Financially Savvy People - Would you go?!?!

[kimberlyWDW]

Wow alot of valid opinions here...pretty good points....Here's my 2 cents.

I keep ALL my options open as long as possible, so that being said...40% room discounts came out about this time of year last year-I didn't see it again. If you have the opportunity to get it, I would make a room only ressie, so you don't have a penality for canceling. I would not tell the children so that if and when the time comes you are not in a position to go, only you and DH will be disappointed.

You can worry about the sky falling your entire life. At some point in your life the sky will seem to actually fall. It will not be impossible to pick up the pieces and start again. I'm sure many people's perspective on here is from those difficult days and that is why they are so causious. It sounds like you are looking at this from a wise perspective and it is always wise to ask for advice. But you can't live thinking about only what bad thing "might" happen. Yes plan for the rainy day, but enjoy the sunshine in the meantime while preparing for the other.

1. I say make a ressie you have the option to cancel w/ no penality (add ticket etc later).
2. Make a separate vacation budget and cut back on day to day expenses (morning cup of coffee kind of thing) and put the savings in special account.
3. As the trip approaches you'll know whether it is a go or not. If NOT, (maybe you were layed off) you'll have your extra savings to help out on the finances. If you can go then you'll have the extra money you worked to save to go towards your trip.

I see it as a no brainer....make the ressie and save towards it.

This sounds like a great compromise.

 

[SleepyatDVC]

Wow! Something must be in the air! Dvcgirl said she would*think* about going!

WARNING! Long rambling ahead!

I just wanted to make a comment to those (conservative) posters who just can't understand why MinnieMom would have a CC bill for $5000 at 0% when she could pay off the entire balance from savings and not be in DEBT anymore.

I don't think it has to be one or the other. Neither way is bad - only which way makes the individual FEEL more financially secure. The only way a 0% CC balance would be a negative would be if a person did not have the funds to immediately pay the balance off or if they are the type of person who might occasionally pay CC bill late maybe because of a busy lifestyle or disorganization.

Some people feel very insecure when they owe ANYONE money. They can't stand being in any kind of debt even if being in "debt" is to their advantage. Then by all means, to feel more financially secure, pay off any and all debt possible, and never have any debt if possible to be concerned over.

THEN there may be people like MinnieMom who, if she is like me, feel more financially secure with a sizable amount of money IN the bank! I HATE seeing my savings account balance go DOWN. It should ONLY go UP every month!!

Personally, I have a psychological amount under which my saving amount should never go under for my peace of mind. This amount is approximately $13,000-$15,000. When the balance gets closer to $20k, I transfer money out to a CD, higher interest bearing account, mutual fund or brokerage account, etc. I guess some people would call this savings my emergency fund.

When I have a LARGE expense or purchase which causes the savings balance to fall substantially, it makes me feel uncomfortable to see it happen. When the balance is closer to $13k, then I cut WAY back on any spending until the savings is higher by a few thousand. Since, we spend less then our income, it is not a problem to do so quickly.

If I have to make a large purchase that I could totally afford and I could charge it to a CC for 0%, I would ABSOLUTELY do it. I would pay that amount off as quickly as possible from our monthly income (cash flow) and never have to see my savings *shrink.* My savings just wouldn't grow as quickly every month.

For example only: I have $10k in savings. Every month, my savings grows by $1500 after paying off all expenses. I have to make a major purchase for $5000. Rather than having my savings decrease by $3500 that month, I would "feel" more financially secure by charging it to a 0% CC for 5-6 months. So, I would pay at least $1000 towards the CC every month until it is paid off. Meanwhile, my savings would have only grown by $500 each month. At the end of 5 months, the CC would have been paid off, and I would have $12,500 [$10k+($500*5)] in savings. Now, if I had paid the entire $5000 off at once from savings, at the end of 5 months, I would still have $12,500 in savings. [$10k-$5k+(1500*5)] The end result is exactly the same (except of the minimal interest I earn on the $5k). To me, it's a matter of cash flow. I don't like the 3-4 months I have to wait to see my savings grow back to the amount I like to see it at.

Now I would NEVER charge it to a CC that charges interest. I would pay it off all at once in that case. Why pay interest to someone else if you could pay it to yourself? Also, if the CC says I have 6 months of 0% interest, I pay off the entire balance in 5 months instead. The CC always seems to play tricks with their interest cut off dates that last month and I'd rather not get caught up in that.

I might not have convinced any die-hard non-debt people why 0% debt is not evil but I hope I helped some people understand why I and maybe MinneMom like to occasionally take advantage of 0% interest offers to smooth out our cash flow at someone else's expense. It makes me FEEL better. Lol.

 

[Aliceacc]

Keep in mind, folks: The OP did NOT ask "should I go??" She asked "Would YOU go??"

People are expressing their own comfort level, not censuring her for hers.

 

[kimberlyWDW]

"but this is not the time to be spending"

If everyone who was worried about their job did this, the economy would crash.

Are we concerned about our jobs? There's no such thing as an iron clad lead pipe lock on your job unless you're employed by the government. So the answer for everyone should be yes.

If everyone who could lose their job tomorrow didn't go to Disney unless they had 6-12 month cash emergency fund, then Disney would be darn near close to empty.

You need to feel secure, but you also need to do your part to keep the economy going. Panicking and not spending any money is not good for the big picture, because then y'all WILL lose your jobs as the economy makes the big flushing noise....

I only stated this (the this is not the time to be spending) because she stated that they BOTH work in the building industry, which she stated was not doing so well. She stated that she felt her husbands company was planning layoffs. I happen to think that returning from Disney to discover that one or both of you were laid off while gone would be a lousy way to end a vacation. If her family was employed in another sector of employment, I wouldn't have given the economy a second thought. My hubby is a merchant marine - his job sector has worker shortages right now. We're going in April, so I am not all gloom and doom about the recession. This downturn in the economy is very sector specific. Unfortunately that sector is housing. Her sector. I simply stated that there are a lot of contingencies to think about before making her decision, given her specific volatile position. I definitely wasn't trying to generalize my advice to the whole US population...although an empty park in April would be awfully nice

 

[Kickapoo Joie Juice]

No, we don't need to "do our part to keep the economy going". We need to make sure we can feed our families and meet our personal financial obligations in the event that we run into trouble. I'm not saying that the OP can't do that, but I'm tired of reading that the only way to "do our part" is to continue on as mindless consumers with no thought for the future.

This implication that we need to "do our part" for this nation, and its economy by *spending* money is simply ludicrous. I just posted an article in another thread about the "stimulus plan" and this ridiculous advice that comes with it....to spend that money as fast as you can. "Do your part for the economy!!" It's the biggest does of patriotic brainwashing I've seen in some time.

We've gone from the being the biggest creditor to the world to its biggest debtor in just twenty years. We've spent our way into a mountain of personal debt as well. Bankruptcies, foreclosures, defaults are at all time highs.....personal savings at an all-time low (actually negative at this point).....retirement savings are just pitiful.

If we all continue "doing our part" for this economy as our leaders ask us to do....our nation will end up in the same shape as a growing number of its citizens.....bankrupt.

Honey, is it that time of the month?

My dad owns a small fabricating business. When people stop remodeling, he doesn't get paid. When he doesn't get paid, he doesn't buy raw materials. When he doesn't buy raw materials, those fabricators lay off people. It's a fairly simple, obvious domino effect.

In no way did I advocate spending onself into oblivion. However, if you take all that money that you would have used to remodel with my dad and instead stick it in the stock market, then you're hurting him, and possibly yourself if you pick your stocks/mutual funds poorly.

I think this whole thread is all nutty overblown, fwiw...

 

[Kickapoo Joie Juice]

plan a cheaper trip and save more money before you go. You can certainly do Disney for less than $4400 without air.

We can do disney for 6 days for about 1500 for a family of four driving down. You just have to be WICKED cheap about everything. For some people, this isn't fun. For us it's a challenge to see how lean we can "run" at wdw.

 

[Minnesota!]

Life is too short.

I would go.

Most people on the BB are super duper anti- credit card debt, so I have no doubt that most of your answers will be "no."

I, personally, don't find a small amount of debt to be a tragic, horrible thing that you should feel ashamed of.

We all have different philosophies, though!

I agree.....life is way too short. Go, have fun, create memories.

Money is just money. Don't let it rule your life!

 

[punkin]

Honey, is it that time of the month?

Patronizing and quite uncalled for, particularly since her point was every bit as valid as yours.

 

[Kickapoo Joie Juice]

Patronizing and quite uncalled for, particularly since her point was every bit as valid as yours.

And every bit as annoyingly put as my point, as well.

 

[dvcgirl]

Honey, is it that time of the month?

My dad owns a small fabricating business. When people stop remodeling, he doesn't get paid. When he doesn't get paid, he doesn't buy raw materials. When he doesn't buy raw materials, those fabricators lay off people. It's a fairly simple, obvious domino effect.

In no way did I advocate spending onself into oblivion. However, if you take all that money that you would have used to remodel with my dad and instead stick it in the stock market, then you're hurting him, and possibly yourself if you pick your stocks/mutual funds poorly.

I think this whole thread is all nutty overblown, fwiw...

The first line of your post is over the line. You may want to edit that....

 

[dvcgirl]

Patronizing and quite uncalled for, particularly since her point was every bit as valid as yours.

Thanks punkin....I appreciate you calling her on that.

 

[dvcgirl]

And every bit as annoyingly put as my point, as well.

I stayed on topic and replied to your post. You are entitled to your opinion as I am to mine. However, you may not personally attack posters on this board. There's a big difference between your post and mine.

 

[dvcgirl]

My dad owns a small fabricating business. When people stop remodeling, he doesn't get paid. When he doesn't get paid, he doesn't buy raw materials. When he doesn't buy raw materials, those fabricators lay off people. It's a fairly simple, obvious domino effect.

In no way did I advocate spending onself into oblivion. However, if you take all that money that you would have used to remodel with my dad and instead stick it in the stock market, then you're hurting him, and possibly yourself if you pick your stocks/mutual funds poorly.

I think this whole thread is all nutty overblown, fwiw...

Now, aside from the nasty comment that you made, in response to your post...

I understand your point. Small business people like you Dad are certainly going to be more successful when people are feeling good about the economy and spending money.

However, I would argue that a lot of that "feel good" economy that we have been experiencing was predicated on the idea that people felt wealthier than they actually were. 5 Trillion dollars were pulled out of homes in the form of home equity lines of credit and home equity loans in the last 5 years.

That five trillion is responsible for 50% of the increase in consumer spending during that time. Unfortunately, that national "line of credit" has dried up for the most part. And not likely to return for a good number of years.

 

[Kickapoo Joie Juice]

Double post!

 

[Kickapoo Joie Juice]

No, we don't need to "do our part to keep the economy going". We need to make sure we can feed our families and meet our personal financial obligations in the event that we run into trouble. I'm not saying that the OP can't do that, but I'm tired of reading that the only way to "do our part" is to continue on as mindless consumers with no thought for the future.

This implication that we need to "do our part" for this nation, and its economy by *spending* money is simply ludicrous. I just posted an article in another thread about the "stimulus plan" and this ridiculous advice that comes with it....to spend that money as fast as you can. "Do your part for the economy!!" It's the biggest does of patriotic brainwashing I've seen in some time.

We've gone from the being the biggest creditor to the world to its biggest debtor in just twenty years. We've spent our way into a mountain of personal debt as well. Bankruptcies, foreclosures, defaults are at all time highs.....personal savings at an all-time low (actually negative at this point).....retirement savings are just pitiful.

If we all continue "doing our part" for this economy as our leaders ask us to do....our nation will end up in the same shape as a growing number of its citizens.....bankrupt.

Just re-read your post. Nope, I'm sticking with my "unusually grumpy" assessment.

You basically said that my belief that spending will "bankrupt" our nation. I find that MUCH more offensive than being told I'm cranky.

And the fact that you got so mad about it pretty much proves my original hypothesis....

 

[dvcgirl]

Just re-read your post. Nope, I'm sticking with my "unusually grumpy" assessment.

You basically said that my belief that spending will "bankrupt" our nation. I find that MUCH more offensive than being told I'm cranky.

I disagreed with your ideas within your post, and I stayed on-topic. I didn't personally attack *you*. I passionately disagreed with your post. There's a big difference. You're allowed to disagree with someone's ideas but you may not attack them.

 

[StitchandPooh'sMom]

Well, I'm not as conservative as dvcgirl is, but DH is and I lean right as well. That being said, I would still plan the trip if you could bring yourself to cancel if you need to. I would have a terrible time canceling a Disney trip once I had planned for it.

I wouldn't go for 10 days, even if it is better/easier/more kid friendly to do a day at the parks and take a day off in between. It's cheaper to buy a ticket with more days on it and do all half days - fewer days of food, fewer nights in a hotel. I'd find cheap airfare (even though yours is free, your family's is not) and plan dates around that and value season.

We are going for a week this year - it is one of our longer trips. We have been taking kids since DD8 was 2, and they roll just fine with one or two days off or the occasional afternoon at the pool. We are staying at CSR instead of deluxe - we didn't get the 40% off code, and I can't see paying Deluxe regular season rates. We are doing some TS meals, but not enough to warrant the dining plan. We will do breakfast in our room and share CS meals. We have tickets from a previous trip, points from Disney Visa, and gift cards from Sunshine Rewards.

I throw all this out because although we don't expect 2008 to be a particularly rough year for us, we are still planning for a slowdown in the economy. DH's job is pretty secure and he is actually in a growing industry, but he is subject to the whims of his employer just the same.

The point is, you have a comfort level for your spending, and it is different than anyone else's here. I wouldn't spend $4500 on a Disney vacation, even though I can afford it. I'd rather go for less and have the extra money to do something else. If you can afford it and you are prepared for the possibility of one or two layoffs (and if you can make the call to cancel if you need to instead of thinking that it is money already spent), then plan away and have a great time. There are many ways you can trim those costs if you choose, but if you are happy with your budget and are prepared for what might happen, enjoy yourself knowing that you can still take care of your family in the event of a layoff.

Punkin - thanks for keeping this on track. The previous comment by KJJ was seriously over the line and not helpful to anyone.

 

[hoosiergirl7]

I posted twice earlier in this thread and today finally went back and read the posts after mine. I'm just in shock! I commend those who think like me and find that it's important not to throw away your money needlessly. I find it funny for those of you who have said, "Life's too short," and "it's only money". Personally and this is just MHO so no flames, that attitude reminds me of the way children behave, especially in stores. It's the "gimme, gimme, gimme" and the "but I want it!" childish attitude that so many adults are now exhibiting. We're adults, and we need to act like adults not children (except at Disney ).

I used to have the childish reasoning of "but I want it!" and since I've seen my bank account and mutual funds growing because I'm not frivolously spending anymore, my outlook has changed because I know I won't be one of those relying on Social Security for income from a country that's already in trillions of dollars of debt.

 

[Kate and Pete]

I would pay off the card with savings (or at least 1/2 of it!) and go. Yes, WDW will always be there (and not to be morbid, but...) but you might not be! We never know what life has in store for us - you have money, you have a good deal, you're both healthy....get going!

 

[Kate and Pete]

I posted twice earlier in this thread and today finally went back and read the posts after mine. I'm just in shock! I commend those who think like me and find that it's important not to throw away your money needlessly. I find it funny for those of you who have said, "Life's too short," and "it's only money". Personally and this is just MHO so no flames, that attitude reminds me of the way children behave, especially in stores. It's the "gimme, gimme, gimme" and the "but I want it!" childish attitude that so many adults are now exhibiting. We're adults, and we need to act like adults not children (except at Disney ).

I used to have the childish reasoning of "but I want it!" and since I've seen my bank account and mutual funds growing because I'm not frivolously spending anymore, my outlook has changed because I know I won't be one of those relying on Social Security for income from a country that's already in trillions of dollars of debt.

But this attitude doesn't have to be childish. DH and I are starting to see the joy in living this way (spending our money to have a great time!) while being responsible! We have a hefty savings acct., no CC debt, and live below our means (which is why our savings is good!). Now, $4,000 is more than we'd pay, but the OP thinks it's a good price and, financially, they can handle it (because they have savings). The "bargain" price is relative - a bargain for me is under $2000, but OP has a higher mark, that's all!

I think it's perfectly fine to do something "just because I want to" if it's not hurting anyone else! But, just MHO!