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Nine Cheap Travel Trips

Cheap travel tips

Cheap travel tips

A vacation doesn’t have to cost you a fortune. If you are a traveler on a budget, these cheap travel tips are for you.

With concerns of rising air fares, baggage fees, cost of gas and more, taking time to travel can seem financially daunting and unrealistic when everyone wants you to save and think about retirement more. The truth is, you can most certainly still travel on a budget.  Here are nine easy cheap travel tips, some of which I use myself:

  1. Travel off-season. This is probably one of the easiest ways to save on your next trip, especially when flying. You will find that the rates are lower right off the bat when you plan to leave when others are typically not. Savings will also be found in rental cars and accommodations. If your trip depends on warm, nice weather, I would recommend comparing and contrasting prices in the fall and spring.
  2. Bring your own food. Are you going on a road trip? Pack your own food to avoid extra spending on stopping at restaurants or fast food joints. Plus, you’ll get to your location faster by saving time. My boyfriend and I often hit a lot of ground when we travel, and our most recent trip was a road trip. We were able to save time and money by bringing our own meals for the road.
  3. Leave during the week. The weekends are unquestionably busiest for traveling, which means higher prices in air fare, car rentals, hotels and the like. By generally choosing to fly out on a Tuesday or Wednesday, you can make your vacation cheap. Always keep major holidays in mind, though, as that does change things.
  4. Opt for a bed and breakfast. When my boyfriend, Ryan, and I decided to travel to Seattle in 2014, we knew this trip would not be cheap, mostly because of both renting a car for a few days and needing to stay in hotels for four of the seven nights of our excursion. Ryan was not too keen on the idea of a hostel (another inexpensive option) due to none with privacy being available, so I began looking into bed and breakfasts. I found a happy-medium, located right by downtown Seattle in the Cultural District, The Panama Hotel. It is technically a hotel but has a bed and breakfast feel. It also holds much history. In fact, it is the only remaining Japanese bathhouse still standing in the United States. We stayed here for the first couple nights at the beginning of our trip, and we were able to save money while also being able to walk through the downtown area. And, speaking of which…
  5. Put on your walking shoes. If you are trying to save as much money as possible on your trip, make a plan to walk as much as possible. Even in the age of the sharing economy with Uber and Lyft, try walking. You can still use that extra $20 for your next meal. Remember: cheap travel is the key here.
  6. Get the biggest bang for your buck. Ryan and I have been able to do multiple trips because we often incorporate the great outdoors in our travels. We will stay a few nights in a major city then head out of town to a national park or outdoor area that interests us, which helps us to keep expenses low while traveling. In addition to be cheaper, it also allows us to experience so much more.
  7. Don’t be afraid to ask for a refund. If you noticed a cheaper deal with another hotel company or car rental after booking, you can cancel your current agreement to go for the lower rate. Just make sure you do it in enough time and read the terms on your receipts. Many hotels allow a 24-hour cancellation notice in order to receive a refund. Others might require a minimum of 48-hours.
  8. Fly out locally. Instead of flying out of a major city’s airport, you may be able to save by flying out through a regional airport. Be sure not to rule it out when doing your price comparisons.
  9. Use an app. I am still learning about all the awesome apps there are you can use to find the best deals along with last-minute reservations. I am sure you are aware of useful tools like Groupon, Airbnb and LivingSocial, but some others include HotelsTonight and Air Help, which helps you with airfare compensation. You can also manage travel points through TPG To Go.

Part of cheap travel is to also know peak times in the areas in which you want to travel. Going with my point listed above, you can expect to spend more on travel costs during the area’s busiest times.

By keeping your budget in check and using these little tricks, you can fit a vacation that not only suits your schedule but your wallet as well.

What would you add to the list?

4 Ways To Improve Your Net Worth

net worth

Your net worth can be easier to improve than you think.

Do you know your net worth?

Knowing your net worth may not seem like an important detail to know, but being aware of this piece of information helps to keep you on track with your finances and monetary goals.

So, how do you determine your net worth and what is it? Basically, your net worth is the value of your assets (bonds, savings and retirement accounts included) subtracted from your liabilities (or debts). Calculating your liabilities is fairly easy, considering is it the total amount you owe including any loans, mortgages, and the like. Assets, on the other hand, can be a little trickier to establish due to debates many have in the industry about whether or not certain items, like your home or car, are actually considered an asset due to their depreciation over time as well as costs going in for maintenance. Assets should put money in your pocket, not take it out; however, for the sake of argument, let’s say your vehicle counts toward your overall net worth.

So, if your total assets are more in value than your liabilities, you have a positive net worth. If the value of your assets are less, then your net worth is negative. Throughout your life, your net worth will fluctuate. The goal, though, is to create a steady trend up to increase your assets, decrease your debts and, therefore, enhance your net worth.

If this stresses you out and it feels like you will never have less liabilities than assets, fear not. There are many ways you can improve your net worth. Here are a few:

    1. Increase your income. Easier said than done, right? But with the growing digital age, there are many ways you can make money online simply by being on your computer. If getting a higher paying job isn’t an option for you right now, look into blogging or selling items on Ebay or Esty. These are great ways to make some extra money each month, with little costs in overhead. Plus, you can use this side business for write-offs in the home on your taxes.
    2. Pay more money toward your debt. Any chance you have to pay more money toward your debt you should take. If you are only paying the minimum payment each month credit cards, student loans, etc., adjust your budget to try to include higher payments toward this debt. For instance, you may find that over the course of a month you are spending $30 or more on just going out for coffee. Cut back on those coffee shops and use that money toward your liabilities instead. Every penny counts, and your net worth will thank you.
    3. Save a quarter of your income. If you want to increase your net worth at a faster rate, saving more will help you do this. While a common recommended amount to save is 10% of your income, 25% will give your net worth percentage the extra oomph it needs. If this seems like a lot, consider taking 10% of one paycheck and 15% of another and use that total toward either a savings account, a retirement fund or something similar.
    4. Create a passive income. They say time is money, and the less time you have to spend actually making money while simultaneously increasing your bank account, the better for your net worth. There are a few routes you can take to create a passive income. Affiliate marketing is an option (if done ethically and correctly), but you can also invest in stock and bonds. Index funds, Guaranteed Investment Contracts (GICs), dividend stocks and bonds are examples of opportunities for you to make more money through income-generating assets. If you’ve never invested in stocks, you will want to consult with a professional first.

Finally, a great book on this subject is The Millionaire Next Door. The authors are a couple of marketing professors by the names of Thomas J. Stanley and William D. Danko. Their book is groundbreaking because it takes a realistic look at how America’s rich got that way. What they found was that millionaires were self-employed or owned boring profitable businesses. They also famously found that millionaires made decisions based cumulative future value (for example, saving money over your lifetime by not smoking) and took aggressive advantage of tax-deferred investing strategies. If you are serious about increasing your net worth, buy, read and re-read this book.

You won’t increase your net worth over night, but you can take continuous steps to improve it so that you can reach your financial milestones much faster.

 

Investment Strategies For Recent College Grads

Investment strategies for recent college grads.

Investment strategies for recent college grads.

Investment strategies should be one of your top priorities upon graduating college.

For those preparing to graduate from college this month, this post is for you.

If you have been following us, you may have read last week’s post regarding financial mistakes to avoid upon leaving your past four years of sanctuary. This week, we would like to discuss wise investment strategies for you as you (hopefully) begin interviewing more and potentially accepting promising job offers.

If you did not study finance or economics in your undergrad and you have never consulted with a financial planner, investing may seem like a foreign concept to you.

In addition to what we discussed last week, here are some ways you can set yourself up for a promising financial future:

Create a personal spending budget.

By not having a budget for yourself, you are more likely to spend more than you make each month as you begin to see an increase in your bank account thanks to your new job. However, holding yourself accountable will prevent any slip –ups as well as promoting positive spending and saving habits for your future. When everyone tells you to start now, they really are not kidding.

Set up your Individual Retirement Account (IRA).

If you’re lucky enough to land a job that offers a 401K, be sure to always add to it to help increase its value, even if your employer matches. The more you add in now, the better for your future. If you are among the many who do not receive this as a benefit with their place of employment, open an IRA now. A summary of what to look for in a retirement savings account includes:

  • First, there are two types: the Traditional and the Roth. Contributions to Traditional IRAs are tax deductible, but withdrawals during retirement are taxed. Roth IRAs are not tax deductible, but withdrawals are generally tax-free. In other terms, you avoid taxes when you put money in to Traditional IRAs, and you avoid taxes when you take money out in Roth IRAs during retirement.
  • No-fee IRA’s. Some charge you for simply holding an account with them known as a “custodial fee.” You will want to ask your institution if they charge any fees for hosting the IRA.
  • Additional charges. Another question you will want to ask your custodian is whether or not they charge any kind of transaction fee. These are typically charged when you go through a financial adviser to purchase your mutual fund. Be sure to also inquire about other fees that may be associated like contract charges.

It’s often recommended for those starting out their investment portfolio with limited funds to begin with a Traditional IRA. A concern is that individual tax fees for Traditional IRAs could be higher but is not guaranteed. You will want to weigh out all your options with both in order to determine what is best for you.

Ignore Get-Rich-Quick Schemes.

If something seems extremely complicated, it probably is. As a newbie to the world of investing follow the K.I.S.S. rule (“Keep It Simple Stupid”). Choose one source and keep it simple. Over time, you can grow your net worth, but it will be hard to accomplish if you don’t understand what’s happening to your money.

Don’t be afraid to purchase used items first.

The goal and purpose of growing your investment portfolio is to decrease debt. As a college graduate, you will already have loans unfortunately accumulated on your shoulders upon stepping foot off that campus for the last time as a student. So, buy used items and live below your means. You will work your way to having those nicer items much faster by choosing to spend less now.

Know your assets.

In this previous post, we discussed what comprises of an asset and what does not. In summary, an asset is something that puts money in your pocket; not removes it. Consider this as you make big purchases over the next few years.

Choose the right savings account.

If you are already excellent at saving money, that’s awesome! But, did you know you can make it a little more worth your while? Have your savings pay you back by choosing the right type of account to increase your investment will waive some worries for you in the future. Some to consider are:

  • Online Savings Account: Earning potential is higher.
  • Money Market Deposit Accounts: Despite minimum balance requirements and monthly fees, the interest paid is typically higher than that of traditional savings accounts.
  • Certificates of Deposit (CDs): Another opportunity for higher interest rates paid, but limitations do apply for withdrawals.
  • Automatic Savings Plans: Can help you obtain lower banking fees.

As always, and with any choices you make, be sure to do your research and ask a lot of questions to see what fits you best.

Invest in an emergency fund.

This may not seem important, but with the economy so up and down, you will want to be prepared for the worst. I’ve heard of several stories of companies going under or downsizing, leaving individuals back on a job hunt in an increasingly competitive market. In fact, the company I did my undergraduate internship with closed down several offices, leaving no opportunities for me upon graduating. I watched co-workers one by one receive the unfortunate talk. There is also the possibility of being fired, which I have also heard of from individuals who seemingly held a strong position in their occupation. It happens, and you need to be prepared. The recommended strategy is to save six months of savings to keep you afloat in case of an emergency.

Invest in higher payments to your student loans.

Only paying the minimum on your student loans will keep them hanging over your head longer, and thus, keeping more debt in your life longer. The average time it takes for a college grads pay off student loan debt is 21 years. It doesn’t have to be this way though.

 

Make your future better and financially more stable through these tactics and tips.

Do you already have an investment strategy in place for when you graduate?