What happens to my card’s travel protection benefits when I downgrade?

What happens to my card’s travel protection benefits when I downgrade?


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Source: thepointsguy.com

What is a Credit Limit, How is It Determined, and What Credit Cards Offer the Highest Limits?

[UPDATE: Some offers mentioned below have expired and/or are no longer available on our site. You can view the current offers from our partners in our credit card marketplace. DISCLOSURE: Cards from our partners are mentioned below.]

What is a credit limit and how is it determined? A credit limit is the maximum amount of credit you’re allowed, and it is determined by a financial institution (bank, credit union, retailer, etc.).

Essentially, when you apply for a credit card and you get approved, the issuer decides how high (or low) your limit will be. The average credit card limit is $16,737, but this varies depending on your credit score and where you live.

We know how it goes: first you cross your fingers hoping you’ll get approved for the credit card you want. Then you cross them again hoping the credit limit will be generous enough to get you what you want. Maybe you need it to pay for some expensive dental work or perhaps you are applying for a 0% balance-transfer offer so you can transfer debt from another, higher-interest card. Either way, the credit limit is often a few hundred or a few thousand dollars short of what you need — and you have no idea why. How did they even come up with that number?

Credit card issuers will tell you what factors they consider when they assign a credit limit, but exactly how they calculate it remains proprietary. Not a single card issuer we reached out to for this story could (or would) give us specific information about how they determine credit limits.

In every case, your credit score and income level will have a great deal to do with whether you are approved, and for how much. If you’ve had credit before and handled it well, a card issuer is more likely to approve your application. But that is not the whole story.

Your income comes into play, and so do your current financial obligations, such as rent, a car loan, and the amount of credit available to you through other cards. Part of the equation is behavioral: What do they think you are likely to do if you have more credit extended? In this guide, our Credit.com experts present the top cards with high credit limits that match your financial health and history, and help you understand all that goes into determining your credit limit.

Credit Cards With High or Unlimited Credit Lines

Did you know there are credit cards with unlimited credit lines? Well, there are—and you’ve probably heard of them. Although credit limits are determined by various factors, as we discussed (such as income and credit score), it is possible to find cards with high limits. Here are some of our favorites, from our trusted partners*:

Chase Sapphire Preferred® Card

  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases.
  • 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for travel through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash’s subscription service. Activate by 12/31/21.
  • Earn 2x total points on up to $1,000 in grocery store purchases per month from November 1, 2020 to April 30, 2021. Includes eligible pick-up and delivery services.

Blue Cash Preferred® Card from American Express

  • Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
  • $0 introductory annual fee for one year, then $95.
  • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
  • 6% Cash Back on select U.S. streaming subscriptions.
  • 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
  • 1% Cash Back on other purchases.
  • Plan It® gives the option to select purchases of $100 or more to split up into monthly payments with a fixed fee.
  • Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
  • Terms Apply.

Credit Cards for Building Credit

You’ve checked your credit score, and it’s not as high as you’d like — in fact, it’s quite low. Don’t worry, you can rebuild your credit score. It will take time, so be patient (and diligent about paying your monthly bills on time) and eventually, you could be qualified for an unlimited credit limit. Until then, consider these credit cards, which will help you continue to build your credit:*

OpenSky® Secured Visa® Credit Card

  • No credit check necessary to apply. OpenSky believes in giving an opportunity to everyone.
  • The refundable* deposit you provide becomes your credit line limit on your Visa card. Choose it yourself, from as low as $200.
  • Build credit quickly. OpenSky reports to all 3 major credit bureaus.
  • 99% of our customers who started without a credit score earned a credit score record with the credit bureaus in as little as 6 months.
  • We have a Facebook community of people just like you; there is a forum for shared experiences, and insights from others on our Facebook Fan page. (Search “OpenSky Card” in Facebook.)
  • OpenSky provides credit tips and a dedicated credit education page on our website to support you along the way.
  • *View our Cardholder Agreement located at the bottom of the application page for details of the card

First Progress Platinum Elite Mastercard® Secured Credit Card

  • Receive Your Card More Quickly with New Expedited Processing Option
  • No Credit History or Minimum Credit Score Required for Approval
  • Full-Feature Platinum Mastercard® Secured Credit Card
  • Good for Car Rental, Hotels; Anywhere Credit Cards Are Accepted!
  • Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
  • Credit Line Secured by Your Fully-Refundable Deposit of $200 — $2,000 Submitted with Application
  • Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
  • Apply in just a few moments with no negative impact to your credit score; no credit inquiry will be recorded in your credit bureau file
  • Nationwide Program though not yet available in NY, IA, AR, or WI * See Card Terms.

Why Your Credit Limit Matters So Much

While it feels great to get approved for a new account, pay attention to the credit limit. If you’re given a limit of $2,000 and you regularly spend $1,500 per month, then you’ll be using 75% of your credit, which can really hurt your credit score. Balances higher than 20% to 25% of your available credit can hurt your credit scores.

In the case of a balance transfer, you’ll have to weigh that against the interest you’ll save by getting out from under a high interest rate. And in the case of essential bills, like dental or medical, you may have to accept a temporary hit to your credit in order to pay the bill and avoid having an account turned over to collections.

So getting a high credit limit is ideal. There is no credit limit calculator that determines exactly what limit you’ll get, unfortunately, but we’ll help you figure out what factors may go into the decision.

What Should Your Credit Limit Be?

Having a high credit limit comes with many perks, and if a company offers you a high credit limit when you apply, it means they consider you a reliable customer. This is a good thing. But if you look at the flip side, what if you’re an overspender? It can be tempting to want to spend as much credit as you’re given, but doing so can really hurt your credit score.

Keeping your limit low could prevent you from spending more than you have (but to avoid this, you should consider using financial apps to better manage your spending habits and/or debt). Ideally, a high limit is both preferable and recommended, if you want to improve your credit. To improve your credit, you can apply for credit cards with high limits. If you maintain a high limit and a very low or no monthly balance, the better for your credit score.

Should I Ask For a Higher Credit Limit?

If you believe the credit limit you were assigned is too low, you can call the credit card issuer and ask for a higher one. It helps if you can justify your request with some information the issuer did not have when you applied (“I just mailed in my last car payment” or “My spouse has returned to work, and now our household income is higher than the number on the application”). It’s smart to consider that your credit limit can also be lowered if you give your lender reason to believe you may not be able to handle your current limit.

Sometimes, however, you can get them to change their mind simply by sweetening the pot and letting them know you’ll bring over a balance from another card or charge a significant purchase to the new card. Issuers want cardholders who pay interest on balances. After all, that’s how they make money.

When Should You Ask For a Credit Increase?

If you already have a credit card and feel you deserve a credit limit increase, you should ask yourself the following questions:

  • Am I paying off my balance each month?
  • Has my income changed significantly to justify the credit increase?
  • What should my credit limit be?
  • Do I have good credit?

You should wait for at least one year after opening your credit card to ask for an increase. When you do ask, be prepared. The credit card company may make a hard inquiry on your credit reports — and this, of course, can impact your score (minimally, though).

If you feel you have built up good credit, are financially responsible and capable of taking on a higher credit limit, then you should consider asking.

What If My Limit is Raised Without Asking?

Sometimes your credit card issuer may raise your limit without your requesting it, too. That can happen after a period of paying on time and keeping balances low. Some people worry that perhaps there is a downside to this, and wonder if they should ask that the lower limit be reinstated. Generally the answer is no.

Assuming your credit card usage stays the same, you’ll be using a smaller percentage of your available credit, and that can only help your score. Remember, it’s a good idea to keep your credit utilization to less than 20–25% of your credit limit; less than 10% is ideal. Credit utilization refers to the ratio of your credit card balance(s) to your credit limit. The lower, the better for improving your credit, earning rewards, and saving money.

So, sadly, it’s generally not possible to know exactly what your credit limit will be ahead of time. In the meantime, you can control some factors that may affect the issuer’s decision. It’s important to maintain (or work toward) good credit.

You can check your progress with a free credit report summary, updated every 14 days, on Credit.com, or you may find free scores on your monthly credit card statement. You should be sure you are comparing the same score from month to month, because many scoring models are used, and you want to be sure you look at the same one so that changes are meaningful.

The other thing you can do is to check your free annual credit reports to make sure the information there is accurate (and to dispute any that is not). Because your scores are calculated from information in your credit reports, you want to make sure it’s correct and that your information has not been mixed in with anyone else’s.

What Factors Go Into Selecting Your Credit Limit?

When credit card issuers determine your application status and your credit limit, they use a variety of factors, all of which may weigh differently to the issuer. Here’s what could impact their decision:

  • Your monthly income—If your income changes drastically from year to year, this could change the issuers decision. Again, if you salary changes (or if your marital status changes and impacts your income), the issuer should be notified.
  • Your credit history and worthiness—Have you had low or high credits before? Have you kept zero or low balances on previous credit cards? This could impact the application status.
  • You relationship to the issuer—If you’ve been banking with them for years or have another card from them, this could help get you approved and issued a high credit line (but only if you’ve proven to be a reliable customer).
  • Your employment status—This may or may not make a difference, but the issuer would like to know if you are part-time, full-time, self-employed, or unemployed, as this could affect your ability to pay off your future balances.
  • Your residential status—If you own a home and pay a monthly mortgage, you will likely be able to pay monthly credit card bills, too.
  • What type of card you’re applying for—Are you applying for the card with the highest rewards, but you have low credit? Make sure you’re being realistic when you apply for a credit card, but don’t sell yourself short either.

Managing Your Credit and Personal Finances

We’re all aiming for financial stability, and whether that means owning a home, paying off your mortgage, paying for your kids’ colleges, or retiring early, the ultimate goal is to lower your debt-to-income ratio and become debt-free. To determine your credit, limit calculators are available online.

Use Credit.com’s debt-to-income calculator to evaluate how much combined debt you currently have (ex. student loan debt plus car loan payments plus credit card payments, etc.) and how long it will take to pay off based on your current income and your monthly rent.

If you’re struggling to pay off the balances on the credit cards you currently have, check out Credit.com’s credit card payoff calculator to determine how much you still owe and when you’ll likely be debt-free. Just remember, credit repair takes time (and credit repair services are available to those who need them), but when your credit score improves, likely so will your credit limit.

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

*Note: At publishing time, the Capital One, Chase, Credit One Bank, and Discover credit cards are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for this card. However, this relationship does not result in any preferential editorial treatment. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuer(s).

More on Credit Cards:

Image: iStock

Source: credit.com

How Much Do Unpaid Medical Bills Affect Your Credit Score

Source: goodfinancialcents.com

How to Make the Leap From Side Hustle to Full-Time Dream Job

Learn real tips from real side hustlers who are now thriving full time.

For Michelle Schroeder-Gardner it all began with a blog. When she started Making Sense of Cents in 2011, a chronicle of her journey paying off $38,000 in student loans, it was a fun way to make money on the side while maintaining her full-time job as a financial analyst. Fast forward two years and she’s left her day job to focus on the blog exclusively. Fast forward another five years and she’s earning more than $1 million annually from her site.

If you too are looking to turn your side hustle into a full-time job, experiences like Schroeder-Gardner’s prove that just about anything is possible. And you’re not alone. Nation1099, an online resource for freelancers, published a 2018 report to summarize data from various career studies and concluded that approximately 11 percent of the working adult population in the U.S. is working primarily as full-time independent contractors in the gig economy. Gig workers, also known as on-demand workers, function with a non-standard work arrangement and without a long-term employment contract.

Some, like Schroeder-Gardner, have ditched a traditional lifestyle and are working while on the go and whenever they’re most productive (she travels around the world in an RV and sailboat and writes when motivation strikes). Others are logging full-time hours at home or in a coworking office space.

With a thriving gig economy, it could be the right time to turn your side hustle into a full-time job.

Although figuring out how to turn your side hustle into your dream job requires hard work, with patience and persistence, you can succeed.

Learn from the experts themselves and consider these steps for turning your side hustle into a successful business:

Educate yourself

The first step for turning your side hustle into a successful business is building the right skill set so you can stand out in your field. Research industry best practices and in-demand skills, speak to successful professionals and read about others who’ve made the leap from side hustle to full-time job.

The first steps for turning your side hustle into a successful business are doing your research and developing skills to make yourself stand out.

When Jill DeConti, founder of the blog The Luxe Travelers, decided to leave her finance job to devote all of her time to her side hustle as a travel blogger, she knew that knowledge would be instrumental to her success.

“I began researching, reading books, soaking in knowledge,” DeConti says, adding that she also focused on learning marketing best practices and how to generate revenue from her blog.

Reading about the steps for turning your side hustle into a successful business proved useful to DeConti not just for the practical tips she gleaned, but for motivation as well.

“This made me realize that my dreams were actually possible,” she says, “and made me feel less alone in pursuing them.”

“Even though I was earning a good income from my side gig before I turned it into my full-time career, I was terrified to leave my day job.”

– Michelle Schroeder-Gardner, founder of the blog Making Sense of Cents

Take baby steps

Schroeder-Gardner says one of the most challenging parts of turning your side hustle into a full-time job is building a business framework and believing in it.

“Even though I was earning a good income from my side gig before I turned it into my full-time career,” she says, “I was terrified to leave my day job.”

Growing her gig on the side to make sure that it actually worked—and would generate income—helped her gain confidence while she still had the security of her day job’s salary. When she was ready to make her side hustle full time, she knew the framework for a blog that could make money from affiliate marketing was already in place.

“I knew it was time when I was earning enough from my blog to live off of,” Schroeder-Gardner says. “I was earning around $5,000 to $10,000 a month from my side hustle at that time.”

Build an emergency fund

If you’re thinking about how to turn your side hustle into your dream job, be prepared for business—and earnings—to not go exactly as planned.

“Build an emergency fund,” Schroeder-Gardner says. “This way, when you turn your side gig into your dream job, you’ll have money set aside in case you have a not-so-good month.”

Sunny skies are the right time to save for a rainy day.

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You could also dip into your emergency fund to help manage daily expenses and pay your bills while you turn your side hustle into a full-time job. It may also come in handy if you need to finance upfront business costs (new equipment or office supplies, anyone?).

Outside of work, an emergency fund can provide a cushion for other expenses that may not be baked into your budget (think a trip to the doctor’s office or a home repair that came out of nowhere).

As you work on creating an emergency fund as a step for turning your side hustle into a successful business, note that most experts agree that it should include at least six months to a year of expenses.

If you're wondering how to turn your side hustle into your dream job, you'll need an emergency fund to help protect yourself financially.

Invest extra time upfront

You may find that it takes a lot of time to turn your side hustle into a full-time job. There’s networking, promoting your business and accepting new opportunities to build your portfolio—and that’s likely on top of your already packed schedule.

If you’re wondering how to turn your side hustle into your dream job, you may need to carve out time after regular working hours. That was the case for DeConti, whose day job kept her occupied from 9 a.m. to 5 p.m. In order to get her name out there as she built her travel blog, she looked for freelance social media jobs and worked on her own blog “after work and late into the night and on weekends,” she says.

Putting in the time upfront really paid off. These days DeConti can make her own schedule and work remotely, which is key for someone who has made a career out of her passion for travel.

“I’ve been able to travel to Bali for an extended period of time, spend a month traveling around the Greek islands, swim in the cenotes in Mexico, chase waterfalls around Iceland, eat the best pizza I’ve ever had in Italy, take a camper van around beautiful New Zealand,” she says. “As long as I have my laptop with me, I’m good to go.”

Join the side hustlers who have gone full time

If you’re contemplating how to turn your side hustle into your dream job, take comfort in knowing that you’re in good company. Others are now living their dreams, and you can too with some careful planning and confidence.

So, what are you waiting for?

Source: discover.com

How 2017 Rate Volatility Impacts Home Affordability

Prospective home buyers may feel disheartened when they see rates rise. Here’s what it really means for them.

Rising mortgage rates decrease how much home you can afford, but you have more flexibility than you might think because of how lenders qualify you.

Let’s recap the wild ride rates have been on since November, then review how this impacts affordability, and how you can qualify for the most home possible.

2017 rate recap and outlook

Mortgage rates rose .75 percent between the election and Christmas last year, driven by a belief that the new administration’s proposed policies of infrastructure spending, tax cuts, and deregulation would be inflationary if enacted.

Rates rise on inflation threats, and this is what happened post-election.

We said back then the dramatic rate spike might level off, and now that’s happening, albeit in a very volatile way. Rates are up and down daily as investors react to new government policies. One day investors bet inflation will be muted by policy delays or roadblocks (lower rates), and another day investors return to the post-election inflationary bet (higher rates).

The net effect is that rates are off post-election highs, and now are up about .5 percent since the election.

Rate volatility will continue as investors and the Federal Reserve try to predict rate direction under the new administration, so let’s see how it impacts your home-buying plans.

How rates impact home affordability

On a $350,000 home purchase with 20 percent down, a rate spike of .5 percent reduces the home price you can afford by about $17,000.

This measure can make you think you’re doomed to a smaller house or worse neighborhood. But if you understand how lenders think, you can find solutions.

Mortgage lenders use a debt-to-income (DTI) ratio to qualify you, meaning they divide your bills (for housing, car payments, credit cards, etc.) by your income to get a percentage of how much of your monthly income you spend on bills. Most lenders don’t lend to you if your monthly bills are more than 43 percent of your income.

If you earn $65,000 per year and have car, student loan, and credit card bills totaling $615 per month, you qualified for that $350,000 home purchase when rates were .5 percent lower, but now you don’t.

The reason: your DTI percentage was below 43 percent pre-election, but now it’s above 44 percent after rates rose.

On the surface, the only solution would be to reduce your purchase price by $17,000 to $333,000 to get your DTI back below 43 percent.

How to increase home affordability

But instead of reducing your price by $17,000, you can reduce your other non-housing bills.

For example, let’s say your credit card payment was $125 on a balance of $3,125. You need to get that payment down to $45 to qualify for your original $350,000 home purchase price, and you can do so by paying down the balance by $2,000.

That’s a lot better than reducing your purchase price by $17,000, and if you’re light on cash, you can negotiate a seller credit at closing to recoup the $2,000.

How to make the right decisions

Just like all real estate is local, all lending is individual.  So don’t automatically assume rising rates push down the price you qualify for.

A good lender will examine your full financial profile and goals, then dive into the math to find solutions for you.

Looking for more information about mortgages? Check out our Mortgage Learning Center.

Related:

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

Source: zillow.com

To Spend, or to Cut? 4 Questions to Help You Avoid Unnecessary Expenses

Consider your material and emotional values to decide which expenses belong in your budget.

It’s a universal truth: For most people, budgets only have room for so much. Juggling the cost of that summer vacation you’ve been taking for 10 years with the pressing need to help pay your child’s college tuition, actually use your pricey gym membership or fix your faulty water heater is no easy feat. Sometimes, something’s got to give. But how do you decide which expenditures are worth making and which ones you should cut?

Eliminating unnecessary expenses may depend on your personal priorities.

Figuring out when to spend and when to cut—and how to avoid unnecessary expenses—depends on your personal priorities. But the following four questions will help you weigh each spending decision and choose the best option for you:

1. Is it more than you need?

During a recent family budget meeting at Rosemarie Groner’s house, the hot topic was … wait for it … paper towels. Every week the personal finance blogger’s family sits down to review how they can reduce unnecessary expenses. When their giant pile of paper towels came under scrutiny, Groner, whose blog is called The Busy Budgeter, admits they were skeptical of the wisdom and sanitation of reducing their use of paper towels. They worried about the risk of spreading salmonella and other germs, for one thing.

cut back in other areas to reduce unnecessary expenses. Travel provides the opportunity to explore different places and cultures, experience personal growth and reflection and create long-lasting memories with loved ones—all worthy outcomes.

Let’s say it’s not travel you’re pondering in your quest to avoid unnecessary expenses, but the generous line item in your budget for events like concerts, plays or museum visits. Can these things get expensive? Sure. But you may decide that the enrichment of the arts is valuable enough to continue this spending.

Investing in your education can pay off in the long run, so don't assume it's a cost you can cut to avoid unnecessary expenses.

Likewise, an investment in your education—earning a degree or taking a few classes to boost your credentials and increase your earning potential—might also be a worthwhile expenditure. In 2016, for example, the median weekly earnings for workers with a master’s degree were $1,380, compared to $1,156 for those whose education topped out with a bachelor’s degree, according to the U.S. Bureau of Labor Statistics—a difference of more than 19 percent. Professional degree earners had a nearly 51 percent pay advantage over those at the bachelor’s level.

3. When’s the last time you used it?

While some experiences are special enough that you wouldn’t want to miss out on them, there might be others you rarely use even though you’re continuing to pay for them. When eliminating unnecessary expenses, watch out for automatically renewable charges on gym memberships, magazine subscriptions and retail subscription services (including for fashion, cosmetics and food preparation kits) that continue even when you no longer want them.

Ditching a gym membership you don't use is one way to reduce unnecessary expenses.

That’s a favorite hack for eliminating unnecessary expenses from Sami Cone, a Nashville-based speaker, author and finance blogger. Cone, who discusses money-saving tips on her website and hosts a radio show called Family Money Minute, recommends putting a reminder on your calendar at either the beginning or end of each month to check your statements for expendable services and subscriptions.

Similar to those subscriptions you haven’t used in ages, are there items you purchase by habit that you or your family no longer want or need? A useful way to avoid unnecessary expenses is to take your spending off autopilot. Possible signs you need to do this stat include: You’re paying for music and dance lessons your children skip more often than they attend; you buy extra phone and data services you never use or premium cable channels you never watch; you’re frequently replacing dietary supplements and cooking spices that have lingered on the shelves past their expiration dates.

4. Will you save later by spending now?

Sometimes the best way to reduce unnecessary expenses in the long run is to invest in what seems like a big expenditure now. Upgrading your home’s heating, ventilation and air conditioning system to a more energy-efficient model, for example, might be a smart way to splurge because it can save you money on your utility bills. According to the U.S. Department of Energy’s Energy Star program, replacing a central AC unit that is more than 12 years old with an Energy Star-certified AC unit could trim your cooling bill by 30 percent.

Another example of a major expenditure that can pay off later is investing in quality home furnishings instead of choosing bargain goods. The higher-end products may save you more in the long run because they are often more durable so you won’t have to replace them as soon. Making healthier, if more expensive, food choices now can also potentially help you avoid medical costs related to illnesses like diabetes, high blood pressure and heart disease.

Stay motivated to reduce unnecessary expenses

Having a specific financial goal in mind when you set your spending priorities is an important source of motivation when you’re trying to avoid unnecessary expenses. Groner says her family is now out of debt after paying off more than $30,000 from credit cards and car loans with the help of their frugal spending habits.

Stay motivated by keeping track of how far you've come since you first started eliminating unnecessary expenses.

“In the beginning, when we were first trying to reduce our expenses, the reward was the relief to sleep at night without worrying about living paycheck to paycheck,” Groner says. “We kept going even after we left the paycheck-to-paycheck cycle because then budgeting became fun. It wasn’t about deprivation anymore. It was about laying out a path to get whatever we want in life.”

Cone, whose family used plans for a Disney vacation as an incentive to reduce unnecessary expenses, says it’s important to choose an objective that everyone in the family can get excited about. That way, when eliminating unnecessary expenses starts to pinch, you can remind them: “We’re saying ‘no’ now, so we can say ‘yes’ later,” she says.

Source: discover.com