S/O class and wealth

[SemiSweet]

This is kind of an advice or suggestion post.

 

Dh and I love traveling, it is our main priority in life. We make ok money, squarely middle class, our debt to income ratio is very low and we are saving a bit for college and retirement, we even have a decent emergency fun. BUT I want to save more so we can travel more. Dh was raised middle class and is very frugal and a great saver. I am not, I was on the edge of povert and homelessness through my late childhood and teens. I like to shop and buy things but I want an epiphany or something to help me get into the mindset that saving and going without occasionally means more trips abroad. I know all the general money saving tips, I do some of them, but it really is more about my own mindset, if that makes sense.

 

Books? A podcast? Have you ever really read anything that just sunk in and stuck with you?

[Katy]

Dave Ramsey can be inspiring.  He's got a podcast of his radio show, and his catchphrase is "Live like nobody else so you can live like nobody else" (IE: live cheaply & without debt now so you can do whatever you want with your money later).

 

There's a whole (controversial) movement to live very cheaply and save as large a percentage of income as possible so you can retire in 5-7 years.  I think the Reddit thread is Financial Independence.

 

Then there's Mr Money Mustache.  He believes in radical savings rates and retiring early.  Like, sell your cars and bike to get groceries frugality.  He does differentiate somewhat between being cheap (reducing your quality of life dramatically) and being frugal (making wiser choices with money that improve your quality of life without reducing quality).  He also acknowledges the criticism that some people consider what his family does to be voluntary poverty, but this might be more some people unreasonably applying the principles in their family in ways that may not be fair.

 

There's a book called The Millionaire Next Door that might be enlightening (save modestly and live on less than you earn and you will build wealth slowly).

[cjzimmer1]

One of the things that helps me especially with bigger tickets items is to frame something in terms of the cost of my DH's time.  For instance.  I'd like a Vitamix.  The model I likes costs $400.  My DH would have to works X number of hours to earn that $400.  Is it worth it to me. (So far it has not)  You could apply that same princiipal to smaller things too.  Is that new shirt/dress/pants/shoes etc worth 1/2/3 hours or whatever it works out to be of your DH's time to pay for it.  This is assuming that your DH is the primary breadwinner.  For some reason breaking it down like really helps me to control impulse purchases.

 

Since you goal is more travel, perhaps framing it as, this would give me a nights hotel or a meal out when traveling etc might be more inspiring.

[Anne in CA]

It really helps me not to spend money on small things by putting them in perspective. How much money I make in an hour vs. the cost of my purchase. It is always amazing to me that a single Starbucks drink is 1/2 an hour of minimum wage and yet minimum wage people buy Starbucks constantly.

[SemiSweet]

Great ideas!  I'm sitting down looking over our budget right now, and trying to make some goals, I feel like making some more concrete goals will help too.  I'll definitely check out those books too.  I definitely don't want complete austerity, but if I could cut down my spending we could feasibly take 1-2 international vacations a year, and that's really what I want.  :)

[DawnM]

I did really well with YNAB. (you need a budget)  I plugged in all of our numbers, all of our spending, etc....

 

I did it very faithfully until YNAB decided to upgrade and my old version no longer worked.  I got the new version, but it was not as user friendly to me and I quit.

 

I have a MINT account but am not good at using it.  I should do better.

 

 

[Guest]

How are you with delayed gratification in other areas of life?

[mommyoffive]

Great ideas!  I'm sitting down looking over our budget right now, and trying to make some goals, I feel like making some more concrete goals will help too.  I'll definitely check out those books too.  I definitely don't want complete austerity, but if I could cut down my spending we could feasibly take 1-2 international vacations a year, and that's really what I want.   :)

 

How much would you have to cut down spending to take the 1-2 vacations?

 

What would you have to cut? 

 

Do you home school?  Do you work?  Could you bring in more money some other way? 

 

Could you make the vacations cheaper?  Camp?  Get deals on hotels?  VRBO.  Rent condos? 

 

Do you travel hack?  Fly on miles?  Stay at hotels for points?

 

You sound like me with your desire to travel more.  I have gotten bitten hard and I just want to travel as much as possible now.  

[JoJosMom]

:lurk5:

[SemiSweet]

I did really well with YNAB. (you need a budget)  I plugged in all of our numbers, all of our spending, etc....

 

I did it very faithfully until YNAB decided to upgrade and my old version no longer worked.  I got the new version, but it was not as user friendly to me and I quit.

 

I have a MINT account but am not good at using it.  I should do better.

I was using Good Budget, but just started YNAB, it seems to be working ok so far, but I'm still in the free trial part, not sure if I'll want to pay for it.  :)

 

How are you with delayed gratification in other areas of life?

I'm okay at it, I'm fairly cheap about a lot of things, so I'll hunt for used things or just wait, but I just end up spending that money on other "stuff".  I guess it's about priorities.  But I think in general, I can usually wait for things.  I read one tip about making a 30 day list for things you want to buy and waiting a full 30 days to do it.  I may try that.

 

How much would you have to cut down spending to take the 1-2 vacations?

 

What would you have to cut? 

 

Do you home school?  Do you work?  Could you bring in more money some other way? 

 

Could you make the vacations cheaper?  Camp?  Get deals on hotels?  VRBO.  Rent condos? 

 

Do you travel hack?  Fly on miles?  Stay at hotels for points?

 

You sound like me with your desire to travel more.  I have gotten bitten hard and I just want to travel as much as possible now.  

I would have to cut at least half of my fun money budget, which is currently set at $1400 but we tend to spend more.  

I homeschool, but I have a small bit of military disability and I attend college full time, which I use my GI Bill for, so that gives us some money also, when classes are in session.

Because we are military, we can fly space-a, so I'm looking into taking advantage of that more, because we live in an excellent location for that.

We use a credit card with travel rewards for ALL purchases, and pay it in full every month.  We don't have any other travel hacks.  We do camp some, but I don't know if I would on an international trip.

 

Yeah, traveling is such a rewarding experience, and I cannot get enough of it.  Dh just put in for some special duties that would take us abroad for 3-5 years, my fingers are crossed for that.  I love planning our vacations and thinking about them, and budgeting for them, just need to learn to stick to it!  

[mommyoffive]

Fingers crossed for your dh.

 

Ok so you have the flights figured out.  I am not military, so I don't really know what that means.  But I bet it is better than buying regular priced tickets.

 

Can you use the travel credit card for hotels?  Maybe a trip wouldn't be so expensive with those 2 things taken away.

 

What is the fun money used for?  Classes, eating out, movies? 

 

Would it be hard to cut it in half?  Would the family be on board if the money cut in half was linked to them?  Would having a goal of a trip to France in 4 months be helpful to keep everyone on board? 

 

Yes travel is so rewarding.  I love thinking and planning our vacations too.  It is my hobby.

[elegantlion]

Not buying stuff means you can travel more. :hurray: That little high you get from buying something new pales in comparison to being somewhere new. 

 

I've moved toward quality buying (also as a college student). I try to think long term about purchases. 

 

Stuff loses value, travel and education are two things no one takes away from you. At the end of your life do you want to be surrounded by stuff or memories (kind of talking to myself too!)

 

My tips: 

 

- pay cash for everything under a certain amount

- track all expenses for 30 days

- identify a trouble area - then put yourself on a buying hiatus for a period of time

- don't shop when you're bored

- make a list of needs and wants and prioritize them

- set limits on what you bring into the house. For instance if you buy a pair of shoes, you must get rid of one. 

[regentrude]

Lots of good tips but I disagree with this one:

 

- pay cash for everything under a certain amount

 

The OP uses a travel rewards credit card that gives miles for every purchase and pays it off monthly. The best strategy is to pay every possible penny, no matter how small the amount, with that card. We do the same. 

[regentrude]

Lots of good suggestion already.

I find the easiest way to avoid unnecessary purchases is not to shop. Period. And the easiest way not to shop is to be too busy for recreational shopping.

 

For each (non-consumable) item I plan on bringing into the house, I pause and think:

do I already have an item that serves this purpose?

If yes, is it necessary to have another such item?

Do I know where I will store this item? Is there room to give it a designated home?

How often will I use this item? Is this worth it to give it this space? (This has kept me from purchasing many seasonal items)

 

Usually, by the end of the list, I decide I don't really need whatever it was.

Edited June 24, 2016 by regentrude

[mommyoffive]

Lots of good suggestion already.

I find the easiest way to avoid unnecessary purchases is not to shop. Period. And the easiest way not to shop is to be too busy for recreational shopping.

 

For each (non-consumable) item I plan on bringing into the house, I pause and think:

do I already have an item that serves this purpose?

If yes, is it necessary to have another such item?

Do I know where I will store this item? Is there room to give it a designated home?

How often will I use this item? Is this worth it to give it this space? (This has kept me from purchasing many seasonal items)

 

Usually, by the end of the list, I decide I don't really need whatever it was.

 

Great idea. When you go to the store you spend.  I never go.  I live in a small town with just a Walmart.  So I don't do all that fun shopping like stopping by a target and coming out with 200 bucks worth of stuff.

 

How about selling some stuff you already have?  

[slackermom]

Instead of saying you want to "save more" so you can "travel more," try setting specific goals. Where do you want to go? Investigate how much it will cost to travel there. Set a budget for the trip, even set up a vacation account. If it will cost $1200, then you know if you set aside $100 per month, you can do the trip a year from now. Track your progress.

 

Also, look into how you can get there or stay there for less. Many years ago, DH and I went to Hawaii and alternated staying at campgrounds and hotels. Two nights at a beachside campground, followed by a night at a nice hotel, repeated at each island we visited, saved lots of money on a two week trip.

[slackermom]

Another tip from my childhood:

 

Mom had a vacation money jar. It wasn't always out, but when she was determined to go on a specific trip, it went out on the counter, with the destination labeled on it. She and my father would throw in their coin change from the day each night, plus garage sale money, plus any little extra bit they could spare after paying the bills, etc.

 

One of those coin vacations took us on a memorable camping trip through Denmark (LEGOLAND, Tivoli Gardens, the Mermaid statue, etc.) , when my father was stationed at a base in Europe.

[Arcadia]

Have a vacation budget separate from your fun money. My mom loves traveling so we had funds set aside every year for at least one family vacation. If my parents had more work bonus than expected that year, we get a nicer resort or more expensive location or longer trip.

[Carol in Cal.]

For me the main resource that changed my mindset was "Your Money Or Your Life".  From that I switched in my thinking from feeling deprived for not buying something to feeling empowered for saving those funds for a goal that was more important to me.

[elegantlion]

Lots of good tips but I disagree with this one:

 

 

The OP uses a travel rewards credit card that gives miles for every purchase and pays it off monthly. The best strategy is to pay every possible penny, no matter how small the amount, with that card. We do the same. 

 

The cash tip is good for people that either don't utilize cards for some reason or have discipline issues with paying off (doesn't sound like the OP does). 

 

It's eye opening to see how fast cash can go on minor purchases, more of a beginner budgeting idea though. 

[SemiSweet]

Fingers crossed for your dh.

 

Ok so you have the flights figured out.  I am not military, so I don't really know what that means.  But I bet it is better than buying regular priced tickets.

 

Can you use the travel credit card for hotels?  Maybe a trip wouldn't be so expensive with those 2 things taken away.

 

What is the fun money used for?  Classes, eating out, movies? 

 

Would it be hard to cut it in half?  Would the family be on board if the money cut in half was linked to them?  Would having a goal of a trip to France in 4 months be helpful to keep everyone on board? 

 

Yes travel is so rewarding.  I love thinking and planning our vacations too.  It is my hobby.

 

Space A means, space available, so it's finicky but free.  We have done it before, and it's great, but only if you live in the right place for it.

 

Yes, we can definitely use our card for travel rewards, I tend to use them a lot but I really should save them for the bigger purchases.  

 

As far as our fun money, it's mostly just stuff, no one would miss it or notice really, other than possibly eating out a little less.  Sometimes it's household maintenance which isn't really "fun" but maintaining our pool and whatnot.

[SemiSweet]

Not buying stuff means you can travel more. :hurray: That little high you get from buying something new pales in comparison to being somewhere new. 

 

I've moved toward quality buying (also as a college student). I try to think long term about purchases. 

 

Stuff loses value, travel and education are two things no one takes away from you. At the end of your life do you want to be surrounded by stuff or memories (kind of talking to myself too!)

 

My tips: 

 

- pay cash for everything under a certain amount

- track all expenses for 30 days

- identify a trouble area - then put yourself on a buying hiatus for a period of time

- don't shop when you're bored

- make a list of needs and wants and prioritize them

- set limits on what you bring into the house. For instance if you buy a pair of shoes, you must get rid of one. 

 

 

Lots of good suggestion already.

I find the easiest way to avoid unnecessary purchases is not to shop. Period. And the easiest way not to shop is to be too busy for recreational shopping.

 

For each (non-consumable) item I plan on bringing into the house, I pause and think:

do I already have an item that serves this purpose?

If yes, is it necessary to have another such item?

Do I know where I will store this item? Is there room to give it a designated home?

How often will I use this item? Is this worth it to give it this space? (This has kept me from purchasing many seasonal items)

 

Usually, by the end of the list, I decide I don't really need whatever it was.

 Good tips!  I particularly love clothes shopping, so that's definitely one area where I can implement a lot of those.  I'm really motivated to do better right now, so I want to put a plan into place.  :)

[Tita Gidge]

I'm a visual person so the idea of a vacation jar is along the lines of what I'd need to do.

 

I think I'd actually use Monopoly money to illustrate a point to myself. I'd put a 24 hour moratorium on spending more than $20 and put $20 monopoly money into the Vacation Jar. If in 24 hours I wanted it back to purchase (x) instead, I'd have to physically remove it from the Vacation Jar and put it into the Other Crap Jar. I think after a few weeks I'd have a visual of how much "other crap" I spent my money on that could have gone towards my vacation, and that would motivate me to be more discerning about where I really wanted to spend my money. (And in the end, it may be that I decide my other crap means more than a vacation - who knows!)

 

But these are the games I must play with myself.  :lol:

 

Remember that Marie Kondo book everyone was reading awhile back, the "touch it and thank it" decluttering book? It re-framed my mindset on THINGS in general, which has indirectly influenced my spending habits. The money I'm no longer spending on THINGS I DON'T NEED (which, if I'm being honest, is really: THINGS I DON'T WANT TO THANK AND TOSS IN SIX MONTHS) is sitting pretty for a rainy day, such as a vacation.

[Frances]

Lots of good tips but I disagree with this one:

 

 

The OP uses a travel rewards credit card that gives miles for every purchase and pays it off monthly. The best strategy is to pay every possible penny, no matter how small the amount, with that card. We do the same.

We do too. We're going to Europe for three weeks this summer because our son will be in Germany doing research, and our tickets were free because of travel points. And we'll still have enough left for free tickets for each of us to make our annual fall visits to see our moms.

[MSNative]

Are you in a place where you can do the military equivalent of vrbo? When we were stationed oversees we did that a lot. We got some great places to swap- we just had to be a bit flexible on times and locations e.g. suburbs of the capital rather than a hotel in central city. But we normally got the place for nominal charge so the extra travel costs were negligible

[meena]

Similar to what others have mentioned--

Figure out how much your desired vacation will cost. Divide that cost by how many months you have to save. Then religiously make payments to yourself, like it's a bill, into a special savings account. Pay into that account the day you get paid so there's not a chance you'll spend it on something else.

 

Also, create visual and mental reminders of your trip that will keep you motivated for long-term savings. For me, that is checking out Rick Steves books from the library every month, watching travel shows and documentaries about where I want to travel, studying its history/language/art/culture, making food inspired by that place. Make a notebook in OneNote or a board on Pinterest with links to different sites, restaurants, hotels, etc. If you are tempted to shop online, go to that notebook or Pinterest board first for a reality check. If you are more of a brick and mortar shopper, carry a notecard with some reminders of your vacation spot and keep it where you have to see it every time you pull out your credit card.

[Anacharsis]

This is kind of an advice or suggestion post.

 

Dh and I love traveling, it is our main priority in life. We make ok money, squarely middle class, our debt to income ratio is very low and we are saving a bit for college and retirement, we even have a decent emergency fun. BUT I want to save more so we can travel more. Dh was raised middle class and is very frugal and a great saver. I am not, I was on the edge of povert and homelessness through my late childhood and teens. I like to shop and buy things but I want an epiphany or something to help me get into the mindset that saving and going without occasionally means more trips abroad. I know all the general money saving tips, I do some of them, but it really is more about my own mindset, if that makes sense.

 

Books? A podcast? Have you ever really read anything that just sunk in and stuck with you?

 

A book that really helped me was Booker T. Washington's Up From Slavery, about his life and thoughts on the future. Your mileage may vary -- I think it's in the public domain now, though, so the cost of the read would only be your time. (A copy is up on the Internet Archive.)

[Truscifi]

No book recs, but what works best for me is to set up a separate account at a separate bank for the thing I'm saving for and move money into it every week on payday. I move the amount I know I an afford based on my budget. That way it isn't on hand and I'd have to go to the account and move the money back to my main account to be able to spend it, which takes a day or two to transfer...I've never wanted to splurge badly enough to go through that many steps, lol. 

[mommyoffive]

Space A means, space available, so it's finicky but free.  We have done it before, and it's great, but only if you live in the right place for it.

 

Yes, we can definitely use our card for travel rewards, I tend to use them a lot but I really should save them for the bigger purchases.  

 

As far as our fun money, it's mostly just stuff, no one would miss it or notice really, other than possibly eating out a little less.  Sometimes it's household maintenance which isn't really "fun" but maintaining our pool and whatnot.

 

 

Wow free flights!  that would be awesome.

 

I meant if you have the flights covered and then could use your reward points for paying for the hotels.  Then you would only have maybe a rental car if you needed one in the destination.

 

OHHH if nobody would miss the fun money, cut cut cut.