Category Archives: Frugality

TGIF Round Up: Visitors Edition

This weekend, my husband’s parents are coming to visit. We’re excited to see them and spend some time with them, but I must admit I’m feeling a little unprepared for the visit. Because we were out of town last weekend, we didn’t get a chance to do a lot of the errands and chores we typically do on the weekend. So today we’re rushing around to make sure we have plenty of food and clean up the guest room. It’s a good kind of stress, though. We haven’t had company since my parents came almost a year ago, and we’re excited to welcome family into our home again.

Hopefully I’ll have time this weekend to get some posts scheduled for next week, but if I miss a day or two you’ll know why. :)

Now onto the best posts from my Reader this week:

  • MoneyNing wrote an insightful list of 19 ways that laziness costs you money. It’s amazing how much you can save just be being mindful of your finances.
  • Frugal Upstate shares some ideas for spring break on a budget. This is a timely post for us since this week is my husband’s spring break (he won’t be teaching or attending classes this week). But we’re spending it entertaining guests instead of leaving town. :)
  • Mrs. Micah offers her thoughts on how living a nonfiction life is most fulfilling. This is an interesting concept. Just because you can afford to live a certain lifestyle doesn’t mean it’s right for you. Being true to yourself mean living within your means and making decisions that are best for you.
  • Remodeling this Life suggests you spend time not money. I’ve been thinking about this a lot lately myself. The best things in life really are free, after all.
  • Cash Money Life shares some helpful tips for avoiding identity theft. These are easy precautions we should all be taking to protect ourselves and our finances.
  • Pecuniarities asks who’s really to blame for your spending. It’s easy to blame mistakes on smooth talking salespeople, but in the end we’re all responsible for our own spending decisions.

I’m off to prepare for our houseguests. Hope you all have a wonderful Friday!

Our frugal (and not so frugal) trip to Washington D.C.

We’re back home now after a wonderful weekend in Washington D.C.

A little getaway was exactly what we needed. We left our laptops at home and spent the weekend just enjoying each other’s company. With two visits from family and friends and a business trip coming up this month, we really needed some time away.

I booked and paid for the hotel room in November ($120). Then I budgeted $200 from our tax refund for food and fun while we were there. It’s a high number, but we get away so rarely so I wanted to really enjoy ourselves and be (just a little) frivolous for once.

Here’s how we did:

Frugal

  • Our hotel was in a fantastic location right downtown, so we spent the entire weekend on foot. We didn’t use any money for cabs or the Metro. Bonus: I didn’t feel so guilty for missing my daily workout.
  • We visited free museums and sites. We went to the National Portrait Gallery, the National Museum of American History, and Ford’s Theater (which ended up being closed, but we saw the house where Lincoln died, a national historic site).
  • We ate relatively frugal breakfasts and lunches (coffee and pastries for breakfast, Subway for lunch), so we could afford the high price of downtown D.C. restaurants for dinner.
  • We ate at a moderately priced pizza place on Friday night, where we enjoyed delicious wood fired pizza. On Saturday night my brilliant husband found a “certified-green” restaurant owned by a partnership of family farmers. It has a modern, casual, and family-friendly atmosphere; amazing organic food; and the prices were unbelievable considering its downtown D.C. location. Our meal with an appetizer and dessert was only $55 with tip included. Most of the places we considered in that area would have cost twice that at least. It’s called Founding Farmers, and I highly recommend it if you’re in the D.C. area.

Not so frugal

  • It was unseasonably warm in D.C. on Friday evening, so we walked to the Georgetown neighborhood where we stayed on our honeymoon. We stopped at our favorite sidewalk cafe. Since we’d already eaten dinner, we decided to order a bottle of wine. It ended up costing $32. Ouch. But we had a wonderful evening sitting outside drinking wine, and I don’t regret it. The memory is worth $32 to me. But the frugal thing to do would have been to stroll through Georgetown and skip the wine. :)
  • Around lunchtime we were only halfway through the Museum of American History. We were starving, so I broke my own advice and grabbed a snack at the museum cafe. We split a single slice of pizza and a soda, and it ended up costing $10. Doh. Always pack a snack!

So did we stay on budget? Here’s the tally:

Gas: $30
Breakfasts: $15
Lunches (including stops on the road): $40
Dinners: $85
Wine: $32
Boarding for dog: $65 (I budgeted $50 since he was only there two nights, but because we were running late this afternoon we were charged for three.)
Parking: $30 (I wasn’t expecting this because I mistakenly assumed parking would be provided by the hotel, but it cost $15 a night.)
Gift card used to pay for meals: -$50
Total: $247

We overspent by $47. :( Luckily, the overage can be worked into our March budget.

While we technically stayed within budget (the unexpected costs for parking and boarding surcharges weren’t in my original budget), better planning could have helped us include or avoid those extra costs.

While $248 for a weekend trip ($368 if you include the hotel) isn’t frugal, sometimes — sometimes — it’s ok to be a little frivolous. After all, isn’t that why we work so hard to scrimp and save? We spent a fraction of our tax refund to have a fantastic time, and we’re still putting a huge chunk into savings this month. I’d call it a success.

Planning a frugal, educational mini-vacation

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Sometimes you just need to take a step back and take a break. That’s where we are right now. Though we’ve taken several trips to visit family (including Seattle in October and Indiana in December), Tony and I haven’t gotten away together, just the two of us, since our honeymoon 9 months ago.

In November, I found a great deal on a hotel room in Washington DC at HotelClub (about $60 a night for a room in a fantastic location). I knew that after spending almost two weeks on the road and visiting family then heading right back into our routine, we’d probably need some time away around this time. A frugal mini-vacation is the perfect solution.

Here are some tips for saving money if you want to plan a family-friendly mini-vacation of your own:

Choose somewhere close.

Choosing a destination close enough to drive reduces the cost of your trip significantly. It’s much cheaper to drive than fly (especially if you’re traveling with a family). Closer destinations also mean lower gas costs and the ability to stay for just a night or two instead of a whole week, which means more affordable lodging.

Choose a destination with historical significance.

Historical cities are the most frugal places to visit. National and state historic sites and museums rarely charge for admission, and when they’re state or federally funded they’re usually better than independent tourist attractions.

We’re lucky to live within driving distance of Washington DC. It’s one of my favorite frugal vacation destinations. With tons of free museums and historical sites, there’s a lot to do that costs very little or nothing at all.

These destinations exist in every state, though. When I was a kid, my family lived in Michigan. We held a season pass to Greenfield Village and Henry Ford Museum in Dearborn, Michigan. Those weekend trips remain some of my favorite vacation memories (even more than a huge trip to Disney that probably cost my parents a couple thousand dollars).

When Tony and I lived in the Midwest, we took a similar trip to Springfield, Illinois. We visited a ton of Lincoln sites, toured the state Capitol, and had a fantastic time for cheap. Be creative. Whether it’s a state capital or historical city near you, these cities are fun, frugal, and educational for kids.

Travel during the “shoulder season.”

Historic cities and state capitals offer a lot of free and cheap attractions, but the trade-off is often high prices for hotels during the busy tourist season (especially summers and vacations when kids are out of school). Part of the reason we got such a great deal on our DC hotel room is because we planned the trip for February. Just two weeks later, the price would have been $25 more per night. If we had planned our trip for April, we would have paid $50 more per night. If you plan a weekend trip between January and mid-March, you’ll find the best deals on lodging. An added bonus is that museums are a lot more enjoyable when they’re not overcrowded.

Pack a lunch.

Museum cafeterias often overcharge for food that isn’t that great. They usually don’t mind if you bring your own food, though. Save some money by packing some sandwiches and drinks. If the museum doesn’t allow it, then plan for a mid-afternoon break to head back to the hotel for lunch. Even if you end up at a restaurant off site, you’ll probably spend less for better food than you would get at the museum.

Keep it fun for everyone.

I was a nerdy kid. I loved museums and learning. I still do. Two of my sisters didn’t share my enthusiasm for field-trip-like vacations. Even the most educational museums usually cater to children of all personality types with hands-on activities that keep everyone happy. If your kids aren’t into musems, blend educational activities with other frugal things they’ll enjoy (maybe a baseball game or an afternoon playing outside at a park).

Money in Europe: What’s the best option?

euros
photo by poolie

As I continue to research for our frugal European vacation in 2010, I’ve come across a new dilemma: what should we do about money overseas?

We’ve decided to carry only a limited amount of cash. Not only are currency conversion fees really high at banks and other institutions (at ATMs we could end up paying 10% or more once you tack on all the fees), but I don’t feel secure keeping a lot of cash on me in a foreign country. So we’ll probably convert about $500USD to Euros and GDP before the trip just in case we need a little cash and carry only a little with us at a time.

Instead of using cashing, we’re looking into other options. Here’s what we’ve learned:

Debit cards

Our checking accounts are through Wachovia, and our debit cards are Visa. Since Visa is widely accepted in Europe, I thought this would be our best option. But then I learned about the transaction fees. We’d pay a 2% foreign transaction fee to Wachovia, another 1-2% to Visa, plus flat transaction fees for ATM withdrawals. I also read something vague about additional fees to convert the money from foreign currency to US dollars. Um, no thanks.

If we moved our travel money to an ING checking account, it’s the same deal.

There are also security issues with a debit card. Our entire account could be wiped out, and it could take up to 2 weeks for the money to be replaced by fraud protection. That’s a hassle I’d rather not deal with on vacation.

Pre-paid debit cards

We briefly considered a pre-paid Visa card. I don’t know why we did, because it’s a pretty dumb idea. If we fully loaded the card with the maximum of $1500, the flat fees just to purchase the card are about 2.5%. (If we were only putting $100 on the card, it’s close to 33% in fees upfront.) On top of that, there is a foreign transaction fee of 3%. Not happening.

Travelers checks

Travelers checks spend like cash with added security. You sign the check, hand it over, and receive cash back in change. They’re also widely accepted in Europe. I’ve been unable to get a clear answer on whether there are transaction fees, though. I found something vague about “commission fees,” but no clear numbers. They also seem like a pain in the butt to use, and would most likely result in carrying more cash than we’re comfortable carrying.

Credit cards

We currently have an American Express card and a Bank of America Visa card with no balances. Our Bank of America credit card would work just like our Wachovia debit card — 3% to the bank and 1% to Visa. Ugh. American Express is a little better. We’d end up paying just 2.7% total. Unfortunately, American Express may not be as widely accepted. We could take out cash as needed, but credit card ATM fees are incredibly high.

Apparently, Capital One is the only credit card that currently does not charge any foreign transaction fees. They even waive the fee that would be charged by Visa, so we’d end up paying no fees at all. As of now, I feel like it might be worth opening another credit card to save $100-$200 in fees. As long as we pay it off immediately after our trip, it shouldn’t have any negative effects on our credit scores or interest.

What do you think? Should I suck it up and add the transaction fees into our budget, or increase our credit line with another credit card that we’ll never use after the trip?

Resources:
Foreign transaction rates for major credit cards
Foreign transaction fees for major debit and credit cards

My favorite sites for free music online

online-musicphoto by abletoven

Are you always looking for new music? I listen to music for hours at a time when I’m working, so I get sick of my iTunes playlist very easily. Luckily, I don’t have to spend a ton of money at the iTunes store to find great new music. There are a ton of resources online for free music.

Here are my favorites:

NPR Music

NPR is my absolute favorite form of free entertainment, but their music channel is particularly nice when you’re looking for something mellow and unobtrusive. (As much as I would love to listen to This American Life while working, it would probably be a little distracting.)

It’s also my favorite way to stay on top of new music. You can stream stations live, listen to particular playlists in their archives, or sign up for weekly free podcasts with new music and playlists. If you’re into folky rock or new world music, you’ll love their playlists. (I also recommend signing up for the This American Life, Fresh Air, and any of NPR’s other podcasts if you’re interested in news, current events, human interest stories, and generally good reporting.)

Pandora Radio

Pandora Radio is an amazing free service that allows you to build personalized radio stations by selecting artists and songs that you already enjoy. I’ve discovered a lot of great music by plugging in my favorites and listening to what the station recommends. You have some degree of control as it allows you to build multiple stations and skip a certain number of songs every hour, but you can’t choose a specific song or artist and listen to it. Listening to Pandora reminds me of what it’s like to listen to a great mix tape that I made years ago — I don’t remember what’s on it, but every song is a pleasant surprise.

Last.fm

I’ve only recently started using Last.fm, but it’s similar to Pandora in that it offers recommendations based on your music preferences. Last.fm has some additional features that are really cool, though.

It offers a community aspect that Pandora lacks. You can find other users with tastes similar to your own, and discover new music through their playlists. Last.fm also allows you to search for specific artists and listen to playlists with only their music, which Pandora doesn’t allow. So far I’ve found that Last.fm is perfect when I’m in the mood to listen to a specific song or artist, or listen to a playlist of specific artists.

iTunes Music Store

Most of the songs on iTunes are available for purchase. Sometimes (rarely) I find an artist I really enjoy on a free site, and I pop over to iTunes to buy more music from them or maybe even download an album. iTunes also offers some free downloads, though. In addition to the free single of the week, they have a huge list of free downloads from lesser known artists. Just look in your iTunes store under “Free Music & Videos.” If you’re looking to permanently add to your music collection instead, then you’ll like iTunes.

What about you? What are you favorite places to find music?

TGIF Round Up: Love & taxes edition

Looks like I spoke too soon when I sung the praises of TurboTax last week. Ugh.

I’ve had some issues that I’ll share with you in a later post (probably this weekend). For now, I’m just happy it’s over and hoping there won’t be any additional snags.

I’m looking forward to a quiet weekend at home. I’m not one to make a big fuss over Valentine’s Day — I prefer to spend every day of the year showing my husband how much I love him. **sap alert**But it’s nice to have an extra excuse to give him a kiss and a hug and let him know that I still think I’m the luckiest girl in the world. :) **sap alert ended**

And now for some great writing from the blogosphere:

Happy Friday the 13th!

Pros and cons of budget accommodations in Europe

quaint-paris
photo by NatBat

Accommodations are often the most expensive part of a vacation budget. For our two-week trip to Europe, our estimated hotel costs are more expensive than airfare.

One of the first things I’m looking at as we attempt to slash our budget is how to save on accommodations. I’ve looked into three different options: budget hotels, hostels, and guesthouses. Here are some of the pros and cons I’ve found for each option:

Budget hotels

Pros

  • It’s incredibly easy to find traveler reviews and book a hotel online.
  • Budget hotels may not be fancy, but they’re private, comfortable, and pretty luxurious when compared to other options.
  • Most hotels are conveniently located. Even budget hotels are centrally located in the city or near public transportation.
  • Concierge services and hotel resources make it easier for travelers to find their way around the city (especially in France where tourist-y hotels are more likely to cater to English-speaking travelers).

Cons

  • They’re expensive. The cheapest I could find was $125 a night.

Hostels

Pros

  • Staying in hostels could cut our hotel costs in half. Staying in a dorm-style room with a number of other travelers is the most economical option (as cheap as $20 per person per night). We’d want a private room, though, which is a little more expensive. A private room with a shared bathroom would save us about $800.
  • Hostels are centrally located with easy access to public transportation and traveler resources.
  • Some of them include a continental breakfast.
  • Online booking sites also make it easy to find and reserve a room in advance.

Cons:

  • Sharing a bathroom with other travelers would probably mean we’d be waiting for a shower in the morning.
  • I also have some concerns about cleanliness and atmosphere. It seems like staying in a hostel (even a private room) is like staying in a college dorm. Lots of student travelers means drunk kids, filthy bathrooms, twin beds, and noise. Not exactly what we had in mind for our romantic second honeymoon in Europe.

Guesthouses

Pros

  • Guesthouses are family-owned bed and breakfasts. You’re a guest in someone’s home. Private rooms with private bathrooms are about $25-$50 a night cheaper than budget hotels depending on location, and a home cooked breakfast is often included. We’d save about $350-$700, and we could save even more money by sharing a bathroom with the host family.
  • Because they’re in private residences, rooms are clean and comfortable.
  • Hosts are accommodating to travelers, so they’re discreet and respectful of privacy.
  • Other travelers rave about this option. They say it’s comfortable, homey, and perfect for novices. Hosts offer insider advice on where to go, what to see, and how to get around.
  • It’s also a great way to experience another country, because you’re staying with locals instead of other tourists.

Cons

  • They’re trickier to book than a hotel or hostel. Guesthouse agencies can help travelers find information and reviews and make reservations, but it’s more work than logging into Expedia and searching for hotels.
  • Even if hosts are respectful of privacy, we’d still be guests in their home, which means sacrificing a certain degree of privacy and freedom.
  • Location is another concern. Affordable guesthouses are situated on the outskirts of the city, which means a 10- to 30-minute trip by bus or train to get into the city every day. In London we could probably get advice on the commute from our hosts, but this would be tougher in France if they don’t speak English.

I’m leaning toward guesthouses. Tony is a pretty good navigator, and as long as we’re close to a bus or train station I think we’ll be ok. I love the idea of staying with local people in quaint neighborhoods, and I obviously love that it’s cheaper without sacrificing comfort. Staying in a quaint little bed and breakfast on the countryside just seems romantic to me.

I also might consider spending most of our time in a guesthouse, and booking a hotel in the city for only a night or two. This might be a good compromise, but it would be a hassle to pack and move our stuff from guesthouse to hotel.

What do you think?