This time of year brings out the traveler in us all. After being cooped up for the winter, it’s nice to get out with the family and explore. This year, many families are facing the struggle of trying to plan family vacations for summer on a budget. Even with the recent economic stimulus checks, most people have tight budgets due to rising food and gas prices. If you’re feeling the pinch, there are many things that you can do with your family this summer without having to take out a second mortgage.

1. Visit a National Park – If you’re lucky enough to live within driving distance of one of the nation’s 58 National Parks, it can be a great way to explore the great outdoors with your family. Pack a picnic lunch and head out early before it gets too hot. Most parks have a small entrance fee but it is normally charged per car and not per person.

2. Local Museums – How long has it been since you visited the local art or history museum? Although the kids might complain at first, this can be a wonderful and relatively inexpensive family outing. Check with your local museum for their list of special exhibits. You may be able to see something new each month.

3. Train Trips – If gas prices have got you down, consider taking the train to a nearby destination. Train travel is not only economical but is a great experience for the kids. Call Amtrak or look up their schedule of trains online. If you travel to an area where there is a lot of public transit, like San Francisco for example, you won’t even have to worry about renting a car. Taking a few day trips by train over the summer will allow you to vacation without spending too much.

4. Vacation at Home – For some families, traveling anywhere at all just isn’t in the budget. In this case, making vacation special at home can be the solution. Pick a new theme each weekend, like Water Play or Movie Weekend and plan at home activities around the house. Ban housework for an entire day and just enjoy spending time together. Do something out of the ordinary, like picnicing on the living room floor or sleeping outside under the stars to make staying at home fun. (more…)

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You’ve probably heard a lot of good advice over the years on how to pay off your debts, including the tip that you should pay more than the minimum payment due each month. However, this may not always be easy when you are on a tight budget. Even if you want to pay more than the minimum balance, you may not be able to afford it.

Fortunately, there are several ways that you can pay more on your credit cards by using “hidden” sources of money. The sources are hidden in plain sight, and once you re- purpose them to be used to pay off your debt, you’ll find yourself better off financially in the long run.

One of the best ways to reduce your debt is to use your tax return each year in debt repayment. If you typically get a large tax return payment each year, it means that you are giving the government a no-interest loan! Use that money wisely to reduce your personal debt, and consider increasing your exemptions on your paycheck if you can. The more exemptions you can claim, the more of your paycheck you get to keep. You’ll get a smaller tax return back in the coming year, but you’ll get more of your money each month that you can use to pay off your debts further.

If you have a savings account built up and a large amount of debt, you should sacrifice your savings in order to be debt free. Although you may take a lot of pride in building up your savings, it doesn’t make sense to hold on to it while you are paying 18% interest on your credit cards. Most savings accounts only pay 4%, so you’re better off using that money to pay off your debt.

You can pay off debts painlessly by squirreling away any bonuses, overtime or raises that you get at your job. Use the difference between your old paycheck and your new paycheck to make extra payments on your accounts. Since you didn’t have this money before, you won’t miss it at all. (more…)

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No matter how much you try to budget and watch your spending, there are always unexpected emergencies that you have to pay for. Whether it’s a broken tail pipe or a emergency trip to the veterinarian, these financial obligations that come out of left field can wreak havoc on your spending plan. That is, of course, unless you follow the 5 budgeting tips in this article.

Even though it seems counterintuitive, you can plan for emergencies. It’s all about saving in specific ways so that you’ll always have a money cushion to rely on. Your “in case of emergency” funds will be there to cover your expenses, no matter what form they come in.

1. The first step to saving for emergencies is to track your expenses. You can’t develop a saving plan if you don’t know how much you have to save each month. Begin by writing down all of your expenses. Save your receipts and invest in a personal financial program that will help you track what you spend. Once you take a look at how much of your income is available each month you’ll be able to develop a spending plan.
2. If your expenses are very close to, or exceed, your income, then you have some decisions to make. Are there any expenses that you can cut back on in order to make way for savings? Try evaluating your spending so you can cut back on the extras. For example, if you spend $5 at the coffee shop every morning you’ll have $150 by the end of the month for your savings account.
3. The next step is to determine how much you’ll save each month. While it’s definitely beneficial to save as much as possible each month, it’s not always possible. Try to set a goal of saving at least 10% of your income to your general savings account. After a few months, you’ll have a nice cushion to rely on. It’s up to you to decide how much you’ll need to save in the long run. Most financial experts advise that you save up three to six months worth of income.
4. Make sure that your monthly savings plan includes room for out of the ordinary, but somewhat regular expenses like oil changes and clothes shopping trips. If you can work these expenses into your savings plan in a regular way, they won’t impact your budget as much. For example, if you know that you’ll need to spend $300 every six months on a new work wardrobe, you’ll be able to save just $50 per month and be on track. Although clothes or regular car repairs aren’t technically emergencies, they are expenses that can get your budget off kilter.
5. Finally, you need to make sure that your emergency savings is reserved for emergencies only. Avoid the temptation to dip into your savings for non-necessary expenses, like to take advantage of a sale. Saving your money only to blow it all on something you don’t really need is bad money management.

When you follow these five simple steps, you won’t have to worry if you have an emergency. You’ll be able to develop a savings plan from a workable budget and build the cushion that you need when you need it.

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It’s no secret that gas prices are rising across the land. If your wallet is taking a hit at the gas pump, you may be wondering how you’re going to stick to a budget this summer. Gas prices have risen dramatically in the months leading up to summer and it doesn’t look like it will end anytime soon.? As of June 4, 2008 the average price for a gallon of gas nationally was $3.98. This marks an increase of $0.82 from a year ago or an astounding 21%! Estimates show that the prices are only going to rise, so anything you can do increase your car’s fuel efficiency will help you save.

The following tips will help you reduce your gas usage and make the most out of the gas that you do buy so that you can save money for the more important Summer pursuits.

1. Reduce your fuel grade. If your car has been feasting on mid-grade to premium grade gas, it’s time to go back to regular if you can. There are some cars that do need premium grade gas because of their high-compression engines, but most can get by fine without it. Check your user’s manual and do?some research on your make and model of car. You may be surprised to find out that you can?downgrade to a cheaper gas.

2. Drive conservatively – This has nothing to do with your political views and everything to do with the way that you use your car. If you’re used to making long trips several times per week, or even a series of short trips during the day, it’s time to go on a driving diet. Compile all of your errands into one driving trip. If you frequently visit a metropolitan area a few times per week, make just one trip. Try to look for opportunities to car pool or even walk. Reduce your reliance on your car and you’ll save money on gas.

3. Obey the speed limit – If you’re the resident speed demon among your circle of friends, you’re probably the one that spends the most on gas. After 60 mph, your fuel efficiency takes a nose dive. Although it can be impractical to drive that speed on some major freeways, try to keep it as close to 60 as possible. You won’t arrive as fast as you used to, but you’ll also be saving yourself at least 20 cents per gallon of gas. (more…)

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?When you start to study to topic of debt management, you’ll notice that some financial experts refer to “good” debt and “bad” debt, and others simple throw all debt into one category. Is there such a thing as good debt, and if so, how can you make sure that your debts are of the right kind? When you see debt as either good or bad, you’ll begin to realize that you can make smart choices when it comes to debt. Smart choices lead to a better financial position, which can help you free yourself from bad debt.

A simple definition of good debt is this: good debt is any form of debt that gives you money back. Don’t confuse this with credit cards with a cash back reward. Good debt is something completely different. This type of debt allows you to purchase assets which will put money in your account long after you make the purchase.

For example, purchasing a piece of equipment for your small business is a good debt investment. The rise of franchise opportunities nationally makes this probably the most common example when discussing what is involved in good debt investment. The equipment will help you do your business more quickly, which can lead to faster profits. Even though you are going into debt to purchase it, it will pay off in the long run.

Another example of good debt is investment in property. Buying a house is probably the most amount of debt that the average person will carry in their lifetime. But a mortgage loan can allow you to earn money in the future. If you purchase a house for $180,000 and it is worth $250,000 in five years, your debt has actually allowed you to make money. Good debt investments can also include stocks, shares, coffee franchises, restaurant franchises, art and even rare comic collectible items. (more…)

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