Family Vacation - 12 Tips for a Family Vacation on a Budget

Vacations are very much essential for family bonding. They create an ultimate bond between your family members and allow you all to have cherishable experiences. Experiencing different cultures, their native food, scenic locations, etc. is worth the money you spend on a family vacation. However, you need to plan your vacations according to your budget. Here we are, to fill you in with the 12 best tips for a family vacation. Let’s teach you how to travel cheap.

Here are a few tips for a hassle-free and affordable family vacation.

Choose the Destination Wisely

Choosing a destination might be quite confusing. Follow these steps to clear out the confusion and select the destination wisely.

• Fix the budget: Figure out how much money you can spend on the vacation. Else, you would end up getting into debts, which is not a good idea. So, if you are planning a trip on a budget, it is important to calculate your budget in your holiday fund by adding the funds with the amount you save till you leave for the vacation.
• Make a list of the destinations: There can be a lot of destinations suggested by your spouse, children or friends. List all the vacation spots. Think about the type of vacation that you’d want - a laid back beach or a cultural exploration or a vibrant city, and then it becomes easy for you to rule out the places that do not fall under your preference criteria, thus making it easy to plan a trip on a budget.
• Look into the safety risks: Safety must be a priority as you travel with your family. Look out for the government travel warnings and alerts in the area you want to visit. If the area is free from risks such as an accident, burglar or calamity prone area, then you can finalize the destination.

Book Your Flight Tickets in Advance

If you need an affordable family vacation, plan it well in advance; else you might end up spending more on flight tickets. The price of the flights increases with time due to dynamic pricing. Booking early always proved to be the best way to get the cheapest flight tickets. Here's a small tip - use an incognito window while browsing for the tickets. As the flight charges increase based on the cookies in your browser, the price of the particular route that you’re repeatedly searching will tend to increase. You can see the lowest prices in incognito mode. So, if you are concerned about planning a trip on a budget, this is one of the best ways.

Fly Mid-Week

If your travel dates are flexible, then travel in the middle of the workweek. For a visual illustration, go through any major airlines fare calendar. You can see that there is a fall on Tuesday and Wednesday and a spike on Thursday and Friday.

Weigh Your Luggage in Advance

Check with the limit of hand baggage and check-in luggage limit of the airlines. Weigh your luggage well in advance to check the limit. If it exceeds, you are imposed of certain charges. Stay alert and avoid those charges.

Reserve the Hotel in Advance

There are a lot of applications or websites where you can find great deals on hotels. Go through a few neutral sites and compare the price offered by different websites; select the ideal one. Also, you can set price alerts in the app such that you get a notification if the price falls. If you book for the first time, you may also get coupons. You can use those coupons and avail extra discounts to enjoy an affordable family vacation.

Go for a Complete Package

These days, we find a lot of travel agencies that provide packages for vacations. Inquire about some of the trusted agencies regarding packages and select an affordable family vacation package. These packages help you reduce your stress level by booking the hotels, arranging cabs and guiding you during your sight-seeing. These packages can be cost-effective, and you will have an idea on the expenditure beforehand.
Make Refundable Bookings If You Are Uncertain

If you are uncertain about your travel, we suggest that you make bookings that are refundable. However, these refundable bookings are quite costly. The bottom line is that if you’re unsure whether you’ll be able to travel during your original window, go for refundable bookings.

Don't Shop or Eat in the Tourist Area

It is better to shop or eat in the local areas rather than spending a lot of money in the tourist area. The price of mementos and souvenirs in the tourist areas is considerably high when compared to that in the local areas.

Travel Off-Season

The time you choose to travel could also have a tremendous impact on your budget, since prices fluctuate depending on the peak or off season. If you are really planning a trip on a budget, it is wise to head somewhere in the offseason. You can find costs far more economical than at peak times.

Make Overnight City Transits

You have limited vacation time. You lose a lot of time if you travel during the day. Apart from losing time, it is very economical to travel at night, as you can save on accommodation costs. This way, you can ensure an affordable family vacation.

Live on Local Food

Local food is the best option during vacations. You can relish the local flavors and save money by eating at street food stalls and local dhabas. Not only do you get to enjoy the authentic local cuisine, but you would inevitably find cheaper munchies if you are up for local food. Do consider the hygiene factor though.

Keep a Tab on Cell Phone Costs

A vacation is when you devote your time to enjoy the destination with your family. Refrain from talking endlessly on the phone. Remember that you are on roaming - call charges might be quite high. Moreover, all your important work can and should wait until you finish your vacation.

Budgeting for Freelancers - How to budget yourself

Grass is always greener on the other side. While you are in a corporate job, the life of a freelancer may make you green with jealousy. After all, there is the talk of freelancers being masters of their own time, work, clients and money. They can work in their pajamas, and can even get to choose which clients they can work with. Sounds like a dream, right?

The reality is very different. Ask and freelancer about their financial situation and most of them will nod sadly to tell you that all is not well. There are frequently months where there is no income, and there are months where there is just an exhausting amount of work to do. This is the feast and famine cycle which many freelancers face.

And here is the problem with this feast and famine cycle. Let’s say that a freelancer is new to the business. He starts pitching and after a few weeks or months he gets a couple of clients. These are one-off gigs and are over soon. That means he needs to look for new clients again. In the beginning, he still has some capital to get him through the lean months, but when this feast and famine cycle keeps repeating, not only does he depletes his savings, but also his will to save.

When he does not have work, he keeps dreaming, thinking and planning to get gigs. And when work comes on his way and earns his pay, he spends it almost completely. This is because after periods of no work, he needs to give himself psychological satisfaction by spending. Due to this, freelancers find it harder to save up.

Everyone needs to budget. Same is with freelancers. However, for them budgeting is doubly hard due to irregular paychecks. To help you budget as a freelancer, here are some tips.

• Track the cash flow: When you are in a corporate job, you know exactly how much you’ll be getting and when you’ll be getting it. In freelancing, how much you make varies from one month to another and for some, payments are delayed frequently. For them, it is more of a guessing game. However, you can turn around the tables by tracking the money coming in from each of your transactions. Track things like the assignment itself, the date your client is invoiced, and when the invoice was paid. When you do this, you won’t lose money. Also, use a planner for taking care of your business and personal expenses.
• Set your financial priorities: For best results, use the 50/30/20 budget to allocate your income, even if it is irregular. According to this, you give 50% of your income on needs, 30% on your wants, and 20% on your investments and savings.
• Keep it simple: Don’t just start off big only to abandon your plan. Start small. Take baby steps when adopting any plan.

Review Your Budget - 5 Times You Should Definitely Review Your Budget

If you want to have a sound financial security, it is important to build a budget. However, doing that is only the beginning.

The thing is that your financial situation can change from one year to the next. And sometimes, it does not take even that long. Situations change between weeks and even days! For instance, you suddenly discover that you are going to be a parent. But did you save enough for it? Have you invested for this eventuality, or is it like a bolt from the blue for you? Ideally, no matter what the situation is, you want to have some elbow room so that you can change your budget according to the situation.

Here are a few times when you may want to revisit your budget.

Monthly: You want to sit down with all your payable bills at least once a month. Use this time to study your budget properly, even if it is with a quick glance. This might not be the right time to make big adjustments, it is time enough to find mistakes in calculations, unexpected expenses, and such. Thus, you can easily make small changes.

Oversee the budget when your income changes: You base your budget on the money you make per month. What happens when that changes? After all, you can get a promotion, or you may change jobs and get one with a better salary. Anything can happen. And when it does, it is a good time to check on your budget. You should do it even if you get a part time job, cut back on hours and lose your job. Review your budget whenever there is a change in your home’s net income.

When you take a new loan or debt: New loans and debts change a lot. For instance, if your previous monthly expenses were of a certain amount, and now you have taken a car loan, you can’t expect to keep that same amount of expenses you enjoyed previously. No, you now need to save up as much as you can. Repaying your debt is your priority now. So oversee the budget, check where you are losing money and how, and correct mistakes if any. At the same time, be sure to check your credit score and credit report.

When you achieve some financial goal: What are financial goals? These include paying off a debt or loan, repaying credit card debt, and the like. For instance, perhaps you have saved a few month’s worth of expenses for your emergency fund, and if so, you can fuel that into your retirement savings. See why it is important to review your budget?

When there is a major life event: There are always major life events. These include marriage, having a baby, your child’s education, a foreign trip, and so on. These bring big changes into your life, including big financial changes. Because of that, it is a good time to review the budget and plan your income, expenses, assets and liabilities.

How to Set Financial Goals - 6 Things To Do After You’ve Met All Your Savings Goals

You’ve done a lot this year. You have created a nice emergency fund enough to take you over three months of all expenses. That high interest debt you had? You paid it off too, and have started to siphon a nice percentage of your income towards your retirement.

All this is great work, but now what?

In case you are wondering how to save money beyond the basic steps, this article is what you should read.

• Check your budget: Maybe you needed to have a strict budget to pay off a toxic debt. But now, with that over with, you can switch over to a 50/30/20 budget. If you are already using this budget model, reevaluate that and see what are your wants and needs. Thus, you’ll see that more money is available.
• Take care of the low priority debt: You have paid back the high-interest debt first, and that’s a good thing. In fact, that’s how it should be done. But don’t stop now that it’s paid. Start paying off the low priorities debts.
• Use your savings: A lot of people keep a significant part of their money in a savings account in the same bank that has a checking account. Perhaps you are doing this too. Now, this earns you maybe .06% interest a year. But this can grow faster. Consider moving your emergency fund or your savings into a different type of account. Consider Certificates of Deposits. These can lock up your money for a certain time while it earns a high interest rate. If you have extra savings, CDs can be a great option. However, these are not so good for your emergency fund since you may need it at any time. For emergency funds, a high-yield savings account is a much better option since these have a higher minimum balance requirement and have high interest rates.
• Don’t forget to invest: This is a good time to rethink how much you need to save up for your retirement. Perhaps you may need to start saving more for that, or even set up a personal retirement account. If you want to start building up a portfolio, reach out to a broker.
• Insure yourself: Revisit the basics like homeowner’s insurance and car insurance. Think about in which stage of life you are in, and what things you are preparing how.
• Think bigger: Till now, you have covered the basics. Now you can finally pay attention to savings goals and projects which you may have put off till now. Whether it is to start a new business, a family vacation, or perusing a new hobby, now is the time to do them all. Just focus on saving cash.

Budgeting Mistakes - Mistakes You Are Making In Your Budget

It can be intimidating to even think of accounting for every penny you touch. However, you do not need a math degree to take care of your budget. With a little bit of instruction and practice, you can create a solid budget.

The biggest mistake you make is to not make a budget in the first place, especially at the unprecedented time we are in right now. In this article, we are going to tell you some of the most common and problematic budgeting errors people make, and how you can avoid making them. When you do have a budget, it is easier to be away from monetary blunders than when not having one.

   Failing to track your expenses: It is essential to be accurate in your budget if you want to make progress towards your financial goals. For this, it is important to track your spending. Failure to keep track of this will bring you one step close to failure. Most people do not stop to take stock of how much money a month they have wasted per month on frivolous things, such as fast food. They underestimate their expenses, and thus, at the end of the month they find they had overspent! What you need to do is to keep track of what you are spending, for at least one month before making a budget. Ideally, keep track of expenses each month.

   Neglecting retirement: This is more common than you think. People become so engrossed or busy in their day to day lives that they neglect their retirement, or rather planning for it. Here’s the thing though. The sooner you start saving for your retirement, the easier it shall be then the time to actually retire. It doesn’t matter whether you are a middle aged person or a teenager. Saving up for your retirement should be one of your biggest priorities. Most people think that saving for this is sacrificing money which they need at the present, but experts say that is doing it completely wrong! The money you save now will be paychecks after retirement. At a minimum, think about setting aside a part of your salary per month to meet your employer’s Provident Fund contributions. Make it a goal to save 15% of your income for your retirement.

   Not having an emergency fund: This is a major problem for many. A lot of people do not save for an emergency fund. When you have an emergency fund, there is no need to use your credit card to get fast cash at a huge interest rate. If, right now, you do not have an emergency fund, make sure to set aside a certain amount per month for this purpose.

 

What is Your Take-Home Income ? - Gross Income and Net Income

Want to know about your personal finance? If so, you need to understand your income more. What you have to know is how much you make per month, what your expenses are, what your savings are, and so on. If you make a budget, you can even predict your income at some small level.
So, let’s get down to it!

Gross Income and Net Income

People still confuse between these two things, so let’s tackle these two essential terms. Gross income is the money you make before money is deducted from it by way of taxes, deductions, and personal contributions. Net income is one which you take home after all of that. Net income is therefore called Take Home Income. Net income is the one that actually gets credited into your bank account.

We understand that some people get paid by the hour or by per project done. For the purposes of this article, we are going to focus on salaried individuals only. For those operating as independent contractors, income is a bit different.

It is not hard to find out what your gross income is. If you are a salaried person, your gross income shall be the total number of hours you have worked in a week multiplied by your specific hourly rate. This is the income for hourly wage earners.

However, things are different if you are a salaried person. Your gross income is found out by dividing your income per annum by 12. This shows your monthly gross income.

Now comes a very important part: what happens between your gross income and net income? Where does that money go?

The answer in short: taxes and deductions.
Taxes

Taxes, also called withholding, are the funds you owe annually. These are deducted from your monthly paychecks regularly. This is just as well because you do not want to pay a huge lump sum tax at the end of the year.

Taxes are of various types. There can be central government taxes, state taxes, municipal taxes, and so much more. Taxes are also on Medicare, Provident Fund contributions, and such others.
What if you are an independent contractor?

 Some workers do not fall under the term “employee.” They are called independent contractors. Freelancers fall under this category, as well as self-employed people. Such people are responsible for paying their own taxes, and can’t rely on any company to match their contributions. For such people it is important not to spend too much money before paying taxes.
On to budgeting

Now that you know the difference between gross income, net income, and what happens in between them, you can now budget for your personal finance.

How to Manage Money in Your 30s - Open a savings account

Your 30s is perhaps the best time of your life to think seriously about your retirement goals along with repayment of college funds and down payments.

The 30s can be quite an exciting time of your life. It can be even your best decade ever. This is the time when you are advancing in your career and are starting to reach your income goals. However, it is also the time when you have new financial responsibilities, children, buying a new home, etc.

Of course, building a budget is essential. But that is not all. People in their 30s need to take extra steps to successfully manage their money.

Open a savings account: If you have not opened a savings account yet, now is a good time to do it. In fact, this is not something you would want to delay. The sooner you start saving, the easier it shall be when you retire.

Savings account is only one of the several ways to save up. Another good option is your company’s Employee Provident Fund. Contribute to it as much as you can. Your company shall possibly match your contributions or give a certain percentage of it. At the end of the day, all this is free money! So why not take its benefits?

When you get increments or raise, increase your contributions by 10% to 15%. Again, you are saving all this for your retirement, so that you won’t have to scrounge for money after your retirement.

Make your financial priorities concrete: Your spending patterns in your 30s won’t be the same as in your 20s. For one, your focus now is saving for retirement, disability, LIC, and the like. Never thought about all this in your 20s, did you? That is why you need to make some changes now! Apart from paying more attention to your retirement savings, you need to keep track of your spending.

It is very easy, and may even seem natural, to spend more when you are earning more. But that’s not right. What you need to do is to have a budget model. To be really effective, take the 50/30/20 budget model. Under this model, from your yearly or monthly take-home income, give 50% towards meeting needs, 30% towards wants, and the remaining 20% on savings and debt repayments.
If you are having problems with this, it is never wrong or late to take the help of a professional certified financial planner.
Now that you know about the 50/30/20 budget and know how important it is to budget and save up for different things, it is important to know about saving for emergencies. To save for the future should be your top priority. This does not just mean your retirement fund, but your emergency fund too. Take this Covid-19 pandemic and lockdown for example. No one planned for this financially nor expected it. This is why finances of both companies as well as individuals are in shambles. Situations like this tell us that it is so important to save up for meeting any emergency situation.

Get LIC and disability insurance: Remember where to put the 20% of your yearly or monthly income? In savings, right? Good. Well, here are two important places where to park your savings for the future. And look, having LIC and disability insurance is important. No one wants to plan or even think about facing the worst-case scenarios in their lives. However, if you do plan for it, it makes your life easier. This is when you need insurance.
Disability insurance helps you when you get career-threatening injuries and disabilities. Nowadays, people are actively insuring things which they feel are central to earning a paycheck. For instance, people who spend most of the day in front of their computer insure their eyesight. So in case they do lose their eyesight, they’ll get a lump sum or monthly coverage from the insurance company. Some companies give disability insurance too.

Budgeting Mistakes - Mistakes You Are Making In Your Budget

It can be intimidating to even think of accounting for every penny you touch. However, you do not need a math degree to take care of your budget. With a little bit of instruction and practice, you can create a solid budget.

The biggest mistake you make is to not make a budget in the first place, especially at the unprecedented time we are in right now. In this article, we are going to tell you some of the most common and problematic budgeting errors people make, and how you can avoid making them. When you do have a budget, it is easier to be away from monetary blunders than when not having one.

Failing to track your expenses: It is essential to be accurate in your budget if you want to make progress towards your financial goals. For this, it is important to track your spending. Failure to keep track of this will bring you one step close to failure. Most people do not stop to take stock of how much money a month they have wasted per month on frivolous things, such as fast food. They underestimate their expenses, and thus, at the end of the month they find they had overspent! What you need to do is to keep track of what you are spending, for at least one month before making a budget. Ideally, keep track of expenses each month.

Neglecting retirement: This is more common than you think. People become so engrossed or busy in their day to day lives that they neglect their retirement, or rather planning for it. Here’s the thing though. The sooner you start saving for your retirement, the easier it shall be then the time to actually retire. It doesn’t matter whether you are a middle aged person or a teenager. Saving up for your retirement should be one of your biggest priorities. Most people think that saving for this is sacrificing money which they need at the present, but experts say that is doing it completely wrong! The money you save now will be paychecks after retirement. At a minimum, think about setting aside a part of your salary per month to meet your employer’s Provident Fund contributions. Make it a goal to save 15% of your income for your retirement.

Not having an emergency fund: This is a major problem for many. A lot of people do not save for an emergency fund. When you have an emergency fund, there is no need to use your credit card to get fast cash at a huge interest rate. If, right now, you do not have an emergency fund, make sure to set aside a certain amount per month for this purpose.

12 Tips for a Family Vacation on a Budget

 

Here are a few tips for a hassle-free and affordable family vacation.

Choose the Destination Wisely

Choosing a destination might be quite confusing. Follow these steps to clear out the confusion and select the destination wisely.

   Fix the budget: Figure out how much money you can spend on the vacation. Else, you would end up getting into debts, which is not a good idea. So, if you are planning a trip on a budget, it is important to calculate your budget in your holiday fund by adding the funds with the amount you save till you leave for the vacation.

   Make a list of the destinations: There can be a lot of destinations suggested by your spouse, children or friends. List all the vacation spots. Think about the type of vacation that you’d want - a laid back beach or a cultural exploration or a vibrant city, and then it becomes easy for you to rule out the places that do not fall under your preference criteria, thus making it easy to plan a trip on a budget.

   Look into the safety risks: Safety must be a priority as you travel with your family. Look out for the government travel warnings and alerts in the area you want to visit. If the area is free from risks such as an accident, burglar or calamity prone area, then you can finalize the destination.

Book Your Flight Tickets in Advance

If you need an affordable family vacation, plan it well in advance; else you might end up spending more on flight tickets. The price of the flights increases with time due to dynamic pricing. Booking early always proved to be the best way to get the cheapest flight tickets. Here's a small tip - use an incognito window while browsing for the tickets. As the flight charges increase based on the cookies in your browser, the price of the particular route that you’re repeatedly searching will tend to increase. You can see the lowest prices in incognito mode. So, if you are concerned about planning a trip on a budget, this is one of the best ways.

Fly Mid-Week

If your travel dates are flexible, then travel in the middle of the workweek. For a visual illustration, go through any major airlines fare calendar. You can see that there is a fall on Tuesday and Wednesday and a spike on Thursday and Friday.

Weigh Your Luggage in Advance

Check with the limit of hand baggage and check-in luggage limit of the airlines. Weigh your luggage well in advance to check the limit. If it exceeds, you are imposed of certain charges. Stay alert and avoid those charges.

Reserve the Hotel in Advance

There are a lot of applications or websites where you can find great deals on hotels. Go through a few neutral sites and compare the price offered by different websites; select the ideal one. Also, you can set price alerts in the app such that you get a notification if the price falls. If you book for the first time, you may also get coupons. You can use those coupons and avail extra discounts to enjoy an affordable family vacation.

Go for a Complete Package

These days, we find a lot of travel agencies that provide packages for vacations. Inquire about some of the trusted agencies regarding packages and select an affordable family vacation package. These packages help you reduce your stress level by booking the hotels, arranging cabs and guiding you during your sight-seeing. These packages can be cost-effective, and you will have an idea on the expenditure beforehand.

Make Refundable Bookings If You Are Uncertain

If you are uncertain about your travel, we suggest that you make bookings that are refundable. However, these refundable bookings are quite costly. The bottom line is that if you’re unsure whether you’ll be able to travel during your original window, go for refundable bookings.

Don't Shop or Eat in the Tourist Area

It is better to shop or eat in the local areas rather than spending a lot of money in the tourist area. The price of mementos and souvenirs in the tourist areas is considerably high when compared to that in the local areas.

Travel Off-Season

The time you choose to travel could also have a tremendous impact on your budget, since prices fluctuate depending on the peak or off season. If you are really planning a trip on a budget, it is wise to head somewhere in the offseason. You can find costs far more economical than at peak times.

Make Overnight City Transits

You have limited vacation time. You lose a lot of time if you travel during the day. Apart from losing time, it is very economical to travel at night, as you can save on accommodation costs. This way, you can ensure an affordable family vacation.

Live on Local Food

Local food is the best option during vacations. You can relish the local flavors and save money by eating at street food stalls and local dhabas. Not only do you get to enjoy the authentic local cuisine, but you would inevitably find cheaper munchies if you are up for local food. Do consider the hygiene factor though.

Keep a Tab on Cell Phone Costs

A vacation is when you devote your time to enjoy the destination with your family. Refrain from talking endlessly on the phone. Remember that you are on roaming - call charges might be quite high. Moreover, all your important work can and should wait until you finish your vacation.

Bought A New Home? Here's How To Budget After That

 However, a new journey awaits you right after you pay the new property’s closing costs and have tipped the movers. As the new owner, you need to budget for it as well.
Basics of budgeting as a new homeowner

If you don’t know how to create a budget, we’ll help you out. Start with the 50/30/20 budgeting approach. It gives a good foundation. In this budget plan, 50% of your income goes to meeting your needs, 30% towards meeting your wants, and 20% towards repaying your debts and savings. Perhaps it’ll help to use a budget calculator and a budgeting app.

If you are not new to all this, start with the following.
Plan to meet the new regular expenses

You are already covering household expenses like water and power bills at your old home. However, there are other additional costs which come with being a new homeowner. These are beyond the mortgage payment and are exclusive to homeowners.

    Homeowners insurance and real estate taxes: These are generally included in your monthly mortgage payments. Even if you have a fixed-interest mortgage, it can fluctuate from one year to the next because of tax changes and homeowners insurance premium changes.

    Homeowners association: This is something that is becoming increasingly common as people buy properties in a planned neighborhood. These can cost quite a bit per year, so it’s important to save up for it.

    Home upkeep and maintenance: Repairs and upgrades at your new home can get expensive. Whether you are planning to stay here forever or to sell it at a higher price after some time, you need to keep spending on maintenance till then. Homeowners should keep aside 2% of their salaries per year to meet this. If the property is older, the charges shall be more.

Plan and save for big projects

It can be tough to plan for home maintenance expenses down the line. However, for this purpose, 1% to 2% of your annual salary and/or savings shall be enough. However, do remember, the more high value the repairs and upgrades are, the more you’ll have to pay. When you do your annual expense planning, think about the home renovation projects which are upcoming.
Revisit your LIC and savings

You may have a strong emergency fund already, along with a sound LIC and retirement account all in one place. But it is useful to review these from time to time, especially after buying the new home.