Debt, Credit Card & Consolidation Current News Digest

This post is from GRS staff writer April Dykman.

I usually have an idea of what I want to accomplish once I get home from work. It goes something like this:

• Practice yoga.
• Get some writing done.
• Make a fabulous, healthy dinner.
• Work on my business.
• Read something thought-provoking.

But I never seemed to accomplish all I set out to do. Sometimes I’d accomplish none of it. Other activities would get in the way, and my evening would go something like this:

• Check e-mail (for the 40th time that day).
• See some Facebook updates in my inbox.
• Log on to Facebook to leave my oh-so-clever comment on my best friend’s page. (”She is going to LOL when she reads this!”)
• Check out some random person’s page who is friends with my friend.
• Check out random person’s blog, which they haven’t updated since last year.
• Remember that I hadn’t checked my blog feed since this morning.
• And on and on.

An hour and a half would pass by, and I’d realize that I wasn’t going to get as much done as I had planned. I’d start to practice yoga, but with my head full of e-mails, social media posts, and random bits of information, my practice wouldn’t be as fruitful. Eastern traditions refer to this as the “monkey mind” that jumps from one thought to the next, and my monkey mind would be swinging in the trees. This led to a somewhat dissatisfying practice, which made me want to speed it up because I was unable to focus.

Then, instead of making dinner, I’d eat some yogurt and granola and flip on the TV (you know, only planning to watch while I ate dinner). Eventually I might make it back to the computer and read a couple of things pertinent to my freelance work, but then I’d be derailed by checking out that-site-about-that-thing. After awhile I’d realize it was late and decide to hit the hay.

No satisfaction
I wasn’t satisfied with this routine. I wanted a good yoga practice. I wanted to get ahead on my writing work and to spend an hour or so cooking something wonderful. I wanted to feel like I was making headway on my freelance business and to sink my teeth into a good book every night. Out of five things I wanted to do, I’d actually do only one or so, and I wouldn’t even do that one thing very well.

I figured that the problem was starting the evening with activities that were real time sucks, like e-mail, Facebook, and blog feeds. After that, it was even more likely that I’d watch a little TV or surf the net for “just a few more minutes.”

I decided to test my theory. The next day I came home and resisted the urge to “quickly check” anything online. Instead, I rolled out my yoga mat and had a satisfying practice. Afterward, all I wanted to do was to make a big salad, and that’s exactly what I did, sans TV shows. Later I sketched out an outline for an article and brainstormed some new leads, and eventually made my way to bed. I only got through three pages of a book before falling asleep, but all in all, I had my perfect evening, accomplishing what I wanted. It felt good.

Identifying time sucks
I have a lot of irons in the fire right now, especially compared to just one year ago. Juggling these things isn’t easy, and I’m sure most of you can relate. If you have kids, you’re probably 20 times busier than me. We can wish for more hours in a day, but we’re only going to get 24, so it’s up to us to decide how we want to spend them.

Everyone has a different way of wasting away the hours, but I’ll identify some common ones. In the online world, there are countless time-sucking activities, such as:

• Checking e-mail excessively
• Seeing what’s new on Twitter
• Reading Facebook updates
• Reading blogs that don’t deliver much value
• Browsing retail sites
• Playing games
• Watching funny YouTube videos
• Clicking on random articles on StumbleUpon
• Tagging and grouping your Flickr photos
• Googling your ex

Time sucks aren’t only found on the internet, though. Offline, activities that can suck your time include:

• Unimportant chores
• Watching TV shows you don’t even like that much
• Reading junk mail
• Video games
• Opening the refrigerator door and staring at the contents
• Thinking about unimportant things, replaying conversations in your head, stressing out about future possibilities that may or may not ever happen
• Organizing your iTunes files
• Unproductive or negative conversations

It’s also worth mentioning that another time suck is struggling with disorganization. If I want to go for a run, but I have to spend 30 minutes looking for my other tennis shoe, that’s a frustrating waste of time that might derail the run all together. Also, I want to point out that many activities on these lists are not inherently bad, unless you’re doing them at the expense of something else that would be more satisfying to you.

Battling the time suck
If any of those time sucks sound familiar (and they do to me), there are ways to circumvent time suckage.

1. First, try not to get sucked in the first place. If your tasks don’t involve the internet, don’t go online. If they don’t involve the computer at all, don’t open your laptop.
2. If you do need to go online or use a computer, don’t go to unnecessary sites. I am much more productive when working online if I close my Gmail tab.
3. If there isn’t a show on that you really like, turn off the TV.
4. Commit to doing one thing on your list for just 10 minutes. You know how this works. After 10 minutes, you usually want to do more.
5. When you feel yourself being sucked in by mindless activities, ask yourself if you spent the last hour as you intended. What did you want to do with your time, and if you didn’t do it, what can you do now?

Number five is powerful because it focuses on the positive, letting enjoyment and good feelings affect your activities instead of making the evening one big to-do list. I know I’ll feel better after my yoga practice, and that gets me on my mat. Afterward, I’m encouraged by that success to spend the rest of the evening mindfully.

Avoiding time sucks is not something you accomplish once and for all. There will be days when you come home and waste three hours watching Buffy the Vampire Slayer re-runs. (No? Just me?) It’s a daily choice, but a worthy goal. When you are mindful with your time, you can accomplish more of what’s important to you.

Readers, what time sucking activities have I left out? What do you do to avoid them?

J.D.’s note: This really reminds me of the book I’m reading right now (The Other 8 Hours by Robert Pagliarini). It’s all about avoiding time sucks. Any interest in a review? It also reminds me of Trent’s post yesterday about meeting goals.

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• Use a No-Spend Month to Become Mindful of Money
• Personal Finance Breakdown: New iPod
• Learn to Save by Taxing Yourself
• Ask the Readers: How Do You Manage Your Money?
• Reader Comment: It’s Not Wrong to Avoid Debt

This post is from GRS staff writer April Dykman.

I’ve been thinking a lot lately about a quote from J.D.’s review of The Total Money Makeover:

Printed on the bottom of every page…is the book’s motto: “If you will live like no one else, later you can live like no one else.”

My husband and I recently made an unusual decision, and I’m in need of a motto that I can repeat to myself every time I question our choice, which I probably will at some point.

A loan story
I’ve mentioned in previous GRS posts that my husband and I are building a house. As we started on the final construction documents, we began working with a lender to sort through the construction loan. It’s not a fun process, let me tell you. Half of what the lender said went right over my head, despite my short-lived foray into the real-estate industry.

The first issue that arose was that we’d have to have a two-time closing. This means there’s one closing at the start of construction and a second closing after the home has been built to refinance into a permanent mortgage. Apparently one-time closings, which are loans with a single close for both the construction term and the mortgage, are a thing of the past.

The problem is that my husband and I couldn’t have a change in employment until the house was finished and the second closing was complete. But he’s planning to start his own business. Also, if one of us happened to lose our jobs, we’d be at the mercy of the bank. Even if we could easily make our payments from my freelance income, the bank wouldn’t recognize that income source until I had two years of tax returns on the business. It was a concern, but we decided to move forward.

Charges, interest, and fees
The lender sent the estimates for interim and permanent loans. As I sorted through the initial fees worksheets, I saw the standard stuff:

• Origination fee
• Appraisal fee
• Processing
• Underwriting
• Closing
• Document prep
• Title insurance
• Recording fees
• Survey costs

And on and on and on…

It’s not that I didn’t expect these fees, but they were sure adding up quickly. Also, we could expect a good interest rate on our mortgage, but the interest we’d pay for a 30-year loan would double the total cost of our home. Again, not unexpected, but still disconcerting when I was plugging in our numbers.

Closing delays
Another issue was that we’d need $15,000 to close the interim loan. With an interim loan, the bank requires 20% of the total value of the land plus improvements (i.e., the house). We have a lot of equity in the land, but not enough to cover 20% of land and house value. Since we were unwilling to tap our savings, we’d have to wait until autumn to start building.

I was getting a sinking feeling in my stomach, like we were going to be trapped. My husband couldn’t start his business. If one of us lost our jobs, it would be the bank’s decision whether to work with us, on their terms, or not.

Finally, the relationship with our architect, who also was to be our builder of record (another lender requirement), was deteriorating, causing us to reconsider the arrangement.

Assessing our situation
My husband and I are in a unique situation. My parents own land in the country, and we live next door to them, rent-free. This has allowed us to build a lot of equity in the land we purchased, which is five minutes away. My dad also is in construction, and he’s able to do the majority of the work to build what he can for us and subcontract the rest.

It might sound crazy not to take advantage of our situation, but there’s something to be said for having your home finished with all of the amenities you want, such as a dishwasher, carport, bigger kitchen, laundry room, and more space to host guests. I have this dream of what our home will look like, of what it will feel like to wake up in it every day, and it’s hard to be patient.

Number crunch
I started to run numbers on how long it might take to build our home if we paid in cash; assuming no change in income, it looks to be five years — six if I’m being super conservative. I assumed a completion date of April 2015. If we went with the loan, we’d probably complete the home in September 2011. By waiting about four years longer, we’d own our home and land outright, as opposed to paying on it for 30 years. Even if it takes longer than expected, it’s still a good deal. Owning our home sooner would give us so many options:

• We could scale back on work hours.
• We could travel more.
• We could put more into savings.

The point is that we’d have those choices. Our decision came down to having the home now, or having more freedom later. Again I thought of Dave Ramsey’s quote:

“If you will live like no one else, later you can live like no one else.”

You can probably figure out what we decided to do. We’re going to pay in cash, building as we can. Impatience is not worth the headaches, fear of losing a job or the house, and the interest we’d pay if we continued with the construction loan.

Patience and resolve
I realize we’re in a fortunate position. If our circumstances were different, this might not be an option, however, I believe our choice and Ramsey’s delayed gratification advice is relevant to everyone.

Every time I’ve put my impatience aside, the outcome has been positive. This was the case when we put off buying a second vehicle and when we moved out to the country, originally thinking we’d buy a house in the city as soon as possible.

Besides patience, delayed gratification also requires resolve. When you make choices outside of the norm, friends and family members might think you’re nuts. They mean well, and they’re only thinking of you, but some of them will definitely think you’ve lost your mind. One car for two people?! You’re just asking for a divorce! It can be hard when you’re already questioning yourself. The trick to not letting these comments derail you is to remember the reasons why you made your decision, and maybe find an affirmation, which is why I’m going to print Ramsey’s motto and read it often.

Delayed gratification isn’t easy, but it usually brings the most rewards.

How has delayed gratification benefited you? How have you exercised patience and resolve? Share your tips — I’m probably going to need them!

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Related Articles at Get Rich Slowly:

• Cost-of-Living Comparison Calculator
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• Reader Survey: How Do You Cope with a Limited Income?

This post is from GRS staff writer April Dykman.

For many people, mindful consumerism starts with questioning the desire to buy Stuff. The reason might be to save money or avoid clutter — maybe both. It’s the first part of a journey to differentiate needs from wants and make mindful decisions about where to spend our hard-earned money.

But at some point, most of us will consume. We’ll buy food or clothing or household items. We’ll need to replace something, fix something, or upgrade something. When we make these purchases, we’re playing a role in a process. Much goes into creating a product and getting it on the shelf, though as a consumer, we don’t see that process. We don’t know if the companies involved in bringing it to us have decent working conditions for employees, pollute water systems, or include additives that pose health risks to our families.

Daniel Goleman, author of Ecological Intelligence: The Hidden Impacts of What We Buy, wrote about considering the global effects of our purchases in his essay, Making the Right Choice:

An organic cotton t-shirt may be called “green” because they didn’t use pesticides or chemical fertilizers when growing the cotton. That’s on the good side of the ledger, to be sure, but if we look into the life cycle of the t-shirt, we discover that organic cotton fibers are shorter than other fibers, so you need to grow a lot more cotton per t-shirt. Cotton is typically raised in arid parts of the world, and it’s a very thirsty crop, so a lot of water is implicated in the production of the t-shirt.

Also, if it’s a colored t-shirt, we have to take into account that textile dyes tend to be carcinogenic. When we consider all these angles, we may come to see that if you change one thing about a product and leave 999 unchanged, it’s not green.

It’s enough to make the average consumer’s head spin. Most people would like to make informed choices and reward companies whose processes make us feel good, but doing this in practice is daunting. If a busy parent is in the grocery store with two children to wrangle, it’s not feasible for that person to stop and trace the life cycles of Cheesy Poufs versus Cheddar Puffs. People can’t be expected to spend hours on the web researching the health, societal, and environmental effects of every purchase. Not gonna happen.

Technology provides the tools
Luckily, it’s getting easier to know what’s behind a brand. Skin Deep and GoodGuide are two web databases that provide the backstory on the Stuff we buy.

• Skin Deep is a safety guide to cosmetics and personal care products researched by the Environmental Working Group. You can search by product, ingredient, or company, and the site will return a hazard rating with the product broken down by ingredients.
• GoodGuide is a database of more than 70,000 food, toys, personal care, and household products that rates the products and companies based on the effects they have so that users can make informed decisions based on what is important to them.

For example, GoodGuide provides information about Quaker Quick Oats, which it rates a 7.3 overall (out of 10), and Nature’s Path Organic Instant Hot Oatmeal, which is rated 6.7. We might assume that the organic brand would be healthier, but in fact it’s higher in sugar than similar products. When it comes to environmental effects, Quaker Quick Oats scores lower for water and energy management. Users can delve deeper into how these ratings are determined by clicking on See All Data.

The brainchild of Dara O’Rourke, a professor at University of California-Berkeley, GoodGuide was developed with experts from Harvard and MIT, with tech input from talent at Google, eBay, Amazon, and Intuit. And the tech part is what makes GoodGuide great. The database is available as an iPhone, iPod Touch, and iPad app that allows users to scan barcodes and compare products. Users also can create personalized shopping lists and lists of products to avoid, making it easier shop mindfully when you’re on the go.

Start small
If you’re interested learning more about where your Stuff comes from, make a few changes and build from there. Don’t feel like you have to throw out all of the “bad” Stuff you own and replace it with the “good” Stuff. To start, pick one product you’re curious about, and see if it’s listed on Good Guide or Skin Deep. How does it score? Is there a better alternative that will still meet your needs? Often the better-rated product also is the less expensive, which is a great bonus. In fact, I’ve slowly replaced my skin-care products with cheaper products that also rate better when it comes to health and societal effects. Sometimes the expensive products packaged in “green”-looking bottles rate surprising low.

I’m interested to know what you think about databases like Skin Deep and GoodGuide. Have you ever wondered how some of the products you buy get to the shelf? Would you use tools like these to learn more about the effects of the Stuff you buy?

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This post is from GRS staff writer April Dykman.

We all know that cooking meals at home can save money. For some (like me), it’s a lot of fun, too, but it’s easy to get in a rut — which is where I found myself last year.

Brown rice was my go-to side dish, but there are only so many ways to cook the stuff before your taste buds get bored. That’s when I discovered a whole new world of grains that got me excited to cook again, many of which are now kitchen staples. If you’re ready for something new, try out these under-appreciated grains, each with a distinct texture and flavor.

Barley
Before combat, Roman gladiators ate barley, which was believed to give great strength and stamina. Non-gladiators can just enjoy it for its rich, nut-like flavor and health benefits. Barley is a good source of fiber, selenium, phosphorus, copper, and manganese.

Barley is often thrown into a beef stew, but it is certainly worthy to be a dish all on its own. Try Barley Stew with Leeks, Mushrooms, and Greens or Barley Salad.

Kasha
Kasha is roasted whole-grain buckwheat or buckwheat oats and is commonly eaten in Eastern Europe (though in Slavic countries, the word kasha refers to porridge in general). Kasha is close to wheat in its nutrition content, though it’s gluten-free, and is high in protein, B vitamins, phosphorus, potassium, iron, and calcium.

Kasha is cooked the same way as rice, and it’s just as versatile. For a couple of ideas, try Wild Mushroom and Onion Kasha or Kasha with Browned Onions and Walnuts.

Millet
In the US, millet is most often recognized as the main ingredient in bird seed. But millet isn’t just for the birds; it’s a staple grain in Africa, India, and Asia.

Millet is high in protein—1/2 cup of cooked millet provides 4.2 grams. It is also rich in niacin, B6, calcium, iron, potassium, magnesium, and zinc. Like kasha, millet is a good option for those with gluten allergies.

To start cooking with millet, try out Curried Millet, Shiitake, and Corn Salad Restey or keep it simple with Hot Millet Cereal.

Quinoa
Quinoa (pronounced keen-wa) isn’t actually a grain, but I had to include it anyway, and I’ve saved my favorite for last. While it is commonly thought of as a grain, it’s more closely related to leafy greens, such as spinach and chard. Quinoa, however, is grown for its seeds, not its greens. Quinoa is a 5,000-year-old crop that was a diet staple for the Andean Incas, who referred to it as “chisaya mama,” or “mother of all grains.” It has a light, soft texture and a delicately nutty flavor when cooked.

Quinoa is full of nutitional value, containing all of the essential amino acids and more protein than grains. It is a good source of dietary fiber, magnesium, phosphorus, calcium, iron, vitamin E and several B vitamins, and omega-3 fatty acids. Quinoa also is another gluten-free option.

One of my favorite recipes for quinoa comes from La Tartine Gourmande, a gorgeous food blog by Béatrice Peltre. (And by gorgeous, I mean that if it was possible to live inside a blog, I’d live in hers.) Béatrice was kind enough to provide the beautiful photos in this article and to let me share her black quinoa salad recipe on GRS. So, to get you started on some culinary experimentation, here is Béatrice’s quinoa recipe. Feel free to experiment and make it your own!

Note: Most quinoa comes pre-rinsed to remove the saponin, which is a natural, but bitter, resin-like coating. It’s a good idea to give it an extra rinse in cold water before cooking it, as recommended in this recipe.

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This post is from GRS staff writer April Dykman.

Social psychologists have found that people tend to choose their significant other based on similarities—similar attitudes, values, and even similar names.

Those findings would seem to suggest that people with similar spending habits would be attracted to each other, too. But a working paper published last year found the opposite to be true. In “Fatal (Fiscal) Attraction,” Rick, Small, and Finkel, professors of the Wharton School of Finance and Northwestern University, found that while most singles say that their ideal mate would have similar spending habits, when it comes to feelings toward spending, opposites attract.

The spendthrift-tightwad spectrum
Rick, Small, and Finkel used a survey to establish where study participants fell on a spendthrift-tightwad spectrum. According to the paper, each of us feel a degree of “pain of paying.” Spendthrifts feel too little pain, causing them to spend more than they ideally would want. Tightwads experience too much pain, causing them to enjoy their money less than they would like. It is important to note that the survey was created so that those on the extreme ends of the spectrum were not simply savers or spenders, but also were the most unhappy with their emotions toward spending.

Opposites attract
If people choose their spouse based on similar attitudes and values, then why would a tightwad fall for a spendthrift, especially if her ideal mate is a tightwad, too?

It turns out that while we look for similar traits in most cases, it depends on whether a person likes or dislikes a trait in themselves. The study found that the more unhappy someone is about their own emotions toward spending, the more attracted that person will be to his or her financial opposite. Deep down, a tightwad might dislike how crazy it makes her to spend $10 to see a movie with her friends, even though she can easily afford it and wants to go. Because she finds it painful to spend and dislikes that about herself, she’s likely to fall for a guy who spends more liberally.

Bad news for marriages
Unfortunately, the attraction to one’s fiscal opposite doesn’t bode well for the marriage. The study found that the degree to which spouses differ in the tightwad-spendthrift spectrum is negatively related with marital bliss. Rick, Small, and Finkel wrote:

Husband/wife differences in emotional reactions toward spending are associated with greater financial conflict in the marriage, which is in turn associated with diminished marital well-being.

And while there’s no scientific proof that money is the root of most divorces, money does create conflict in 84 percent of marriages, according to the findings of a 2007 Money magazine survey.

How to adapt

They strained their chests against enormous weights, and with mad howls rolled them at one another. Then in haste they rolled them back, one party shouting out: “Why do you hoard?” and the other: “Why do you waste?”

Rick, Small, and Finkel start their paper with the above quote from Dante’s Inferno, and the results of the study make a marriage of opposites sound doomed from the start. But marriages of tightwads and spendthrifts can thrive if they can manage to find common ground.

• First, accept that your spouse isn’t likely to make drastic changes. Also, if you were attracted to their relationship with money, even on some subconscious level, you probably don’t want them to do a 180 anyway.
• Find balance. According to the study, one possible explanation for why tightwads and spendthrifts seek their opposites is a desire for balance. They want someone who can help them overcome their emotional reactions toward spending. In other words, a spendthrift may seek out a tightwad because he or she thinks the tightwad might help reign in the splurges. Before you wish your spouse saved more or could loosen the purse straps, consider whether their habits have changed your emotions toward spending for the better.
• Stay on the same side. It’s easy to see someone with opposing views as your adversary, but you’ll be more productive if you approach your situation as a team. I want to spend thousands on a luxury vacation, you want to spend a few hundred to stay at a nearby B&B. Is there a solution that would make both of us happy? Find common goals and work from there.

My own experience has been that differing traits can be a positive thing. While neither my husband nor I spend excessively or save compulsively, he is much more easy-going in general, whereas I fretted for months over buying a computer I needed for my freelance work. (I couldn’t actually complete the online order for my laptop until he was sitting next to me. I need moral support for big-ticket items.) I appreciate the way his influence has helped me lighten up, yet it was my geeky love of spreadsheets and math that helped us develop a concrete plan to pay off our debt and build up our savings. Differences can help you grow as a person.

Are any of you a spendthrift in a relationship with a tightwad, or vice versa? How do you successfully deal with your different approaches to money?

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This post is from GRS staff writer April Dykman.

Most people agree that a vacation is supposed to be relaxing, but planning for one can be just the opposite. Still, poor planning can cost money and time, causing headaches and frustration when you’re supposed to be getting away from it all.

Some people like to book a ticket and see where life takes them. Others prefer cruises or tours where the planning is taken care of for them. I prefer to plan my trips, researching and budgeting as much as I can while I’m at home to make the vacation as smooth as possible. If that sounds like the route for you, today I’m going to share my method, step-by-step, for budgeting and planning a vacation, including spreadsheets you download download and customize.

This method is effective in planning trip logistics and budgets, laying out how to do the following:

• Estimate how much the trip will cost, allowing you to save sufficiently and not come back to a credit card debt slap in the face
• Efficiently plan your time, maximizing time spent doing fun stuff and minimizing time lost due to scheduling conflicts
• Easily keep important information at your fingertips to save money and time

This method saved me at least $375 on my last trip after a cabana in Mexico lost my reservation. Because I used this step-by-step system, I had documentation of my reservation and deposit, and the owner agreed to “make their friends leave” and accommodate me. (Things work a bit differently at Mexican beach cabanas.)

Stuff like that isn’t fun when you’re on vacation, so let’s avoid those hassles. Pick a destination, and start planning.

Choose a travel guidebook — or three
Most travelers find that there isn’t just one guide that covers all of their needs. Some books cover the logistics — where to stay and how to get around the city. Others might focus on history, culture, and the arts. Then there are some that are even more specific, like biking through the Netherlands or kayaking in New Zealand. Get one book that adequately covers the basics and at least one that covers your personal interests.

How to know if it’s guidebook love
Here’s what to consider when deciding which guidebooks to buy:

• Do the accommodations and restaurants fit your budget?
• Do you like the layout? Is it easy to find information?
• Does it have detailed maps?
• Does it cover your primary travel interests, such as history, culture, food, markets, safaris, ecotourism, farm stays, hiking, etc.?
• Does it make you feel even more excited about your trip?

If you plan to visit only one specific region or city, or if you just plan to spend the bulk of your time in one, consider a regional or city guide with more specialized information.

Guidebooks worth a look
If you aren’t sure where to start, here are a few guidebook series worth checking out:

• Rick Steves’ Europe Through the Back Door. Steves believes in making travelers “temporary Europeans.” From his book: “The more money you spend, the bigger the wall you build between yourself and the culture you traveled so far to visit. Stay in the small inns, eat in family-style restaurants, visit out-of-the-way places, rub elbows with the locals. You’ll spend less money and have a great time in the process.” The guidebooks include tons of practical information about where to sleep, eat, how to use public transit, budgeting, historical sites, maps, and more. Steves’ book got me from Rome to Pompeii, and I saved $50 over the route that others in our travel group used.
• Lonely Planet. Perfect for logistics, but you’ll need to supplement with another book for history and in-depth cultural information. This series is especially good for long-term travel, as is gives extensive information about where to stay, how to get around, etc.
• Frommer’s. Another series that advocates living like a local, but is very extensive in the destinations it covers. A book from this series helped me to rent a car and successfully drive around the Yucatan peninsula, use toll roads, and not get lost once.
• Fodor’s Guides. There are several series of Fodor’s travel books, each written for a different type of traveler. Fodor’s uses local writers to give readers the most accurate information and inside knowledge.
• Let’s Go. If you’re a student, or just on a student’s budget, this guidebook series is one to consider. Written by students, there’s information on all things cool and free.

Also check out Budget Travel for articles on your destination(s). I’ve found some great hotels written up in Budget Travel that were out-of-the-way and not as popular as some of the ones listed in the big guidebooks tend to become.

Basic planning
Once you have your travel resources, you’re ready to start planning and budgeting. Download and open my Vacation Budget and Itinerary Planner (1.2mb XLSX) and click on the Basic Plan tab. (If you have an older version of Excel, here’s a 1.0mb XLS file.)

• How many days do you have for this trip? Enter that number into the yellow box.
• Where do you want to go? List each city in the column to the left.
• How many days do you want to spend in each location? Enter those numbers into right column.

If the difference is negative, you need to earn some more vacation days or make some cuts to your itinerary. Don’t try to pack in too much. If you spend all of your time jetting from point A to point B, you won’t see as much. What is most important? Be sure to check your guide books to see how much time is recommended for each place.

Fill in the details
Now that you have a basic outline, use the Expense & Itinerary Planner page to plan your itinerary. First, fill in the dates. Next, list the following, step by step, in the Activity column:

• Transportation between points
• Accommodations
• Attractions

Use the guidebooks to estimate expenses for each item in the Activity section, and enter those into the Expense column. If I’m staying at one hotel for three nights, I typically list the expense just once on the first day I’m staying there, but you can list it on each day if you like.

You’ll need to search online for airfare and train estimates. For airfare, check out the big sites, like Kayak, but don’t forget to look at budget carriers, too. Fellow GRS staff writer Adam Baker wrote a great guide, 5 Little-Known Websites That Will Save You Time and Money When Booking Airfare Online. Adam writes, “In most cases, the cheapest fare will be found using a combination of sites depending on your specific travel plans.” Try lesser-known websites when searching for the lowest airfare.

For rail travel in Europe, Rick Steves provides a comprehensive guide to Eurail passes, including how they work, how to plan your trip, and cost comparisons. Include any mode of transportation you’ll use, whether it’s rental cars, buses, taxis, ferries, or elephants.

In the Notes column, include important details, such as hotels that only accept cash upon arrival, offer continental breakfast, or other important details.

Now use your books to estimate meal expenses (plus tips) under the Food section. I like to find budget hotels with complimentary breakfasts, which can reduce expenses a bit if the hotel comes at a good price. If the primary reason you’re going to Italy is to dine like royalty, however, by all means, add that in there. You can toast to me with your glass of Brunello.

If you like souvenirs, add a budget for that expense. Personally, my favorite souvenirs are photographs, which weigh no more than my digital camera and cost nothing. Add any other expenses in this section. For example, if you are renting a car, add in an estimate for gas.

State of the budget
You should have an estimated grand total for your trip. Is it in your budget? If you haven’t started saving for the trip, how many months until departure? Divide your trip cost by the number of months until you leave to find out how much you’ll need to save each month. If you can’t save that amount, reassess your trip plan or the departure date.

No reservations: Start booking your trip
You have a budget and an itinerary, and you’re ready to start making reservations. As you make reservations, enter whatever you’re paying now in the Pre-paid column, and the amount due on arrival (DOA) in the DOA column.

Fill in times associated with each activity where appropriate, especially for departures and appointments. You don’t need to schedule every minute of every day, only the activities with a time frame associated with them. For example, if a museum you want to visit closes at 1 p.m., that’s something to write on the itinerary. If you want to see a show that starts at 7 p.m., that’s another important detail to note.

Create your personalized travel guide
Gather the following items, in this order:

1. Budget and Itinerary Planner sheet
2. Torn-out, relevant pages from guide books (Tear up a book?! Yes. They are quickly outdated anyway, remember?)
3. A page with addresses, telephone numbers, and websites to each hotel, attraction, or transportation source, where applicable
4. Reservation receipts, confirmations, and e-mails
5. Photocopy of the passports of each person going on the trip
6. The 800 numbers for each credit card that will be used on the trip, in case you need to report one lost or stolen (Also, call your credit card companies to let them know when and where you are going, or your card might get frozen for unusual charges.)
7. One page with emergency numbers, such as the nearest U.S. consular office. U.S. embassies or consulates can provide assistance if you need it. Go to the U.S. Department of State to get contact information for the area(s) in which you will be traveling.

Take this stack of papers to a print shop and make a spiral-bound copy for each person traveling with you plus an extra copy to leave with a friend or family member.

It’s a bit of work upfront, but it saves you a lot of hassle on your vacation if you have an itinerary and important information at hand, and you won’t be shocked by a massive credit card bill when you come home. Plus, if you give a copy of your personalized travel guide to your mom, she might not nag you quite as much for going white-water rafting in Nepal.

J.D.’s note: Kris and I have recently become avid watchers of The Amazing Race. Between watching that show and reading April’s article, I’m dying to get out and see the world. To celebrate the completion of my book, we’ll soon be taking a trip to Belize, but I want to do even more!

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Related Articles at Get Rich Slowly:

• links for 2006-12-06
• Daily Links: Worry, Planning, and Sufficiency
• Money Interviews: Imagination Movers, part two
• WeJustGotBack: A Site for Travelers
• Budgeting for Vacation, and While I’m Away

This post is from GRS staff writer April Dykman.

I have a friend who just doesn’t see himself. He has declared bankruptcy twice and alcohol abuse landed him in jail for the past year. Despite losing almost everything, when he was released he was talking about how much money it would cost to get his iPhone back in service. To make the situation more frustrating, he largely blames others for his circumstances.

We all know someone that makes us shake our heads and wonder why he or she continues to repeat the same self-destructive behavior. But how often do we consider the likelihood that we, too, are not seeing ourselves clearly?

Self-study is a tricky process, but it’s the only way to create lasting, positive change, whether it’s a change in how you handle your finances, your relationships, your weight, or any other life area with which you struggle.

Revealing the positive
Self-study doesn’t require sitting in front of a mirror or retreating to a cave. In fact, usually it’s activities to which we’re naturally drawn that uncover our strengths and teach us about ourselves. Writing, sports, travel, music, dance, photography, woodworking–any activity can be an act of self-study if there’s an intention to learn about yourself and a commitment to stick with it. The sticktoitiveness part is key, since it’s usually when something becomes difficult that we learn the most about ourselves.

As a personal example, one of my favorite activities is kayaking. I took lessons in college, and during our last lesson, we were to circle a small island near the dam. The river was usually calm, but recent thunderstorms made the water choppy, and we had to fight a current to circle the island.

A few students couldn’t make it and were swept back, deciding to meet us on the other side. I pushed through and made it around the island. I felt a surge of pride, and our teacher was greatly impressed that students with only four lessons could paddle against the current. My sheer determination to accomplish a goal was something positive I learned about myself.

Facing the negative
The downside to self-study is that you start to learn things about yourself that might be unpleasant. Self-study can reveal weaknesses, shortcomings, obsessions, bad habits, and less-than-attractive behavior of which you either weren’t aware or have been ignoring for years.

When my boyfriend (now husband) and I went kayaking together for the first time, I was psyched to share my love of paddling with him. We rented a tandem kayak and set out into the water. I explained the basics, and we started to paddle toward a spring. Only he wasn’t in unison with me, so we were having to work too hard. And sometimes he wasn’t holding his paddle at a 45-degree angle. And where was that push-pull technique I showed him? After helpfully pointing out these things, thinking only of perfecting his paddling skills, he smiled and said, “I thought this was supposed to be fun.”

(Can you see why I married the guy? He’s the only one that can kindly point out that I was being a killjoy perfectionist without using those words AND make me laugh about it at the same time.)

Here I was ruining a lovely day on the lake, not enjoying the scenery or the company, because I was concerned with kayaking technique.

Acknowledge and accept
If you’ve read some of my other articles at GRS, you know I stress going easy on yourself. This is because my first inclination has always been to berate myself for every shortcoming and every failure, real or perceived. But it never got me far, so I started to ease up on myself. I emphasize cutting yourself some slack both for your benefit and to remind myself of the same thing! Rather than berating yourself for being an insensitive egomaniac (or a killjoy perfectionist), acknowledge and accept the behavior.

This does not mean that you continue to be a first class jerk because you are who you are, it means that you recognize that you do it. You accept that this is the way you act sometimes. By accepting what you discover about yourself, you can get closer to the source of the behavior. You can’t think constructively about what causes you to react a certain way and learn to handle or redirect the habit if you’re busy hating yourself.

“Self” doesn’t mean “solo”
Self-study is not easy. It can be difficult to separate our perceptions from the truth because we usually see things the way that we’ve been taught to see them from the time we were children, and sometimes the way we’ve been taught to see things is distorted.

In many ways self-study is a solo task, but if our perceptions are distorted, it can be impossible to see ourselves. For this reason, you need a mentor. Mentors can be teachers, close friends, family members, or anyone who you trust to see your weak spots. I wouldn’t have noticed what I was doing that day on the lake if my husband hadn’t called my attention to it.

Once you have a person in mind, find some quiet time and mention that you’ve noticed that you are a bit of a killjoy perfectionist (obviously substitute the weakness for your own, but feel free to use mine if applicable). Ask your person if he or she has noticed it. Talk about possible causes of the feelings or behaviors, and ways to redirect them. Tell your person that you want to work on improving yourself, and ask for help when he or she notices the negative actions.

Self-study is hard work, but it’s worth it.

Have you ever discovered something negative about yourself that you’ve intentionally worked to overcome? Was it hard to own up to it? How did you redirect the feelings or behavior?

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Related Articles at Get Rich Slowly:

• Building a Better Budget: Think Yearly, Not Monthly
• Super-Sizing Your Meal Costs More Than You Think
• links for 2007-04-27
• Marketing Affects How Children Perceive Food
• How to Drive a Great End-of-Summer New Car Deal

This post is from GRS staff writer April Dykman.

My mom has a sixth sense when it comes to bargain hunting. Where I’m thrilled to get 25 percent off and free shipping, she’s finding deals of 70 percent off and getting inside scoop from the salespeople, who probably have her on speed dial should a ginormous everything-must-go-or-we-torch-it clearance sale come along.

Okay, so I’m exaggerating, but not by much. The point, however, is that the key to finding bargains is timing—off-season, end-of-season, new models bringing down prices on the old models. There’s a pattern and a perfect time to buy just about anything.

When possible, plan your purchases by using the following list to score the best deals:

House and home

• Real estate—March through August are active months for buying and selling, so a buyer looking for a deal will have better luck negotiating on an offer in autumn and winter.
• Flooring—Carpet and flooring goes on sale near the end of the year due to slow sales, though discounts are possible throughout the year from independent retailers.
• Furniture—January and July, when stores need to make room for new inventory.
• Gas grill—Like air conditioners, the best time to buy is during winter months, when demand for outdoor grills is low.
• Cookware—April and May (think graduation and wedding prime time) and October and November (holidays approaching).
• Linens—January “white sales” and the end of each season (i.e. as spring approaches, winter-colored linens will go on sale). It’s common to see linens (in all colors, not just white!) on sale for up to 60 percent off retail.
• Mattress—New mattresses arrive in stores in May, when you’ll find a good deal on the previous year’s models.
• Vacuum cleaner—June, when new models hit the floors, and end of winter.
• Hardware—Big sales occur around Father’s Day and between Thanksgiving and Christmas.
• Home appliances—New models arrive in September and October, when you’ll find good deals on last year’s models. Holiday weekends—Fourth of July, Labor Day, Columbus Day, Presidents Day—also are good bets for deals. If you’re willing to buy an appliance with a ding or a scratch, you can save hundreds.
• Air conditioner—Winter months, when demand is low.

Flora

• Flowers—Tulips are less expensive in February, peonies in May. Flowers are at their best when in season.
• Shrubs, trees, etc.—Autumn is a good time to buy bulbs (store them according to directions on the packaging) and trees and shrubs (nurseries are trying to clear out inventory).

Recreation

• Outdoor (general)—Swings, beach and pool toys, swimming gear, and other outdoor items go on sale in August, when retailers are trying to make room for fall and winter items.
• Outdoor gear (bicycles, for example)—February and March, when new models replace last year’s models.
• Boat—Boat shows, held from January through March, generally offer the best prices.
• Gym membership—Membership sales soar in January as everyone resolves to lose weight, but lag in spring and summer. You’ll find lower fees and waived enrollment fees to lure you to their treadmills.
• Movie tickets—Matinees are an established way to spend less at the theater (as is smuggling in your own M&Ms, not that I’d condone such behavior or ever do so myself…). A.M. Cinema (AMC Theaters) sells discounted tickets before noon from Friday to Sunday and on holidays.
• Broadway tickets—Find bargains hours before the show, or try the well-known TKTS booth in Times Square.

Electronics

• Blu-ray player—Black Friday sales and after-Christmas sales offer some of the best deals.
• TV—Sales can be found throughout the year. Times to note include Black Friday, between Thanksgiving and Christmas, right after New Year’s Day, before the Super Bowl, and in May and June. New models hit stores in August and September, when you’ll find sales on new models and discounts on the previous year models.
• Cell phone—New customers get the best deals. For new phones, wait six months if you can. Search online for coupon codes, as well.
• Digital camera—The Consumer Electronics Show and Photo Marketing Association convention mean new models will arrive in stores. Shop in January and February for deals on last year’s models.
• Computer—Back-to-school season yields a few sales, but the best deals can be found when a technology is outdated and retailers want to get rid of the older models. Look for a few extras (free shipping, bundled accessories, etc.) around the holidays.

Auto

• New car—New models roll into the lot in fall, so shop in September for last year’s model. Shop on a weekday at the end of the month to get the undivided attention of a salesperson trying to make their monthly quota.
• Used car—Dealers increase their inventory in April to start the spring selling season. You’ll find a good selection and willing negotiators.
• Recreational vehicle—Dealers sometimes offer specials in winter, but generally buying an RV works like buying a car (see new cars).
• Gasoline—Fuel up on a weekday, early in the morning if gas prices are rising or in the evening if gas prices are going down (prices are usually changed between 10 a.m. and noon).
• Oil change—Look for early bird specials in your area.
• Tires and auto parts—During April (National Car Care Month) and October (Fall Car Care Month), you are likely to find buy-three-get-one-free deals on tires, free oil changes, and other checkups.
• Car wash—Early birds (before 8 or 9 a.m.) can often find deals at full-service car washes.

Travel

• Airline tickets—For domestic nonholiday travel, look for the lowest fares 21 days from your departure. Fares are updated at 10 a.m., 12:30 p.m., and 8 p.m. on weekdays, and airlines file one update on Saturday and Sunday. Lowest fares are filed on Tuesdays, Wednesdays, and occasionally on Saturdays. Wednesday is generally the cheapest day to fly and Sunday the most expensive. (Exception: the Wednesday before Thanksgiving—the busiest travel day of the year.) For holiday travel, start looking in September to get a good price. Fares can change quickly, and much depends on the carrier and the market.
• Travel (general)—The off-season or shoulder-season for your destination will offer the most savings on lodging, recreation, transportation, etc.

Food

• Groceries (supermarket)—On Sunday evenings, you’ll save money through store sales (typically run Wednesday through Thursday), and by shopping in the evening, you can save even more on items that must be sold by day’s end. If you clip coupons from the Sunday newspaper, you’ll enjoy additional savings.
• Coupons—While coupons are available throughout the year, the most coupons appear in the Sunday paper during November and December. The best deals on turkeys can be found two weeks before Thanksgiving to Christmas. In spring, you’ll find coupons on seasonal produce, ham, and frozen food (apparently March is National Frozen Food Month—who knew?). Summer coupons offer discounts on grilling items and ice cream. Autumn brings coupons on soup and other canned items.
• Groceries (farmers market)—Vendors often lower prices near closing to avoid having to pack up perishables and take them back to the farm.
• Champagne—With steep competition to be your New Year’s Eve bubbly, Champagne houses drop prices during the holidays.

Clothing and accessories

• Clothing (general)—Got your heart set on something in particular? Shop on a Thursday evening six to eight weeks after the item arrived in the store. By Thursday, the weekend sales have started and the selection will still be good. Season-end clearance sales also offer up savings.
• Baby clothes—Shop during your pregnancy for end-of-season clearance items. If it’s springtime and you are due in winter, look for winter closeout sales now for infant clothing.
• Jewelry—Avoid the holidays, when you are most likely to pay full price.

Weddings

• Wedding (general)—The off-season can mean big discounts. If you live in a cooler climate, you’ll find savings during the winter months. Hotter climates mean likely deals in summer months.
• Wedding dresses—After Thanksgiving and before Christmas. Boutiques are stocked with gowns for Christmas engagements, but it’s a slow sales period.

Other

• Toys—October and November offer good bargains as retailers gear up for the holiday season.
• Wrapping paper—January, of course!

I might not ever be as good as my mom at bargain hunting, but knowing when to shop might make me almost as good. If you’re one to make resolutions every new year, resolve to save money in 2010 by timing your purchases.

Sources: Bankrate, Yahoo! Finance, Consumer Reports

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Related Articles at Get Rich Slowly:

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This post is from GRS staff writer April Dykman.

Most of us, at one time or another, have seen a photo of a celebrity with an “it” bag, even if just in tabloids at the supermarket check-out. Most of the time they are over-sized totes, logo prominently displayed, on the arm of an actress or pop star. (Sometimes I wonder if the tinier celebrities could, in fact, fit inside their own handbag.)

And as ridiculous as it might seem, you can bet that if a pop star is carrying a bag, the masses are sure to want it, too.

The problem is the price sticker. Most people can’t afford a $2,000 bag. Besides, usually the Hollywood elite, who can afford these bags, receive them as gifts (think product placement).

Riches for rent
I’m a bit late to this party, but I recently learned that one can rent designer bags, sunglasses, and jewelry. Yep, companies like Avelle, Bling Yourself, and Wear Today, Gone Tomorrow will rent merchandise by the likes of Chanel, Hermès, Louis Vuitton, Prada, Chloé, Herve Leger, and more. For a monthly fee, you can carry the “it” bag.

One site, for example, will rent a vintage Birkin bag for $600 per week. The cost to buy a vintage Birkin is about $17,000 (I’ll give you a moment to stop choking…mmkay, better now?). A Coach bag that retails for $350 can be rented for about $30 a week, or $20 per week if you keep it for a month. And so on. You also have the option to buy anything you rent and can’t bear to return, and there’s insurance available if you’re worried about a cosmo spilling on your rented Gucci.

The arguments for renting
According to the companies, renting allows people to enjoy items they can’t afford to buy. Also, if someone decides they need a change, they can send the item back and choose something else.

Some members say that the monthly membership is actually less than what they spend on bags and jewelry in a given year, and that they wind up with less Stuff, since the items go back into circulation for others to borrow.

Fair enough.

My arguments against
Full disclosure? I think it’s nuts. Let’s take that Coach bag, for example. It costs $350 retail, or it can be rented for $20 per week. In about 4-1/2 months, the amount spent renting the bag could be saved to purchase it.

No, it can’t be returned on a whim. No, it can’t be exchanged at will. But it is more cost-effective to purchase one or two quality handbags and own them indefinitely. If you continued to rent bags at $20 per week, in one year the total amount of fees would come to $1,040.

More disclosure? I don’t necessarily have a problem with $350 handbags. If that sounds like an insane amount of money to pay and/or you couldn’t care less about fashion, that’s good news for your pocketbook. Do what works for you and spend your money on what matters to you. If, however, you do love a little fashion in your life and you believe in quality over quantity, forget bag rentals and abide by these guidelines:

• Choose a handbag in line with your discretionary income. There are nice things at most price levels.
• Wait for a sale. Salespeople are always happy to put you on their mailing list, which will alert you to store sales and special events.
• Check out online discount retailers like Bluefly.
• For in-store deals, try T.J. Maxx, if there’s one nearby. I am always surprised by the quality brands they carry—at a fraction of the cost in the boutique stores. Be sure to check out your item carefully for marks and scratches, since the merchandise isn’t handled with kid gloves.
• Pay for it in cash (or put it on a credit card that you pay in full at the end of each month).
• Purchase something classic. If it’s trendy, you probably won’t love it by next season.
• Baby the heck out of it. Get it professionally cleaned if you aren’t sure how to do it yourself.
• Store it carefully. Fill the bag with tissue to hold the shape, and place it in a plastic bag when not in use.

I wasn’t able to find much about company profits, but since these rental companies continue to grow and add new products for rent (clothing, jewelry, golf clubs), I assume they’re doing well. But it’s not for me.

If I’m being dismissive and overly critical, feel free to comment and tell me so! Have you ever rented a luxury item through a monthly membership fee? If not, would you try out a service like this?

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Related Articles at Get Rich Slowly:

• Ask SmartMoney: Rollover IRAs, Auto Leases, Kids’ Savings
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• Reader Story: Two Approaches to Car-Buying
• Luxury Car or Practical Car?

This post is from GRS staff writer April Dykman.

Right before our Thanksgiving trip, the AC went out on our vehicle. $600 later, we had a functioning AC. What a way to start a camping trip. 

The good news was that we had the funds set aside for that specific reason—auto repairs. We’ve never used one of our targeted accounts before, and now that we have, I can attest that they are a fantastic idea.

Obviously the repair would cost the same whether it came from a big account labeled “emergency fund” or a targeted one called “auto repair.” We’re out $600 either way, so why bother with separate, targeted accounts?

Two reasons:

1. By paying from a targeted account, the three-to-six months emergency fund (EF fund) isn’t tapped. We look at the EF as money for major or unforeseeable expenses only.
2. Paying for repairs is never a joy, but it’s easier when the money was there for that purpose.

It’s extremely easy to set up targeted EFs, and they’ll save you a great deal of frustration and headaches when faced with irregular expenses.

Step one: Calculate a reserve for targeted EFs
Once you are free of consumer debt and have a comfortable EF, start creating targeted EFs for expenses that are inevitable, but irregular. For example, we have a savings account for property taxes. That’s a regular, yearly expense we can count on having to pay. We also have a good idea of exactly how much we’ll pay.  A targeted EF is different because it’s meant for expenses that will hit at some point, but you don’t know exactly when or how much you’ll have to pay.

Here’s how to start creating your targeted EFs:

1. Gather your expense history for the last 12 months.
2. Calculate how much you spent on irregular expenses, such as car maintenance, medical bills, and home maintenance. You’re looking for expenses that you know you’ll have at some point, it’s just a matter of when.
3. Divide the sum for each category by 12.
4. Save those amounts each month to build up enough savings to handle the expense. Or, if you don’t have that much room in your budget, save up what you can in each category until you hit your reserve target.

Make sure you don’t confuse the purpose of your accounts. Saving for a car is not the same as saving for an auto repair for a vehicle you currently own. That said, try not to create too many targeted EFs. Make the categories broad, if needed. We only have two targeted EFs right now, and we’ll add a third for home maintenance next year.

Step two: Create sub-accounts
My favorite method for targeted savings accounts is creating multiple accounts at ING Direct, which I learned about here at GRS. Other banks probably offer similar setups. As you set up each account, label it for its specific purpose.

Bonus points: Automate it
Put your savings on autopilot to avoid the temptation to spend the money elsewhere. We started our auto repair savings account by setting up automatic deposits of $100 per month. In no time the account was big enough to cover our recent repair.

This is not a perfect method. Just because we only spent $600 on auto repairs this year doesn’t mean we won’t have a $1000 repair next year, but at least some money will be saved up to help cover the expense.

Peace of mind

One last benefit I want to mention is that when you’ve already predicted and accepted that you’ll have these irregular expenses, and you’ve set aside money for them, it is less aggravating when they occur. If we had to pull money from our three-to-six-month emergency fund, I would have started off our trip thinking about how quickly we could replace the funds, and where we could cut back to do it as soon as possible. Or worse, if we didn’t have any savings to cover the repairs, we’d be scrambling to figure out how to pay for it. Maybe we wouldn’t be able to go on the trip. Instead, I left feeling relieved that the money was there and a car repair didn’t blow our budget.

Peace of mind isn’t a tangible benefit, but to me, it was the best one of all.

Do you have separate accounts for irregular expenses, or do you have one big emergency fund?

J.D.’s note: As I write The Book, I’m amazed at how often I refer back to the idea of targeted emergency funds. I find them useful in Real Life, too. It’s so much less stressful to pull from your home-repair fund to fix a leaky roof than to drain your main emergency fund…

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Related Articles at Get Rich Slowly:

• Use a Personal Escrow Account to Budget for Non-Monthly Expenses
• Use a Freedom Account to Prepare for the Unexpected
• Budgeting with an Irregular Income
• Ask the Readers: How Much in an Emergency Fund?
• Ask the Readers: Emergency Fund or Debt Snowball?

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