Debt Dunk

Vacations can be fun but they can also cause a lot of stress. How am I going to afford a vacation? Where should I stay? Where should I get a plane ticket? This article will address those questions and show you how to have an affordable quality vacation on a frugal budget.

When planning a vacation, first always shop around. If possible, plan as far ahead as possible. There are many good places to look for vacations. Travel agents do a good job of planning your vacation. They can plan your hotel, plane tickets, sight seeing events, and if you need one, a rental car. The downside with using a travel agent is the fact that you pay more for their services than if you done it yourself.

Another way to plan your vacation is to call airlines and hotels directly to book your vacation. This way gives you the most flexibility but also cost the most. The airlines charge more when buying direct and they increase their prices the closer you are to the travel date. Hotels charge more on weekends, holidays, and summers and they do not offer many discounts if you call them directly. Normal common sense would think you would get a better deal by cutting out the middle man but this is not the case when booking a vacation. This method is the least favorite way to use if you are frugal and looking for a bargain.

Still another way to plan you vacation is through the Internet. This is the total do it yourself method of vacation planning. You can search hotels, airlines, events, and car rentals for the area you are planning to visit. This can be fun and if you are lucky, you can find a real frugal deal. The Internet puts the world at your fingertips However, if you are not careful, you can end up paying more than you would have by just using a travel agent.

The final method I will discuss for planning your vacation is a combination of the travel agent and the Internet. This method is using an online discount vacation broker. There are many of these sites and more are being added each year. One of the oldest and my personal favorite is Priceline. This is the one my families uses for almost all of our vacation needs. Priceline offers frugal living at its finest. Priceline offers discount airplane tickets, discount hotel rooms, discount car rentals, and discount cruises. If you have some flexibility in your time schedule, you can name your own prices on hotel and plane tickets for discount at 50% or more off retail prices. Priceline also offers the convenience of full travel agents by designing vacation packages to meet your needs.

For the frugal minded people like all of us, Priceline is a one stop shopping site for all you vacation needs. If you just want to get away for a weekend drive, name your own price for the hotel room and you can save up to 60% off retail price. Want just the plane ticket? Name your own price and you can save tons of money off other discount sites. If you need a full vacation package, they allow you to pick your hotel, plane tickets, and rental car and you can add on airport pick-up and sightseeing tickets to make a well rounded well planned out complete vacation.

Frugal living is good living so be sure to use your frugal skills when planning your next vacation. Being a cheapskate can get you further when you use Priceline to plan all of your getaway needs. Have fun and enjoy your frugal vacation by taking the stress out of planning your vacation.

How many times have you looked at your wallet and your checkbook just to say I am broke? If this has never happened to you, congratulations! For almost every else, including me, it has happened. It is not a good feeling to have no money. That is the main reason you need to be prepared for everything. Preparing means knowing where the money comes from and where the money goes.

This is the first of a two part post about the in and the outs of money. Money comes from many sources. You can earn money through a job, you can get money through investment returns, government entitlements, you can win money, inherit money, or just be given money as a gift. No matter what way you get money, you have to understand that money is never unlimited; even for Bill Gates. Understanding that mere fact will start you on the road to financial freedom.

Most people are not so lucky to get money handed to them so we work for a living and earn a paycheck. You can either work for yourself by owning your own business or you can be employed by someone else. Either way, you are still working for a paycheck. It does not matter if you earn a million dollars a year or twenty thousand dollars a year, the concept is the same. We have what we earn and that is all we have. When deciding what to spend, we need to look at our earnings and compare that to what we want to see if they match up. If they do not, you can not afford what you wanted. It is so clear but many fail to see the facts.

What to do if you want something you can not afford. You must either borrow the money (bad plan) or save up for it. The other way is to increase the money coming in. This can be done by taking on more work or selling something you already own. Yard sales and Craigslist are two great ways to sell stuff to earn extra money. However, this is limited to what you have on hand. The best way to get extra money is to get a part time job. There are many simple part time jobs that can bring in extra income. Currently, working for the Unites States Census is a flexible good paying job for many people to earn extra cash. Other jobs, include newspaper delivery, Internet business, lawn care, pizza delivery, and many more. Most of these offer flexible hours that can be arranged around your full time job.

The next option is to find a better paying fulltime job. This can be done by better educating yourself, learn new skills, or moving to an area that is better paying.

The main point is that you need to know where your money is coming from and if you want a better lifestyle, you have to increase your money coming in. Credit cards is not another source of income. Because the local car dealer will give you a loan to buy a new car, it does not mean you can afford the car. Even if you can afford the car, you have to understand that the money must come from somewhere. Increasing the money going out means you need to increase the money coming in. Once you build a realization of where money comes from, you will better be able to understand the limits of your money.

Check back soon for part two “Where does the money go?”

I have written before about Dave Ramsey and the fact that I like his program. Though I am not a huge religious person, Dave’s debt plan is solid and helps people to rid themselves of debt. I have always followed the same principles and I just needed a little reminder of being a good money manager. I have been watching Dave for a while now and my wife and I have become hitting our debt with all we can.

Since I love to learn and any new knowledge can help, we signed up for Dave Ramsey’s Financial Peace University at one of the local churches. We had our first of thirteen classes last Thursday. The program cost $100-$129 for the kit and you become a lifetime member. As a member, you can take the course as much as you want for free. It also includes access to a member only website with some of Dave’s budgeting tools and forms. You also get to meet, interact and both encourage and be encouraged by others wanting to get out of debt.

The classes consist of about an hour of watching DVDs featuring Dave Ramsey. The program is centered around his seven baby steps. Once you watch the video, there is a class discussion and homework is assigned which is geared toward getting your money in order so you know where you are and where you are going financially.

Karen and i found this class interesting and it was great to interact with others from various backgrounds. Since we have applied the basic core of Dave Ramsey and starting really budgeting in September 2007, we have paid almost $11,000 towards our debt.

All of Ramsey’s program is good old fashion common sense but it is nice to have some reminders of these things. I highly recommend this course to anyone who wants to get control of their money and become debt free. I do not believe in bull when it comes to getting out of debt. I am dedicated to provided sound information to my readers and not some scheme. There are no short cuts and I believe if you owe it, you should pay it.

I will keep you updated on my course and if you have taken the class, please feel free to share your own opinion here on the blog.

I have heard in the past where if you are prudent with your money, you will attract more money. My wife and I have noticed this since we have started to really stick to a budget. Honestly, we have always had the money coming in but now we have a set budget we can put any extra coming in can go toward debt.

We seem to be getting a lot of extra income coming from new sources that we did not have before. This makes us feel wealthier now because before we would have found things to spend it on. Being on a reasonable budget makes it easier to apply any raises and extras to debt instead of extra spending.

This is a great way to live and if you decide to follow a plan like ours, you too will see life looking better. It will look like money is coming to you instead of you seeking money. You will start to be a money magnet. As you pay off your debt, things will start to look better. You may not fit in with your free spending coworkers and friends but someday, you will be free spending with honest cash. It is no longer about keeping up with the broke people who live paycheck to paycheck. This is a new way of living that will take you to a whole new level in life.

You do not have to live as a debtor your whole life to have the things you want. Yes, you may have to skip a few fancy restaurant dinners and a few extra trips to Starbucks; however, you will have a future of anything you want if you get out and stay out of debt. Can you imagine a life where you pay yourself instead paying creditors? Life would be easier with less stress.

This can be done and as you progress, you will see what we have, money will come to you. Be prudent and smart about your finances now! Sit down now and get a budget written out. Make sure every dollar you make is written down along with all expenses. Be honest with what you need and allow a little fun. If you get on a plan and stick to it, you will stop being one of those people waiting for the paycheck to save you and then run out of money way before your next pay.

Start now no matter where you are at or how old you are. When you get done reading this, sit down by yourself if single, with your wife if married, and your whole family if you have kids and write out your budget. If you have questions or need help, I will be happy to guide you with any help I can.

The economy is tough and for a while I have been trying to find a source of increasing my income. My current job is basically per Diem or when needed. I have not had any work for about a month. The good news is, my job just picked up to the point that I will have a descent salary for at least a few months. This brings me to a good point when paying off debt.

I have talked about the two equations of a budget. One is the income side and the other is is the expense side. If expense out weighs the income, you are in trouble and either have to cut expenses or increase income. In a weak economy it is harder but not impossible to increase your income.

The most simplest form of increasing your income is to get a better job with higher pay. This is easy if you have the skills and are in a an area where the job market is booming. I for one am not in that type of area. The next method is to take on an additional job. You could deliver pizza, wait tables, work fast food, or any other job that will boost your income. This is not always desired but you have to look that it is to get rid of your debt so it should only be short term. It will boost your debt paying and get you out of debt faster.

If either changing jobs or getting a better job is not an option, it is time to look at alternative ways to make extra money. With the Internet, it is easier than ever. Many people have found a lot of stuff in their basement, attic, or garage and have made a few thousand dollars selling them on eBay. You could also have a yard sale or find a resale shop that will buy the stuff or sell it on consignment. This is short term income but it could be a quick reduction in your debt.

Once you have done the above, you can look at the various at home ways of earning money. If you have good typing skills, there are doctor offices and medical companies that pay you to do medical related transcripts and billing. If you are a good writer, you could find freelance jobs on the Internet to earn extra income. Some companies people to do customer service work from home. These are just a few suggestions to up your income at home, there are many more. Just be careful not to fall for scams and never pay someone to work for them.

One way my wife and I use to earn extra money was to do mystery shops. Many of these companies reimburse you to eat at nice restaurants and also throw in a few dollars to cover your expenses. Though this is not big cash, it does give you free meals, and products with just a little bit of time. When we lived in a bigger area, we were going out once a week to steak houses and having $40 meals and we got reimbursed for filling out a survey about how the place looked and how the staff performed. It sure did help with the budget. As I advised for the home work stuff, never pay to do these types of shops. If you have pay a fee, it is scam and all you are buying is a list of sites you can find on your own.

The final way I will mention is bartering for things you need. Even though this is not cash, you will get something of value which you would buy otherwise with your income. If someone else has something you need, find something that you can do to get it for free. I have exchanged many things before to get things I need. These could be skill work or physical products. Anything you can get for free that is moral and not against any law is a good thing.

The ways I mention here are just suggestions to get your mind working. Increasing your income is a great way to speed up your debt payoff. However, be aware that it will not help if you continue to use credit cards and just increase your expenses to meet your new income. The main key is to spend less than you make and pay off your debt as soon as you can.

Have a great way that you have increased your income? Please share by leasing a comment to help or inspire others.

I think all of us know by now that the Stock market in drastically down. I personally am down 40% in my Roth IRA. I have been watching many so called financial gurus starting to advice a pull out of the market and spilt your money throughout safer investments like bonds and Cd’s.

As hard as it is to watch your investment shrinks, it is not the time to panic. Over the course of the Stock Market there has never been a loss over any ten year period. Investing in the market should be for five years or more so this should not be an issue. If you pull out now when it is down, you will fail to regain your losses and any potential profit.

Investing in the Stock Market should be for long term and should be done in Aggressive Mutual funds not individual stocks. Day trading is STUPID! If you have invested properly, you should do nothing but continue to do what you have been doing. Do you really thing all these companies are now worth 60% or less of what they once were? No, they are not. The market may sink a little further but it will recover and when it does, the profits and returns that are historic of the Market will return.

True financial wizards should not panic during times like these. If your financial person is suggesting pulling your money out of the Stock Market, I would find another financial adviser. If you are doing regular investing for long term goals, most of your losses will be flatten from cost averaging alone. Be smart and stick with your long term goals and do not panic.

This is advice free of charge! Others who are trying to convince you to pull out of the Market are trying to make a buck off your fear. Feel free to ask a question or leave a comment about this post!

Many so called finance experts recommend that you should carry a mortgage because you will have a write off for your taxes. This is bad advice! I am not saying you should never have a mortgage. Most people at some point or another have a mortgage. What I am saying is that if you can afford to pay off the home with cash, you should not continue to carry a mortgage.

If you itemize, mortgages could lower your taxes. However, that amount will be a small part of what you end up paying for interest. So you are paying $10 to save $3. This so called logic is not smart or even financially responsible. If you have to carry a mortgage, by all means take the tax write-off. However, if you can pay it off, do so as soon as possible.

The amount of people in the world who are waiting to buy a home until they can pay cash is growing. If you can do so, you will be a step ahead of the so called normal family. If you can’t save to pay cash, make sure you are otherwise debt free and that you have saved at least twenty to twenty-five percent to place a down payment and do not take a mortgage for longer than 15 years. .

Being a smart home owner will fit into the rest of your plan as being the CEO of your own personal finances. Though mortgages are acceptable debt when required, they should also be paid off as soon as possible.

One key point I have spoken of before and I am a big proponent of is doing a budget. When you do a budget, your eyes become wide open on how much money you really have. Sometimes this is good news and other times it is not. For most though, it is like finding money you never knew you had.

There are many ways to find money that you thought you didn’t have. First, take a look at what you are spending your money on. Eating at restaurants and fast food places can be one of the biggest expenses in many budgets. I would like to say I never eat out but that would be a lie. There are ways to cheapen the bill though. Buying a soda or other beverage now can cost up from $1.25 to $3.00. This is not good for your budget or your waistline. Ask for ice water and you could save $5-$15 a week on average. That adds up to between $260 and $780 a year. Not a bad little find is it?

What about desert? Do you eat desert at most meals out? They can range from $1.25 up to $6 or more. Some deserts cost as much as the meal. Say you only have desert out three times a week. That is between $195 and $936 a year. Now that is nothing to sneeze at. try to eliminate the deserts or splitting with a partner and you could see you waist line shrink and your wallet grow. These are just a couple of examples that you can save from eating out. There are so many that you could find that will help you find money.

Alright, maybe you are more disciplined than I am. Maybe you do not eat out at all or very rarely. Let’s take a look at other ways to save. How many of you still pay your bills by mailing a check each month? If you only send out seven bills a month, you overspend by $30.24 a year plus the extra costs for buying checks. If you pay bills online, it is easier, cheaper, and you can pay instantly. Better yet, automate the ones you can and save more time and leave no chance of forgetting a bill.

So are you seeing a trend in how the small things add up? Look at your utility bills and cable bills. Can you cut out extra features you don’t need? The phone company is one who loves to add the extra charges. Make sure you are not paying for features or services you do not need. Do you have HBO or Showtime? How often do you really watch them? If you do not use, ditch them and save $100 or more a year. Does your cable or satellite company offer smaller packages? Sometimes they also offer discounts for loyal customers. It does not hurt to ask.

When trying to become debt free, you need to reevaluate everything in your life and see of it can be cut, eliminated, or reduced. Baby steps in reducing your expenses can be like finding money you never knew you had. Be a pauper now and you will live like a king later.

The holidays are winding down and the Christmas season is over. Now as the New year emerges, I have a question to my readers. Do you have financial regrets over you holiday spending? Many people spent reasonably for the holidays. Some did so because they are tired of being indebted to the credit moguls. Many more did so because they could not get any more credit or they feared the current economic situation.

Hopefully, you are one of the ones who are sick and tired of owing credit card companies your paycheck. If you over spent and now are overwhelmed, it is time to slap yourself a little, admit to your mistakes, and take the bull by the horn. Make 2009 the year you bust loose from the credit trap that you were lead to believe was the normal way of life. Wake up call! You do not have to live in debt to live. By delaying pleasure now, you can be debt free and live a whole new life where you are in control of your personal finances and not the other way around.

If you are holiday blues because of overspending, I am here to tell you that I have been there and done that. It is time to step up and work like a tornado to pay off those debts and swear off on living beyond your paycheck. Sit down and write out a budget and start paying off debts from smallest to largest. Cut everything out that is not a need and see where you stand. You should spend everything you make on paper. Starbucks is out, home cooking is in. You can do it and I am here to guide you. If you have a question, I am here to help. If you need a little guidance, ask and i will do my best to answer. I am still fighting the debt monster and together, we can send the leaches who feed on society packing.

Happy New Year and may 2009 be the year you take your money back and become the CEO of your personal finances.