For example, if you drove 200 miles and it took 10 gallons to fill up, you would divide 200 by 10 to get 20 miles per gallon.
3. Remember to fill up each time you get gas and figure your gas mileage. Once you have done this a few times, add up the results and divide the total by the number of times you filled up to get your average gas mileage.
4. Figure out how many miles you will be driving during your vacation. This is easy to do with online tools such as Google Maps. Just put in your starting point, add your destinations in order, and you will see a map with the best route and the total mileage.
5. Divide the total number of miles you will travel by the miles per gallon figure you came up with. Multiply that number by the price of gas per gallon, and you will have a good idea of how much you can expect to spend on gas.
Keep in mind that gas prices fluctuate. By the time you take your road trip, gas prices could have gone up or down. They will also vary from city to city. So it is smart to budget a little bit extra, just to be sure.
Saving Money on Gas
There are some things you can do to keep your fuel costs as low as possible. Here are a few:
* Seek out the cheapest gas prices along the way. Check prices in the towns and cities you will be passing through on a site such as GasBuddy.com, and try to fill up at the least expensive stations.
* Use cruise control when practical. This will keep you at a constant speed, which can seriously improve your gas mileage.
* Avoid speeding. Not only can this get you an expensive ticket, it is also bad for gas mileage. The optimal speed for fuel efficiency is 55 mph, and when you go faster than that you are using more gas than you should.
* Avoid abrupt stops and starts as much as possible. Try to coast to red lights so that they will have time to turn green before you reach them. When you have to stop, accelerate slowly and steadily when the light turns green.
* Get a tune-up before you leave. Things like replacing air and fuel filters and making sure your tires are inflated properly can help boost your gas mileage.
Creating a gas budget for your road trip can help avoid unpleasant surprises along the way. And if you drive with fuel efficiency in mind, you might even use less gas than you had planned.
We all need a vacation every now and then. Getting away from the stresses of everyday life for a while leaves us refreshed and gives us a new sense of purpose. But when money is a concern, jetting off to a remote island may not be an option. Even going on a road trip could put an undue strain on the budget.
It can be disappointing when we are not able to take the vacation of our dreams, but that doesn’t mean we shouldn’t take a break. And it certainly doesn’t mean we cannot have fun. More than anything, vacation is a state of mind. If we can get ourselves into that state of mind, we can enjoy ourselves and distress without going far from home.
No matter where you live, there is something inexpensive you can do during summer vacation. Here are some ideas:
* Get acquainted with the arts in your area. Visit nearby galleries, or take in a show put on by the local theatre troop. Large cities may have more to choose from when it comes to art, but most smaller cities and towns have something to offer too. You might be surprised at what you find if you try.
* Plan a camping trip. Whether you rent a spot from a campground or just set up a tent in the back yard, camping is a great way to break the monotony without breaking the bank. There is just something about roasting marshmallows and sleeping under the stars that soothes the spirit.
* Visit a museum. Chances are there is a museum of some kind in your town. Whether it is a history museum or just some wacky collection, it will be a learning experience.
* Take advantage of the park system. State and national parks are wonderful recreation destinations, and they offer lots of activities that are cheap or free. Some have lakes that you can swim, boat or fish in, and most have hiking trails. There are also picnic areas, and some parks host special events for the public.
* Set up your own water park in the back yard. Invest in a quick-set pool, a slip and slide, some water guns and other inexpensive water toys. You can have lots of fun without the crowds for less than the price of a couple of days admission at most water parks.
* Organize a block party. Have each guest bring a dish, fire up the grill and set up the badminton net. If everyone pitches in, each person’s costs will be minimal and everybody will have lots of fun.
No matter what you do during your vacation, it is important that you relax. The idea is to take a break from work and everyday life, not to stay close enough to keep tabs on it. So resist the urge to check your email incessantly or go back to work early.
Vacationing at home has become a popular way to save money. But it does not have to be a sentence to boredom. If you treat it like a true vacation and make it a point to schedule things to do, an at-home vacation can be just as fun and beneficial as a trip to a traditional vacation spot.
Going on vacation can be fun, relaxing and rejuvenating. But one thing it usually is not is cheap. Just paying for a place to stay and admission to attractions can add up to hundreds of dollars. And by the time you factor in travel, dining and shopping, your vacation could cost a small fortune.
The good news is that if you know where to look, you can find coupons and discounts that will significantly reduce your costs. It is entirely possible to go on a trip and not pay full price for anything. Here are some places to look for vacation deals.
* Visit Free-Attractions.com. This website lists lots of things you can do for free all over the United States. There are zoos, museums, parks, festivals and more, and they are all organized by city and state.
* If you are interested in visiting a specific place, visit the area’s official tourism website. Many such sites offer coupons for local attractions. Some make printable coupons available online, while others will send you a coupon book for free or for the cost of shipping and handling. If you pay for coupons, however, it is important to be certain that you will use enough of them to make up for the cost.
* Get your hands on a newspaper or guidebook from the area you plan to visit. These are great sources of coupons.
* Check the official websites of attractions you plan to visit. They may offer coupons or have details of promotions that are going on. Some offer reduced admission or two-for-one deals on certain dates.
* Consider a season pass. Amusement parks often sell them for the price of two to three days admission. If you are planning to visit for a week and go to the park each day, a season pass might be the cheapest way to go. And if there is an attraction in your area that you might visit several times in a year, a season pass is definitely the way to go.
* Look for package deals. These are often available from travel agencies, and include airfare, accommodations, admission to attractions, and often dining and shopping gift certificates. It is important to add everything up to make sure you are getting a good deal, but such packages can save you big bucks.
* Are you a member of an organization such as AAA or AARP? They offer discounts to their members for lots of things, including vacation expenses. Even some credit card and insurance companies offer special discounts to their customers.
There are numerous ways to save money on a vacation. If you plan well in advance, you may be able to knock hundreds of dollars off of your expenses. That is money that you can use to pay off debt, put into savings, or put away to go toward next year’s vacation.
Rail
Another way to budget your summer vacation is to ascertain if it would be cheaper to travel by rail. While many hotels and tour companies are discounting packages, airline rates make up the bulk of the vacation expense.
If you live in the US and decide to travel to Orlando, check out the rates for travel by rail.
Note: Since the journey may be longer than 24 hours, depending upon where you live, you may wish to inquire about sleeping arrangements on Amtrak. In fact, you can bookmark Amtrak’s vacation specials for later viewing.
If you plan on vacationing in California, for example, you may want to check out Amtrak’s Yosemite by Train.
Cruise
One of the most popular and affordable ways to travel is by booking a cruise. This all-inclusive vacation is ideal for families. Disney Cruises offers a 3, 4, and 7 night package that has many discounts that allow you to stay within your budget.
For cruises on Disney Wonder and Disney Magic, check out Affordabletours.com at: http://cruises.affordabletours.com/search/advanced_search/?cruiseline=14
In addition, Expedia.com is also offering an affordable cruise on the ship Disney Wonder on August 27. This three-night cruise takes you to the Bahamas and Castaway Cay (an island owned by Disney), and the rates start at $399.00.
Why are cruises so ideal for families? Everything is included. There is always something to do on board, the ports of call are terrific, and as with the two Disney ships, the kids will have the time of their lives. For older kids, there are youth programs on board to make their cruise a most memorable one.
Another benefit is that most of these cruises leave from Florida and New York. Thus, if the airfares are too high, you can always travel to the departure points by rail.
TIP: There are certain times during the year that ships are not fully booked. Therefore, check the prices online first and then call the cruise line. Ask if they have a special family package and then inquire if they can upgrade you to a better cabin. You never know; it may be cheaper to book directly with the cruise line.
Road Trip
The third alternative is to take a family road trip. There are many benefits to this type of vacation. You are not locked into a specific date of departure; you can visit areas in your home state; you can select B&Bs or affordable motels along the route; and more importantly – you are not on anyone’s schedule but your own.
If you want to budget this type of family vacation, it is highly recommended that you join AAA (if you are not already a member). The benefits outweigh the cost of the membership. AAA provides discounts accommodations. You can save up to 20% on such hotels as Holiday Inn, Comfort Inn, and some Disney hotels, too.
For more information, check out AAA at: http://www.aaa.com/AAA_Travel/Travel/travel.htm
Another advantage in using AAA is that once you give them the destination, they will map out the scenic route as well as offer advice on accommodations and worthwhile places to stop along the way.
TIP: Speaking of discounts, you may want to purchase the Entertainment Book, which you can use at the destination you select. With over 150 editions to places such as Orlando, New York, Las Vegas, and California; this book is now being sold for half the price. It can be an invaluable resource geared towards huge savings on restaurants, admissions to parks and museums, theatres, attractions, and a variety of stores as well. You can purchase this book at: http://www.entertainment.com/discount/home.shtml.
Coupons can also save you money on your vacation. For example, once you have decided upon a destination, go to their online tourism or visitor’s bureau site. There you may find discounts on meals, attractions, and sightseeing tours. In addition, you can search for online coupon codes that could be used for hotels, airlines, and rental cars as well.
Air Travel
As mentioned earlier, this can become the most expensive part of the trip. There are three ways you can find the cheapest airline flights.
1. You can call the airlines directly (preferably on Wednesday) to determine what the rates are to any given destination.
2. You can check with a host of online websites that offer air only at discount prices.
3. You can call your travel agent and obtain the latest information on airline rates.
The first option is dependent upon booking early; at least two months in advance. The second option is to check the following online sites:
Expedia.com: http://www.expedia.com/default.asp
Travelocity: http://www.travelocity.com/
Cheap Flights: http://www.cheapflights.co.uk/
Priceline: http://www.priceline.com/
Kayak: http://www.kayak.com/
Trip Advisor: http://www.tripadvisor.com/Flights
Travelzoo: http://www.travelzoo.com/
Airfarewatchdog: http://www.airfarewatchdog.com/
The third option, of course, is to contact your travel agent. When travel agents book group tours, they usually block a number of seats on an airline. If the travel agent cannot fill those blocked seats, they will offer the air portion only at a special rate.
So too, travel agents deal with tour operators such as Tauck Tours or Perillo. Oftentimes the tour operator will contact the travel agent to ask if they have any clients who are traveling to their specific destinations.
If the tour operator cannot fill those airline seats, they will offer them to the agent to sell. This can be a tremendous savings for the traveler as the rates are always discounted.
TIP: Before you book a flight with an airline, online website, or travel agent; it is important to ask about the terms and fees. How much are the cancellation fees for airlines or does the online website charge additional fees for booking with them. While travel agents do not charge fees, ask for the trip cancellation coverage to cover any eventuality.
Home Swapping
Home swapping has become another alternative for vacationers. This is where you can really enjoy significant savings anywhere in the world. Home Exchange is a comprehensive website that offers information on every aspect of home swapping. Located at: http://www.homeexchange.com/, there is a membership fee of $99.95 for one year.
Currently, there are over 26,000 listings for those of you who would be interested in swapping homes with other vacationers who also want to budget their summer vacation. The top ten destinations where you can travel to using this method are: Italy, Spain, Australia, France, England, U.S., Canada, Switzerland, The Netherlands, and New Zealand.
Their FAQ page at http://www.homeexchange.com/faq.html answers many of the questions you may already be asking yourself about opening up your home to strangers. Further, their six-chapter ABCs of Home Exchange is an invaluable resource for first timers.
Home Exchange has been in business for 14 years, and the testimonials given are a true indication of how widely popular this method of vacationing has become.
Camping
Camping has always been a great vacation for families, and planning a camping trip this year can certainly reduce overall expenses. The advantages are many including preparing your own meals, camping under the stars, outdoor activities for the entire family, and there is always a hint of adventure.
Even if you have never camped out before, consider how inexpensive this vacation can be. For example, you would need to purchase the following items: a tent, sleeping bags, camp stove, and a cooler. The total amount for these items would fall well under $500.00.
Other costs would include gas (if you are driving to a destination in your state), car maintenance (including oil and filter change), and the cost of incidental items such as toiletries and the like.
Hostels
If you are considering vacationing abroad, you may wish to check out the Youth Hostels Association at: http://www.yha.org.uk/. They offer family rooms with rates starting at $70 per night in such destinations as England and Wales.
To book hostels online, it is preferable that you utilize any of the three websites listed:
Hostelling International at: http://www.hihostels.com/
Trip Advisor at: http://www.tripadvisor.com/Search?q=hostels&sub-search=Go.
Hostelbookers at: http://www.hostelbookers.com/tips/family-hostels/.
While staying at hostels might not be for everyone, they have become a popular alternative to staying in the more expensive hotels in Europe and around the world. Moreover, their effort to provide quality rooms for families has contributed to their growth in popularity.
This brings us to our next topic……..
Accommodations
No matter what mode of travel you decide upon on your summer vacation, accommodations are the second most important item on the list. If you choose a complete air/land package, for example, you will have a choice of the most affordable accommodations to the most expensive.
On the other hand, if you decide to book air and hotel accommodations separately, it’s a good idea to check with several hotels directly to determine if they are offering special family packages. Afterward, you can check these same hotels on the websites provided herein and compare prices.
You can budget your summer vacation by selecting hotels that offer free meals for kids and/or free accommodations, age dependent of course.
Or, for example, you can select accommodations that have kitchen facilities so that you can save on meals. Priceline.com has information on hotels with kitchenettes.
TIP: Most hotels today have had a decrease in occupancy. Therefore, when contacting a hotel it’s a good idea to negotiate rates. There’s no harm in asking, and you may be surprised at what they are willing to offer just to have you stay at their hotel.
Budget for Expenses
At the beginning of this report we discussed planning ahead for your summer vacation. This requires that you budget for every aspect of the vacation no matter what type of vacation you decide upon.
Here are 10 expenses to include in your vacation budget:
1. If you are taking a road trip, estimate the mileage and costs for gas. You can check online websites that offer gas prices in any state. Ensure that the car has been checked and is ready for the journey.
2. How much will it cost for accommodations? Assuming you choose a hotel or motel that offers kitchenette facilities, estimate how much the grocery bill would be. If you decide to eat out, you can easily check the restaurants online and view their menus and prices.
3. Air fare costs. This will be the bulk of your vacation expense. Remember to book early.
4. Tours. Most air/land packages will features one or two tours. If you plan to take additional tours, check the prices online. There are many discounted tours available in most destinations.
5. Additional transportation costs. In areas where you need to find alternate modes of transportation such as taxis, put aside a specific amount of funds for this in the budget.
6. Shopping. Set aside an amount for each member of the family to spend on this vacation. Explain the importance of sticking to the budget to the children.
7. Use traveler’s checks whenever possible, but take a credit card in case of an emergency. Add the cost of purchasing traveler’s checks to the budget.
8. If you are traveling abroad, purchase $100 in foreign currency before you travel.
9. If you are traveling abroad for the first time, budget for passports, visas, and vaccinations (where applicable).
10. Whether you are traveling by air, rail, or ship – budget for cancellation insurance.
Planning and budgeting for your summer vacation takes a bit of research, but it is well worth the time to find discounts, coupons, and special deals across the spectrum.
With summer just a few months away, now is the time to begin the planning process for your summer vacation. At a time when everyone is limiting their expenditures, this report will offer tips and suggestions on how you can budget your summer vacation.
We will discuss transportation options such as air, rail, ship, and car; accommodations; sightseeing tours; meals; and how to cut overall expenses.
In addition, we will offer information on discounts, coupons, entertainment books, and the advantages of joining AAA.
Planning ahead can save you hundreds of dollars. In this regard, we will offer many online websites where you can lock in some of the best deals available.
We will also talk about home-swapping, which has become a popular alternative way to save on vacation costs, camping, and staying at hostels.
One of the most important considerations in budgeting for a vacation is deciding when to travel. With peak season rates starting the beginning of July, there are a myriad of places where you can travel during high season and still save money. We will highlight those as well.
Choosing a Destination
Before choosing a destination, determine how much money you can set aside for the vacation. Factor in the entire package as well as meals, tours, car rental, rail and bus passes, and incidentals.
Check the many travel websites online to determine what destinations are hot this summer. Select the top five packages. Then check airline rates and hotel rates separately. Compare the prices. You may find that a certain hotel is offering a special package that is more affordable than booking the entire package.
TIP: When checking airline rates, do so on Wednesdays as this is the day new rates go into effect.
Also make a visit to your local travel agent. Ask about the five destinations you have chosen to ascertain if he or she can give you a lower price. Travel agents receive previews of special packages from tour operators and airlines. They know the ins and outs of finding the most affordable vacation areas.
For example, group travel is a great way to save money. Travel agents are apprised of many air/land packages in which either the hotel or airline has seats available.
Note: Travel agents work on commission. Thus, they do not pass on any additional fees to the consumer but receive their commission from tour operators and airlines.
Suffice to say, booking early saves money. The general rule of thumb is to book a package two months in advance. In this way, you are receiving the best air fare rate and locking in accommodations at the hotel. This is particularly important if you are going to a destination that is highly popular during peak season.
For example, Walt Disney World is one of the most popular destinations during the summer months. Moreover, you need not stay so close to the theme park but instead, can book a hotel further away in Kissimmee. Most of these hotels offer free meals for kids, which is another money-saver.
