Saving for DVC

[jodifla]

We bought DVC as DINKS, and financed, and don't regret it for a second. By the time our son came along, it was all paid for. We were already spending money on lodging at WDW, so we just shifted to paying off our DVC, and we stuck to DVC only vacations for while.


It was also a heck of a lot cheaper back then....not sure I'd pay today's prices. We've owned it 13 years, and just got back from a weeklong trip to Jambo House at AKL where the lodging would have been $4,000 even with the deals.

The think I see that's different for you is that crushing student debt. The thing is, once you have children, then you have all the incredible costs that come along with children...again. making it harder to buy.

If I were you, I'd buy smaller cash contracts to start on resale, then add on. Since it's just the two of you, you can stay in studios for a while before kids make you want a 1 or 2 bedroom.

 

[tinkabella627]

You might want to visit the budget board. They are pretty good with general financial advice.

I'm not a Dave Ramsey fan....but I'm a fan of the results Dave Ramsey's fans get. His books are available through the library (more savings).

Ask yourself with every purchase - do I need this? Do I need this now? Can I get it cheaper?

Pay down your bills as quickly as you can, that will change your cash flow - and allow you to pay down your other bills faster, which will further change your cash flow - until you have EXTRA money coming in. If you keep up your frugal ways as you pay down the bills, you'll be in a positive (and nicely positive) net worth situation surprisingly fast (however, unless you inherit money, surprisingly fast might be 10 or 15 years). That means giving up yearly Disney vacations - or any vacations that don't involve staying with friends or relatives for gas money - until those student loans are paid off and you are out of debt.

Look for other opportunities to make money. While you are free of children, consider moving if you can make more - or make the same with a smaller cost of living. Take some risks with your career before kids arrive. Use all the time the childfree have to increase your assets now - a part time job.

While I appreciate your (and everyone's advice) I will not give up vacations just because I have student loans. My husband and I have already decided that we will continue doing things we want to do, just save better for them. I am a teacher, so moving to make more is not going to happen.. teachers don't make enough anywhere. I make a decent amount for a 2nd year teacher and live in a decent area without a high cost of living. I would love to get a part time job... if teaching wasn't like having 2 full time jobs. I think about it all the time just to get a careless part time job that wouldn't involve much thinking, meet new people, and not bring the work home. But time doesn't allow it with all the demands on us. I already go crazy and sleep deprived. Having another job would make that worse... I wish I could though! Why aren't you a fan of this Dave Ramsey? I don't know if I want to read over 200 pages worth of how to save money if it isn't worth it.

We bought DVC as DINKS, and financed, and don't regret it for a second. By the time our son came along, it was all paid for. We were already spending money on lodging at WDW, so we just shifted to paying off our DVC, and we stuck to DVC only vacations for while.


It was also a heck of a lot cheaper back then....not sure I'd pay today's prices. We've owned it 13 years, and just got back from a weeklong trip to Jambo House at AKL where the lodging would have been $4,000 even with the deals.

The think I see that's different for you is that crushing student debt. The thing is, once you have children, then you have all the incredible costs that come along with children...again. making it harder to buy.

If I were you, I'd buy smaller cash contracts to start on resale, then add on. Since it's just the two of you, you can stay in studios for a while before kids make you want a 1 or 2 bedroom.

Student loans are probably the worst things ever! And the fact that the career my husband is in, he didn't even need a degree for.. makes writing out that check every month even more miserable! I talked to one person who got a small contract and then every year with tax refunds buys like 25 more points or something. That seemed like a logical idea to me. Like I said... it may never happen for me.. but to think that I KNOW I will take my children AT LEAST once every other year, I could have been putting that money into x amount of years.

 

[RysMomma]

I'm a teacher too (this is my ninth year) and I hear ya that no matter where teachers go, they just don't make a lot of money. I completely understand how hard it is to make more money in this job and how much work is involved outside of school. However, I'm going to suggest another way to make money that really helped my husband and I out in the very beginning of our marriage. I tutored--I tutored A LOT. It was all private tutoring and I made really good money doing it. I charged about 50-60 bucks an hour (that was standard around my town) and I picked up around 5-6 jobs a week. (Trust me, I would have taken more but I was also taking grad classes at the time trying to get my Masters so that I could jump up on the pay scale). It was all under the table and all cash so we were able to put some away "for a rainy day." When we had our son, we were in a better financial situation because all the time that I was tutoring, we weren't taking money out of the bank..we were using all the cash I made. Now that we have our son, we aren't able to pay cash for a DVC because we have daycare costs, but I just wanted to give you a suggestion from one teacher to another to help with money. GOOD LUCK!

 

[tinkabella627]

I'm a teacher too (this is my ninth year) and I hear ya that no matter where teachers go, they just don't make a lot of money. I completely understand how hard it is to make more money in this job and how much work is involved outside of school. However, I'm going to suggest another way to make money that really helped my husband and I out in the very beginning of our marriage. I tutored--I tutored A LOT. It was all private tutoring and I made really good money doing it. I charged about 50-60 bucks an hour (that was standard around my town) and I picked up around 5-6 jobs a week. (Trust me, I would have taken more but I was also taking grad classes at the time trying to get my Masters so that I could jump up on the pay scale). It was all under the table and all cash so we were able to put some away "for a rainy day." When we had our son, we were in a better financial situation because all the time that I was tutoring, we weren't taking money out of the bank..we were using all the cash I made. Now that we have our son, we aren't able to pay cash for a DVC because we have daycare costs, but I just wanted to give you a suggestion from one teacher to another to help with money. GOOD LUCK!

I have thought about this but am not too sure I know how to start that. The students I teach, well, their parents wouldn't pay for a tutor (and most can't pay). Plus I am so afraid to have someone pay me that kind of money and then even with my tutoring their kid still isn't getting it. You know what I mean? I thought countless times about applying to work part time at barnes and noble or even the grocery store (I worked at one through college so I know I can get a job) but I am so afraid that I won't be able to handle all that plus what I take home every night!

 

[crisi]

While I appreciate your (and everyone's advice) I will not give up vacations just because I have student loans. My husband and I have already decided that we will continue doing things we want to do, just save better for them. I am a teacher, so moving to make more is not going to happen.. teachers don't make enough anywhere. I make a decent amount for a 2nd year teacher and live in a decent area without a high cost of living. I would love to get a part time job... if teaching wasn't like having 2 full time jobs. I think about it all the time just to get a careless part time job that wouldn't involve much thinking, meet new people, and not bring the work home. But time doesn't allow it with all the demands on us. I already go crazy and sleep deprived. Having another job would make that worse... I wish I could though! Why aren't you a fan of this Dave Ramsey? I don't know if I want to read over 200 pages worth of how to save money if it isn't worth it.

Ramsey isn't for you. He is the starvation diet of financial advisers. If you still want your vacations, don't even bother with Ramsey. And probably don't bother with the budget board - or at least don't post. They tend to be Ramsey like in their advice.

(I don't like Ramsey because I think using Jesus to shill for you is blasphemous. I don't think he respects his listeners. I think his advice is too simplistic - particularly once you are past the debt stage and into the asset acquisition stage. But his methods get results. However, his methods are "don't buy anything you don't need until the debt is gone" - and vacations are not a need.)

Where is the time for those future kids coming from?

 

[tinkabella627]

Ramsey isn't for you. He is the starvation diet of financial advisers. If you still want your vacations, don't even bother with Ramsey. And probably don't bother with the budget board - or at least don't post. They tend to be Ramsey like in their advice.

(I don't like Ramsey because I think using Jesus to shill for you is blasphemous. I don't think he respects his listeners. I think his advice is too simplistic - particularly once you are past the debt stage and into the asset acquisition stage. But his methods get results. However, his methods are "don't buy anything you don't need until the debt is gone" - and vacations are not a need.)

Where is the time for those future kids coming from?

Hmm... I am not sure how you say not to bother with the budget board. Sure they may be ramsey like in their advice but I have seen my fair share of posts "should I cancel" (going on to say they cant afford it) and plenty of people saying nono dont cancel just go.

Vacations may not be a need to some... but I will tell you what, they are a need to me. It doesn't always have to be a disney vacation, but a vacation is often something people need to unwind. I know I do, even if it is just a 4 day trip to my mother in laws. Away from reality and the stress of work.

What do you mean by "Where is the time for those future kids coming from?"

 

[crisi]

Hmm... I am not sure how you say not to bother with the budget board. Sure they may be ramsey like in their advice but I have seen my fair share of posts "should I cancel" (going on to say they cant afford it) and plenty of people saying nono dont cancel just go.

Vacations may not be a need to some... but I will tell you what, they are a need to me. It doesn't always have to be a disney vacation, but a vacation is often something people need to unwind. I know I do, even if it is just a 4 day trip to my mother in laws. Away from reality and the stress of work.

What do you mean by "Where is the time for those future kids coming from?"

Because they will be very harsh over there. You can go ask them for advice, but they will tell you that you should give up your vacations, they will dig up a post where you were even considering DVC in your financial state, and they will tell you that vacations are not a need.

The thing with kids is when you have kids, you need to fit raising kids - particularly when they are toddlers, into your day. If you day is too full to fit anything into right now, where are the kids going to fit? The answer is that you'll find a way to prioritize the kids - you'll find buckets of time, because kids take buckets of time. (You might not sleep, you'll find creative ways to get papers graded, your house may be a FEMA site, but you'll find time). What I'm advising is that you find a way to prioritize the time you'd use for kids now to augment your income and pay down those student loans faster. Once they are out of the way, you have $700 a month in freedom.

The fastest way to save money is to stop spending it. The most painless way to stop spending it is to stop giving it to people in interest.

 

[tinkabella627]

Because they will be very harsh over there. You can go ask them for advice, but they will tell you that you should give up your vacations, they will dig up a post where you were even considering DVC in your financial state, and they will tell you that vacations are not a need.

The thing with kids is when you have kids, you need to fit raising kids - particularly when they are toddlers, into your day. If you day is too full to fit anything into right now, where are the kids going to fit? The answer is that you'll find a way to prioritize the kids - you'll find buckets of time, because kids take buckets of time. (You might not sleep, you'll find creative ways to get papers graded, your house may be a FEMA site, but you'll find time). What I'm advising is that you find a way to prioritize the time you'd use for kids now to augment your income and pay down those student loans faster. Once they are out of the way, you have $700 a month in freedom.

The fastest way to save money is to stop spending it. The most painless way to stop spending it is to stop giving it to people in interest.

Yea I understand what you mean. I am not saying I am near bankruptcy or anything. We just have the standard bills. We still have money at the end of the month. I just want to be able to save more. Ya know?

I also see what you mean about kids being tons of time, but right now, when I don't have kids, and am still a new teacher, I am trying to use all my time to get ahead of the game and stay sane. This way, when I do have kids, a lot of the prep work is all done for me. Believe me, I would LOVE to get a part time job. I even told my husband even just making an extra 100 a week (400 a month) would help us pay down one set of student loans. I was tutoring last year, 2 days a week, at our after school program. It worked out to be about $200 a month. But that $200 wasn't worth it because it was MORE prep work for me. I had a group of about 20 that I was supposed to help with their homework and then give extra lessons to. I didn't have time to plan extra lessons because I was there til 5:30 every night. Where as with a regular part time job I could just work and it not involve extra work from home. It is a decision I need to make, but in this economy idk if anyone is even hiring and if they are, I am sure they don't want to hire someone who can only work Tues and Thurs from 430-9, and Sat from 10-7.

See before I moved down here, I had gotten a teaching job in a private school. Making pathetic salary. I also worked Friday nights in a bar serving food and then Saturdays in a grocery store that I had worked at since I was 15. That I handled and it was decent pay. I made good tips and then Saturdays I was well above minimum wage having been there for 9 years. Here, there are no local bars that I can work at to serve and there is no store that will hire me for just Saturdays. I don't think anyways

 

[jodifla]

Hmm... I am not sure how you say not to bother with the budget board. Sure they may be ramsey like in their advice but I have seen my fair share of posts "should I cancel" (going on to say they cant afford it) and plenty of people saying nono dont cancel just go.

Vacations may not be a need to some... but I will tell you what, they are a need to me. It doesn't always have to be a disney vacation, but a vacation is often something people need to unwind. I know I do, even if it is just a 4 day trip to my mother in laws. Away from reality and the stress of work.

What do you mean by "Where is the time for those future kids coming from?"

Just as an example, there's an Old Key West contract pending with 50 points for $3,750. An amount like this is pretty doable to save up, even with your debts.

I'd start putting the money aside, and when you have a good amount, let the timeshare dealers know what you are looking for. In this economy, people are selling.

And I'd buy where I was happy staying....We have 150 points at OKW, and 56 at BCV. This is a good amount for us, and doesn't leave us feeling like we are drowning in points. We vacation at WDW about twice a year most years, and we've found ways to make our points stretch. I think our dues are $72 or so a month.

Again, we just got back from 7 nights in a 2 bedroom at AKL. Room would have easily been 4 grand. We are EXTREMELY happy with our purchase. We were just there for 8 nights in January.

Of course, I've been going to WDW since it opened -- I grew up 90 minutes from there -- so I knew Disney's appeal wasn't going to wear off for me.

 

[Rangerusa1111]

We own DVC 200 points (Boardwalk), Hilton Grand Vacation Club (HGVC) and one Marriott timeshare unit. We have traded via II and RCI into DVC on numerous occasions when my DW and I decided it would be nice to have our parents at the World for child watching duties.

DVC is nice, but it is much more expensive than other well run companies since you pay a premium for the Disney name. I would never run up a huge debt on a timeshare. I stress never.

Options:

Buy a cheap HGVC (5000 pts) resale for around $4500 - $6000 and play the trade into DVC game thru RCI. Just be sure you buy outside of Orlando for rules reasons. You can use Hilton HGVC in some really nice places.
**HGVC trades into DVC now via RCI** Marriott used to.
I know proud DVC owners hate this idea, but in all honesty it has been simple to get a DVC reservation as long as you remain somewhat flexible with your schedule.

 

[ssawka]

IMHO the student loans and the CC bills should be paid off before even considering DVC. For the cars, if you could get one of them paid off that would be really helpful as well.

I am not one of the "You should not borrow for a luxry item" people, becauce IMHO unless you are living in a trailer and driving a Yugo (or whatever the cheapest cars are now) everything is a "luxury" item. For DVC, there are very good reasons why borrowing is desireable. I look at it like "renting" versus "buying" a home. If you are planning on going on vacation anyway, that money may as well go to payments on DVC where you will have something of value after you are done paying for that year. Also, with the price of cash rooms and the price of DVC going off, buying on credit will help offset that additional cost. Also, the prefered rate on a DVC loan is 10.75% That is very high, but since the loan "maybe" tax deductible, that is really about 8%. Still high, but manageable.

The question I would have is how long have you been in your house? Is refinancing of a HELOC feasible? Do you have any equity built up? I would not advocate tying DVC to your house, but consolidating your other debts may be a good option to get them down to a more managable payment.

Whatever you decide to do, good luck!!

 

[GoofItUp]

I'm not trying to be harsh, but every time someone suggests something you give us a reason why it can't be done. There are 2 basics for having additional money: (1) reduce your outflow of cash or (2) increase your income. You've said a couple of times that you don't want to give up vacations. I can understand that, but maybe you reduce the cost of the vacations so that you only spend a few hundred (priceline a hotel in a nearby city that you can drive to rather than fly; take a cooler with food to reduce eating out; go in the off-season, etc.) Besides vacations, none of us know your daily habits to tell you where to cut back. Cutting back on eating out is a major area to save money for most people. The other option is increasing your income: have you considered after-school care for a couple of kids that you could watch while working on your other stuff? Or - while I admire very much that you're a teacher - have you considered changing career fields? Possibly working in an administrative position or private industry to increase your income?

Again, please don't read this post with malice as none is intended. But, all too often I see people who want to get ahead but aren't willing to do anything themselves to get ahead. I'm not saying you're in that category. Maybe you're very content where you are and don't NEED to get ahead -- just would LIKE to for the fun things it could help you do. I respect that completely. But, there are trade-offs in life and it may be that you are at a point where you have to pick what's most important.

 

[ssawka]

Or - while I admire very much that you're a teacher - have you considered changing career fields? Possibly working in an administrative position or private industry to increase your income?

Changing careers to afford DVC? That's a bit drastic, don't you think?

 

[GoofItUp]

Changing careers to afford DVC? That's a bit drastic, don't you think?

Just to own DVC, yes. To afford many luxuries in life, no. I worked in a career field that I didn't love (it was ok and I was good at it, but I didn't get up loving my job every day!) for several years in order to get in a financial position to enjoy luxuries. I don't regret it a bit. And, DVC is one of those luxuries now.

 

[tinkabella627]

I understand where everyone is coming in all different ways. I wouldn't just change my career for it... I have thought about it for other reasons (over worked under paid being one of them) but that would involve me going back to school and adding more student loans... no thanks. Like I said, we plan to have the student loans paid off before DVC ever happens, I was just looking for other ways people have saved money, like the cut out the daily coffee (though I don't drink it)... things that people have decreased to save a little here and there.

 

[wishicouldgomoreofte]

"People starting out - getting out of school with loans, getting married - you need to take time to build a life. Luxuries are best reserved for when you have reserves. There will be times yet where life throws you a financial curveball - make sure you've set yourself up to be able to hit it. And that means getting out of debt before 'investing' in luxuries."


Beautifully put Crisi. Very nice indeed.

 

[goodferry]

Since you are asking for advice on how to put more money aside, how about doing some writing for internet sites? That is one way to earn an additional income and you can do it in your spare time. Plus, as a teacher you should have that time over the summer too, maybe a part time job to help you achieve your financial goals!
I wish you the best of luck, if you need some advice on websites that pay for articles, pm me, I am not sure of the rules about posting website links. (I do write for them, I do not own any of them)

 

[rebster]

My husband and I are in the same boat as you and we are saving for it. We have a strict budget for food, and only eat healthy stuff, but we force ourselves to eat our leftovers and use what we have in the fridge. We have saved so much money this way. We have stopped letting food go bad, and are saving about 100 extra dollars a month. We put this aside for DVC. I think that we often don't realize how much food we throw away.

We also only have one car (and we could afford 2). I know that sounds kinda crazy, but it can be done easily. We save so much money on gas, insurance, and other expenses. Also, sharing a car ride gives a little extra time to chat each day which is nice. People often say they could never do this, without realizing that they actually can. We thought we couldn't, but when we did, it took a couple months of adjusting, but then worked out just fine.

We also groom our pets ourselves and make our own dog treats. Its a fun cooking project that we do together and its really cheap. We also turned our water heater down, and that saves us about 30 bucks a month.

We do a lot of little things, so let me know if you want other ideas!

Reb

 

[tinkabella627]

Since you are asking for advice on how to put more money aside, how about doing some writing for internet sites? That is one way to earn an additional income and you can do it in your spare time. Plus, as a teacher you should have that time over the summer too, maybe a part time job to help you achieve your financial goals!
I wish you the best of luck, if you need some advice on websites that pay for articles, pm me, I am not sure of the rules about posting website links. (I do write for them, I do not own any of them)

thanks! I thought about getting a job over summer but last summer we got married out of state and i spent half the summer gone, so I couldn't. Maybe next summer and then can carry it over to working a couple days during the week. I would like the information for writing for websites. What kind of stuff do you write?

My husband and I are in the same boat as you and we are saving for it. We have a strict budget for food, and only eat healthy stuff, but we force ourselves to eat our leftovers and use what we have in the fridge. We have saved so much money this way. We have stopped letting food go bad, and are saving about 100 extra dollars a month. We put this aside for DVC. I think that we often don't realize how much food we throw away.

We also only have one car (and we could afford 2). I know that sounds kinda crazy, but it can be done easily. We save so much money on gas, insurance, and other expenses. Also, sharing a car ride gives a little extra time to chat each day which is nice. People often say they could never do this, without realizing that they actually can. We thought we couldn't, but when we did, it took a couple months of adjusting, but then worked out just fine.

We also groom our pets ourselves and make our own dog treats. Its a fun cooking project that we do together and its really cheap. We also turned our water heater down, and that saves us about 30 bucks a month.

We do a lot of little things, so let me know if you want other ideas!

Reb

I love your ideas! We just moved into our own house and are definitely eating what we have and not throwing food away. At least trying to... I just said the other day I wish we could go down to one car but my husband works 11-8 and I am a teacher working 8-330. I can't stay at school that late even if I wanted to, so unfortunately it will never work for us. I would love any other ideas you have that I may not be thinking of. Even if it isn't saving for DVC at this very minute, it will help us save to faster pay our bills so in the future we can put money towards DVC

 

[Sandisw]

I understand where everyone is coming in all different ways. I wouldn't just change my career for it... I have thought about it for other reasons (over worked under paid being one of them) but that would involve me going back to school and adding more student loans... no thanks. Like I said, we plan to have the student loans paid off before DVC ever happens, I was just looking for other ways people have saved money, like the cut out the daily coffee (though I don't drink it)... things that people have decreased to save a little here and there.

One thing that I do is every week, I take $5.00 and put it in my sock drawer...$5.00 from our weekly "spending" money. It is amazing how I don't miss it and how quickly it adds up for things.

When I started, the goal was to start to "save" for my daughter's prom. She was only a freshman, but figured if I did it, I would have over $500 by the time she was a junior and that it wouldn't seem like such a big deal to "splurge" for the dress, limo, etc.

When I realized that I didn't miss that $5.00, I started putting $10.00 away--$5.00 for her fund and $5.00 for my vacation spending money.

Taking it out at the beginning of the week, as soon as I took out the cash for DH and I, was key for me as it was gone before I had a chance to spend on something that I really didn't need but just wanted.

This year, it was so nice to have that fund for her!!! I got lucky and we didn't need it all, had some left, and now its building again for all those Senior year expenses we will have.

Good luck!!!