saving saving saving

[pirasha]

Hey ALL!

So

I am trying SUPER hard to pay for a trip next year..it'll be me and my sister and my best friend. We've been trying to go for quite a few years, but life, and college, and loans, and jobs etc. you know how it is.

I feel like next year is sort of my last chance for us to enjoy a just girls trip before kids start coming into the picture (why yes, I want to act like a child before getting children involved...you all understand)
....I may have a rant to this trip planning....but this is the budget forum. Also do you all actually want to hear my travel plan woes and freak outs? I should mention that my sister and I are attempting to pay for this trip ourselves and surprise her with it...and she is currently making things INCREASINGLY DIFFICULT. Unintentionally but still. UGH!

ANYWAY

things I've done/current plan:
I've signed up for the chase freedom 5x reward card - planning to use this ONLY on the 5x (what else is the point?)
after hitting the start up bonus I'm getting my sister to send me a referral for her disney rewards card...this I will use until I hit that start up bonus then probably not use until the park unless I by something at the Disney store or they give me an incentive (please?)

I don't want to get a travel rewards card because that's four cards (I mostly use my AmEx) to manage and that's quite a bit for now. Also I don't like being tied down to a certain airline or hotel...I feel like I can find a better deal if I can shop around.

I am planning to grabbing giftcards when I can and adding them to a disney vacation account in order for the extra $20/$1000(I need to research this a bit more to fully understand it and make sure I can maximize the benefits)

I'm already quite active on swagbucks...trying to be more active but there's only so much you can do with a full time job.
I am going to try for more overtime at work (hopefully without killing myself) and put the extra earnings to my savings
I am going to cut my spending to minimum...well as much as I can with being in a relationship (relationships are hard on the wallet sometimes maaan. you can't have a no spend month and an anniversary.. or birthday...or visiting family..it just does not work)

so what else do you guys do that have worked well for you?

 

[MrsTurnerLovesDisney]

I use budget overage. Not sure what bills you have but say I budget $200 on the electric and its only a bill of $150 I deposit the extra $50 in my Disney vacation account. Fast way to earn money without it really hurting you.

 

[danielocha30]

I turned the water heater off, it saved me $100 a month!! we just turn it on for 1 hour a day and we all take our baths during that time, having the water heater on when you are not using any hot water is a complete waste, it worked for my family schedule, some days we turn it on twice a day for 2 or 3 hours and still save a lot on the electric bill

 

[pirasha]

thanks @Mrs.TrunerLovesDisney and @danielocha30

I should have noted...I rent and don't have any control over anything in the house and have to pay by check....so the only and I mean ONLY monthly expense I can put on my CC is my car insurance. I mean those are GREAT tips so thanks...unfortunately they don't apply to me.

 

[gottalovepluto]

Establish a budget. That doesn't mean simply cutting back spending to a minimum, that's hard to do for the long term. If you know where your money is going and when your money is going out you will have a better idea of how much you have the potential to save. In your budget decide how much you're willing to spend each month on relationship-style spending. Build money in for some personal fun things, whether its a movie, some coffees, eating out, etc. Otherwise you could be setting up for failure. Months and months of "minimum spending" combined with "but I have to buy this gift, have to meet for coffee, have to go out to dinner, etc." could leave you with not much extra money at the end of the month and mentally tired of saving all that money- that you didn't end up saving after all. So, have an actual number for that spending and be honest with your significant other if you hit the limit "I'm saving for the trip so lets do dinner at home tonight, we can go out next week". If you have a big spend coming up, anniversary, birthdays, set aside some money in the months before that so you don't blow all your "extra" spending budget at once and then raid your "savings" because you have no other options.

I don't know what the best budgeting software/app out there is right now but THAT is where I would start when trying to save for something a long ways away. Good luck!!

 

[Vijoge]

Make saving a priority. Put money into savings automatically (or ON PAYDAY). You need to do this before you spend anything. Pay yourself first.

 

[Jen and Ashwin]

There are two ways to get money for a trip. Earn more or spend less. That's it. But there are ways to make those things easier. For DH and I, budgeting has made a huge difference for us. We use You Need a Budget (ynab.com) and it makes it so easy for us to see exactly how much we have, how much we need for basic expenses and then prioritizing the extra money towards things we want, such as a fun money fund and a vacation fund. We paid off DH's student loan ($6,000), all of our credit card debt ($9,000) and saved for a big medical expense ($4,000), all in 6 months. I used to use Mint.com to budget, but it really wasn't flexible enough nor did it show me what I needed to see in order to shift our spending in real time when necessary. There are other programs, some free, so find something that works for you.

 

[tzolkin]

I turned the water heater off, it saved me $100 a month!! we just turn it on for 1 hour a day and we all take our baths during that time, having the water heater on when you are not using any hot water is a complete waste, it worked for my family schedule, some days we turn it on twice a day for 2 or 3 hours and still save a lot on the electric bill

Sort of off topic, but maybe you need a new water heater?

Ours is gas (and had propane in our previous house) so I'm not sure exactly what it should cost to run a water heater, but that seems crazy high. Our gas bill for the water heater is under $10/month. My electric bill (living in the south running the AC for a nearly 3000sqft house during the summer) has never been over $150 (usually around $50 during the winter).

 

[danielocha30]

not gas in here, yes crazy

 

[tink1970]

@pirasha-I think you're doing well so far!

I have posted before but I am a big believer in the Disney Vacation Account (others not as much, but I am!). If you are even thinking about it I would establish it now to ensure that the 120 day minimum is met. Also, currently the $20 back for each $1000 spend (and no they do not prorate...if you spend $1999 then you get a $20 gift card; if you spend $2000.01 you get $40) but the fine print says "until December ?? 2017" so that MAY (or may not, depending) go away. So the other caveat is to use it by December ?? of this year.

I buy gift cards from Sam's Club (4% off) during the Chase Freedom warehouse 5% back and just got a Discover It which has warehouse clubs at 5% back PLUS at the end of the year doubles everything (first year only). So this year- Jan-June for Discover I get 5% back, 4% off the gift cards, put it in my DVA and 2% in gift cards for 3,000 (1500 Jan-Mar; will do another 1500 April-Jun). This upcoming quarter is groceries and drug stores for Chase Freedom so I'll get $1500 of gift cards from my grocery store, get the 5x rewards and put them in the DVA (another 2%). That's my strategy for the first $4500 of the year.

I know you don't want another credit card but perhaps in the future look at another cash back card with rotating categories which can complement your Chase Freedom (I felt the same way but did some research on Discover it and it's been great this year). I also have a Target red card debit card so when I'm there will pick up a gift card if I have the money in my bank account (that's the nice thing about the red card debit-discipline ). I add it immediately to my DVA and it's done.

You can also fund any or part of your DVA with your Chase Disney card (I do $10 every few months just to keep it "active.").

My family also knows that for birthday, Christmas, other holidays to give me gift cards. Load them onto the DVA and done.

So it looks like I just do one thing many different ways

When I used to take call I would designate those earnings as vacation and earmark it for such (no pun intended), perhaps you could do that with overtime pay?

I have a couple of piggy banks and all change goes into them-usually good after a year or so for a bit of cash (we just returned from a spring break trip and I had $5 in coins!).

Anyway, those are my usual go to strategies!

 

[QueenIsabella]

Since you have a little time, would it be worthwhile to pick up a part-time job? Even something like 10 hours on a weekend could give you $50 or so a week for your vacation fund.

 

[pirasha]

thanks for all the suggestions guys! keep them coming!

I will look into actual budgeting (i realize that was not what I was doing before)...hopefully I'll get that done this weekend but I shall give myself a deadline of two weeks to fully work on this. thanks @gottalovepluto

@Vijoge - thanks for the tip...I do agree that this is very important. I actually have my paycheck automatically deposited into two separate accounts - if all my money is not all in one place it's MUCH easier to save for when you need it.

@tink1970 - thanks for the encouragement! you are doing what I'm probably going to be doing so it's nice to know that my thought system actually works Real World! I will look into Discover IT to see if that is something that can work for me. Thanks!

@QueenIsabella - I can't actually do a part time job atm but yes that is a great suggestion. I'm going to try pulling longer shifts at work instead. That will pay me more than a part time job while leaving my weekends free (I help take car of my grandmother who has dementia so my schedule is rather funky and last minute a lot of the time. PT jobs are not last minute friendly...but if I could I certainly would)

Great suggestions guys! Keep them coming....I'm feeling much more inspired that I can do this!

 

[QueenIsabella]

A longer shift here or there actually is even better--pay is probably higher, and they already know you, and it utilizes your skills. Not everyone can add extra hours/shifts to their current job, that's why I suggested part-time. My DH is an engineer, he doesn't get paid for overtime, so you're fortunate that you do.

Sorry to hear about your grandmother--BTDT, with my mom. It's not easy, and I fully understand you needing to prioritize shifts with her.

Good luck with saving--you can do it!

 

[tink1970]

My grandmother also suffered from dementia-it stinks! Let us know how your savings go

 

[piccolopat]

Hey ALL!

So

I am trying SUPER hard to pay for a trip next year..it'll be me and my sister and my best friend. We've been trying to go for quite a few years, but life, and college, and loans, and jobs etc. you know how it is.

I feel like next year is sort of my last chance for us to enjoy a just girls trip before kids start coming into the picture (why yes, I want to act like a child before getting children involved...you all understand)
....I may have a rant to this trip planning....but this is the budget forum. Also do you all actually want to hear my travel plan woes and freak outs? I should mention that my sister and I are attempting to pay for this trip ourselves and surprise her with it...and she is currently making things INCREASINGLY DIFFICULT. Unintentionally but still. UGH!

ANYWAY

things I've done/current plan:
I've signed up for the chase freedom 5x reward card - planning to use this ONLY on the 5x (what else is the point?)
after hitting the start up bonus I'm getting my sister to send me a referral for her disney rewards card...this I will use until I hit that start up bonus then probably not use until the park unless I by something at the Disney store or they give me an incentive (please?)

I don't want to get a travel rewards card because that's four cards (I mostly use my AmEx) to manage and that's quite a bit for now. Also I don't like being tied down to a certain airline or hotel...I feel like I can find a better deal if I can shop around.

I am planning to grabbing giftcards when I can and adding them to a disney vacation account in order for the extra $20/$1000(I need to research this a bit more to fully understand it and make sure I can maximize the benefits)

I'm already quite active on swagbucks...trying to be more active but there's only so much you can do with a full time job.
I am going to try for more overtime at work (hopefully without killing myself) and put the extra earnings to my savings
I am going to cut my spending to minimum...well as much as I can with being in a relationship (relationships are hard on the wallet sometimes maaan. you can't have a no spend month and an anniversary.. or birthday...or visiting family..it just does not work)

so what else do you guys do that have worked well for you?

 

[piccolopat]

I know that you are opening these new credit cards for the rewards, but please don't overlook the impact this will have on your credit score. This will cost you more than the rewards will save you if you are looking to buy a car, house, etc. in the future. I like the "pay yourself first" method. It is also very easy to spend a relatively large amount on accumulated small purchases - a coffee here, a magazine there. I call it the "supermarket syndrome" - you know, you buy a bunch of 69 cent items and suddenly are looking at a $100 bill. Set a budget for these items as well.

 

[FairestOfThemAll37]

I know that you are opening these new credit cards for the rewards, but please don't overlook the impact this will have on your credit score. This will cost you more than the rewards will save you if you are looking to buy a car, house, etc. in the future. I like the "pay yourself first" method. It is also very easy to spend a relatively large amount on accumulated small purchases - a coffee here, a magazine there. I call it the "supermarket syndrome" - you know, you buy a bunch of 69 cent items and suddenly are looking at a $100 bill. Set a budget for these items as well.

Are you saying that credit cards will negatively impact your credit score just by opening them? While they can certainly cause problems if you misuse them and don't pay the bills. However, opening and maintaining new cards will generally improve credit score.

 

[jujubiee4]

"Are you saying that credit cards will negatively impact your credit score just by opening them? While they can certainly cause problems if you misuse them and don't pay the bills. However, opening and maintaining new cards will generally improve credit score."


I will have to wholeheartedly agree with this. 13/14 months ago I only used my American Express
and sometimes a visa here and there. I was at 750 score for years. I stumbled on a travel blog
on how to cut down travel expenses. I went on a credit card app spree and applied for 4 and upgraded
1 other. My score went down 6 points for 1 month then has risen to 840 and stayed there for the past
9 months. I go on Credit Karma every other day to check things out.

With those card bonuses/miles the last 16 flights i have booked i have not paid for.

What i find weird is that for years I paid off my cards every month and my score never moved.
Now i get those new cards and pay them off immediately and my scores soar.

I think it has to do with new credit limits?

 

[gottalovepluto]

I know that you are opening these new credit cards for the rewards, but please don't overlook the impact this will have on your credit score...

The idea that opening new credit cards can have a big effect on your credit score is a common misperception. I used to think the same thing! Opening a new credit card can drop your credit score around 7 points for the hard inquiry but the additional credit that you receive serves to drop your credit utilization ratio and that is a much more important factor. That is the part that can really swing your credit score (I once saw my credit score go up about 30 points after opening a new credit card). That metric can be stabilized by 1) not using your credit cards and keeping the utilization ratio low or 2) getting more available credit on your cards so that when you do use them it doesn't hurt your score. It used to be a big purchase, like vacation, tanked my credit score even though I paid it in full when the statement closed. Having more credit available to keep my credit utilization under 10% has helped immensely & I prefer to keep it under 5%. BUT, you have to be aware of minimum spends. I believe this is where people get confused. If you open the new credit card and have to hit a minimum spend and do spending beyond what you would normally do your credit utilization ratio will take a hit, and it can be a big hit. That metric can recover in a couple months though after you've paid off your card but you don't want to put big spending on ANY of your credit cards in the few months leading up to a big purchase so that you don't run into trouble with your credit utilization ratio.

 

[gottalovepluto]

...What i find weird is that for years I paid off my cards every month and my score never moved.
Now i get those new cards and pay them off immediately and my scores soar.

I think it has to do with new credit limits?

YES!! You've got it! Credit Utilization is the word/metric you've changed!! If it wasn't for the internet and things like Credit Karma I never would have learned all this either What an eye opener it's been.