Military Officer - January 2008 - (Page 65) How to Get out and travel A pocket Are you one of the millions of people who vow to improve their financial situation for the new year? Maybe you’d like to put a bit more in your rainy-day or emergency fund, pay down your credit cards, or save for a special trip. Consider these steps to make your resolution more successful: Know what you spend: While this might sound like a no-brainer, most of us have hidden “money leaks” — a small item at the drugstore, a sandwich while on the run — that don’t even register in our mental checkbooks. To close the leaks, try this: Keep a small notebook, and write down everything you spend for 30 days — regardless of how small or large, including all regular bills. After 30 days, review your spending and — if you are like most people — you will be shocked by how much of your money is unaccounted for in small purchases. Sweat the small stuff: Now that you know how much you are spending, consider making small changes to free up money for savings or paying down debt. Eating dinner at home once a week instead of going out easily can save a family of four more than $2,000 annually ($40 dinner x 52 weeks). Packing last night’s leftovers to eat at work instead of buying lunch can save $5 or more each workday — a potential annual savings of $1,125 ($5 a day x 225 workdays). Breaking your Starbucks habit and brewing your own gourmet coffee can add another $3 or more to your pocket each day, for a yearly savings of $675 ($3 a day x 225 workdays). Just these three Deciding where you want to go is the easy part. Try these tips to avoid hassles and enjoy the vacation you’ve worked hard for. Make sure you understand all the stipulations and fine print when making airline and hotel reservations, including missed flight and cancellation policies — especially when you’re booking online. Instead of spending money on guidebooks, consider borrowing them from your local library. Ask for the best available rates at hotels for the nights of your stay. Sometimes these are better than advertised military rates. Different airlines have different weight and bag restrictions. Check your airline’s baggage policy before packing to avoid surprise charges at the airport. Traveling in the off-season can save you money at hotels and restaurants — and without as many other tourists around, it will be easier to have an authentic experience. Consider recording your vacation experience in a journal. Add photos and mementos from your trip, and enjoy it with family and friends long after you’re back home. small changes would net an annual savings of $3,800. Audit services annually: Most of us overpay for services. Common culprits are telecommunications services (phone, cable/satellite TV, Internet), insurance services (auto and homeowner), and health club memberships. Dropping your landline and just using your cell phone can save $50 or more a month — a $600 annual savings. Also, if your wireless calling plan is more than two years old, you probably are overpaying by 25 percent. Bundling phone, Internet, and TV services usually provides substantial savings over buying a la carte. Shop around for your auto and homeowner’s coverage to ensure you’re getting the best deal available. Remember, it’s your hard-earned money, so make 2008 the year you whip it into shape! — Former Army Capt. Phil Dyer, CFP®, is a deputy director in Benefits Information and Financial Education. JANUARY 2008 MILITARY OFFICER 65
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.