The kids are out of school. The temperature is rising. Flip-flops are your new footwear of choice. Summer has arrived, and, for millions of Americans, that means one thing: vacation. With gas prices going through the roof and air fares trailing close behind, you may find yourself wondering if your hopes of getting away from it all will ever get off the ground.

Travelers, take heart – even in a less-than-perfect economy, you can have that dream vacation without an accompanying financial nightmare. Here are 10 tips to help you plan an affordable getaway for the whole family:

1. Be flexible. If you’re fortunate enough to have a little wiggle room in your travel schedule, play around with different departure and arrival dates. Many airlines and hotels offer lower rates depending on the month or even the day of the week – which can add up to big savings for you.

2. Do a little comparison shopping. From hotel rooms to airfare, don’t take the first good rate you come across. Once you’ve found a bargain, do some research using price aggregator websites like Travelocity or Orbitz – you may find an even bigger bargain if you do your homework.

3. Look for hotel freebies. Many mid-priced hotels offer great, family-friendly deals, like complimentary breakfast or even free or reduced rates for children. Think about it: If you’ve got two kids, feeding them breakfast could cost around $20 a day – that means a savings of $100 a week in meals alone! Check out several hotel websites to find some money-saving incentives, and you’ll save a bundle.

4. Pass on the rental car insurance. For the most part, rental car insurance exists for one reason: To generate a healthy profit for car rental companies. Before you go away, give your own insurance agent a call: In the unlikely event of a vacation fender-bender, your insurance will probably cover the damages. Use the money you save to pay for gas, which brings us to our next tip. . .

5. Use the buddy system. GasBuddy.com, that is. GasBuddy is a site that searches for the lowest gas prices in a given city or ZIP code – a must when you’re traveling in an unfamiliar city, especially if your destination is known for tourism.

6. Clip coupons. Or download them, or pick them up from the hotel lobby. Pay a visit to your destination’s tourism office, or visit your hotel’s front desk – you can pick up some sweet deals on everything from theme park admission to dinner at a decent restaurant.

7. Avoid ATM fees. A dollar here, two dollars there – ATM fees are deceptively innocent, but, when added up over a week or so, they can pack a hefty punch. Try to get as much cash as you need before you leave for your trip. If you must visit a cash machine while you’re away, steer clear of ATMs at theme parks or in major tourist spots – chances are, you’ll end up paying double, or even triple the average fee.

8. Buy direct. Although the Internet is a virtual treasure trove of travel bargains, some of your best vacation deals may come directly from the hotel or airline itself. While it’s always a good idea to search online price comparison sites, it’s an even better idea to compare those rates to the ones offered directly from the airline or hotel. And, when booking a hotel room, don’t be shy about asking for a better rate: The worst that can happen is someone says “no,” but, you might be surprised to find that most hotels are willing to haggle a bit.

9. Consider a package deal. When you purchase a travel package, you lose a degree of flexibility in where you stay and for how long. But, in most cases, you’ll more than make up for the lack of choices with reduced rates on airline tickets, hotel rooms, and local attractions. Package deals are great for families who want to visit popular theme parks without dipping into the kids’ college funds to do so.

10. Pay cash. Don’t take a vacation from financial responsibility. There’s nothing wrong with bringing home a souvenir or two, but your credit card bill shouldn’t be your biggest reminder of your summer getaway. Be realistic about your vacation spending: If you want one dinner at a four-star restaurant, that’s okay, but try to balance a pricy night out with cheap eats the next day.

Whether you’re hitting the beach or off to do some big-city sightseeing, here’s to a wonderful, relaxing family vacation! With a little planning and a lot of travel savvy, your family can afford that vacation you’ve been dreaming of.

Solid Advice for a Shaky Economy

Recession. It’s a scary word that makes even the most fiscally responsible among us cast a nervous eye on our bank accounts. Even scarier, not everyone can even agree whether our economy is in a temporary slump or an all-out free fall. But, recession or not, you can take steps to ensure that you and your family are secure in a weak economy.

And, remember to stay calm. The worst thing you can do is make hasty, fear-based decisions. Take a deep breath and think rationally. It’s important to realize that, with a little preparation, you can be ready if and when a recession hits. You can’t control the economy, but you can control how you react to news of an impending recession.

Step One: Sharpen your Job Search Skills

One of the most frightening things about a recession is the possibility of losing your income when your company decides to cut costs. Nobody wants to think about being out of work, but there are things you can do right now to make sure that you won’t be completely caught off guard:

• Revise your résumé. If you’ve been out of the job market for a while, now is the time to give your résumé a makeover. Review it and add new, relevant work experience, skills, awards, and anything else that will make you stand out from the crowd if you need to start looking for a new job.

• Know your options. It doesn’t hurt to start looking at alternatives – spend a little time skimming through the want ads in your local paper, and check out job search websites like Monster.com or Careerbuilder.com. Find out who is hiring people to do what you do. If you see something that sounds intriguing, go ahead and apply. You never know – you may find your dream job. And, remember that some industries are more stable than others: Healthcare and education, for example, are not as dependant on the economy as the construction industry. Get creative and think about how your skills might transfer to a different field.

• Start networking. Consider joining a business networking group to expand your list of contacts – they say that when it comes to landing a job, it’s often all about who you know. Connections can come in handy if you’re faced with an unexpected layoff. Networking sites like LinkedIn.com and even FaceBook.com are great ways to stay connected to coworkers and business partners.

Remember to keep saving money, even if your job is secure: In a recession, raises and bonuses tend to be less than they are in a more stable economy.

Step Two: Beef up Your Emergency Fund

Experts recommend that you should have some extra cash saved up for emergencies like an injury or the unexpected loss of a job. Your emergency fund should allow you to cover your mortgage, bills, groceries, and other living expenses for 3-5 months. If you already have emergency savings, keep adding to it. If you don’t, start now:

• Pay yourself first. Even if you’re on a tight budget, make an effort to put something into savings every payday. Make some adjustments to your spending, like giving up restaurant meals or cutting your entertainment budget, and start funneling more of your income into savings.

• Think Interest. Put your emergency savings into an interest-bearing savings account or a money market account so you’ll earn some money on it while you save. But, make sure you don’t invest your emergency funds into anything that makes you pay a penalty for withdrawal, like an IRA – the whole point of having emergency savings is to have money when you need it.

• Restrict your access. If you aren’t careful, you may end up spending your emergency fund as fast as you put it away. To avoid using your emergency savings, consider putting the money into a separate account at a different bank. And, don’t carry an ATM or debit card that’s linked to that account.

Step Three: Don’t Spend That Stimulus Check

Even though Uncle Sam is sending us a little extra this year, that doesn’t mean you have to rush out and spend it. Instead of rushing to the mall and buying that flat-screen TV you’ve been eyeing, take a minute to think about other, more responsible ways you could use the money:

• Save it and forget it. It’s money you didn’t have before, so it should be pretty easy to pretend you never got it in the first place. Deposit it into your savings account or use it to pad your emergency fund. But, do it quickly – the longer you have that check, the more likely you are to spend it on something frivolous.

• Pay off debt. If you’ve got a car loan, a student loan, or credit card bills hanging over your head, this is a perfect opportunity to take a big bite out of your debt.

Step Four: Identify Sources of Extra Cash

Whether you want to add to your emergency fund or just pad your savings account, there are several things you can do to put a little extra cash in your pocket:

• Sell your stuff. Scour your storage spaces, purge your closets, and ransack your attic. If you haven’t worn it, used it, or thought about it in a decade, it’s time to let go. Have a garage sale, sell it on eBay, or take out a classified ad – put the extra money into your savings or your emergency fund.

• Get a second job or work overtime. What better way to impress the boss than to stay late or come in early to knock out a few projects? Not only will you show some initiative, you’ll also add to your bottom line. If you don’t get overtime, consider a part-time job on evenings or weekends – a little extra income never hurts.

You can’t prevent a recession, but you can prepare for one by making smarter financial choices. In any economy, learning to spend less, save more, and cut costs can pave the way to financial stability and peace of mind.

Copyright © 2008 Reality Media Inc.

(And how to avoid them)

They lurk menacingly in the checkout line at the grocery store; they beckon you with their near-irresistible calls of “super-sizing” or “limited time offers.”  Some are easy to spot from a distance, while others blend quietly into the background, pouncing at the last possible minute.   They’re money wasters, and they’re everywhere – sucking the cash out of your wallet and draining the funds from your debit card. 

How do you safeguard your hard-earned dollars from the menace of upgrades, fees, and just plain silly purchases?  With a little knowledge, you can protect yourself (and your bank account) from the most common money wasters out there:

1.      Impulse purchases.  The mother of all money wasters, impulse purchases are particularly dangerous because they seem so small and harmless . . . until you add them all up.  A magazine here, a DVD there; that pair of novelty sunglasses that you just had to have – all of these “little things” can wreak havoc on anyone’s bank account.  Resist the temptation.  In most cases, these “must haves” will be quickly forgotten. 

2.      Waste.  It’s pretty simple, really:  If you buy it, use it.  End of story.  Have leftovers for dinner, and bring home a doggie bag if you go out to eat.  Use all of your shampoo before rushing out to buy more.  And beware of bulk purchases:  A 10-gallon drum of mayonnaise for $30 may sound like a bargain, but unless you have a very large family (or a very serious love for mayonnaise) you’ll probably end up throwing most of it away.

3.      Fees and charges.  From credit cards to cell phones, fees and charges can chip away at your savings.  And, they’re not always easy to spot.  Read your monthly statements carefully, and don’t be afraid to ask questions or challenge a fee that seems unreasonable.  You can do your part by making sure that you stay on top of your bills:  Always pay on time, and don’t go over your limits on costly things like text messaging.

4.      Fast food.  Like most of us, you probably have a hectic schedule.  Hitting the drive-thru or ordering takeout on your lunch hour may seem like the solution, but it’s not cheap.  Take a little extra time to make a lunch for yourself, or take leftovers from last night’s dinner.  It’s easier on your wallet – and healthier.

5.      Product warranties.  Many big-box stores make their money selling you “product protection plans” or extended warranties.  Some of these plans can cost almost as much as the product itself and most people never use them.  Don’t let yourself be talked into paying for something you probably don’t need. 

6.      New Cars.  Sure, they smell nice – but you can save a ton of money by purchasing a car that’s one or two years old.  And, since the price is lower, you may even get a break on your insurance.  A reliable, used car is a smart investment.  If you really miss that intoxicating new car aroma, buy some air freshener.  You’ll still have plenty of money left over to put into your savings account.

7.      Credit Card Interest.  Credit card debt is a huge money waster, and the interest is a killer.  Pay off all of your existing credit card debt, and you could save thousands in the long run.  You may have to tighten your belt a little, but the joy of being debt-free will be worth it in the end.  Credit cards are acceptable for emergencies, but it’s critical that you pay the balance before your debt gets out of hand.

8.      Unused memberships.  You started 2008 with a mission:  you joined a gym with an Olympic-sized swimming pool, the latest equipment, a fancy snack bar, and a fancier price tag.  Getting in shape is an admirable goal, but you shouldn’t have to pay through the nose to tighten your abs.  Unless you’re a dedicated gym rat, try some workout videos, a jog through the park, or check out the fitness programs at your local community center instead. 

9.      Brand names.  A trip to the grocery store can be expensive, especially when you’re shelling out extra money to buy brand-name products.  Most store brands are just as good and cost a lot less.  Do you really need designer toilet paper?  Buying the generic version can save you a lot of money in the long run.

10.  Not saving.  This sounds like a no-brainer, but it’s true:  Most of us waste money simply because we don’t set funds aside in a savings account.  Start small – even $50 a paycheck can add up over a year.  And if your money’s in savings, chances are you won’t waste it things you don’t need.

The key to building wealth is making smart decisions about how to spend (and not spend) your money.  Avoid these common money wasters, and you’ll be one step closer to a financially stable future. 

Challenge yourself to living on a strictly set budget for one week.  You’ll discover what’s truly a “necessity” and what you can do without, learning how to save possibly thousands of dollars a year.   

Imagine if, at the beginning of the year, you were asked to fork over $5,000 for “impulse buys and luxuries.”  Would you pay up?  You think hard about making a big purchase like a new computer, but when you add up the cost of all those careless little purchases over the year, they wind up being a bigger investment than you realized.  Here’s a simple way to whittle down those unnecessary expenses, so you can make the big purchases you really want to make.

For one week, put away all your credit cards and your check book.  Use those items only for paying for bills.  Take out $70 in cash.  That is all the spending money you have for the week. 

How will you spend it? 

Holding $70 in cash may feel like a lot of money.  But divide it into seven days and you’ve got one $10 bill for your wallet each day.  That has to pay for all of your personal expenses, from food to gasoline to entertainment. 

Be a planner. 

This can be a pretty fun game.  If you are fairly good at planning ahead, you should try to spend most of your cash on one well-planned trip to the grocery store.  That way, you don’t run the risk of wasting your cash on luxury items as the week goes by. 

With $70, you can purchase food and necessities for yourself for a week.  Remember to include the cost of transportation in your $70 budget:  gas, bus fare, or train tokens. 

Be creative. 

If you normally buy your lunch during lunch hour, this is the week to try bringing a sack lunch.  Instead of tempting (and costly) pre-made items, buy the ingredients and make them yourself.  Money that used to pay for one coffee-shop sandwich can instead pay for the bread, meat, and cheese for a week’s worth of sandwiches.  

Fifteen Cheap Grocery Store Items That Fill You Up 

1:      Loaf of bread

2:      Sandwich meat

3:    Sandwich cheese

4:      A dozen eggs

5:      A gallon of milk

6:      A box of cereal

7:      A can of pasta sauce

8:      Noodles

9:      Bag of dried beans

10:  Bag of dried rice

11:  Whole chicken

12:  Head of lettuce

13:  Two to four tomatoes

14:  Two onions

15:  Bag of mixed fruit

The total for that would be an average of just $25 if you went with store brands.  Those items alone could feed you three meals a day for a week.  You can make scrambled eggs, egg salad, grilled cheese sandwiches, chicken spaghetti, chicken noodle soup, beans and rice, chef salad, and more.  And you have $45 left!

Be smart. 

You’ve purchased food.  Now, how can you make those last dollars stretch the furthest?  Here are a few tips to save on gasoline, non-food items, and entertainment:

ü      Use the bike.  Most trips taken are within five miles of your house.  So dust off the cycle to save on gas.

ü      Send in your rebates.  Every week, many companies offer free toothpaste, feminine-hygiene products, vitamins, diabetic products, and other domestic staples – if you just remember to send in your rebate forms.

ü      Revive the board game.  Whether it’s just you and your loved one or fun for the whole family, the board game can inspire laughs and great conversation.

ü      Get back to nature.  Parks and beaches are great places to recreate without spending a dime.   

Think about what you saved. 

For one week, you went without candy, coffee, luxury candles, expensive movie tickets, random trinkets from the checkout counter, a bar tab that got out of hand, and those trendy sunglasses that will go out of style next month anyway.  What did you gain?  MOOLA!  And when all that money adds up, you can afford to buy something truly nice, like a vacation or a new computer. 

Can you survive the week? 

Undoubtedly. You will be just fine on your severely limited budget for just one week.  You don’t need to limit yourself this strictly all the time.  This one-week test is to show you where in your life you can cut costs.  Making yourself live on very little forces you to make choices that teach the difference between needs and wants.  You’ll learn the true value of every purchase, and in the long run, you’ll become a wiser spender.