Fragmento. © Reproducción autorizada. Todos los derechos reservados.

LIFE ON A BUDGET

AuthorHouse

Contents

1. "VACATION -Yes or No?".........................................................12. We all have to eat.............................................................93. Couch potato - time to relax...................................................174. Fly like an eagle ... "Where are we vacationing?"..............................235. Bah Hum Bug ... holiday shopping...............................................296. Just say "Charge it" ... I don't think so......................................337. I don't want to cook tonight...................................................398. Is it time to move?............................................................439. Talk is cheap, but is the phone?...............................................4710. Rent vs. Buy..................................................................4911. Chop chop ... bye bye mortgage?...............................................5512. Teaching your kids about money and how it really works........................5913. Is it time to fly the nest?...................................................6314. Is there a way to teach your kids to save for the future?.....................6915. Let's play dress up...........................................................7316. Taxes ... Do you know what you really should know?............................7717. Scamming your life away ... Watch out for the bad guy!........................8518. Is your credit important to you?..............................................8719. Turning the nest into a castle................................................8920. So, you want to tie the knot!.................................................9121. Miscellaneous things to keep in mind..........................................93

Chapter One

Vacation is defined as "a period spent away from home or business in travel or recreation". Everyone likes "time off" from life to relax, play or travel. There are many people that I know personally who do not take time off because they can't afford to and if they do take "time off", they stay home because they don't have the money to travel. Do you have a dream that takes you traveling somewhere that you truly believe you will never see before you die?

Guess what! I have had that dream so many times in my life and my desire for going was so strong that it bummed me out because I thought I would never get there. My longest dream was my desire to visit Germany. Since taking German through middle and high school and having an ancestry mostly of German, I wanted to see what it was all about. In my early forties, my husband, Michael and I backpacked Europe (including Germany since he was born there) for eight days on a budget that was hard to believe.

We had talked about our European vacation for a long time and had a lot of trials figuring out that it was something we really could not afford. At the time, we had three children still living at home and their daily financial needs seemed to supersede the ability for us to go anywhere that extravagant. It was more like which state park shall we camp at during the coming summer.

It took a lot of "motivation" once we recognized that our "desire" was too strong to let go. We devised a grand plan that we knew was fool proof as long as we followed through. It took us a little over a year to save the money that did not affect our budget heavily. We cut back enough that it did not drastically disrupt our lives or even enough that our children really noticed. The following is the plan we implemented and followed through on. We did not deviate from it even once. The startup cost was inexpensive while the investment was worth every nickel saved.

The first thing we did was to go shopping. Remember, sometimes you have to spend money to make money. We started at a discount store and bought a ten- gallon fish aquarium. (No, we did not raise or breed fish ... lol) Next, we headed to the hardware store and bought a small tube of bathtub caulk and a piece of Plexiglas (defined as "polymethyl methacrylate - a transparent plastic used as a substitute for glass") cut to fit the top opening of the aquarium. We took our supplies home and got to work putting our idea into action. The first thing we did was to drill a hole in the center of the Plexiglas that was big enough for a nickel to pass through. We opened the caulk and spread it around the top opening of the aquarium. It was then time to set the Plexiglas in place so the caulk would hold it secure. Perfect. We just needed to let it dry so no one could get the Plexiglas off. We were so proud of ourselves because we finished the first step. This was the easiest step of all. We set the aquarium in the kitchen on the counter so that we would see it many times a day. By seeing it often, it gave us the "motivation" we needed to get started and stay focused on our goal.

Our next step was close to the hardest of our goal. Every two weeks on payday, my husband and I went to the bank and bought forty dollars in nickels. We each took twenty dollars from our paycheck to put towards our savings. We then brought our nickels home and opened them and slid them through our "nickel" hole in the aquarium. If you are thinking, "Why nickels?", then think about it for a second. Are you willing to rip off the top of the aquarium to go nickel diving? Are you going to take a handful or two of nickels to the store for milk or to get gas? What about the kids? Ours would have been embarrassed running around with a lot of nickels. If you said "No", then we are on the same page. If you said "yes", I hope you will read this book from cover to cover so you will also learn about self-control.

The first couple of months proved to be disappointing because the nickels didn't look like much sitting in the bottom taunting us. This is when we began adding change that we acquired (after it was turned into nickels). There were several times that we questioned our motives and each of us was strong for the other. Any handyman chores that my husband received compensation for and anything I earned from taking surveys and taste tests was turned into nickels and put into our magical aquarium.

After this, our pyramid of nickels really began to grow and soon we were even unable to slide it from place to place on the counter. At eleven months the aquarium was almost full! We both agreed that it was time to really start planning our trip. Having spent close to a year of saving and agonizing over whether we made the right decision on a trip out of the country, we decided to plan our trip very cautiously with finances in mind. We applied for our passports first to give us the reassurance that this was real. I spent many anguished hours on the Internet researching airline fares. Did we want to fly into Amsterdam, Madrid, Dusseldorf, Brussels or Paris? I checked every possible airline site for every possible city in and near Germany. During all of this searching it occurred to me that we would need to get around once we arrived. I found that rental cars were too expensive and driving in a foreign country did not appeal to either of us. I did my homework and discovered that Europe relies on mass transit for transportation. It was time to research the Eurail pass (Eurail.com). There was a new dilemma to face, which meant we needed to decide how many countries we wanted to visit. There was Benelux, which included Netherlands, Luxembourg and Belgium. Then you could add nearby countries onto that or choose others that were more fitting. Before booking our train passes, I found a great flight from Minneapolis to Amsterdam which came in close to one hundred dollars cheaper than the other cities. So, I just saved two hundred dollars for our two tickets on Northwest Airlines. I then went to Eurail. com and booked our train passes that would cover us in Benelux, France and Germany for eight days for less than the cost of a rental car in one country for eight days.

We were getting close to turning our nickels back into paper money. We looked at the aquarium and identified with the fact that it was not going anywhere. This thing was going to break into a million pieces if we even tried to shift it even just a little bit. We started collecting small boxes to put the nickels into for easy transport to the bank. Another thought crossed my mind. Once we were at the bank with our stash of change, would there be enough room in the coin counters to take our entire load? I took a quick trip to the bank that we did business with and conferred with the bank manager. She would need to make a call to have the security team on location to empty the machine as needed. We set an appointment for the big event and waited in earnest to see how much money we had saved.

We were very excited as our car was loaded with all of our boxes and several grocery bags jingling with coins. The bank was not far and we arrived safely without spilling any of our filled boxes. Two hours and fifteen hundred dollars later, we hugged each other joyously as we embraced the reality of what we just did. We were going to Europe and get to see Germany too! Oops! Our trip is totally paid for but we don't have much left for eating, sleeping, attractions or souvenirs.

We sat down later that night and came to the conclusion that we did not look at the big picture even though we did think out of the box. We decided to pull a double whammy! We had already filed our income taxes and they should be arriving at least a month before our big trip. We decided that we would take our tax return and pay off our credit cards as we usually do each spring (This we will cover in another chapter) and then take five hundred dollars of that money with us and take one lower balance credit card along for backup.

Our trip was exceptional. We chose to take only backpacks (our kids made us the laughing stock because they explained that we were too old to travel with so little and that parent's could not backpack except for camping.) We did wear money belts under our clothes for the added security and knowledge that our passports and cash were safe. We wore fanny packs around our waists to carry the camera, extra batteries, gum, and a pen and of course, my cigarettes.

We survived the flight overseas and landed in Amsterdam and took the train into the city. We walked and did some sightseeing and planned what we wanted to do. We chose overnight train travel to save on hotel accommodations and it gave us the experience of many insightful situations while visiting abroad. Since we were very busy while visiting, we usually had bread (after three days we finally found butter) for breakfast, many times we skipped lunch and just had a small snack and then found some place decently priced for dinner.

We chose not to buy souvenirs for friends, but picked up a small item for each of our kids. We decided that this was our vacation (the first real one without the kids) and why should we spend all of our money on other people. It may sound selfish but it was our trip and not theirs. When other people laboriously saved their money for as long as we did, then they too could book a vacation and bring their own souvenirs home with them.

We tallied our total cost after returning back to the real world and found that our entire trip cost us less than two thousand dollars for both of us. This included airfare, train, hotel accommodations, food, entertainment and small cash advance from our credit card. We also found one hundred Euro while in Amsterdam and turned this back into the American dollar after arriving back in the states. I then applied this to the credit card that I had taken a cash advance from.

There are many different approaches to finding the best flight arrangements that fit into your needs. By searching via the Internet, there are countless websites that can lead you to the most suitable online company. Many people like to search by a travel search engine or research through a certain company. Personally, I prefer both. I always start my search for flight arrangements through a travel search engine such as Expedia. com, Travelocity.com or Travelzoo.com. (These are only a few of the numerous engines available.) I like this type of search because it gives me the opportunity to compare flights from one airline to another. I use several search engines to get a comparable idea. (The results from one search engine to another are usually very similar.) After I have found the "best" airfare, I always visit that airline's website to see if they are offering something "better" than what I found elsewhere. It can usually save you a booking fee by booking directly with the airline at their personal website.

Living in the Twin Cities in Minnesota can cause some grief when booking airfare as well. The flights seem to be more expensive to fly in and out of than some of your larger cities. If your travel dates are flexible as well as departure and arrival times, you may have a better chance for lower airfare by changing your plans ahead or back by one or two days. With this scenario of flexibility, Priceline.com offers a name your own price for airfare. If they accept the price you have chosen, you will fly by their itinerary. Your dates will not change, but you will not have a say in what time you will depart or arrive or even what airline you will fly with. I have found that I can save money on airfare by being a little creative. Several years ago, I needed to fly from Minnesota into New York City and was unable to find an inexpensive last minute one-way flight. (I needed to purchase tickets three days before my departure.) I checked and checked and was severely disappointed to find that my airfare would cost me close to eight hundred dollars. I began to panic and realized that if I was going to make it to New York, I was going to have to figure something out and do it fast! I brainstormed and had a vision hit me. I realized that flying by airplane was really no different than taking a bus. Busses make connections and that is what gave me the idea. I decided to check into flying one airline into Chicago (Chicago is a major hub and many times you can find better deals flying in and out of either Chicago O'Hare or Chicago Midway.) and flying a different airline for the second leg of my journey. I was pleasantly surprised. I found my flight from Minneapolis to Chicago Midway for forty-nine dollars and my flight from Chicago to LaGuardia was just under a hundred and thirty dollars. By using a little common sense, I saved myself over six hundred dollars!

Another way to get discounted travel or as I say "free travel" is to be aware of your situation when you are ready to travel. There are so many times that airlines over book flights and not everyone who has purchased a ticket has an opportunity to fly. Other times, people fly standby because an issue has arisen in their lives. The airline usually will offer a free round trip ticket within the continental U.S. if you volunteer to relinquish your seat for someone else. This means that you will fly "standby" without a guarantee to get on the next flight. Then once again, you will receive another voucher for a free ticket if you are not booked on that flight . There is a risk to this if you have set plans for destination pickup or a scheduled event. Do not try this if you cannot be in a position to arrive at your destination any later than originally planned. This can work in a situation when you are flexible, but may not be offered when you wish it would be.

Recently while listening to the Wall Street Journal news on talk radio, there was a short quip about traveling by cruise line. During the years of 2009 and 2010, the cruise line industry will be adding seven percent more ships to their fleets. The conversation also reverted to the fact that vacation cruises will increase in the future due to the low cost of booking. Depending on which city you fly from to the port city, you may be fortunate enough to get a great deal on airfare. Many of the cruise lines offer specials for ninety-nine dollars for a four night cruise. Most cruises are all inclusive, but where they make up their money is in the extras that they try to get you to purchase. Some of these extras may include spas and elegant dining. If you are on a serious budget, you need to remember to stick to your budget and just say "no" to the extras. You will still have a great time without adding the extra expense of a massage or elegant dinner.

Vacationing is usually fun, but if you don't stick to your guns it can turn into a disaster during or much later after your vacation has ended. By not being prepared and having made the best decisions, before and during your trip, it can cause side effects afterward that are both mentally and financially draining. Be very cautious of all of the details before booking and confirming any reservations. If you are not Internet savvy, ask a friend or family member to walk you through the process. Be very certain of dates of travel before booking as many airlines charge for cancellations or changes and this can seriously affect the deal that you may have just found. Try to fly on off days such as Tuesdays or Thursdays because you can get a better fare for flying during low peak periods.

If you are not in a position to afford going away on vacation because you do not have the funds to do so, a weekend trip to a local campground could be an alternative. (Keep in mind that if you do not already have the camping gear and necessities needed for a weekend getaway, you may need to choose another alternative so you can keep your budget in line.) A day trip to a nearby park or lake can be an inexpensive option when you do have money that you are not willing to spend. Find a location within an hour drive and pack a picnic lunch to walk along with you. (A backpack is great for this adventure as you can take your lunch with you and not have to carry cumbersome heavy coolers. Remember to pack bottled water for each person hiking. If you have several backpacks and have children that you will be taking with you, set up a light backpack for each child to carry with them. It will make them feel important that they can carry their own and be a part of this event.

Remember, that it is not worth ruining your budget for a vacation or trip that you cannot afford. By waiting and putting money aside for a vacation will be more of a fulfilling time that by putting yourself into debt or further into debt. Also, by waiting, you can plan all of the extra details that you might have missed if you could not afford them before. There is a time for everything and most times waiting will pay off.

(Continues...)

Excerpted from LIFE ON A BUDGETby Mookey Mae Phillips Copyright © 2010 by Mookey Mae Phillips. Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.