Tips to Save Money and Time On a Road Trip
Last week, I took a small vacation with some friends to Cedar Point and Marble Lake in Michigan. The trip required driving almost 700 miles and as you can guess, road trips can get pretty expensive if you don’t plan ahead. Here are some ways to make a trip as cheap as possible while still having a good time.
Split gas - This is a no brainer, but make sure everyone in the group is cool with splitting the cost of gasoline. You don’t want to volunteer to drive and have your friends assume you’re also okay with paying for all of the fuel. Many cars will even keep track of how many gallons you use, so calculating everyone’s share is easy.
Avoid fast food - Fast food is convenient and usually tastes good, but isn’t all that cheap. Instead, pack a cooler with plenty of beverages and snacks. Lunch meat and bread will allow you to completely avoid fast food.
Limit stops – Avoid stopping unless you really need to. Every break at a rest area will tempt you to spend money – usually on junk food from vending machines. Gas usage will also increase if you’re constantly getting on and off the highway.
Consider getting a GPS unit- GPS makes long distance driving so much easier. These days, any basic unit will have plenty of features for most people. No more trying to read a map while driving or hoping you don’t miss an exit. At the end of the trip, just tap “Go Home” and you know you’re on the (correct) way.
Use your connections - To really drive down the cost of traveling, see if you have a family member or friend who will let you stay with them for free. This won’t work in all situations, but when it does, you’ll save a ton.
Plan, but not too much – My friends and I planned our trip pretty well, but not everything was perfect. We knew that pop would be way more expensive in Michigan, so we bought some in Ohio. But we underestimated how much gas we would use for the trip. Life goes on.
On Vacation!
Hey everybody, I’ll be on a mini-vacation from today until Friday!
Have a great week!
The Great Debate: Should College Students Have a Credit Card?
Everyone seems to have an opinion on whether or not college students should have a credit card. I’m firmly in the “Yes, they should” camp.
Why?
1. Learn some self-control – I’d love to be able to max out 5 credit cards and never have to see the bill. But that’s not reality. Get a credit card and force yourself to only buy what you would have with cash. It really shouldn’t be that hard. If you can’t, then yeah, credit isn’t something you should use.
2. Build a credit score – Credit scores, love ‘em or hate ‘em, are here to stay. Most of us at some point will end up applying for mortgage or car loan. A non-existent or poor credit score is only going to hurt you.
3. Get some rewards – There a few rewards cards out there marketed towards college students. Get a few bucks back on books, gasoline, and entertainment every month.
4. Better security – Lose a debit card and your entire checking account can be drained. A thief doesn’t even need your PIN because debit cards can be processed as “credit”. Have a credit card stolen and you haven’t lost any of your own money.
5. Convenient – It makes sense to carry around more than one form of payment. A debit card, credit card, and some cash ensures you’ll always have an accepted payment method.
I understand that some people make mistakes and get themselves into a ton of debt. That’s obviously bad. But don’t tell me I shouldn’t have a credit card just because other people don’t pay off their balance every month. And of course, no typical personal finance expert would ever say the real truth – graduating college with a few thousand in credit card debt isn’t the end of the world. Not a great situation to be in, but not devastating either.
Where Do Your Ethical Boundaries Lie?
stealing on Flickr! by lovelypetal
One of my favorite things about personal finance is that it’s not all about numbers. When people and emotions are involved, there’s not usually a black and white answer. Ethics are also Everybody has their own rules and inner thought police that tell them what’s OK and what’s not. Below, I’ve listed some possible ethical gray lines along with my own thoughts.
1. Sneaking food into movie theaters – Yeah, I know the sign says not to. But I do it anyway. I’m sorry, but there’s no way I’m paying $10 for a small popcorn and Coke.
2. Being given free stuff – You have a friend who works at a local resturant. When you come in, she gives you free drinks and dessert. None of this is authorized by a manager. Is she stealing or are you? Does it matter? Should you make her charge you?
3. Ordering water, but getting pop – This one drives me crazy! I have a friend who always says “just water” when we’re at a fast food place. Then he proceeds to the pop dispenser and gets Mountain Dew or lemonade. To me, this is 100% stealing. He doesn’t get it.
4. Using company resources (ink, fax) for personal business – Some companies don’t have a problem with this while others specifically forbid it. I’m somewhere in the middle. A few printed pages here and there or sending a fax every now and then? No problem. Photocopying hundreds of posters of your lost dog? Abusing company property.
What are your thoughts? When have you crossed an ethical boundary?
Net Worth Update: July 2010
Another month has past and that means another net worth update is due. This data is for the month of July.
Assets
Checking: $766, up from $701 last month. Although my Census 2010 duties are now over and I’ll only be receiving 2 more paychecks before school starts, I’m going to attempt to keep $500 in my checking at all times. I don’t know if this is realistic, but I’m at least going to try.
Savings: $3,977, up from $3,471 last month. I made some priorities and I’ve been saving $150 every week, split evenly between a new car, upcoming college expenses, and travel (study abroad mainly).
Liabilities:
ZERO
Overall net worth: $4,743
Hell yeah! Up another $600 compared to last month. Pretty awesome considering I spent a couple of Benjamins on a new iPhone. Even better – I sold my old iPhone 3G for about $130! Unfortunately, my net worth is probably going to be headed down south during August. Gonnna be busy dropping stacks of cash on stuff for school!
Plans for My First Credit Card
My Discover Student credit card came in the mail last Thursday.
I know anyone who’s had to deal with credit card debt, and Dave Ramsey of course probably has a few issues with that sentence. But don’t worry. I have no plans to rack up any kind of balance that I can’t pay off at the end of the month. I’ll even shred it if I find myself spending more than I can afford.
For now, I’m only using the card for things I was planning to buy anyway: Cedar Point tickets, gas, normal eating out, and some stuff for college. The best part, besides being able to hang onto my money for an extra 30 days, is that I’ll be earning 5% cashback. Not a fortune, but who would turn down free money? I also have no interest on all purchases for 6 months, but I don’t plan on taking advantage of that benefit. I don’t want to fall into the “Oh, I don’t have to pay for this for 6 months!” trap.
Once I get used to making a lump-sum payment every month, I’ll consider adding more impulse type purchases to my credit card. For now though, I’ll keep using cash or my debit card.
What was your first credit card? Did you use it responsibly or did you get into trouble?
What’s In Your Wallet?
Most people have heard the term “costanza wallet”, referring to an episode of Seingfield where George Constanza’s massively overstuffed wallet explodes in the middle of a New York street. Youtube won’t let me embed a video of it here because of bullsh*t copyright stuff, but you should check it out sometime by clicking here (after you read the rest of this post, of course).
As you can see, having an overstuffed wallet isn’t a good idea. The more information you keep in your wallet and on your person, the more that can be pick-pocketed or just plain lost. I realized the other day that my own wallet has too much stuff:
- Driver’s license
- Community college ID
- AMEX gift card with a $6.00 balance
- Reward/Loyalty card for my typical gas station
- Debit card for my local bank account
- Debit card for my ING Direct checking account
- Medical insurance card
- Library card
- High school ID
- University ID
- Blood donor card
- Eight dollars
From that, I’ve been able to reduce a lot of bulk. I no longer need to carry around my community college ID or high school ID. My local checking account is only used to make cash deposits, so that debit card is gone. My loyalty card and library card both have the additional mini-card that goes on your keys, so I can start using that instead. And my college I.D. doesn’t need to be in my wallet until September.
If I really wanted to, I could take out both my blood donor card and insurance card. Neither are used on anymore than a every-2-month basis. But they’re thinner than most cards and it’ll simplify things the event of an emergency.
Now my wallet is a bit thinner and I won’t be at risk for developing a slant when I sit!
This morning, why not go your through your own wallet (and purse for you ladies) and clean things up a bit!
Sorry Y’All, I’m Sick
My presence around here has been lacking for the past few days. I guess that’s why they say strep throat is a blogger’s worst enemy. They do say that, don’t they? Or maybe that was carpal tunnel…
Either way, I’ll do my best to have a post up here on Friday!
Now I’m Good Enough For You, Discover Card?
I mentioned a few months back, when I turned 18, that no bank would approve me a credit card. I applied first for a Visa card from CitiBank, then a Speed Way card from Chase, and finally I attempted to obtain credit from Discover Card. All of them rejected me for similar reasons: low income, no credit report, and really low income.
Imagine my surprise on Wednesday when I received a credit card application from Discover in the mail. They were actually soliciting me this time. So I went online and applied (again) using my “special” “invitation code”. I click submit and expect to read a message saying “Sorry, you’re not credit worthy.” Blah blah blah.
Instead, they tell me that I need to call to confirm some information. I call, but I don’t think it’s going to result in anything.
Me: Yeah, I applied for a student card that you mailed me and the computer said I needed to call or something?
Discover Card Lady: Oh no problem. Let me just look up your information. May I have your name and social security number?
Me: No problem. *Gives them to her.* (You didn’t think I was going to put this in the post did you?)
Discover Card Lady: OK, I’ve pulled up your application. We just need you to fax us something like a utility bill or bank statement to verify your address. Also, a class schedule from your college to verify that you’re a student.
Me: So…am I already approved and you just need this to complete the process? Or… (and where will I find a fax machine?)
Discover Card Lady: Yes, as soon as we get those documents, you’ll receive your card in 7-10 business days.
Me: Awesome. Thanks!
I thought Discover was just tempting me. Showing off cool card designs and attractive cash back rewards. Oh and no payments on new purchases for 6 months. Just like any ol’ tease would do. But nope, it seems like she actually wants to seal the deal with me. OK, I think I’ve taken that metaphor as far as it can go.
Now that some corporation has decided I’m credit worthy, I’m going to buy so much stuff and only make the minimum payments for as long as possible.
Just kidding.
But seriously, where can I find a fax machine? It’s 2010. Does a dial tone even exist anymore?
Do You Budget?
I’ve never made a budget. I know that making a budget is something everyone says you need to do. But I’ve never bothered.
It’s not that I think budgets are bad or aren’t necessary. I’d argue that if you have debt or a decent amount of bills every month, you should budget. But I have neither of those things. Of course, not having a budget doesn’t mean you can get away with not figuring out a general spending and saving plan.
I’ve saved almost half of every paycheck I received this summer. I make sure I have enough each month for gas and my cellphone bill. Plus I spend about $50-$100 on eating out, movies, and other entertainment. Other than that, I just put random amounts into my various savings accounts. Isn’t that enough?
I think the biggest reason why I don’t budget is because they seem too serious. All black and white with no wiggle room. My general spending/saving plan fits me better. If I had student loans, a car payment, and a mortgage I’d probably budget more seriously. But until then, I like going with flow.
How about you? Do you have a serious budget? A moderate budget? Or no idea of what you spend each month?
