In continuing celebration of Financial Literacy Month, my GRS contributions throughout April are covering basic techniques to raise your financial awareness. We’ve previously touched on the topics of debt and income. Today we’ll tackle two of my favorite tips for ensuring conscious spending.
Purge your subscriptions Subscriptions, even small ones, can sneak up on you. Every time you sign up for another recurring payment, you’re locking in a portion of your income. You’re tying up a specific segment of your budget.
Of course, some subscriptions are beneficial or desired. I’m not claiming all subscriptions should be avoided; however, it’s important that we understand the nature of subscriptions. By nature, subscriptions make you less aware of the recurring purchase. Rather than reevaluate a purchase every month, a subscription ensures that you’re charged regularly and obtain access to a benefit. Whether or not you’re actually getting a benefit is another story.
In the first couple of months of a subscription, we may still find ourselves using and enjoying the benefit. But 60, 90, or 365 days down the road the situation may be different. After the puppy love phase wears off, we may not be receiving the same benefit from our recurring purchase.
Many of us forget to reevaluate our subscriptions, so we end up paying for several months (or longer) of extra payment with very little benefit. We stop reading the magazine, stop watching the extra channels, or stop renting the bonus movies. The appeal of subscription-based services are high, but in many cases we’d benefit from a more conscious, a la carte approach.
Here are some tips for evaluating your subscriptions:
Create a list of any opt-in subscriptions. Many forms of media operate in this manner: magazines, newspapers, movies, television, blogs, and insider information outlets. Look for items in your budget where you pay $X/month in order to have access to X items for free. The banking industry has many subscription-based services, as well. Check your rewards programs, “protection” offerings, and credit monitoring services.
Eliminate any subscriptions you no longer benefit from. If you aren’t using the subscription, cancel it immediately. Who cares if you have another free month left? You aren’t using it, remember? If it’s no longer returning value, stop subscribing to it. Purge!
Free isn’t really free. Even free subscriptions can have a cost. In addition to money, there will be some services that may tax your time and energy. These can be even more costly! Also, be especially wary of those subscriptions that bring clutter into your life. No benefit, no subscription.
Check the a la carte options. For any remaining options, check for alternatives to your subscription. Compare your real usage and run the numbers. For example, many people are shifting away from cable to new options like Netflix and iTunes, where you can buy specific shows, movies, or events individually. Others are using blogs and online media to replace traditional newspapers. Don’t assume the subscribing to a special plan yields better savings. Compare your options.
Stop blindly signing contracts Our society loves contracts. They’ve become a routine part of our financial lives. In some situations, contracts are not only necessary, but beneficial. But, like subscriptions, we can easily go overboard and trap ourselves in some sticky situations.
Once again, the problem with contracts comes with our assumptions. We assume that cell phones require a two-year commitment, that renting requires a minimum of a year-long lease, or that any gym membership will be accompanied by a lengthy contract.
In reality, there are many alternatives. You can often negotiate the terms of the contract, save money and avoid contracts by paying in advance, or consider alternatives to the idea altogether.
Here are a couple recent examples from my own life:
Upon returning to the U.S., Courtney and I wanted to rent, but didn’t want to make a year-long commitment (we still want to be relatively mobile). Upon finding a decent house, we applied some basic negotiation tips and discovered the landlord was willing to take $50 less than the advertised rent. Instead, we offered (while pointing out our strengths) to pay the full amount of rent, but asked for no deposit and a 6-month lease that would then go month-to-month. The landlord happily agreed. While we still entered into a lease, this was far better for our specific situation and was a small price in order to gain substantial flexibility.
After looking at several gym options, we couldn’t find a decent one that didn’t require a contract. This pushed us to purchase a set of resistance bands and dumbbells, and led us to research body-weight exercises that we could do at home. In the past, it would have been easy to cave in and sign; however, we’re much happier and more flexible with this alternative to an expensive gym contract.
Over the past 18 months, both Courtney and I have had pay-as-you-go cell phone plans. They’ve worked completely fine with no problems. Upon returning to the U.S. we caught cell phone fever. Knowing better, we signed contracts on our new iPhones. While I love my iPhone (and it allows me to run my business on the go), this was a recent example of a completely unnecessary contract that we’re now tied into. The last two months, we’ve had billing issues, which required time and stress to get cleared up. 🙁
Once again, let me point out that there are many instances where signing a contract can be beneficial to the consumer. For example, signing a long-term lease means that you won’t have to go through any rent increases that may exist in shorter-term leases. Just ensure you only sign contracts on the most essential needs in your life.
Chances are you won’t be ditching all your subscriptions and you’ll still have plenty of contracts in your life. But the key is to review your subscriptions on a regular basis and constantly search for alternatives to lengthy, restrictive contracts.
The finance world seems to be divided on the topic of credit scores (even if there are free credit scores) and their importance.
Some are all about using their credit to their advantage, whereas others do not care about their credit history at all and think it’s unnecessary and evil.
I’m on the pro credit side. I think your credit history can be used to your advantage, so why not work to improve it?
Plus, you can check your credit score for free. Just click here to find out what your credit score is.
As a background for why we care about our credit right now: We are in the very beginning stages of buying a new home. Since we are both self-employed, obtaining a mortgage is a little more difficult. Having a great credit score is one of the areas where we will be analyzed. We also care about our credit because we like to use credit cards with great rewards programs.
Why is your credit score important?
There are too many people out there who have no clue what their credit score is. Too many people also have never checked their credit report. It doesn’t make much sense since you can get your free credit score easily and you can even get your credit score online for free.
I think this is a MAJOR problem.
Your credit score and credit history are important. You can leverage them and use them to your advantage. Yes, it is possible to have the credit system on your side and have the highest credit score you’ve ever had.
A credit score usually means you can keep more of your money because you will receive lower interest rates on your home or car loan. For example, if you have an excellent credit score, you may be able to qualify for a 0% car loan. However, if you had a bad credit score, you may receive a 24% interest rate on your car loan. Yes, that does exist…
Also, if your credit score isn’t high enough, you may even be completely denied a loan. You may have to pay higher rates or pay larger deposits because you are deemed more risky.
Overall, a good credit score can help you in life.
In the next few weeks, I will talk discuss what is a good credit score, but for today we will talk about why a credit score is important.
When will your credit score be checked?
How some go about with never needing their credit score or credit report is beyond me. Good for those of you who do not need it, but I think most people enjoy having a credit history.
There are many instances where your credit score and/or credit report may be looked at, and sometimes they have nothing to do with a loan.
Home and car insurance – If you have car or home insurance, your rate may be calculated on one factor that you did not know about – your credit score. If your credit score isn’t good, then you may actually be paying more because companies may consider you to be more risky.
Employer – This might be shocking to hear, but there are some employers out there who will check your credit report (with your permission). Industries that often check your credit report include those that deal with financial services, chemical, and defense.
Renting a home – If you have decided that you don’t want to own a home, do not think that you have escaped having your credit history checked. Your landlord will most likely check your credit history. They will want to know if you pay your bills on time or if you have skipped bills entirely. This will say a lot about you as a renter, whether you want to believe it or not. If your credit history is not something they want to see, you may be denied the rental altogether, you may be asked to pay multiple months at once, or you may be asked to find a co-signer just in case you fail to pay your rent.
Credit cards – If you don’t care about credit, then you probably will not care about this one. However, if you want a credit card, especially one with a good rewards system in place (learn more at How To Take A 10 Day Trip To Hawaii For $22.40), then you will want a higher credit score. The good reward credit card offers and acceptances are usually only available to though with good or excellent credit scores.
Loans (home, car, etc.) – If you apply for a loan, your credit score and credit history will definitely be checked. Before you are approved for a loan of any sort, the lending institution is going to thoroughly check your financial history so that they don’t end up losing money on your loan. There are a lot of expenses that go into owning a home, so getting the lowest interest rate possible is very important.
Credit Sesame Review
I once signed up for a free credit score company who used to have those catchy singing commercials. I thought it they were supplying a free credit score, and I remember being charged months later. I didn’t catch the charge the first time either, and I was actually charged a few times before I noticed.
Yes, yes, I know. I’m a personal finance blogger who made a huge mistake!
However, that was a long time ago and I have learned from my mistakes. And that’s why I want to do a review on Credit Sesame so that you can check your credit score for free.
If you are looking for a truly free credit monitoring service, then Credit Sesame is for you. Other companies say that they are free, but they usually charge you a fee later on when you probably won’t notice. Credit Sesame doesn’t ask for your credit card, so there is NO WAY that they can secretly charge you later.
Credit Sesame uses the Experian National Equivalency score, whereas most lenders will look at the FICO score. However, the scores are usually fairly similar.
Okay, so you’re probably wondering how everything is free. They must make money somehow right? Well, yes they do. Credit Sesame makes money by showing you different home loans and credit cards you may qualify for. If anyone clicks on these links, then they may make money that way.
Your next question may be “Will checking my free credit score on Credit Sesame hurt my score?” Nope! It is just a soft pull so it will not affect your credit score.
If you are interested in checking your FREE credit score through Credit Sesame click here. It’s completely free.
How often do you check your credit score? Are you trying to increase your credit score? Why or why not?
Family travel is a whole other ballgame. The strategy, gear, planning, expectations and number of times you may answer “Are we there yet?” make it an entirely different sport than solo or adults-only trips.
While traveling with kids is arguably quite different than taking a trip without a child (notice we didn’t call it a “vacation” with kids), it doesn’t have to be intimidating. In fact, there are countless ways to experience memorable moments and make lifelong memories with your kids, whether you hike the mountains of Machu Picchu or ride the newest coaster at Disney World.
Related: TPG’s 10 top family vacation destinations
To make the journey a little easier, we’ve compiled our 43 favorite family travel tips. Whether you’re traveling with infants, teens or some of both, these tried-and-true tips are bound to ease travel headaches and ensure your family travels are as fun and carefree as possible.
Travel tips for infants and toddlers
Having a baby does not mean the end of your time as a traveler. It may cause you to temporarily pause your adventures, and it will certainly change how you travel. But traveling with a baby is still worth the effort.
While it’s true that your baby may not remember the details of your trips during the first few years, quality time together is invaluable. You will always remember their first big vacations.
Some travel is often easier with a small, snuggly baby than with a growing, active toddler, so don’t be afraid to plan something while your little one is still young.
Use the right travel stroller
If you plan on traveling with a stroller, you want one that is lightweight and easy to maneuver through the airport or rough terrain, if necessary, once you reach your destination.
Related: These are the 13 best travel strollers for your next trip
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If you choose to gate-check your stroller, foldability isn’t as important. Instead, prioritize protecting your stroller from dirt and damage by investing in a stroller with a bag. For long layovers, you can request to have your gate-checked stroller delivered to you between flights so that your baby has a safe and comfortable place to rest while you navigate the airport. Just ask the gate agent when you check your stroller.
Baby-wear
To keep your hands free and your baby snuggled, you may choose to baby-wear through the airport or on a flight (though most airlines don’t allow it during takeoff and landing).
The Transportation Security Administration rules state that infants may be carried in a sling or carrier while going through the walk-through metal detector, so you shouldn’t have to remove them for security — at least, according to the rules.
If it’s not too hot, baby carriers and slings also come in handy at theme parks, which allow baby-wearing on many family-friendly attractions. Just be sure you ask about safety restrictions before you ride.
Breastfeeding mamas should consider carriers that allow easy access for on-the-go nursing, such as those in sling or wrap styles.
Consider a Doona
If you don’t want to lug both a car seat and a stroller and your baby weighs between 4 and 35 pounds, you’re in luck: The Doona can serve the function of both. It transforms very easily from a stroller to a car seat and back again, all while your baby is strapped in.
Because of their convenience, Doonas are great for flights, cab rides, Uber rides and, frankly, any part of your busy life with a baby.
Think twice about flying with a lap infant
Most airlines allow children younger than 2 to fly as lap infants instead of purchasing separate seats for them.
The cost savings can be hard to pass up, and during those early months when the little one is nursing or sleeping a lot, it can be the easiest way to go. However, if your baby is fussy or you are flying solo, you may feel more comfortable keeping them in their car seat. If they can sleep through anything or you have someone you can split baby-care duties with, you may have more success flying with a lap infant.
If you do purchase a seat for your baby, there are dozens of portable car seats out there that are much easier to travel with than the bulky car seat you may have at home.
Get a car seat just for travel
The Cosco Scenera is a perennial favorite when it comes to travel car seats. At around 10 pounds and only $50 to $60, this car seat is a winner for travel when you need something easy and affordable. It’s rated for rear-facing little ones weighing between 5 and 40 pounds or forward-facing kiddos weighing 22 to 40 pounds.
Another model to consider is the WAYB Pico portable car seat, which was recommended by several TPG readers.
Use a car seat on the plane
Every kid is different, but if your little one sleeps well in a car seat in the car, they may do the same on a plane. If your kids are generally comfortable in car seats and have their own seat assignments on the plane, consider bringing the car seat on board for a secure flight experience.
Related: Car seats that are airline approved
Bring a Boppy pillow if you’re holding an infant
TPG’s senior director of engineering Mitchell Stoutin recommended using a Boppy nursing pillow for long flights with an infant. In addition to being handy for nursing, it gives your baby a comfortable place to rest. He also advised stashing your Boppy in a vacuum Ziploc bag to save space when not in use.
Sign your kids up for frequent flyer programs
Once you make the transition to buying your child a seat — either because they turn 2 or because you think having a separate seat will work best for your family — sign them up for a frequent flyer account and let the miles start rolling in.
No minimum age requirements exist for kids, so enroll them while they’re young to maximize their earnings.
Related: Earning frequent flyer miles for your kids just got a little easier
Board last
Most airlines let families with young children board early in the process, but as long as your family has assigned seats, you don’t need to worry about rushing to board before others.
Instead, have one parent get all the gear ready and board first while the other waits as long as possible before bringing the baby on board. This will help minimize the amount of time you have your little one in tight quarters, reducing the likelihood of a meltdown or further disrupting their schedule.
Pack your carry-on strategically
Think about everything you may need to easily access for yourself and your baby before organizing your carry-on. That way, you don’t forget any of your must-have items or struggle to find them while on board.
Consider packing food, diapers and extra outfits for at least twice as long as you think you’ll need them for your little one while in transit. Don’t forget to also bring clothes, snacks and drinks for yourself so you have everything you need.
As a general rule of thumb, it’s a good idea to have enough essentials to survive at least 24 hours off of what you bring on board, as you never know what is going to happen.
Bring large Ziploc bags and black trash sacks
Avoid packing a suitcase without tossing in a few Ziploc bags, grocery bags or trash bags. They can be used to stash snacks and store wet or dirty clothing.
As TPG executive editor Scott Mayerowitz shared, large black garbage bags can also work as blackout shades in a pinch.
Related: The best family beach vacation destinations to kick off summer
Find a space in your hotel for the baby to sleep
In the best-case scenario, you’ll have accommodations with at least two bedrooms so your baby has a dark, quiet place to sleep while you relax without disturbing them. However, there are times when having multiple rooms isn’t possible.
If you only have one bedroom, try putting a crib in a hotel closet or bathroom to achieve the same result.
Travel with gear that will help your baby sleep in the hotel
When it’s time for the baby to sleep, there are numerous sleep tents, shades and white noise machines to choose from. Here are a few of our most trusted options:
You don’t always need to buy new gear for a successful trip, though. One reader suggested using painter’s tape to cover outlets as a quick, cost-effective way to baby-proof your hotel room.
Related: These are the best New York City hotels for families to check out
Have diapers and essentials shipped to your final destination
While you need plenty on hand for that first day or two, you can purchase what you need from Amazon and have it shipped directly to your destination instead of traveling with an entire week’s worth of needed items like diapers and wipes.
Alternatively, you can use a service like Shipt or Instacart to have essentials delivered to your hotel or home rental after you arrive.
Pack the snacks
This is true for all ages but especially applies when traveling with infants.
Don’t ever assume anything baby-appropriate will be available while you are in transit. The last thing you want is the stress of scrambling to find what you need at the last minute.
To avoid this potential headache, pack enough formula, snacks and more so you have whatever your little one may need to stay happy and content.
Related: How to pack — and prepare — for travel with a baby
Travel tips for preschoolers
The good news is that when kids are old enough for preschool, they don’t need quite as much sleeping and transportation gear.
With preschoolers, you’ll want to pay particular attention to toys and activities that will keep them entertained, night lights that will help keep the “scaries” away and a few other important travel essentials.
Bring mess-free toys
When choosing toys to pack for a flight or road trip, keep in mind that you don’t want anything that will create a mess or get lost easily, such as Legos or slime.
For mess-free coloring, we love Crayola Color Wonder Markers and coloring pages. If you’re taking a long flight or road trip, consider suction toys that can stick to a car or airplane window.
Related: 14 mistakes parents make when traveling with kids
Pack hidden toys to reveal during your trip
A surefire way to keep your child content for extended periods of time is to hide some toys until your travel day arrives so they feel new and exciting. You can even wrap them up or dole them out periodically throughout your trip — we recommend packing one toy for each hour of a flight — to add an element of surprise.
Try visiting a dollar store or dollar aisle in a store to dial up the surprise factor. Trust us, the $5 investment will pay off in spades.
Related: Your guide to flying with kids of every age
Consider an inflatable booster seat
If your child has graduated to a booster seat (congrats!), there are inflatable and fold-flat booster seats available that are easier to haul when traveling by car.
While there are several options currently on the market, the BubbleBum inflatable booster seat is a TPG reader favorite.
Use a stroller
Should you find yourself covering lots of miles on your trip, having a stroller can come in handy, even if you don’t normally use one at home.
For example, at a large theme park like Disney World, you may find yourself needing a stroller until your kid is 6, 7 or even 8 years old if you are moving quickly and want them to easily keep up (or if you know they will fall asleep before you are ready to call it a night). This may mean renting one when you get there, though you may prefer to have your own if you’re doing more than spending time at Disney.
Get stroller straps
Because it isn’t socially acceptable to AirTag children (though they do come in handy for finding lost luggage), we instead suggest getting stroller straps that bigger kids can hold on to while you push younger children in the stroller. We’re particularly fond of the Tagalong Stroller Accessory.
Preschedule car service from the airport
If you need car seats or want to be sure you have a ride waiting for you when you land, Uber and Lyft now both have options for prescheduling a ride if you need one.
While the best service depends on where you are going, one option to try is Blacklane. Consider having your driver meet you inside at baggage claim if you’re traveling with a lot of gear.
Pack a night light
For kids who are afraid of the dark, night lights may come in handy. This affordable nightlight is small, sleek and easy to pack.
If you are going on a cruise and don’t have access to traditional power outlets, TPG senior travel editor Erica Silverstein suggests bringing along battery-operated tea lights instead.
Travel somewhere with a kids club
A magical milestone in travel is when your child turns 3 and is potty trained, as this unlocks access to a variety of kids clubs.
Whether you’re on a Disney cruise (like the new Disney Wish cruise ship, pictured below) or at a resort with a kids club (some of which are free to use), children’s clubs are great for preschoolers.
By going somewhere that caters to younger children, you’ll be able to get a well-deserved break while the kiddos are taken care of.
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Plan down days and afternoon rest
Even if your preschooler has dropped daily naps at home, it’s still smart to build some downtime into your vacation schedule. This is especially important because it’s likely that their sleep schedule will be a little off while you’re traveling and that your vacation will be more action-packed than what they’re used to at home.
To help your overtired kid adjust, plan a relaxing pool day or take an afternoon break in your hotel room to keep crankiness at bay.
Travel tips for elementary-age kids
As kids get older, they can do more while on vacation with less help, but the tried-and-true tricks for keeping them entertained may no longer work.
Because their brains are developing and becoming more complex, elementary-age kids will need to have access to more activities while they’re away from home. As a result, you’ll need to adjust your strategy for vacations so they continue to have a good time.
Use packing cubes for the family
This tip applies to all age groups but can be especially helpful when your child starts taking more of an interest in choosing their own clothes. By relying on packing cubes, you can keep clothing for every member of your family organized while saving space.
If you decide to use packing cubes, there are a couple of good methods to choose from.
You can have a packing cube for each day of your trip and put your family’s clothing for each day in one cube. This works well if you will be making multiple stops and don’t want to pack and unpack everything.
You could also pack each family member’s clothing in a separate packing cube, which is helpful when you are encouraging kids to get dressed on their own and choose their own outfits.
Leave 1 day free in the schedule
We’ve already covered the importance of leaving some flex time in the afternoons, but if you are traveling for more than a long weekend, we highly recommend leaving an entire day unscheduled. That way, the kids can either rest and chill or you have the ability to say yes to something they spot along the way.
Depending on your child’s interests, you may want to use your free day for activities like splashing around at a water park, checking out some animals at a zoo, enjoying an epic ice cream-tasting adventure or spending more time at the kids club.
The key is to leave this day flexible so you can cater some activities to what your kid is enjoying the most.
Take advantage of your hotel’s club lounge
Club access can be invaluable when traveling with kids.
If you stay in a club-level room at a hotel, you’ll often have daily access to breakfast, snacks and drinks. An added bonus is that the club can serve as a gathering spot for enjoying more time (and often gorgeous views) with them.
Related: Can you use a World of Hyatt club lounge access award for someone else?
Plan trips with another family
This is the age where having other kids around really starts to matter.
If at all possible, try planning the trip to at least overlap with time spent with cousins or friends. Doing so will virtually guarantee the kids will have a better time, which means you will, too.
For these types of trips, you may want to look into finding a good vacation home rental.
Related: Why the best big family vacation may be skiing
Travel tips for tweens and teens
Traveling with tweens and teens is completely different than traveling with younger kids — something you probably know all too well if you are currently living with them.
At this age, kids are well on their way toward becoming full-fledged adults. As a result, they deserve a taste of the space, privacy and independence that comes along with adulthood.
Build an activity bag
It’s easy to assume the phone will do the trick, but TPG editor Kristy Tolley is a proponent of custom activity bags to keep kids (including older ones) occupied on long trips.
For your activity bag, consider anything from snacks to quiet toys to new games for their Nintendo Switch to art supplies — whatever will keep them entertained while you get to your final destination.
Double-check downloaded content
Wi-Fi on airplanes can be quite finicky. Even if you pay for it, there’s never a guarantee it’ll work for the entirety of your flight. Because of this, download movies, music, games and more to your device (or your child’s) before your trip.
When downloading movies or TV shows, turn to multiple sources like Netflix, Disney+ and Apple. That way, if you run into issues with one provider, you still have content from the others.
Also, remember that messaging others is free on many flights, so be sure your teen has the airline app downloaded if you want them to be able to keep using services such as iMessage while in the air.
Enroll your child in TSA PreCheck
Until they turn 13, kids traveling with a parent or guardian with TSA PreCheck will be allowed to go through the expedited security line even if they themselves don’t have TSA PreCheck.
Even after they turn 13, kids 17 and younger can typically use the TSA PreCheck lines with their parent or guardian as long as the teen has the indicator on their boarding pass.
If you have a credit card that reimburses fees for TSA PreCheck, you can recoup the cost of your child’s application. Note that Clear continues to work to bring kids through until they turn 18.
Related: Why you should get TSA PreCheck and Clear — and how you can save on both
Consider connecting rooms
The days of squeezing two or three kids into one queen-size bed are probably long gone once they reach their teenage years. Not to mention, trying to have the whole family use one bathroom is an ordeal you likely won’t want to go through.
To keep the peace, consider reserving connecting hotel rooms.
With connecting rooms, you’ll have double the beds, bathrooms and storage space. Plus, teens and tweens will have the space and privacy they need without you being too far away to keep an eye on them.
Related: Big news for families: Hilton to guarantee adjoining rooms with ‘Confirmed Connecting Rooms’
Let kids choose a few activities (or plan the whole day)
At this age, kids are not just along for the ride. Give them some input (and independence) by allowing them to help plan your trip. Odds are they’ll be more engaged by being involved in the planning.
Bring a friend
While planning trips with other families is a good strategy with elementary-age kids, by the time kids are teens, just bringing along one of their friends could be sufficient.
To keep the costs down, consider using an airline companion certificate to bring along that friend without spending extra.
Go somewhere with a teens club
If you are visiting a resort or destination where you may be going light on activities, lean into places that have a space just for teens.
Cruise ships are fantastic when it comes to this, as they often have kid-focused spaces divided into pretty distinct age ranges. For example, Disney Cruise Line has a club for kids ages 3 to 12, another for those between 11 and 14 and then one for teens ages 14 to 17.
By taking advantage of clubs that are broken up into designated age groups, your teen can have plenty of fun without the annoyance of hanging out with younger kids.
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Related: Child turning 18? Here’s everything you need to know before the next time they travel
General family travel tips
Some family travel tips transcend age groups.
Regardless of how old your kids are, where you’re traveling or how you’re getting to your vacation destination, there are a few tips you’ll always want to keep top of mind.
Utilize airport lounges
Airport lounges are becoming more and more kid-friendly, as they offer dedicated family rooms with toys and kids shows on TV, plus food that will please picky eaters. Additionally, if you have a long layover or are dealing with flight delays or cancellations, you’ll be much more comfortable waiting in a lounge instead of at your gate.
You can purchase a day pass to many lounges but may be able to get yourself and your family in for free with certain credit cards or airline status. For example, The Platinum Card® from American Express grants the cardmember and one guest complimentary access to Priority Pass lounges and access to Centurion and Escape lounges, though complimentary guest access depends on how much you spend annually.
Related: Best credit cards for airport lounge access
Upgrade to a suite
Similar to springing for connecting rooms, upgrading to a suite will buy you additional space and, sometimes, a pullout sofa that adds another sleeping option.
You’ll also have more room for your family’s belongings and areas for relaxing and dining so your kids don’t spend all their time jumping, eating and lounging on the beds.
Check for reciprocal zoo and museum memberships
If you have a membership to your local zoo or museum, you may be able to use reciprocal benefits for free or discounted entry to other zoos and museums that you can visit on vacation.
This information is usually available on your zoo or museum’s website, but you can also check lists on the Association of Zoos & Aquariums’ page about reciprocal admissions or on the North American Reciprocal Museum Association website.
Get a travel tracker that doubles as a memento
There are so many unique travel souvenirs you can get that also serve as keepsakes for remembering your child’s travel “firsts.”
These Junior Frequent Flyer flight logbooks allow you to record your child’s flights while teaching them about aviation.
If a national park visit is in your future, order a standard or junior National Parks Passport and collect stamps every time you visit a new park.
Don’t forget important medicines
When you are away from home, you have to be prepared for anything. That includes unexpected sicknesses and accidents.
Pack kid-safe and grown-up medicines, as well as Band-Aids, antibiotic ointment and other first-aid necessities in your carry-on bag so you won’t be without them if your checked luggage is delayed or lost.
Bring an extra bag
If you are traveling between a cold climate and a hot one, pack a lightweight tote bag that can fold into your carry-on so you can easily gather up everyone’s coats once on the plane. By keeping this tote tucked away until you’re on board the aircraft, you’ll enjoy an extra allowed bag, saving you the headache of trying to determine where to put bulky coats.
Get Global Entry for each family member
Unlike TSA PreCheck, which allows kids to travel with an eligible adult until they turn 18 (in most cases), anyone wishing to use Global Entry to expedite reentry into the U.S. needs to apply for the program.
Global Entry can save valuable time spent waiting in line. However, you’ll need to apply well in advance of your trip so you have time to submit your application, complete an in-person interview and await approval.
Similar to TSA PreCheck, you can use a credit card that will reimburse your child’s Global Entry application fee.
Try out the games built into many spaces
It’s easy to miss, but many resorts, theme parks and cruise ships have a hidden layer of fun that ranges from traditional scavenger hunts to interactive activities you can unlock with an iPhone or similar device.
While the youngest travelers won’t benefit from these types of experiences, they can be fun for a variety of age ranges, especially elementary-age kids and tweens.
Related: Disney World rolls out all-new MagicBand+: Here’s what this wristband can do for your trip
Bottom line
Family travel has its own built-in challenges, but it also comes with immense rewards.
By knowing all the tips and tricks to traveling with kids, having the right gear with you, mapping out a game plan and having the right attitude and realistic expectations, you can have a memorable vacation every member of the family enjoys.
You may not get to do everything you want or sometimes feel like it’s more of a hassle than a vacation. However, if you’re willing to be flexible and appreciate when things go according to plan — even if the end result isn’t quite what you had hoped for — you’ll find yourself eager to book your next family trip before you have the bags unpacked and put away.
Have you ever thought about renting a short-term apartment? Whether you’re seeking short-term accommodation for business or pleasure, here’s what you need to know.
When
If you’re on the road for work frequently or just love to travel for personal reasons, it may be worth it to you to look into staying at a short-term corporate or vacation rental rather than a hotel. Or, if your situation requires that your living arrangements stay flexible (like if you’re a student, are in between leases or are planning to purchase a house in the near future, etc.) renting a short-term apartment may make sense for you.
Why
While you may not be offered a free continental breakfast or other amenities like housekeeping or room service, the benefits and added perks can often give the advantage to staying in a short-term apartment when you’re vacationing. And, if you’re a business traveler relocating for a few weeks or a few months, the flexibility of staying in a short-term apartment can be worth it.
More from Apartment Guide: Month-to-Month Leases: What You Need to Know Understand Your Lease Before Signing ItKnow the Components of an Apartment Lease Agreement
What You Get
The extras. We’re not talking about stale bagels and subpar coffee. Perks like a personal washer and dryer, hot tub, luxury fitness center, and extra space are more common in apartments than hotels. When you’re traveling on a budget, having a fully equipped kitchen is a great way to save some money while staying in and cooking a meal. Outdoor amenities like a front porch, balcony or patio can be a nice perk and allow for some fresh air that you might not get in a hotel room.
Price is right. If you’re staying for an extended amount of time at your destination, hotel fees can be pricey. Even for the most budget-friendly hotels, you can expect to pay up to $800-$1,000 a week. A short-term apartment, however, may charge a similar price for a month’s stay, getting you more time for your money.
Location, location, location. Staying in a hotel when you’re traveling may mean you’re relegated to a being in a commercial area rife with chain restaurants and fast food joints. To really immerse yourself in the city, choose a short-term apartment in a neighborhood that is known for its cool location and environment. You’ll have access to public parks, trendy restaurants, and unique retail shops that will give you a better sense of the personality of the city while you’re there.
What to Look Out For
The fine print. Make sure to familiarize yourself with the policies before you sign on the dotted line. Cancelation policies vary, so be aware of the potential penalties for canceling or changing the dates of your visit. If you have young children or pets traveling with you, check ahead of time to ensure they can be accommodated. Most apartments don’t allow smoking, so smokers may need to seek out alternate accommodations.
Know the details. One benefit of a hotel is having round-the-clock access to a concierge desk. In a short-term apartment, that may not be available, so make sure you have the details squared away before arriving. When and where will you pick up the keys? When can you check in? Who is your contact in case your flight is delayed or plans change? Knowing before you go can save you a headache.
If you have a disability that affects your daily life, you may qualify for government or private funding programs. Whether you want to make your home more accessible, find decently priced health insurance, or start a business, there are financial resources designed for you.
Note: though people with disabilities earn across the income spectrum, some of the resources on this list are reserved for people with low incomes (or people whose disabilities make it tough to find employment). If you earn above a certain threshold, some suggestions here won’t apply to you. Others are available to all people with disabilities, regardless of income.
Unless noted otherwise, the resources in this article are specific to people who live in the United States.
What’s Ahead:
Housing
Public housing programs
Depending on availability where you live, you can get on the list for low-cost public rental housing through the federal office of Housing and Urban Development (HUD). You apply at the local level through your state agency.
Note that there are income limits based on the median income in your area, and typically a long waiting list.
Rental assistance for private housing
It’s also possible — and maybe less of a wait — to qualify for rental assistance on private housing of your choice. This map directs you to available housing and other financial help in your city and state.
Vouchers for renting or buying
HUD’s housing choice voucher program, otherwise known as Section 8, includes people with disabilities in its voucher-eligible pool. Vouchers give you financial help to pay all or part of the rent.
You can pick the home or apartment where you want to live, unlike with public housing assistance. But you’re responsible for finding the place and filling out the application.
The income requirements are similar to those for public housing. If you earn less than 50% of the median income for your area or county, you’re eligible.
Non-elderly disabled (NED) voucher program
This voucher program is designed for people with disabilities who wouldn’t otherwise qualify for housing assistance.
There are a few different kinds of NED vouchers. Some help you pay for rentals on the private market. Others set aside units in certain Section 8 housing developments for applicants with disabilities.
Buying a home
For people ready to buy, housing choice vouchers can help pay the mortgage and other miscellaneous homeownership costs. Note that this voucher program is for first-time homeowners, and not every public housing agency offers it.
Find your public housing agency here to learn their voucher specifics.
Read more: Home affordability calculator
Home repair
Government loans for rural homeowners
The U.S. Department of Agriculture (USDA) has grants and loans for rural homeowners who want to retrofit or modify a home to make it more accessible. Use their map to check if your neighborhood qualifies as “rural.”
Grants are reserved for elderly homeowners, but loans up to $40,000 are open to all qualified applicants (at 1% interest, which you really can’t beat).
Home repair for veterans
If your disability is connected to your time in the military, you may qualify for a government grant to buy or repair your home.
These grants are substantial — over $100,000 for fiscal year 2022.
Private home repair aid
Rebuilding Together is a volunteer organization that completes home upgrades and repairs at no cost to homeowners with disabilities.
The National Directory of Home Modification and Repair Resources has links to several funding opportunities, including local loans and grants.
To search state-by-state for home repair grant assistance, try the Rehabilitation Engineering Society of North America’s Catalyst Project directory.
Education
Grants, scholarships, and loans
There are diverse financial resources for students with disabilities at the undergraduate, graduate, and professional levels. Many are geared towards certain disabilities, but some are more general.
Read more: Money Under 30’s guide to filling out the FAFSA
Federal student loan discharge
Student loan borrowers with total and permanent disabilities can apply to have their federal loans partially or fully discharged. You’ll need some documentation to confirm your disability. (Note that this program only applies to certain federal loans).
Savings
ABLE accounts
Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts (meaning you don’t pay taxes on income you earn from them).
Designed to meet disability-related expenses, ABLE accounts are less expensive alternatives to most trust funds. You can contribute up to $16,000 a year.
If your disability onset occurred before you turned 26, you may be eligible to open an ABLE account. And if you’re taking advantage of income-contingent programs like housing vouchers or food stamps, ABLE account savings won’t affect your eligibility.
Health insurance
Medicaid
You may already know about Medicaid, but in case you don’t, this low-cost (sometimes free) government-funded healthcare coverage is available to people with disabilities and low incomes. Each state has slightly different Medicaid requirements.
Medicare
Medicare, while also free or low-cost, isn’t attached to income. Younger people with disabilities qualify for Medicare, and they can work while receiving Medicare.
If you’re eligible, you can have both Medicare and Medicaid (depending on your health care needs, the extra coverage may be worthwhile).
Read more: What to do when you get medical bills you can’t afford
Paying for prescriptions
Once you qualify for Medicare, you’re automatically eligible for a range of pharmaceutical savings programs, including Medicare Extra Help and state-based assistance for certain prescriptions.
Other financial resources for medication access include:
Living expenses
Social Security Disability Insurance
Social Security Disability Insurance (SSDI) has pretty strict requirements. You may qualify if your disability makes you unable to work, if it’s designated as a total (not partial or temporary) disability, and if you’ve previously worked long enough to pay Social Security taxes.
Its benefits include monthly financial assistance, at a higher amount than its sister program Supplemental Security Income (SSI).
Supplemental Security Income (SSI)
SSI monthly benefits are easier to qualify for than SSDI. You don’t need to have paid into Social Security, but your income can’t be above a certain amount.
You can have a part-time or full-time job and stay on SSI through their “work incentives” program. The goal is generally to transition participants off SSI once they’ve saved enough cash, but each case is different.
Read more: Why disability insurance is the most important financial product you didn’t realize you needed
Employment
If you’re entrepreneurially-minded, the Small Business Administration has a list of resources — including grants, loans, and professional networks — designed for business owners with disabilities.
People with blindness or significant disabilities can browse the job boards and make connections at AbilityOne.
For people on SSI or SSDI benefits, the Ticket to Work program gives referrals, training, and other employment assistance.
Summary
If you need some help paying bills, relocating, or meeting a savings goal, there’s likely to be a disability-related program that matches your needs.
And if you’re financially independent, it’s still worthwhile to check out your aid options — public and private resources can keep more money in your pocket for the future.
How To: Make
Your Money Work for You with Cash-Out Refinance Funds
Whether you just bought a new home or have been an established homeowner for years, chances are you’ve heard of refinancing as a viable option to make your property more affordable. But did you know that you can refinance to tap into the value of your home and gain money to put toward just about anything?
It’s possible
with cash-out refinancing. Let’s take a few minutes to explore just some
of the many opportunities you’ll have with cash-out refinance funds.
What is a
Cash-Out Refinance?
Simply put, a cash-out refinance is when you replace your current mortgage with something bigger and take the difference in a lump sum of cash.
An example: you have a mortgage with a remaining balance of $170,000 and get a new loan of $200,000 with a cash-out refinance. This would leave you with $30,000 in cash to put toward anything you want!
Of course, it’s
important to remember that you’ll still have a mortgage to pay off after
cash-out refinancing. Since you’ll increase your loan amount to include the
cash you’d like to take out, your mortgage payment may be slightly higher;
however, if you’ve already paid down a significant amount of your loan, the
difference in payment may not even be noticeable. The amount of cash you get
from this type of refinancing will also depend on the value of your home, the
lender you do business with and more – so be sure to review your financials and
speak with an advisor to determine whether cash-out refinancing is the right
option for you.
Now that we’ve
covered the basics, it’s time to see some of the best ways you can utilize
cash-out refinance funds as a long-term source of income.
Invest in
another property
Depending on the
amount of cash you get from refinancing, you can invest in a secondary property
that could provide reliable income for years. This could be as simple as owning
a single-unit apartment or more involved with properties like multi-family
homes. Regardless, renting out space is almost never a bad idea if you’re
looking for passive income – and cash-out refinance funds can get you there.
Here’s a couple of ideas with proven success to get you started:
House Hacking: invest in a multi-family
home and live in one of the units, using the passive income generated by your
tenants to pay off your mortgage. Normally this is done at a primary residence,
but the same principle still applies; you can use the cash-out refinance funds
from your primary home to purchase a second rental property as a source of
income. Learn more about the benefits of house hacking here.
The B.R.R.R.R. Method: buy, rehab, rent,
refinance, repeat – a great method for those interested in building wealth with
a more disciplined approach to real estate. If you have the funds available to
you, you may consider buying a home, making renovations, renting it out,
refinancing it when the time is right, and using those refinance funds to do it
all over again. In the right circumstances, the B.R.R.R.R. Method can be a
great source of income that grows with each property purchase. Learn more about it
if you’re interested!
If you do choose
to dedicate your cash-out refinance funds to property investment, be sure to
consider the same things you did when you purchased your first home. Proper
care and a great location will go a long way when your listing is on the market
– and if your investment property checks all the boxes, it’ll offer reliable
monthly income for years.
Consolidate
your debt
Among the most popular uses of cash-out refinance funds is debt consolidation – the act of moving high-interest debt to long-term, low-interest debt to save on interest in the long run. This is a great option for those who may be struggling with credit card debt; with the current credit card interest rate at an average of about 16 percent, it could take years for cardholders with outstanding debt to pay it off. But with a cash-out refinance, you can take a slight increase in your mortgage and do away with those interest costs entirely.
Let’s say you
have a credit card that’s gained a significant amount of debt. Even if you
reliably meet your minimum payment requirement, that debt will continue to rise
based on your interest rate and will result in you taking longer to pay off the
loan. Let’s also say, however, that you did a cash-out refinance that put that
$30,000 from our earlier example right into your pocket; you may be getting a bigger
mortgage by refinancing, but you can use the cash sum to pay off your credit
card debt and prevent years of interest costs – that’s a lot of savings in the
long term.
Of course, this
only works if you’re a disciplined spender and know not to fall back into
credit card debt after paying it off. Speak with a financial advisor
to evaluate your situation and determine whether this would be the right use of
cash-out refinance funds for you.
Purchase collectibles,
antiques or memorabilia
Everyone has
their thing – and for some, it’s buying physical objects at auction for a
significant price. Despite our continuous transition into a digital-focused
culture, many find value in owning props, memorabilia, collectibles, antiques
and more. If you have the cash-out refinance funds to spare, it may not be a
bad idea to put some toward things that may have a higher value in the future.
Here’s an
example: a 2003-2004 LeBron James basketball card sold for
$1.8 million in July 2020. That’s a significant value increase over a span
of about 17 years – and that’s just for a modern trading card!
Here’s another,
more extreme example: just this month (August 2021), a Honus Wagner baseball
card issued sometime between 1909 and 1911 sold
at auction for $6.6 million, making it the most valuable sports card to
date. We can’t all wait 100 years to sell our collectibles, of course, but it’s
important to recognize that these physical things can gain immense value over
time.
So if you’re
looking to put your cash-out refinance funds toward collectibles, always aim to
make a return on your investment and know that it might not happen for a long
time. Make sure you have faith in the collectibles you invest in and most
importantly, do research! Objects related to events that are prominent right
now will likely grow in value over time as demand increases and availability
decreases. And as long as you verify the legitimacy of your collectibles, you’ll
be setting yourself up for a future return on your investment – especially if
you find the right buyer.
Do nothing,
but make money anyway with high-yield savings
If you’re not
sure how to use your cash-out refinance funds, you can deposit them into a
high-yield savings account that will accrue interest over time. Unlike
traditional savings accounts, these include significantly higher rates that
apply not only to your principal balance, but to the interest your account
earns as well. And depending on how often your interest compounds, you’ll earn much
more than a standard savings account by simply letting that money sit in the
bank.
For example, a certificate
of deposit (CD) is ideal for anyone interested in earning high-yield savings
with minimal risks. CDs are federally insured and often remain at the same rate
for the duration of their term. To some a fixed rate may seem unattractive, but
consider this: if you have an excess of cash-out refinance funds, why not put a
small portion of it toward a passive source of income? Even just a few years of
having funds in a CD will result in a noticeable return – even more so if you
work with the right lender and get a good rate.
It’s important to
note that not all high-yield savings accounts offer fixed rates. Depending on
your lender, some may involve more risk with a variable rate that could
fluctuate and change. As with all financial decisions, it would be beneficial
to meet with an advisor to determine if this would be the right investment
opportunity for you.
Wrapping up
At the end of
the day, cash-out refinance funds can be used for almost anything – but if
you’re going to use them, be sure to put them toward something that will
improve your financials, serve as a money-making investment, or both. A few
viable options include:
Investing in secondary/multiple properties
Purchasing collectibles to sell for more at a
later date
Consolidating debt to save on interest
Taking advantage of high-yield savings accounts,
and
Renovating your home to increase its future
value
As long as
you’re in a good position to refinance, cashing out on part of your home’s
equity can be a great move to build long-term wealth. If cash-out refinancing
sounds right for you, contact a
Total Mortgage loan officer and get started today.
Embarking on a downsizing journey as a senior can be exciting and overwhelming. It’s a time filled with anticipation for a new chapter in life, but it also involves making tough decisions about belongings accumulated over the years. A comprehensive checklist can be an invaluable resource to ensure a smooth and successful downsizing process. Whether you’re considering downsizing for retirement, transitioning to a smaller home or exploring senior living options, this checklist will help simplify the process and pave the way for a stress-free transition. You can also work with a financial advisor to help you with a retirement budget, which can often help you decide what and when to downsize.
Downsizing Checklist for Seniors
When creating a downsizing checklist for seniors, it’s essential to consider specific needs and goals, efficiently declutter and organize belongings and effectively plan for the move. Here are key items to include in the checklist.
1. Gather Important Paperwork
To get started, the first thing you should do is organize your essential documents in a neat and organized way. It’s a good idea to keep important information safe by storing it in a secure place like a safe deposit box or a fireproof safe. That way, you can have peace of mind knowing that your documents are well-protected.
Next, consider making digital copies of all your vital documents. This will provide an extra layer of security in case anything happens to the physical copies. Store these digital copies securely online using a reliable and encrypted storage service. This way, even if something happens to the originals, you’ll still have access to them whenever you need them.
Lastly, remember to let your loved ones know about the whereabouts of these crucial documents. It’s important to share the location with them and provide clear instructions on accessing them. This ensures that your loved ones can easily find and retrieve the necessary information in case of an emergency or when important decisions need to be made.
Remember, taking these steps will give you peace of mind and make it easier for you and your loved ones to access important documents when needed.
Documents to Include
Here are some documents you’ll want to save and organize:
Contact information for professionals like your attorney, doctors, financial advisor and insurance agent
A list of personal assets like property and investments
A list of liabilities and debts like auto loans, mortgages and credit cards
Social Security and Medicare cards
Copies of your federal and state income tax returns for the last five years
List your checking account, savings account and credit card numbers and accounts
Legal documents, including trusts, wills or amendments and necessary directives like the durable power of attorney and advance directives
A letter addressing any personal matters or issues you want to communicate or document
2. Pack and Organize Your Belongings
You can greatly simplify the packing and moving process by organizing and planning ahead. Here are some key tips to make your packing more efficient:
Enlist the help of family members, friends or the moving company to assist with packing tasks. The moving process will be much more straightforward, with everything labeled adequately in advance.
Ensure you have markers and labels available for labeling boxes.
Label each box with its intended destination room or area in the new residence. This will make unpacking and organizing much more efficient.
Consider utilizing specialized containers the moving company provides, such as wardrobe boxes for keeping clothes on hangers or protective boxes for flat-screen TVs.
Prepare an “open first” box or boxes. These should contain essential items for setting up sleeping accommodations and the bathroom. Include fresh bedding, toiletries, nightclothes, towels, utensils, a change of clothes, a flashlight, tape, scissors and cash for ordering dinner since moving often takes longer than expected.
Pack essential items that you’ll need to keep during the move separately. These may include the new lease or residence contract, keys, medications, legal documents, checkbook, cell phone, address book and a first-aid kit. Remember to label this container. Valuables like jewelry should be kept in a safe-deposit box unless regularly worn.
3. Prepare for Moving Day
Preparing for moving day is crucial to ensure a smooth transition to your new home. Some important tasks to complete include:
Organize a moving binder that includes important information like critical contacts, estimates, receipts and an inventory of the items you’ll take.
Confirm the final details with your mover or moving coordinator.
Arrange utility disconnects according to your moving schedule.
Schedule post-move-out cleaning services to ensure a smooth transition.
Ensure you have a written contract from the moving company that clearly outlines coverage for lost or damaged possessions.
Obtain a specific arrival time from the moving company for your old and new residences.
Verify the available payment options for the moving company, such as credit card or check.
4. Wrap Up the Remaining Moving Day Tasks
When the moving day finally arrives, there are a few last-minute details that can assist you in completing the downsizing process smoothly.
Assign someone to meet the movers at your new residence, ensuring they have a key and that the community manager is aware of your arrival.
Begin by cleaning out the pantry and deep freeze, remembering to reduce your cleaning supplies.
Double-check inventory lists to ensure everything is accounted for.
Properly label all boxes to facilitate organized unpacking.
Ask a neighbor for any mail that might arrive after your move.
If you bring a pet, pack their food and medications to ensure a smooth journey and safe arrival.
Pack a suitcase with your clothes and medicines, so you’re ready for the first day after your first night in the new home.
Personally pack valuables and belongings that you don’t frequently use.
Use the “open first” boxes to set up the bedroom and bathroom immediately.
Be prepared to spend a few days unpacking and organizing. Enlist someone to help you. Work efficiently to make your new home feel comfortable quickly.
Tips for Downsizing Seniors
It’s not always easy to know when or how you should be downsizing. You need to first understand your budget before moving forward with the whole process so you know how much money you want or need to save. Here are six recommendations to make downsizing a smooth transition.
Start Early
Downsizing can be daunting, especially for seniors who have resided in their homes for an extended period. The mere thought of downsizing can easily lead to feeling overwhelmed, causing individuals to become paralyzed and delay the process. Unfortunately, this only adds to the difficulty of the task.
You gain the advantage of time by starting early, even before embarking on the search for a senior living community. This approach reduces stress for everyone involved and provides an opportunity to cherish memories while sorting through old family photographs and keepsakes throughout the house. Taking it slowly ensures a smoother downsizing experience.
Prioritize the Essentials
Take an inventory of the possessions you hold dear and cannot let go of. Consider the limited space you will have in your new home. Additionally, create a separate inventory for belongings that hold significance but may need to be relocated to a friend or family member’s home.
Safeguard Your Valuables
The process of downsizing and relocating can often be chaotic, especially when you’re preparing to sell your home. To simplify matters and mitigate risks, consider renting a storage space or utilizing a family member’s garage or basement to temporarily store your cherished possessions. This precautionary step not only safeguards these items but also creates a more spacious and appealing environment for potential buyers.
Design a Layout
If you have decided on a senior living community or a condominium, obtain the measurements of each room. Next, measure the furniture you intend to bring along. Utilize these dimensions to develop a comprehensive floor plan for your new home. You can use either graph paper or user-friendly online tools like RoomStyler or Homebyme.
This process will visually represent how many of your belongings can be accommodated in the new space. Therefore, helping you determine what will fit and what may need to be left behind.
Develop a Strategy for Discarding Unwanted Stuff
Determining the best action for disposing of unneeded items requires careful consideration. Although your community may have several nonprofit organizations that accept donations, it may take some effort to determine which items they are willing to receive. Disposing of older electronics can also pose additional challenges.
Fortunately, specific charities provide pick-up services, which can be particularly helpful if you have larger furniture pieces or multiple boxes of smaller items to donate. Lastly, remember to request a receipt from each charity, enabling you to claim tax deductions for your donations.
The Bottom Line
Downsizing offers seniors a transformative experience. It enables you to embrace new opportunities and discover a more manageable lifestyle. With a comprehensive checklist, seniors can confidently navigate the process, from assessing needs to organizing belongings. By planning ahead and making informed decisions, you can ensure your new living space is filled with cherished possessions.
Retirement Tips
Retirement brings its own set of challenges, but financial worries shouldn’t be one of them. If you aspire to have a substantial nest egg when you retire, consider seeking guidance from a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
When planning for retirement, it is crucial to accumulate a solid savings portfolio. However, it’s equally important to factor in your Social Security benefits. Utilize SmartAsset’s Social Security calculator to estimate the potential benefits you may receive.
Ashley Kilroy
Ashley Chorpenning is an experienced financial writer currently serving as an investment and insurance expert at SmartAsset. In addition to being a contributing writer at SmartAsset, she writes for solo entrepreneurs as well as for Fortune 500 companies. Ashley is a finance graduate of the University of Cincinnati. When she isn’t helping people understand their finances, you may find Ashley cage diving with great whites or on safari in South Africa.
Sometimes finances can seem like magic. Or, at the very least, a mystery. Especially when it comes to figuring out how much rent you can afford.
This is where budgeting comes in. Creating a monthly budget can help you understand how rental rates fit into your financial life.
Use these tips and resources to get a handle on your budget, understand how rental rates are determined, and figure out just how much you can comfortably afford to spend each month on rent.
The budget worksheet
Think of your budget not as a restrictive punishment that forces you to cut back, but as a document that allows you the freedom to spend what you need to spend and still meet your financial goals.
Your budget plan starts with knowing how much you make. Once you know how much income you have coming in each month, you can look at how much you have going out in expenses. Comparing those two basic figures is how you make a budget. Remember to be realistic and calculate not just your salary but your take home pay after all expenses are factored in.
It’s easiest to record your spending behavior and get everything straight when you use a budget worksheet. There are several online resources you might check out. Bankrate offers an online app where you can identify and input your expenses; Freddie Mac suggests tracking your income for two months using this PDF budget worksheet.
The rent figure
Rental rates are set according to what the market can bear. To set rates, property managers will consider what comparable apartment units rent for in the area. The price will go up if their units feature bonuses like convenient amenities, a prime location or recent renovations.
But how much should you spend on rent? While it’s common for financial experts to recommend spending around 25 to 35 percent of your income on rent, that figure may not be feasible. In some of the largest and most competitive rental markets — New York City, for example — you may have to spend more. Renters should be flexible and consider what other costs they may be willing to cut in order to get the right rental in the right place.
Watch for hidden costs
It would be nice if rent prices were the only expenses impacting a renter’s monthly budget. But in the real world, your monthly rent is just the first of several other obligations. Beyond the obvious bills such as utilities, cable and Internet, renting often includes hidden costs that can pop up and bite your finances if you aren’t prepared.
Before you even move in, you’ll want to factor in costs such as application fees, moving costs and security and pet deposits. You’ll also need to account for moving expenses and acquisition costs for new furniture or other household necessities.
But the trickiest expenses are the ones that don’t show up until after you’ve moved in. Did you get a parking ticket because the rental didn’t come with paid parking? What will it cost to use a laundromat if you have no in-unit washer and dryer (plus, how will you lug your dirty laundry back and forth)? Think hard and ask tough questions about what new costs your apartment may bring.
Make it all add up
Here’s the most important part: find a way to afford rent and cost of living, while keeping some spare change for your own happiness. Ideally, you want to allot enough funds for each of your fixed expenses, while also saving a little something for the future. To determine a rental rate you can afford means that rate has to fit within these guidelines. Your budget plan will help you figure out how all these expenses balance the spreadsheet of your financial life.
If you can make the numbers work in your city, allocating the ideal 25 to 35 percent of your budget to rental expenses will help you live within your means. The idea is that you’ll have money left over for other expenses, afterward — even some fun ones like vacations and the occasional adult beverage.
In the summer of 2020, I wrote that what would cool down housing is having the 10-year yield go over 1.94%, which means 4%+ mortgage rates. While historically low, 4%-5% and higher mortgage rates have constantly cooled down housing, especially when working from a solid uptrend. This happened in 2013-2014, and in 2018 when mortgage rates moved toward 5%.
Housing in 2020 and 2021 benefited from rates between 2.5% – 3.75%, which gave buyers more purchasing power. After the big run-up in home prices over the last year, 5%+ mortgage rates are a payment shock. So, this is a traditional slowdown we see, not a housing crash. As you can see below, the builders pushed their pricing power and made their margins look great, even with higher lumber and labor costs.
From Census: Privately‐owned housing starts in April were at a seasonally adjusted annual rate of 1,724,000. This is 0.2 percent (±8.7 percent)* below the revised March estimate of 1,728,000, but is 14.6 percent (±14.2 percent) above the April 2021 rate of 1,505,000. Single‐family housing starts in April were at a rate of 1,100,000; this is 7.3 percent (±7.7 percent)* below the revised March figure of 1,187,000. The April rate for units in buildings with five units or more was 612,000.
As you can see below, the housing demand data from 2002 to 2005 was never apparent in any housing data lines from 2018 to 2022. When you don’t have a credit boom with exotic loan debt products, housing demand has limits. This is a huge positive for the U.S. housing economy because the demand curve we have had in America is more accurate. This demand curve prevents a boom and bust cycle from happening, as we saw from 2002 to 2008.
From Census: Privately‐owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,819,000. This is 3.2 percent below the revised March rate of 1,879,000 but is 3.1 percent above the April 2021 rate of 1,765,000. Single-family authorizations in April were at 1,110,000; this is 4.6 percent below the revised March figure of 1,163,000. Authorizations of units in buildings with five units or more were at a rate of 656,000 in April.
The housing starts story in 2022 is that while demand has gotten softer for single-family starts, multifamily construction has been a good thing this year. With rent inflation high and supply low, shelter construction for the renting side of the housing market has more legs, whereas higher mortgage rates are impacting single-family construction plans.
From Census: Housing Completions Privately‐owned housing completions in April were at a seasonally adjusted annual rate of 1,295,000. This is 5.1 percent (±11.5 percent)* below the revised March estimate of 1,365,000 and is 8.6 percent (±7.5 percent) below the April 2021 rate of 1,417,000. Single‐family housing completions in April were at a rate of 1,001,000; this is 4.9 percent (±14.1 percent)* below the revised March rate of 1,053,000. The April rate for units in buildings with five units or more was 281,000.
It’s the worst timing possible in history. It takes forever to finish a home, and now the builders are dealing with the reality of borrowers who went into contract with sub-4% rates and are now dealing with 5%+ rates. Nothing has been easy in housing since 2020. Now that mortgage rates have been in real terms a 3% increase from the shallow bottom we saw during the COVID-19 recovery, some contract sales are at risk.
Today wasn’t a terrible housing starts report, but the data is currently lagging behind the reality of the big mortgage rate move and the uncertainty of how many of those housing units will be sold. The builders know this as their confidence data is already fading and remember, with this data line, the rate of change is more important than where the data line is today on a historical level.
From the National Association of Home Builders:
For the future, the key is how many single-family homes in contract will be lost due to the mortgage rate moving higher and how much damage higher mortgage rates do to future housing demand. Much of the housing data lags behind the big rate move, but we are coming to an end of that reality so that the upcoming months will reflect the current state better.
The one positive data line that we have seen is multifamily construction, which is desperately needed as rental inflation has taken many Americans by surprise. Renters don’t have the protection of a fixed debt loan like homeowners do. As we can all see, the housing inflation story is hitting Americans on both the home-buying and rental side of the equation, hence my theme of a savagely unhealthy housing market.
Investing in forest land suitable for producing lumber can provide you income, diversification, inflation protection and more. Timber investing requires careful study of the industry, market and individual parcels, and it’s generally a long-term play, with years required to realize a profit. Timberland is also highly illiquid, so you might need a year or more to turn your asset into cash should you need it. Talk to a financial advisor to learn how investing in timber and other real assets can help you achieve your long-term objectives.
Timber Investment Basics
Investing in timber involves owning land that’s used to grow trees that can be processed into lumber. Timber, which is considered a real asset, is vital to the production of paper, utility poles and furniture, as well as the construction of homes and other buildings.
Timber sales are infrequent, as it can take decades for trees to grow large enough to be harvested. In fact, you may only make a handful of timber sales in your life as a timberland investor. Timber investors can generate income more regularly by selling seeds or renting land for livestock to graze on. Timberland can also be used for recreation.
More than 500 million acres of commercial timberland exist in the United States, according to the United States Department of Agriculture. An acre of timberland can cost from $1,500 to $2,000, with prices varying by location, road access and the type and maturity of trees. The value of timber also varies by tree variety, size and quality. According to TimberUpdate.com, which tracks prices and trends in the timber industry, prices can range from about $5 per ton for low-quality small trees to as much as nearly $50 per ton for mature, straight trees that can be sawn into knot-free boards for decorative uses.
Pros and Cons of Timber Investing
Timberland has a number of features that make it attractive to investors. These include:
Income from selling timber to sawmills
Inflation protection similar to other commodities
Diversification and risk management from owning an asset not correlated to stocks, bonds and other asset classes
Favorable capital gains tax treatment for most income
Appreciation as trees grow into more mature specimens that command higher prices
Sustainability, since trees generally benefit the environment
Owning timberland can also give you the opportunity to personally enjoy an investment. A section of timberland can even provide a site for building a second home or even a primary residence.
But owning timberland also may involve some or all of the following limits and risks:
Long time frames waiting for trees to be mature enough to harvest
Unpredictable prices when you sell trees due to commodity cycles
Time, money and attention required to plant and tend trees and maintain the property
Risk of fires, floods, hurricanes and other natural disasters
Low liquidity compared to most other investments can also be an issue. It can easily take a year or more to sell a parcel of timberland and turn your investment into cash.
Investing in Timber ETFs
Rather than directly buying timberland yourself, you can buy shares of exchange-traded funds (ETFs) focused on timber. These specialized ETFs invest in shares of companies that own or lease timberland and harvest the trees for lumber or other forest products. Buying shares of timber-focused ETFs allows you to get asset diversification, inflation protection and other timber investment benefits without the challenge and illiquidity of owning and managing the timberland yourself. You will also get additional diversification within the asset class because these ETFs own shares of a number of timber-related companies, reducing your exposure to weather, fire and other risks.
Timber ETFs include the iShares Global Timber & Forestry ETF and the Invesco MSCI Global Timber ETF.
Bottom Line
Timberland investments offer a way to diversify your portfolio with real assets that can produce both income and capital gains. But buying and owning timberland requires an in-depth knowledge of the industry and significant time and attention. Timberland is also a long-term play, often requiring years or decades to generate a profit.
Investing Tips
A financial advisor can help you evaluate alternative approaches to achieving diversification, inflation protection and other benefits of owning timberland. If you don’t have a financial advisor yet, finding one doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors in your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
SmartAsset’s Investment Return & Growth Calculator takes a lot of the guesswork out of forecasting how your investment will perform over time. Enter the amount of your initial investment, the timing and amount of any additional contributions, your anticipated rate of return and the number of years you plan to let the investment grow. The calculator will give you an estimate of how much your portfolio will be worth, assuming all those factors play out as planned.
Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.