Queercents

My bank offers this magic bullet called overdraft protection, however upon closer inspection it can be the antithesis as protection comes with a price. Today, bouncing a check is costly, my bank charges $38 per occurrence and I have heard some banks assess a daily fee for each day in a negative balance. In reality, most people at one time or another, have mistaken in calculations and caused an overdraft.

Overdraft protection is a service that protects your account in the event of an overdraft by sweeping funds from another account in your name to cover the overdraft. The linked account is typically a savings, a checking, credit card, or line of credit. Instead of an overdraft fee, you may incur a nominal sweep fee.

There are a few caveats to this “protection.” First, some banks sweep funds in particular dollar amounts. For example, my bank sweeps in increments of $100 even if I only need to cover $20. As a result, banks promote spending and borrowing more than you truly need. Secondly, using a credit card for overdraft protection comes out of your credit line as a cash advance, and those interest rates are exorbitant! Read the rest of this entry »

Auto insurance is one of the most widespread necessary evils; as it is required by law and pricing is not in your control. I spent one year from 2007-2008 working for one of the large insurance carriers in the United States, and I had to get out. I’m not intending to write a missive or expose on the industry, but I will note that I have an increased awareness of how insurance and the claims process work, and why people dislike insurance companies. While pricing is set by the company, there are some things to consider to reduce the cost of premiums and to get the full value of paying your insurance agent.

Discounts: Almost all auto insurance companies offer multi-level discounts for anything from good grades, if you have a student driver, to anti-lock brakes on your vehicle. I have even seen discounts for having children under the age of 7. Also, if you drive less than the average mileage per year, which is approximately 10,000 miles, you may qualify for a discount. Insurance companies are not always forthright with the discounts they offer, so make sure to ask your agent or research on the company’s website.

Safe driving: Drive defensively, not aggressively. Insurance companies offer generous discounts for a clean driving record. I have seen rates drop as much as 50% for no accidents, citations, or claims. If you are age 55 or over, take a senior defensive driving course, which may lead you to a discount as well. Read the rest of this entry »

Train travel is not as cheap as once perceived; particularly overseas. In Europe, forget taking the train these days. Eurorail costs have gone up and bullet train prices can be astronomical. Check out websites such as www.ryainair.com or www.easyjet.com for better deals on airfare than train tickets. You can also use those sites to book travel to fringe destinations like Croatia or islands in the Mediterranean. There are advantages and disadvantages to rail travel. There is the scenery, the relaxation, the old world feeling of nostalgia. However, one disadvantage to train travel is lengthy travel time and multiple stops unless you want another way to see your destination.

Get an airline card. Many airlines and credit card companies have formed partnerships to reward frequent travelers, and frequent spenders! However, credit card airline cards generally have high annual fees. Alaska Airlines offers a travel card through Bank of America as a debit card! Think of how often you use a debit card and it doesn’t have a finance charge or interest rate. The annual fee is only $30 and www.alaskaair.com has several ways to earn miles and they are partnered with a multitude of retailers to earn those miles quickly from grocery stores to cell phone carriers. I even pay my rent on my debit card, so those miles, and trips, add up faster than I can keep track.

The 2nd post in a series of posts about budget travel.

Eating like a King for Dollars

The simplest way to save money when traveling is to eat like the locals. Pick up lunch or snacks at grocery stores. Seek out chain super markets to fill your day pack. You can also eat at street stalls for an authentic culinary adventure. When dining out, step off the main street and check out restaurants on side streets. Prices can drop drastically by simply going one or two blocks off the main road. Martin Wilson, an expatriate in Madrid , Spain , suggests to “keeping an eye for bars that serve you free food or snacks with every drink. A handy way to lower your food cost.” Try to eat a plentiful breakfast, eat lightly at lunch and enjoy a large, delectable dinner.

The Road Less Traveled

Another way to budget travel is to search for fringe destinations, or those untouched places in your backyard. One beautiful, metropolitan city is Buenos Aires, Argentina . You can rent an apartment for less than a hotel and it is still relatively cheap to visit Argentina. Read the rest of this entry »

Most people shudder at the thought of budget travel. It conjures up images of standby-by or red eye flights, questionable hotels and unrealistic travel tips that can turn a vacation into a complete nightmare. How do you take the focus off money and keep an open mind to create a sense of adventure? The answer is less about “budget” travel but rather smart travel with an element of creativity.

Getting From Here to There
Due to the high cost of air travel considering airport taxes, fuel and security taxes in a post 9/11 travel world, the largest expense when traveling is usually transportation. There are multitudes of internet discount travel sites that can occupy your vacation time just searching for that price break. But two sites consolidate the search by amalgamating all published fares into one search engine.

The site www.kayak.com is the easiest and cleanest to navigate. It searches 140 plus airlines at once to offer the most competitive fares. Kayak.com links you directly to travel sites rather than wholesaling products. According to their website, Kayak was in fact created by the founders of Orbitz, Travelocity and Expedia. Read the rest of this entry »