Let's go shopping!

Photo by Project 365/Day 252

In previous chapters, we've looked at ways to economize by organizing ourselves at home and planning menus in advance. Now it's time to get prepared and go shopping (armed with fabulous frugal hints, of course! To save the most money on your food shopping bills, you need to be organized and prepared. Don't ever go to the supermarket on a whim: you will always spend far more than you planned, and probably end up with loads of wasted food (not to mention money) by the end of the week.

Be prepared! A little advance preparation can save you money on your weekly shopping bills. By working out what you need, how you can save on these items and the places where bargains can be found, you'll ensure more money stays in your purse than jingling in the pockets of supermarket giants.

Write a shopping list. Based on your menu plans for the week, write yourself a shopping list including everything you need to buy.
Your list should include:
-All ingredients which you don't already have at home for your dinner menu plans.
-Any foods required for lunch.
-Cereals, eggs, sliced bread, etc. for breakfasts.
-Snacks, soft drinks, tea, coffee, and juices.
The main point of using a shopping list is to prevent you spending unnecessarily on items which could be wasted.Generally speaking, it is better to stick to your shopping list as much as possible. However, if you discover certain replacements could be cheaper or spot a bargain which could save you money on future bills, it pays to be flexible.

Collect vouchers and look out for promotions: Before deciding where to shop, seek out any money-saving vouchers or discount codes for your local supermarkets. Many shops distribute flyers to nearby estates explaining what's on offer the following week. Local newspapers, magazines and even tabloids often feature money saving vouchers and store promotions. Some supermarkets feature promotions on their websites, and offer vouchers to registered subscribers. It is worth registering with the websites of supermarkets you visit often. Also, pick up any promotional magazines when in store (which are usually free) to find even more frugal savings.

But ensure promotions will save you money! Supermarkets offer promotional prices and money off vouchers to entice consumers to buy more, or buy something they would not normally want. For this reason, promotions are only if you had already planned to buy the product on offer, or could make a cheaper substitution to a meal ingredient. “3 for 2” offers may seem enticing, but if you had only planned on buying one of the items on offer, such promotions will make you spend more than you need. The same applies for branded products with money-off. Does the cost per product/weight work out cheaper than the supermarket own brand? If not, it's better left on the shelf.

Tip: Write your shopping list on the back of an envelope and keep your vouchers inside to save time at the checkout.

Create your own “price guide” notebook. If you want to beat store prices, start keeping a book with guides for items you buy the most. Chances are your family will have a dozen or so favorite meals which you cook on a regular basis. For items which you buy every month or each week, it's handy to keep track of prices and the cheapest places to buy these products. Start with a cheap notebook and use a page for each of your regular food buys. Whenever you see a bargain, note down the price and place. You can then refer to your price guide notebook to check if special offers will really save you money in the future. Don't forget: if the price is really good, stock up and freeze/store your purchases to save money on meals in the future!

Deciding where to shop. Supermarkets offer convenience. Most people shop at the same supermarket each week, varying only their purchases and not the place they shop. This routine is exactly what the supermarket giants need to keep prices high: regular customers who return every week, even if competitors offer the same goods for less. As a consumer, you have a choice. You can spend your money at the most convenient location, or choose to vary your routine and shop where the prices are lowest.

Budget stores don't always offer the best value...I love Aldi's latest slogan: “Don't change your supermarket, change where you shop!” This slogan holds so much truth, but unfortunately this doesn't necessarily apply to budget supermarkets like Aldi. The fact is, budget stores do offer many items at a cheaper price than the supermarket giants, such as seasonal offers, bread, fruit and vegetables (when on their weekly offers) and indulgent frozen foods. Everyday items, such as canned beans, eggs, meat and cheese are usually cheaper at the major supermarket chains (especially if you choose the value ranges). I discovered this the hard way: having felt for years on my meager budget that I could only afford to shop at Netto and Lidl, this is exactly what I did. When funds permitted me the “indulgence” of shopping at Tesco/Morrison's, I soon realized I could easily spend less by choosing the value and own-branded ranges than I had shopping from these budget chains.

Compare prices on-line:These days you can compare the prices of anything on-line – even your weekly food shopping! You can then choose to shop on-line at many stores, or print off your shopping list to visit in person instead.

Shop for bargains close to home! You may have heard in recent months that the major supermarkets have been accused of price-fixing on milk and other everyday items. Shop around, shop locally (especially if travel expenses are at a minimum) and shop at as many different places as you can. Supermarkets should earn our loyalty by offering the best products at the lowest prices.

Shop alone whenever possible. Supermarket giants understand the impact of “pester power”. This is why sweets are usually placed at the checkouts and most large supermarkets stock toys...Whenever possible, try not to take the kids shopping with you. Not only will this save you money, you will be less stressed and make better judgments about what to buy (or what not to buy, as the case may be!).

Time your shopping trip well. We've all experienced busy times at the supermarket: after school; Friday evenings; that last shopping day before Christmas... While avoiding the busiest times at the supermarket ensures clear aisles and smaller queues at the checkout, there are also certain times of the day, week and year when bargains are there for the taking.

Shop very early or late evening to find reduced priced stock Fresh produce (including meats, dairy and bread) need to be sold within a very small time frame. Supermarkets often reduce the prices of fresh foods where the “best before” date is about to expire at vastly reduced prices just before closing time, or straight after opening the next day. Meats and other fresh produce can be frozen for later use, while milk and bread can be bought for use the same day at a sliver of the usual cost.

Try to find the optimum time for reduced goods at your local supermarket and time your visits accordingly.Learn the starting days of supermarket promotions. Most supermarkets offer money-saving promotions on a weekly basis. Since these offers can only continue while stocks last (particularly the true bargains), it's worthwhile to plan your shopping trip on the day when promotions begin to guarantee availability.

Stock up on seasonal items in advance. Seasonal items (such as Easter eggs and frozen turkeys) are usually cheapest a few weeks before they are needed. Supermarkets tend to put their prices up the week when most consumers would purchase them: it's good business practice and ensures greater profits, but bad for the pockets of consumers. Stock up in advance when you see a bargain which you know won't last.

Never shop when you are hungry or agitated! It's common sense not to shop while you are hungry – all the food on offer will tempt you to spend far more than you need to (including that pre-packaged sandwich that you'll eat on the way home). Just as importantly, you should try to avoid shopping while agitated. Comfort foods will appeal much more, and the drive to buy ice cream, chocolate or indulgent pastries to make you “feel better” may override your best intentions for frugality.

Non-food products at the supermarket. Supermarkets maximize profits by selling a wide range of non-food items too. We can buy anything from shampoo to flat screen TVs when we visit for our grocery shopping! But which items are actually worth putting in the cart beside our milk and eggs?

Products which are cheaper at the supermarket. When it comes to value range “anything”, supermarkets offer cheaper prices than anyone else. From notepads to washing powder, opting for your supermarket's cheapest range is virtually guaranteed to save you money.

Cleaning products. When you choose value or own brand products, you are likely to get your cleaning supplies much cheaper than paying for branded products anywhere else. I tend to buy only the basic and most versatile cleaning products which perform a multitude of tasks: washing up liquid; soap powder; disinfectant and toilet cleaner; rubber gloves; sponges and dishcloths, all of which are from the value ranges and cost less than $5 in total when I need to restock everything at once. The one thing which I won't buy from the value range is fabric conditioner (though own-brand ranges are just fine).

Tip: Most chemical cleaning products can be replaced with cheap bicarbonate of soda and white vinegar! reasonable (even the premium brands), especially when on special offer.

Pet foods and supplies. Even the thriftiest pet stores cannot seem to compare with supermarket low prices on pet supplies. Dog and cat foods are very affordable. So-called “pet superstores” seem expensive in comparison though they claim to offer the cheapest prices around. If you are able to buy in bulk from a trade supplier, you may be able to find your pet supplies cheaper. Otherwise, supermarkets are your most frugal option.

Stationary and school supplies. Come late summer, the major chains make a great fuss of “back to school” supplies, with aisle upon aisle dedicated to making us feel our money is well spent in their stores. Now I must admit that basic stationary (pens, pencils, paper, etc.) are reasonably priced, and school clothes can be very hard wearing despite being incredibly cheap. If you need premium quality for these goods, go elsewhere for better value. Cheap and cheerful is the way to go with supermarket paper goods, and in this department you can save money by buying when in store.

Products which are cheaper elsewhere. Supermarkets are designed for convenience, and great profits are built from encouraging us to buy all our goods in one place. Here are some products for which you save much more by shopping around for better prices:
-Toys and gifts
-Greetings cards and wrapping paper
-Household electrical items
-Cosmetics and toiletries
-Toilet rolls and branded cleaning products (Dollar and discount stores offer much better value!)
-Unless you need these items urgently, save yourself a few pounds by shopping locally or comparing prices online.

Know your way around the supermarket. Supermarkets have researched the buying habits of consumers for decades in order to tailor the layout of stores for maximum profit. By understanding how the layout of supermarkets encourages you to spend more, you can immune yourself against spending more than you need. For cheap toys and gifts, try searching on eBay for the best deals. Many high street greeting cards and wrapping end up in discount stores after their initial season. Be sure to shop locally to save $$$'s on what you'd spend on the high street! When you enter a supermarket (even one which you have not visited before) there seems to be a consensus to walk around in a certain direction. The natural flow of a supermarket route is intended to walk you past many temptations: magazines, flowers, white goods and toys, along with enticing special offers and seemingly valuable deals. Instead, start your route in the opposite direction to what seems natural. This way, you will not feel so content and easily swayed, concentrating instead on your shopping list.

Find everyday items at the furthest end of aisles. Bread, milk and eggs can usually be found at the back of the supermarket so you need to walk past many other items even if you only entered to buy a box of breakfast cereal. Look high and low, not at eye-level! As you browse the aisles, notice that the items at eye-level are generally the most expensive (or the ones which make the most profit). Items on the lower and upper shelves are less convenient to collect but offer better value for money (such as “own brand” and “value” lines). Try to blinker yourself: don't look at what's directly ahead of you! With practice, you could even find yourself oblivious to the more expensive products and can source out your cheaper value lines with a single glance.

Beware of aisle ends. As you slow down to turn corners at the end of an aisle, your eyes are more easily drawn to impulse items stocked at the end of each aisle. These shelves potentially offer the most profitable items for supermarkets. Again, blinker yourself against seeming bargains.

Plan your routes. When writing your shopping list, mentally visualize yourself walking around the supermarket and list your purchases in the order you will find them. This way you can save time and money by going directly to the things you need, bypassing temptations on the way.

Change in layout? Every so often, supermarkets will subtly change the positioning of everyday items to force a change in consumer routine (and lead us into temptation again!). For example, potatoes may swap position with broccoli on the same aisle, while yogurt's could exchange places with fresh cream. If you find yourself wondering where your listed items have moved to, don't wander aimlessly! Instead, travel to the end of the aisles and scan the overhead signs which should offer guidance to where your favorites are hidden.

Buy only what you need. Even armed with your shopping list, it is still easy to be distracted. Supermarkets are designed to make us spend more than we initially planned, on things which seem useful, make our life easier or are simply value for money. If you're serious about saving money on your shopping bills but are still tempted by an item which is not on your shopping list, ask yourself three questions before putting the item in your cart:
1. Do I need this item for consumption this week?
2. Is it a bargain which I could store for a future week's menu
plan?
3. Is this something which would make me/my family happy?
If you answered no to all of these questions, the item does not
deserve a place in your cart!

Calculate everything! Taking a calculator to the supermarket helps you keep track of the cost of your trolley to ensure you don't overspend. If you feel conscientious being the only shopper in sight who cares how much they spend, use the calculator function on your mobile phone instead. Anyone glancing over will assume you are checking your messages!

Work out the true costs of your choices. Check the labels on everything, and also the tickets on shelves. Retailers have a duty to advertise the cost per 100g of any food stocked. Even pre-packaged salad tomatoes have a relative cost which you can use to work out if buying loose tomatoes would be a cheaper option for you.

How much do you really need? A huge bag of carrots may seem like a bargain at 69 cents, but will you be able to use them all before they become rotten? If you only need four or five carrots to use in a single meal, you'd be better off buying these loose, even if the cost per lbs. is greater.

Leave your cards at home! By paying for everything with cash, you are more likely to keep track of what you spend.
Cash in your purse seems more “real”: you can see how much is left, feel it, and easily recognize when you have spent too much. When you spend on credit or debit cards, your money remains “invisible” in the bank, and it's harder to keep track of your purchases.

See how much you could save by avoiding temptations. Here's a fun exercise to try the next time you go shopping: Take cash to the supermarket, including lots of change, and a sturdy envelope. Each time you see something you'd like to buy, but don't really need, leave the item on the shelf and put the money you would have spent in the envelope instead. Do this for magazines, sweets, cosmetics, and anything else which isn't on your shopping list. Once you've finished shopping, take out your envelope and see just how much you saved by being economic and wise with your money. You may be pleasantly surprised!

At the checkout. By the time you reach the checkout to pay for your thrifty food purchases, you may think your money-saving tactics are complete. Yet there are still a few tips which can help you save even more!

Stay focused! As parents, we are well aware of the temptations for children in the form of sweeties at the checkout. While your supermarket may have moves the sweeties from beside the counter, they may instead be replaced by something equally tempting... Leaflets for insurance, mobile phone plans, child trust funds and more are commonplace at the checkouts of many supermarket chains. Even Aldi have jumped on the bandwagon by offering flowers and photo processing in addition to the regular grocery sales.

Keep your eyes forward and remember: you are shopping for food! You'll save more money by comparing services in the comfort of your home than on a whim while waiting at the checkout.

Using vouchers (Coupons) Don't forget to hand over any vouchers you have clipped for your purchases! It's better to give these before the cashier begins ringing up your items as some may need to be scanned at the same time as the product or require a supervisor to process. Don't be afraid to ask for a
discount on imperfect goods Damaged items, such as dented cans, torn packets and badly
bruised fruit are imperfect, and may be reduced at the counter. On occasion, your cashier may offer to reduce such items; if they don't, then ask! Your discount may only amount to a few dollars depending on the discount offered, or a couple of pounds on more expensive items.

While you may feel cheeky, remember that few people are interested in buying second-best items; your dented can may have ended up in the reduced section anyway, or could even become waste. “No” is the worst thing your cashier could say, and in this case, you are free to leave the item behind.

Use your own bags. For years, budget supermarkets like Aldi and Netto have charged for carrier bags in order to reduce costs. A recent trend among the supermarket giants is to give carriers only when asked, to encourage shoppers to bring their own re-usable bags instead (or purchase while at the counter). My local supermarket “runs out” of free carrier bags on a regular basis, forcing customers to purchase an expensive shopper or “bag for life” if they haven't brought their own. Now that reusable canvas shoppers are so cheap and easy to come by (almost all stores sell them these days) I try to keep a couple rolled up in my handbag for such occasions. Also, I store three or four larger bags from IKEA (very cheap and sturdy) in the trunk of my car. This ensures I don't have to pay extra for bags at the checkout, and in some stores, helps me earn loyalty card points as a bonus.

Check your receipt. Sometimes special offers aren't automatically calculated; items ring in at a higher price than it said on the shelf, and things are accidentally scanned twice. Be vigilant and check your receipt before leaving the checkout. Most errors can be fixed right away, otherwise the customer services department will be willing to help. You should also be aware that shops have to sell items at the advertised price. If orange juice is marked at .99 on the shelf, you
should not be charged the updated price of 1.29 for it. Prices can change daily, and it is up to the store to change the prices listed on the shelf to match the scanned price at the checkout.

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How to stay awake on the job

Photo by thepretenda
·Take a 5 or 10 minute break every hour - The most economical and best way is to get up every hour and take a walk. Sitting at your workstation for hours on end causes blood flow to constrict and muscles to atrophy.
·Stretch regularly - Bruce Lee the famed martial artist once said that flexibility is the fountain of youth.
· Take the stairs very chance you get – If its your only form of exercise take 15 minutes of your lunch and walk the back stairwell if you can. I used to do this everyday on the evenings that I could not find the time to jog.
·More Water - Coffee is good for an initial energy boost but over the course of the day it drains your adrenal glands leaving you lethargic and tired at mid-to days end. Water is crucial and it keeps you hydrated and yields an even flow of energy.
·Rinse your face with cool or cold water - When you are feeling tired, take a trip to the bathroom and rinse your face and eyes with cold water more than once. It's excellent for the eyes and it's energizing - particularly later on in the day.
·Avoid heavy meals - Heavy meals destroy your energy. To stay productive you must choose protein throughout the day as protein energizes the brain and keeps you awake and alert.
·Power Nap - The benefits of power napping have been scientifically proven in the laboratory. I often do this in my car at lunch. Bring one of those egg timers if you’re a heavy napper.
·Breathe - Oxygen is an energy booster. Whether at lunch or during your 15 minute break go outside and breathe. Take a walk if you’re not too tired. One thing that motivates me to go on the treadmill every night is asking myself if I am physically or mentally tired. Being I sit at a desk all day it’s an easy call for me and I actually gain new found energy once I get on the treadmill and afterwards as well. So get out of your office building, and breathe deep.
·Participate in the office chatter - Participating in the office chatter with your co-workers will diminish the monotony of your work and help you continue to stay energetic and industrious. So, when you’re bored and don’t feel like working, just start talking about something not related to the job. After 5-10 minutes, go back to what you were doing. It always works!
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Things your grocer will never tell you

Photo by avixyz

From Reader's Digest - Marh 2009

1. If you hate crowds and lines, shop at dinnertime (5 to 9 p.m.) or even later. Only 4 percent of shoppers hit the aisles between 9 p.m. and 8 a.m. Least-crowded day of the week? Wednesday.

2. Go ahead and reach way back for the fresh milk. Everybody does.

3. Coupons with a bar code are easy to scan. The other ones take an eternity. But if you're willing to wait …
4. That star fruit has been here a lot longer than the broccoli. Familiar produce turns over more quickly than exotic things.

5. "The more products you see, the more you are likely to buy," says Marion Nestle, author of What to Eat. "That's why the aisles are so long and the milk is usually in the far corner."

6. Like employees with a good attitude? Shop at chains that are employee-owned, suggest customer-satisfaction surveys. When employees have a stake in the profits, it shows in their attitude.

7. The "grazers" order food at the deli, eat it as they're shopping, and get rid of the wrappers before they check out. We also call that stealing.

8. I'm not just selling groceries, I'm selling real estate. Look high and low-literally-for good values from smaller manufacturers who can't afford to stock their products in the eye-level sweet spot.

9. We're marketing to your kids too. That's why we put the rainbow-colored cereals and other kiddie catnip at their eye level.

10. Be wary of "specials." When people see signs with numbers-"8 for $10!" "Limit: 5 per customer"—they buy 30 to 100 percent more than they otherwise might have.

11. The baby formula is locked up because thieves resell it on the black market. Ditto for the cough and cold medications, smoking-cessation products, razor blades, and batteries.

12. Driving your Ferrari to the Piggly Wiggly and want to avoid shopping-cart dents? Park far, far away.

13. You'll end up tossing 12 percent of what you buy

14. "Don't buy anything with more than five ingredients (too processed), with ingredients you can’t pronounce (too processed), with anything artificial (tastes bad), with a cartoon on it (direct marketing to children), or with a health claim (misleading)," says Nestle.
15. Paper? Plastic? We don't really care. But asking us to double-bag…that's just wasteful.

16. Dig and reach for the freshest produce. Older merchandise gets pushed to the front of the bin and spread across the top to encourage customers to take it first.

17. This isn't a social service agency. "The purpose of grocery stores is to get you to buy more food, not less," says Marion Nestle, author of What to Eat (North Point Press). Only 14% of consumers overall stick to just the items on their shopping list.

18. Very few people really like the "loyalty card" program, and it's expensive for us to run.

19. Attention, shoppers: Don't start your shopping just as we're closing. We just want to leave. It's been a long day. 7. Watch out for gimmicks. They are intended to get you into a store more frequently and to keep you away from competitors.

20. The person who supervises it all has a tough job; they're just a big babysitter.

21. Thanksgiving is our least favorite holiday. 10. Bring back your recyclable cans and bottles, but please rinse them out first. Leaving soda inside is unsanitary and we find it disgusting.

22. Signs of a store in trouble: Stocking fewer perishable items, storing non-perishables in refrigerated cases to make them look full, and "dummying up" shelves with empty boxes. If we were offering the best prices and highest quality, wouldn't there be more people shopping here?

23. I'm not getting rich here. After-tax net profit for the grocery industry is less than 2 percent, and by the end of 2013, the Food Marketing Institute, an industry group, predicts annual average wages will be just $18,000.

24. If you get in the 10 items or less line with 25 items, don't be surprised if you are asked to leave. If you have 12 items, not many people will care.

25. Watch those shopping-cart handles. They're covered in bacteria, says food-safety consultant Jeff Nelken. Use a sanitary wipe if the store provides them. Finicky shoppers can even patronize supermarkets that send their carts through a cart wash.

26. Skip the center aisles. That's where you'll find the junk food, like sodas and snack foods.

27. Check sizes. "Manufacturers are constantly trying to repackage things to make them sound like a better deal," says David Livingston, a supermarket industry consultant. "Some new peanut butter containers may look the same, but look closely and you'll see they actually have less peanut butter inside. Ninety-five percent of customers don't watch this kind of stuff."

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Why Its Great to Be Able to Make Mistakes

Photo by Shorty AZK
1. Cognitive lie: I fear making mistakes because I see everything in absolutist, perfectionist terms--one mistake and the whole is ruined.

Cognitive Truth: This is erroneous. A small mistake certainly doesn't ruin an otherwise fine whole. It's good to make mistakes because then we learn in fact, we won't learn unless we make mistakes. No one can avoid making mistakes-and since it's going to happen in any case, we may as well accept it and learn from it.Recognizing our mistakes helps us to adjust our behavior so that we can get results we're more pleased with-so we might say that mistakes ultimately operate to make us happier and make things better. If we fear making mistakes, we become paralyzed we're afraid to do or try anything, since we might (infact, probably will) make some mistakes. If we restrict our activities so that we won't make mistakes, then we are really defeating ourselves. The more we try and the more mistakes we make, the faster we'll learn and the happier we'll be ultimately. Most people aren't going to be mad at us or dislike us because we make mistakes-they all make mistakes, and most people feel uncomfortable around perfect people.

2. We don't die if we make mistakes.

3. In your perfectionism you are undoubtedly great at focusing on all the ways you fall short. You have the bad habit of picking out the things you haven't done and ignoring those you have. You spend your life cataloging every mistake and shortcoming. No wonder you feel inadequate! Is somebody forcing you to do this? Do you like feeling that way? Here's a simple method of reversing this absurd and painful tendency. Use a wrist counter to click off the things you do right each day. See how many points you can accumulate.This may sound so unsophisticated that you are convinced it couldn't help you. If so, experiment with it for two weeks. I predict you'll discover that you will begin to focus more on the positives in your life and will consequently feel better about yourself. It sounds simplistic because it is! But who cares, if it works?

4. Another helpful method involves exposing the absurdity in the all-or-nothing thinking that gives rise to your perfectionism. Look around you and ask yourself how many things in the world can be broken down into all-or-nothing categories. Are the walls around you totally clean? Or do they have at least some dirt? Am I totally effective with all of my writing? Or partially effective? Certainly every single paragraph of this book isn't polished to perfection and breathtakingly helpful. Do you know anyone who is totally calm and confident all the time? Is your favorite movie star perfectly beautiful? Once you recognize that all-or-nothing thinking doesn't fit reality very often, then look out for your all-or-nothing thoughts throughout the day, and when you notice one, talk back to it and shoot it down. You'll feel better

5. The next method to combat perfectionism involves personal disclosure. If you feel nervous or inadequate in a situation, then share it with people. Point out the things youfeel you've done inadequately instead of covering them up.

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Buy your dream car at half the price

If you want to by-pass the entire dealership hassle, and get an even greater deal click here.

There is too much anxiety surrounding the purchase of a car. It is like walking into a den of lions. You know you have no chance. Or do you?”
You will spend a great deal of time and money preparing to purchase, negotiating a purchase, and ultimately, paying for the purchase of vehicles during your lifetime. The average person will own, or should I say, make payments on, at least seven vehicles during his or her lifetime. If you have children who will eventually become teenagers and need a car, you will be involved in extra car purchase transactions that will make an already challenging task much more difficult. Finding a car that is cool enough for a teenager to be happy driving, and also finding one that is affordable, is a remarkable undertaking in and of itself. Forget about the formidable task of dealing with the people who will be selling and financing that vehicle. The car buying process has been written about quite a bit in recent years. The many dealer tactics for extracting every possible penny of profit out of every vehicle sale have been well documented and exposed to consumers. The fact that these sometimes tricky (and always profitable for the dealer) techniques have been exposed to the public has led, in my opinion, to a great increase in the stress and anxiety surrounding the purchase of a vehicle. Like they say, “What you don’t know can’t hurt you.” This is true, in part, when it comes to buying a car. When we did not know so much about how the dealers and manufacturers were gouging us at every turn, we weren’t as anxious about stepping onto the dealer’s lot. Now that we know more about the strategies used to sell cars, which start from the minute we read an advertisement in the paper, or hear one of those loud car commercials on the radio, and continue right through to the financing department and the service department, it makes the entire event very stressful, and one we wish we could avoid. It is a bit like the difference between knowing you are walking through a field full of dangerous land mines and taking the same walk but not knowing there are any mines in the field. Once you know the danger exists, your stress level goes way up as you work hard to avoid being hurt by things you cannot see. To my knowledge, unlike walking through fields full of landmines, no person has ever died as a result of shopping for a car. I can’t say for sure, but I don’t think the experience is quite as dangerous physically as walking through a minefield. However, it is an experience that can be very dangerous to your financial plan. If you make mistakes, it can cause the ruin of your long-term financial goals and good credit standing. And I know plenty of people who have gotten very ill during and after the car shopping experience. Myself included. This is especially true once you realize how bad a deal you may have signed up for. It is such an exhausting experience for most people; they don’t even read the paperwork and the fine print on the contract until after they get home from several hours at the dealership. Many people never read their contract. I’ve heard people in a dealership say, “I don’t care what the paperwork says, just tell me my monthly payment and let me go home.” I do feel, however, that we would stand to be hurt much worse financially by not knowing as much as we now know about the entire car selling system. In this sense, what we don’t know can hurt us because it puts us at the mercy of a very powerful, well-oiled—pardon the pun—selling machine.

WHY TAKE A CAR LOAN?
Most people finance vehicle purchases for five years. How can you blame anyone? The average sticker price for a new vehicle is more than $21,000. Few people have that kind of cash available to use for buying a new car. And, admit it, even if you had that much cash in your savings account, would you really consider taking it all out and using it to buy a car? Probably not. We have been programmed over the years to pay for large purchases by financing them and paying for them on a monthly basis. Who do you think has done this programming? Yes, the banks and finance companies. It is how they stay in business and make their profits. Big profits, I might add. The consumer’s reliance on financing big purchases also allows companies that sell very expensive items, like car dealers, to keep increasing their prices. This has led to amazing growth in the cost of vehicles over the years. At the same time, we are told to do everything possible to build up savings for retirement, college tuition, and emergencies. This is confusing and makes it difficult for the average consumer to mentally justify parting with over $20,000 in cash to buy a car. Even if it made sense financially to pay cash, it would be a difficult decision for the average person. This is a very important point I would like you to understand. It is generally a good idea to avoid paying interest when you buy anything. However, when you take into account the prevailing interest rates for car loans and rates of return on investments you could be making, it may not make financial sense for you to pay cash for a car or any other large purchase just to avoid the interest cost, even if you can afford to pay the cost of the item in full. Since we are constantly managing many different interest rates and payments for our families, such as credit cards, automobile purchases or leases, mortgage interest, and the interest on other types of loans, we must be selective and smart about what interest we choose to carry on our debt load. It can be a difficult decision, but, a very important one that will change with time. As the prime interest rate keeps getting lower and the price of borrowing money gets cheaper, a car loan’s interest rate may be very reasonable when compared with credit-card interest rates that you may be carrying. If you have an 18 percent interest rate on an $8,000 credit card debt, financing your car at 5 or 6 percent interest and putting extra cash on the higher credit card debt makes the most sense. Paying cash for a car you could finance at 6 percent but continuing to pay the minimum payment on an 18-percent interest-rate credit card is a bad decision. By the way, if I were in that situation, I personally would seek to pay off the credit card before I even thought about buying or leasing a car. However, I live in the real world and realize you don’t always have a choice. If your car stops running, or is costing you more each month than a new car would cost to keep running, it is a requirement to get some wheels that run no matter how much debt you have. You have got to get to work or nobody gets paid. At the end of the day, it is usually a good idea to avoid paying interest on a depreciating item like an automobile. This is the biggest problem with buying a vehicle. They begin to depreciate in value from the minute you drive them off of the dealer’s lot. In reality, they are depreciating every minute they sit on the lot as well. Unlike a house, which can appreciate in value as it ages because of location and other factors, cars lose value as they age. Except for very rare vehicles and collector’s items, the average car or truck loses 50 to 60 percent of its value in the first two years after it rolls off of the assembly line. It is difficult to win financially when you buy a vehicle. It is an expense, not an investment. But, you have no choice. Our society demands mobility. As our cities become more spread out, it just isn’t practical for anyone to think they can do without a car. If you have ever used public transportation you know that it is not something you want to rely on for all of your transportation needs.

DEALING WITH THE DEALERS
So, we are left with the realization that we must deal with the sellers of automobiles. Again, we are operating in a system that requires us to spend money to survive. In the case of automobiles, we have to spend a lot of money. But, you can still spend your way to wealth in the area of car buying. There are few areas of personal finance where it is so important and can be so profitable over the long-term to be a Power Buyer. Most people settle for the cheapest car they can find that may still meet their family’s needs. I am here to tell you that you don’t have to settle for a vehicle that you don’t like simply because of price. You can drive better cars for the rest of your life by arming yourself with some powerful knowledge and proven strategies. If you want to get a good deal on a new car, I think you first have to define for yourself what a good deal is. Unlike the real estate market, it is extremely difficult, if not impossible, to find undervalued vehicles for sale. Car dealers have huge overhead costs in order to be in the business, from staff to inventory to advertising, and therefore must mark up their product accordingly. Dealers also have the opportunity to include add-on costs and fees and we really don’t have much of a choice but to pay them. Even though there are many car dealerships in most cities now, there are still a limited number of them. And they all play the same pricing and sales games so it does not matter where you go. If you don’t like dealership number one you can certainly go to dealership number two. But, dealership two won’t be much better. Don’t forget that the dealers are also in the financing business. This gives them added leverage to create a profit due to our lack of knowledge. You have a better chance of finding a good deal from an individual owner selling a car. However, individual owners who have their cars for sale are either having trouble making their own payments and owe more than the car is worth, or they are selling a very old car. Whether you deal with an individual or a dealership, you are going to have to be a tough and knowledgeable negotiator in order to save money and avoid being stuck with high payments over a long period of time. You won’t be able to define your good deal until you do some pre negotiation research. Only through detailed research will you know how much is too much to pay in all areas of the vehicle purchase. This includes standard equipment, add-ons, financing, extended warranties, and any other item that could be included in the transaction. You cannot fake this. The professional salespeople know when you are faking. They have a product you want and they know it. Your goal is to learn the language of car sales and
financing. Once you get your bearings—like speaking the language in a foreign country—you will be able to get around much more easily and you won’t be easy prey for sales tactics and often confusing negotiations. A popular strategy is to simply never buy a new car. If you buy vehicles that are two to three years old, you will have the opportunity to save money. It is not automatic, however. Since car dealers realize that savvy consumers are onto the depreciation of new cars, they have had to refine their tactics in the used car market as well. Used cars offer car dealers equal opportunity to mark vehicles up beyond their market value. There are plenty of unsuspecting used car shoppers. This is especially true among people who have had past financial problems, which may have damaged their credit. With damaged credit, it is more difficult to qualify for the lowest interest rates, so these consumers have little choice but to shop for less-expensive used cars. If you need a car and have little time to shop, have damaged credit, and are uninformed about the basics of smart car buying, the worst place for you to be is on a dealer’s lot. You have little to no chance of leaving the lot in a positive financial position. I think it is a good time for me to make the point that I do not think car dealers and automobile manufacturers are bad people. Just the opposite, they are some of the sharpest business minds in the world. They have mastered their business like few entrepreneurs have. You must respect that. Yes, there are bad operators in every industry who will taint everyone in that particular business by their unethical behavior. The business of automobile sales lends itself a bit more easily to anti-consumer behavior, so those in this, business have gotten a great deal of bad press over the years. In the end, you have to deal with this group, so you can choose to lose, or plan to win. It is totally up to you. While you are doing your homework, it also makes sense to fully research the complaint records of car dealers you may choose to visit with your state or local consumer protection agency or Better Business Bureau before you spend a great deal of time on the lot. As I have said, information and knowledge are the keys to winning the car-buying game. But, even before you start shopping and researching, you have got to take a serious look at your family’s financial position and what your family needs for proper and safe transportation.

HOW MUCH CAR CAN YOU AFFORD?
You must decide in your spending plan exactly how much you can afford to pay for a vehicle on a monthly basis and, also, in total. You also need to plan how much of a down payment you can make. A car dealer is going to try to qualify you for the most expensive car possible, as you would expect. You must choose a car that will fit into your plan. Again, this purchase is a pure expense. Emotion should not factor into the business decision. If you want a more expensive car, you need to know what it costs new and used. You need to then plan your spending around your desire for that type of car. You can save 10 to 20 percent on the new vehicle you want by doing research and learning to be a good negotiator. You can save 50 percent or more by buying the car you want used. If you want a new car, there is no way you will ever purchase the vehicle for 50 percent off of the purchase price. Not even the dealers can get new cars at 50 percent off of the manufacturers suggested retail price. The first thing to do is to decide on a class of vehicle that best fits your lifestyle. How will the car be used? If you’re concerned about taking your kids to football and soccer practice, you’re probably going to need a car with lots of seating and storage capacity. If you’re planning to use the car for commuting long distances to work, gas mileage and comfort may be your biggest considerations. Next, decide what features you simply must have. You have lots of choices for comfort like air conditioning, lumbar supports, anti-lock brake systems, integrated seat belt systems, head injury protection, and child protection equipment. List your “must have” items and the “it would be nice to have but, we don’t really need them,” items. For information about car safety features, recalls, crash tests, and other auto safety topics, go to the National Highway Traffic Safety Administration’s (NHTSA) Web site at www.nhtsa.dot.gov. You can also call NHTSA’s toll-free Auto Safety Hotline at (888) 327–4236 and have information sent to you.

COMPARISON SHOP
It has never been easier to comparison-shop and fully research your options. Read Consumer Reports (www.consumerreports.org), Popular Mechanics (www.popularmechanics.com), and Motor Trend (www.motortrend.com) for performance, service, and safety ratings. Visit www.autoweb.com, www.autovantage.com, www.carpoint.com, www.autobytel.com, or, my personal favorite, www.Edmunds.com, to get quotes and tons of detailed information about the entire car-buying process. The most important information that these sites provide, in my opinion, are the financial details between manufacturers and the car dealers. For instance, you can learn what a dealer gets paid by a manufacturer when a vehicle is sold within a certain period of time. This is called a dealer holdback. Two key things to look for are the dealer’s invoice price for the car and the cost of options. The invoice price is what the manufacturer charged the dealer for the car, not counting any rebates, allowances, or other incentives that reduce the cost to the dealer. The dealer will almost always receive some sort of incentives that will lower their cost below the invoice price. So, while you will never really know the dealer’s true cost, you will be close. You will be able to find out if the manufacturer is offering rebates that will lower the cost as well as any special financing offers. You should also research the MSRP, which is the base price of a particular vehicle before options and delivery charges are factored in. Your goal is to avoid paying the MSRP. After you narrow your search to a few makes and models, analyze the pros and cons for each. Check out the retail value, fair market value, and wholesale value, available options, performance, and track record for repairs.

MAXIMIZE YOUR TRADE-IN
Before you begin to negotiate your purchase, don’t forget to do the same type of research on the vehicle you plan to trade-in. This is very important. You need to get the maximum possible trade-in price. You’ll have your work cut out for you. Dealer representatives will look for a thousand things wrong with your trade-in, from high mileage to minor scratches, in order to lower the value. The more prepared you are, the easier time you will have. You will almost always make more money on your used car by selling it yourself. It is definitely less convenient than trading it in at the dealer. However, you could easily earn an extra $1,000 to $5,000 for your used car by selling it yourself. You have to decide how hard you are willing to work for that amount of money. Consider, also, that extra money used as a down payment will reduce the amount you have to borrow and pay interest on over the life of your car loan.

NEGOTIATE WITH ATTITUDE
Armed with your research, you can now begin to negotiate with people who are selling automobiles. Even the best-prepared consumer can have a difficult time once they get face to face with trained salespeople. A salesperson will size you up immediately and the price you end up paying could have a lot to do with your attitude and demeanor during the entire process. You must send a clear message right from the start that you are friendly, but well prepared; you know your stuff, and will only pay a fair price for the vehicle. In order to save a great deal of your valuable time, and start to send the message that you plan to control the buying process, I suggest you begin by getting price quotes from several dealers via telephone, fax, or e-mail. This will also allow you to create a competitive bidding process for your business. As you will learn from your research, the “factory invoice price” is the same for all dealers of the brand of vehicle you are interested in buying. This will be your reference point and you should make it a point to tell the salesperson that you will expect to see the actual factory invoice for any car you consider buying. When you request your quote, you should also ask for a list of any additional charges that are not listed on the factory invoice. This would include dealer add-ons like document preparation, options, special handling, rust-proofing, and anything else that would increase the total price of the car. Ask if the amounts quoted are the prices before or after the rebates are deducted. You are bound to be told by some salespeople that they aren’t allowed to give out prices over the phone, or they will beat any price you can find. They will always ask you how much you are looking to pay for the car. They will, most likely, all tell you that they offer the lowest rates of any dealer in town. Just be honest with them; tell them that if they don’t want to provide a price quote, you will not consider their dealership. Explain that your time for shopping is very limited and assure them you are a serious buyer. You will eventually have to go to the dealership to complete the purchase. Never buy anything, especially very expensive items, on impulse or because the salesperson is pressuring you to make a decision. Be sure to read and understand every document you are asked to sign and never sign anything until you have made a final decision to buy. The dealer will try to bundle your trade-in, purchase price, and financing all together once they find out how much you are willing to pay and how much you can qualify for as a monthly payment. Handle these three as separate transactions from each other to get the best deal on each one. Be sure to read the “Buyer’s Guide” sticker required to be displayed in the window of the car. It gives information on warranties, if any are offered, and provides other information, such as standard equipment included in the purchase price, delivery charges, fuel economy, and the total “sticker price.” The total sticker price is MSRP plus option costs, delivery costs, and adjustments. Be on the lookout for the second sticker, often referred to as the “sucker sticker.” The dealer may add all sorts of additional charges to the sticker price to boost profit. Offering to give you a discount off of the second sticker price is a common tactic but is not doing you any favors financially. If the “warranty” box is checked off on the “Buyers Guide,” ask for a copy and review it before you agree to buy the car. Test-drive several models before you make a final choice, and once you make a final choice, inspect and test-drive the vehicle you plan to buy very carefully. Once you drive it off of the lot you lose a great deal of leverage to get small dings and other repairs done for free. Be careful of salespeople who tell you to take the car home and make an appointment to have something fixed at a later date. If they want to sell you the car, they can take care of the item now. There are some exceptions. You may order an option, which has to be special ordered before being installed. You may want to take the car until the option is delivered if it is going or weeks. to take a few days

CLOSING THE DEAL
Eventually you will decide to go ahead and make a purchase and the next phase of the transaction begins. First of all, don’t be misled into thinking that you have an automatic three-day cancellation period for all purchases. It is a commonly used tactic to push you into a sale by telling you that you can change your mind within three days and cancel the contract. You can only legally cancel a few types of contracts. Check your state’s laws regarding contract cancellation. By the same token, you should never take possession of the car until the financing paperwork is final. You take a risk of having the deal changed on you. Maybe a higher interest rate or a few extra thousand dollars of down payment might suddenly have to be added to get the deal financed. If you already are using the car, you lose leverage. It is a very good idea for you to shop in advance for good financing deals at your credit union, bank, or local finance company. When you finance a car, the finance charge must be stated as an Annual Percentage Rate (APR). Compare the APR and total finance charge offered by independent financial institutions with the financing offered by the dealer. You should be looking at the total cost, not just the monthly payment. Avoid high-profit, low-value extras sold by dealers, such as credit insurance, extended service contracts, auto club memberships, rust-proofing, and upholstery finishes. You do not have to purchase credit insurance in order to get a loan. The other items are generally available for much less outside of the car dealership. Dealers will always try to sell you an “extended warranty” or service contract when you buy a new or used car. A warranty comes with a new car and is included in the original price of the vehicle. A service contract is sold separately and is a promise to pay for certain repairs or services. Service contracts are usually high-profit add-ons, costing hundreds of dollars to more than $1,000. The service contract may duplicate warranty coverage you get from the manufacturer or dealer. For that matter, an extended warranty may duplicate coverage by the manufacturer’s warranty. If you choose to purchase extended service, you will want to know who is responsible for providing the outlined services: the dealer, the manufacturer, or an independent company. Don’t assume that it is automatically the dealer. Ask and understand what happens to your coverage if the dealer or administrator goes out of business. Learn the process for how repair claims will be handled and make sure you fully understand if you will be responsible for paying any additional deductible or co-payments or service fees. The service contract may prohibit you from taking your car to an independent station for routine maintenance or performing the work yourself. That might include very basic service like changing the oil, which is usually more expensive if it has to be done at the dealer’s service center. You may also be required to have your vehicle serviced on a scheduled basis whether you think you need it or not. Failure to keep up manufacturer’s recommendations for routine maintenance can void the service contract and you’ll be out the money you paid for it. Make sure your service contract can travel with you to another state if you travel or move out of town. Watch out for exclusions that deny coverage for any reason and other terms that could cost extra when repairs are made.

CONSIDERING A USED CAR?
As we’ve discussed, used cars offer you the best chance to own the car of your dreams at an affordable price. The biggest issue with buying a used vehicle is its condition. If you have automotive repair skills, or are close to someone who does, buying a used car is a little safer. For the majority of us, buying a used car is much more of a risk. There are companies and individuals who will check out used cars before you purchase them for a fee. It is probably not a good idea to ask the dealer for recommendations. You will have to find these experts on your own. Often your bank could be helpful. A local mechanic at a service station you are familiar with could be helpful but you really need to check and verify his credentials and experience. Once you find a mechanic you trust and are comfortable working with, you can begin to search for an acceptable used car. It is a good idea to check the classifieds, Auto Trader Magazine, and the Internet for used cars. Finding a used vehicle that is in good, clean condition will take time and energy. Any required repairs will help you bring your offer price down since you will have the expense of bringing the car back to proper condition. Look at the vehicle very closely and note any and all damage or problems. This is where your mechanic can earn his weight in gold. There are some other, smart-buyer strategies you should use when buying used cars. Seek a dealer that covers used cars with at least a thirty day, 100 percent warranty where the dealer agrees to pay all repair costs for covered items. Try to avoid “As Is—No Warranty” cars. Some states have laws giving extra protection to used-car buyers. Contact your state or local consumer protection office to find out what rights you have. Check with your state’s department of motor vehicles for information on the car’s title history. Make sure the car is not a “lemon buy-back,” salvaged, or wrecked car. You should insist on getting a written mileage disclosure statement. This is required by federal law from any seller and you should be sure it matches the odometer reading on the car. It is always a good idea to check the title to the car before you sign on the dotted line. If you are buying from a private individual you should understand that private sellers generally have less responsibility than dealers for defects or other problems. Make sure the seller isn’t a dealer posing as an individual. That might mean the dealer is trying to evade the law and might be an indicator of problems with the car. Look closely at the title and registration. Make sure the seller is the registered owner of the vehicle. It is really important to ask the seller lots of detailed questions about the car.

SHOULD YOU LEASE?
In recent years, leasing has become a very popular way for people to afford to drive automobiles. Once reserved exclusively for business people and companies that needed fleets of automobiles, leasing was introduced to the general public and quickly has become a popular way for consumers to afford newer and more luxurious vehicles. In fact, leasing is the choice in about 28 percent of all new-car transactions. I am, personally, a fan of leasing for many reasons. I remember distinctly when I became interested in leasing. It was the day I mailed in the last payment on the last car I had purchased and financed. That day, I was at an automotive service center getting a $600 estimate for fixing the air conditioning on the car. The air-conditioning system had stopped working the day before. That was the day I realized what a bad investment cars can be; after a while, they break down and start costing a lot of money to keep running. Even if it doesn’t break down, it is an old car. Leasing is not the perfect choice for everyone. It really has to be a decision based on your lifestyle and spending plan. For example, now that my oldest son, Drew, is about four years away from wanting a car of his own, I am seriously considering purchasing my next car so that I would be able to pass it onto him when he is ready. These are the basic differences between leasing and buying. When you lease, you pay to drive someone else’s vehicle. Leasing is just a fancy word for renting. Although leasing usually provides for lower monthly payments than a loan, at lease end, you have no ownership or equity in the car. With a lease, you don’t pay interest or finance charges as you do on a loan, but you do pay rent charges, which are calculated using the lease rate or “money factor.” The money factor is used to calculate the leasing company’s monthly fee (the rent charge). Clearly, your goal is to negotiate the lowest possible money factor or lease rate. The Consumer Leasing Act requires leasing companies to disclose standardized information to lease customers. In addition to the information disclosed on a standardized form, you should always ask for an itemization of the capitalized cost. You should shop as if you’re buying a car. You want to know your total payments with interest over the term of the lease. Understand that you may negotiate all the lease terms, including the price of the vehicle, how many miles per year are included in the lease, the down payment, and the purchase option price at the end of the lease. Lowering the lease price will help reduce your monthly payments. You will receive the terms of the lease in writing. Be sure to pay close attention to the leasing company’s standards for wear and use. Tire wear and dings that you may regard as normal wear and tear may be billed as significant damage at the end of your lease. You can expect to pay a substantial charge if you give the car up before the end of your lease. Most leases allow you to drive 12,000 to 15,000 miles a year and then you are responsible for a charge of ten to twenty-five cents for each additional mile. You do not pay for the mileage at the end of each year so don’t get too hung up on it unless you drive a lot of miles every year. If you use your vehicle for typical driving, you should look at the total mileage you are given in the lease. For example, if you are given 12,000 free miles each year, and the lease is for three years, you have a total of 36,000 miles you can drive. The last year of the lease is when you might have to make some adjustments in your driving so you don’t go over the allotted amount. One of the things I like about new-car leases is that the manufacturer’s warranty covers the entire lease term. If something breaks, you are covered while you are leasing the car. When you purchase a car, your warranty coverage could end while you are still making payments on the vehicle, leaving you totally responsible for the cost of repairs. Be sure to get every item of equipment included with the car listed on the lease. Otherwise, you could be charged for “missing” equipment at the end of the lease. Be careful to review your lease for any charges that were not disclosed by the salesperson, like conveyance, disposition, and preparation fees. Make sure you get credit for any trade-in just as you would with a purchase. When you finance a car, the finance charge must be stated as an APR. There is no similar requirement for disclosing the cost of leases. “Lease rates” or “money factors” do not have standardized definitions and are not equivalent to an APR. Your lease agreement will disclose the rent charge. Be sure this amount is explained to you and that you understand all charges fully before you sign the lease agreement. Another great reason to lease is the tax savings. Sales tax, in most states, is only paid on the lease payments rather than the full price of the vehicle. The shorter the lease term, the more sales tax you save compared with purchasing the vehicle. If you buy a vehicle and wrap the sales tax into the financing, you will pay interest on top of the sales tax. To buy or to lease is a question to answer by using your spending plan and deciding where you want to be financially at the end of the lease or purchase financing term. It may make more sense, based on your spending plan, for you to lease. Lower monthly payments and no cash out of pocket may be more important right now than having a used vehicle worth a few thousand dollars in three to five years. If you lease, at the end of the lease you will have to deal with these same decisions again. If you buy a vehicle, there is a good chance that you will get a few years after you pay off the loan where you may not have a car payment. If you find yourself in that position, I urge you to continue to pay yourself that monthly payment that you have become used to making and living without. Use it to pay down debt or as a down payment to buy a new home. Keep in mind that, eventually, your vehicle will wear out and you will need to get another one. Perhaps the idea of having a new vehicle every two to three years is appealing enough to you to not mind having a perpetual car payment. As long as you plan the payments into your monthly and yearly spending plans you can drive the car you want to drive on the financial terms that work best for you and your family.

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Travel Like a Millionaire but don't spend a Million

Photo by Ben
The best way to travel for less is to ask more questions.
When you mention travel, most people light up. Traveling to new places, seeing sites you’ve only read about, and anticipating exciting adventures in romantic locations are what makes travel so popular. We don’t only travel for pleasure; business travel is a big piece of the travel business. There are lots of reasons to travel. And, if you enjoy it as much as I do, let me assure you that you can travel more than ever and increase the quality of your trips if you become a smart buyer of travel. At first glance, travel would seem too expensive for most people, even if they don’t plan to travel in high style. The perception is that any travel is expensive, and the cost of good travel is just out of the question. It is true that the cost of travel can be very high. Sometimes it can be outrageously expensive. But, first class travel does not have to be out of reach for you. First class travel can be very affordable, all of the time.

How is this possible? How can it simultaneously be expensive and very affordable for the same quality of travel? The answer is simple: For years, the travel industry, which is ones of the biggest industries in the world, has made its product available at greatly discounted prices. Can you guess why? If your answer is competition, you are right on target. When you start thinking about all the competition in the travel business, it is mind-boggling. From travel agencies to theme parks to cruise ships to hotels to airlines to resorts and campgrounds, it is incredible how many travel options you have from which to choose. Now, throw in our current economic slowdown and fear of terrorist attacks, and you have a great many companies that are hungry and fighting for your business. These businesses have chosen to compete on price; they have turned their product into a commodity that is sold almost entirely based on the price. Think about it: Did you make your last flight reservations based on the quality of the airplane you’d be flying on and the quality of the service that would be provided by one airline over another? Or, was your decision based totally on the price of the
ticket?

THE HIGH COST OF TRAVEL
The travel industry’s retail prices are set very high. Not counting the annual family drive back to Dad’s hometown and the week’s stay at grandma’s house, a real vacation—including everything—is not cheap. The average hotel room in the United States costs close to $100 per night. Airline tickets, ground transportation, tickets to attractions, meals, and miscellaneous expenses can run the average four-member family $1,000 to $3,000 or more for a week, depending on where you go and how you travel. Many families take one big vacation a year. This can be stressful because you want to get your money’s worth. Add to that the stress of trying to make everyone in your family happy. It is tough enough renting a movie that will appeal to everyone in your family. Planning one great trip that everyone will enjoy is a thousand times more difficult to pull off—it is your one shot during the year to have a great time. Using the strategies contained in this chapter, you will learn how to travel more often at half the price or less than you would normally pay. People sitting right next to you on the airplane will be paying double or even triple what you will be paying. Learn and use these techniques and affordable, stress-free, high-quality travel that the entire family enjoys will become a reality for you.

DISCOVERING AIR TRAVEL DISCOUNTS
You will find that in the world of travel, the more questions you ask, the more money you will end up saving. The truth of the matter is most people you talk to when you are planning and buying travel are salespeople, and salespeople are normally paid some sort of sales commission. The more of a discount they give you, the lower their commission will be in most cases. So, unless you ask for a discount or a lower fare, no one is really going to go out of their way to tell you about the discounts that exist. Once in a while, a very helpful travel sales representative will pleasantly surprise you and tell you about every discount available for your trip, but this is rare. To illustrate this, let me use the airline industry. Most people shop for airline tickets the wrong way. To begin with, they wait until the last minute, which guarantees they will pay more. People usually call two or three airlines and ask how much it will cost to fly to their destination city on a certain day. Airline number one gives them a price and then they call airline number two. They get a price from number two and, maybe call a third, although, finding three major airlines that fly to the same city is getting more and more difficult. Then, they pick the airline that offered the lowest price of the two or three they called. The problem is, the prices quoted were probably the highest-priced fares available. So, the uninformed traveler is choosing from the two or three highest prices available rather than the lowest available fare. Remember those three words; this is what you should ask for every time you shop for a flight. If you simply say you want to fly from city A to city B on a certain day at a certain time of day, you limit the responses the salespeople will give you. By asking for the lowest available airfare, they are required to tell you about the fringe flights that are also available, for example, overnight flights, referred to as red-eye flights, and flights leaving very early in the morning. Airline reservation agents are trained to fill up flights that are lacking in passengers without regard to saving you money. If the noon flight is empty, they are going to try and put you on that flight, even if it costs you an extra $200. Unless you become a good travel detective and dig out the discounts, you’ll almost always overpay.

One the most effective techniques for saving money on airline tickets is to plan as far in advance as possible. If you buy airline tickets two or three weeks in advance of a flight you will always save money, and often the savings will be 50 to 60 percent, or more. This goes for cruises and almost every other mode of travel. The early bird gets the savings. Look at the savings that are available with a little advance research. I discovered this pricing scenario when I researched a flight from Philadelphia to Orlando. A full fare ticket, with no restrictions and no advance purchase requirement, was priced at $838. The same ticket bought with seven days advance notice was $596, a $242 savings. If we bought the ticket fourteen days in advance, added a Saturday night stay (we couldn’t schedule our return flight until Sunday), and some restrictions like non-refundable cancellation (we had to take the trip), non-upgradable (we could not pay to move into first class), the price ranged from $204 to $299. This is a savings of at least $593. Often, you can save 44 to 70 percent simply depending on the month, season, and day of your travel. If possible, plan to travel during mid-week. The best airline fares are available on Tuesdays, Thursdays, and late nights. In some cities, Saturdays are low fare days. Watch for the seasonal price changes and try to plan your travel for the week right before or after a destination’s high season. In the United States, the lowest airfares are available generally between October and March, holidays excluded.

If you are flying to Europe, airfares are highest during summer and are lowest from December through March, which is off-season in Europe. Flights to Asia are less expensive from about mid-November through March. Flexibility is another great asset when it comes to saving travel money. If you can schedule your travel to take advantage of discounts and low fares, you are in a good position to get the lowest prices. The more rigid your schedule, the fewer discounts you will have access to. There is an exception to this rule, however, and it goes back to what I said about managing the occupancy rate. Once a flight is getting close to takeoff and seats remain unsold, those seats may go on the bargain block to the benefit of last-minute flyers. It is difficult to wait to the last minute to try to book a flight if you have to be somewhere at a certain day and time. But, if you are flexible, this can work in your favor. As a rule, airlines will try to charge you more for flying at the last minute, as if they are doing you a favor for letting you buy a ticket for a seat on one of their airplanes that is still empty. Airlines will make exceptions to the rule of charging more for last-minute travelers in emergency situations or in case of a death in the family. If you truly must travel for some reason, like a family illness or death, and it is a financial hardship for you, be sure to mention this to the agent at the time you make your reservation. I have found airline personnel to actually be very flexible when they can be. They really don’t have a problem accommodating you if there is room to do so. They have certain guidelines they have to work within and most are willing to do what they can to help people who are courteous and patient. I see people blaming the airline service personnel for things out of their control. A lot of frustration comes from the fact that people overpay for airline tickets and then expect to be treated in accordance with how much they paid. Paying more than $300 for a coach ticket anywhere in the United States is not worth it. But, tickets at that price are being sold every day. If you pay $700 and have to fly in the coach section, you will be disappointed and frustrated. My best advice is to avoid ever paying so much for a flight that you feel you have overpaid. Here are some additional ways to cut your travel costs in half without sacrificing quality: ➤ Learn about the discounts available to people less than two years of age and over age sixty-two. Generally, a discount of between 10 and 20 percent is offered to people in these age categories. But, be careful.

Don’t automatically think the discount is being taken from the lowest available fare. You should find the lowest available fare and then ask for your discount off of that fare. That would be getting a deal. ➤ Opting for a flight with connections rather than a non-stop flight could save you money. This is inconvenient, especially on short flights. If you are traveling with children, the inconvenience of getting off of planes and rushing through airports to make connections may not be worth the savings. If you do choose flights with connections, try to book the earliest possible flights since, as the day goes on, the chance for connecting flights to be delayed or missed increases. ➤ Be sure to book your flights using a credit card that rewards you with membership points. Some credit cards are aimed at frequent travelers and offer a host of benefits like free flight insurance and luggage insurance. If you travel a great deal, it is definitely worth your time to find credit cards that cater to you. Be sure to join the airline’s frequent flyer program, even if you don’t travel much. Being a member of several of these programs will open a floodgate of discount and promotional travel offers designed to help you travel more. Researching travel fares and destinations has never been easier thanks to the Internet. Travel Web sites abound with information and savings on everything a traveler needs. One great strategy for using the Internet could end up providing you with an unbelievably low fare and, at least, verify that you have found a good fare. Here is what you can do: Once you have called airlines or researched fares online, take your lowest price and subtract 10 to 25 percent and submit the low price to one of the sites where you name your own price. You may just end up with an incredible deal. Security concerns are responsible for a new cost that is really becoming an issue and one you should take action to avoid. If you thought your luggage cost a lot when you bought it, wait until you see some of the new fees the airlines are imposing on extra baggage. Some airlines are limiting checked baggage to two pieces per person and charging high fees for each extra bag. Be sure to check on the airline’s policies before you show up with extra luggage. Many airlines are also charging extra fees to handle what are considered oversized bags. A bag that measures more than sixty-two inches when you add its height, width and depth is considered by most airlines to be oversized. Fees can be as high as $80 per bag, one way, for domestic travel and several hundred dollars per bag for travel outside of the United States. Traveling lighter will not only save you money, but it can save you time and a great deal of inconvenience as the new security measures require more bag searches.

HOTEL BARGAINS AND DISCOUNTS
Once you get your lowest possible airfare booked, you need to find a place to stay, and one of the easiest places to save money on a trip is at the hotel. Start by asking for promotional specials; group, corporate, and military rates; senior, student, and association discounts; summer, winter, spring, and fall discounts; and off-season discounts. I’m sure you get the point. Ask for discounts! There are literally hundreds of discounts available. It may be as simple as paying with a certain credit card to receive a substantial discount. Often, if you fly a certain airline or use a certain rental car company you will qualify for discounts when you stay at a certain hotel chain and vice versa. You have to ask for these things because the salespeople will rarely volunteer this information. Negotiation plays a major part in hotel savings. If you know of a certain discount offered at a certain hotel, but it is not the one you want to stay at, by mentioning the other hotel’s promotion to your desired hotel’s reservation agent you might get the same discount at the hotel of your choice. Again, your ability to bargain is dependent a great deal on availability. If you are traveling to a city with five thousand members of an association you belong to, good luck at the bargaining table. If demand exceeds supply, it is tough to find a cheap rate; conventions usually set up discounted rates for attendees in advance. Even if the convention facilitator has offered you “discounted” accommodations, shop around anyway. Often, you will find a good rate in a neighboring town away from the action. If the slight inconvenience is not a problem for you, this can be a big money saver. But, if you stay too far away, you may need a rental car, which would add more to your cost than the higher hotel cost for staying at your meeting site. If you are traveling for pleasure, rather than business, and you do not have to be at a specific location at a specific time, there is another thrifty reason to consider accommodations that are off the beaten path. Hotel tourist taxes, or bed taxes as they are often called, can be as high as 25 percent in some cities. Often, you can save more than half of the tax bill by staying in a nearby city or county. It might be right across the street where the county or city line separates different tax structures, so you may not have to travel far to save big. One more way to save 10 percent or more on your hotel stay is to know the costs associated with using the telephone in your room, or in the hotel in general. It is frustrating to ponder how out of control these fees have gotten. Even local calls are beginning to get outrageously expensive. The price for convenience is high; hotel telephone usage fees can reach double digits per minute plus tax. You could spend several hundred dollars dialing direct long-distance from the telephone in your room, especially if you are traveling overseas. It used to be that you could dial an outside, local line, then dial the toll-free number on your long-distance calling card and only pay for a local call plus your calling card fees. Now, many hotels are charging you per minute that you are on the local line. (See section below entitled “Phone Home and Save” to learn how to s while on vacation.) avoid hefty phone charge.

GREAT DEALS AT RESORTS
One of our favorite ways to travel is to stay at condominium resorts. These resorts are a great alternative to hotels, especially for families requiring more than one bedroom. Condos differ slightly from typical luxury resorts in that each condominium is owned by a different owner, whereas in a typical luxury resort, all units are owned by one entity. Each condo is decorated differently, prices are set by the different owners, and amenities vary from condo to condo. If your trip is planned to last more than one or two days, and you are bringing more than two people, including children or teenagers, a condominium resort is not only a financially attractive alternative to a hotel room, but it is also a better choice most of the time when you consider the amenities that are usually included. Resort personnel often represent the individual owners of the condominiums when they host guests. These owners demand that the guests are well taken care of so they can get return business. They also know that anyone staying at the resort has the potential of becoming a condominium owner, so the management company makes every attempt to provide first-class accommodations. Take a look at these comparisons and you will see why staying at a luxury resort may be your best choice. With a little shopping around, you should be able to stay at a beautiful condominium resort for a week for between $250 and $500 depending upon season, occupancy rate, and other factors. Of course some will be a bit more expensive but, in general, the price will range between $35 and $71 per night for a seven-day stay. In a condominium, you can expect to have one, two, or three bedrooms, a living room, a dining room, a fully equipped, eat-in kitchen, washer and dryer, and lots of other comforts of home. A resort will also feature many outdoor amenities on the premises. In addition to the pool, you’ll enjoy access to fitness centers, golf courses, and tennis courts. Many resorts will employ social directors who will plan daily activities. Many also have kid’s clubs that cater to the needs of children and teens during the day so parents can enjoy some time together to do what they would like to do for a change. These social directors, or activity coordinators, often have better access to more discounts, special events, and special promotions than the front desk personnel at a hotel. So, you are more likely to be made aware of a few great things to see and do while you are in the area. Often, your resort stay will include free things like rounds of golf, sightseeing trips at no cost, and transportation to areas of interest for free. By staying in a hotel, you can expect to pay anywhere from $60 for lower-end accommodations to more than $150 per night. And, as you know, there is no privacy in a hotel room. Certainly there are no kitchen facilities or separate rooms. As the children get older, you may have to have two rooms, which is not only more expensive, but is also a security issue, especially if the rooms don’t adjoin with a doorway. The hotel is perfectly designed to provide sleeping, eating, and meeting accommodations for business people or the traveler who is passing through. I’ve spent several weeks at a time in a hotel room on business. Though I was comfortable, I still wished that I were staying at a resort. It is simply more like home and I strongly suggest it for any stay of more than a day or two. There are some all-suite hotels that make the hotel experience a bit more comfortable by creating a separate living area with a fold-out couch and possibly a microwave and small refrigerator, but for a stay of four to seven days, nothing beats resort accommodations.

BURN A WEEK IN THE LAP OF LUXURY
I’ve mentioned the convenience of condominiums and resorts, and the assortment of amenities available. But did you know that you can stay in the most exotic and luxurious of resorts at rock-bottom prices? You can do this by taking advantage of what the industry calls “burn weeks.” There are thousands of resorts and millions of one-, two-, and three bedroom luxurious condominiums around the world. For an owner of a resort unit, the worst thing in the world is to have that unit go empty for a week. Someone, either an individual or a resort company, is paying a mortgage and other expenses on that unit. In many cases, it may not be a time-share type unit. It may be a condominium owned by an individual and leased by a management company on the resort premises. The management company’s job is to fill that unit during the times when the owner is not using it. You can rent these accommodations for as little as $100 for an entire week. I have done it. My family of three (at the time) spent a wonderful week for $100 in an incredible, three-level ski chalet that is built to house ten people. This unit normally leased for more than $1,000 a week. But, the unit was not being used the week we planned to be there; the resort would rather have $100 than nothing. This type of price break on this type of unit is not the norm but there is no telling how much you can save. We had to wait until the week before our trip to know for sure if we would be able to get the unit, so we had alternative accommodations ready at a much higher price, just in case. Many travel agents have access to the burn week market. I suggest you call the resort you want to stay at directly and ask if they have any units that are going unused during your planned trip. Sometimes you will get a great deal of advance notice on a bargain week. More often you will have to wait until shortly before your trip to find out if something is going to be available. When you begin to plan a vacation, contact resorts and ask about their burn-week inventory and other special discounts they might have available.

PHONE HOME AND SAVE
When you travel, it is a good bet that you will be making some telephone calls for a variety of reasons like letting people back home know you are safe. Long-distance calling cards have really become a traveler’s best friend in recent years and with the massive changes in the long-distance calling industry, the cost of using a calling card has fallen by as much as 80 percent. Calling cards can also become a black hole where you throw away lots of money if you are not careful. Here are some basic guidelines for calling cards that should prevent you from paying too much for calls. First of all, a calling card is cheaper than calling collect. If you call someone collect, you are going to pay many times more than you would with a calling card. Shop for a low-priced calling card, preferably, a card that does not hit you with a surcharge, or “bong” charge, every time you attempt to make a call. This is a fee that is charged for each call you make, usually 25¢ to $2, on top of the long-distance cost, per minute of usage. You can easily find a calling card with no surcharge. Next, shop the price-per-minute charge. This is an amount that you pay for each minute you are speaking. If you don’t pay more than 18¢ per minute with a calling card you are doing well. If you are paying more than 18¢ per minute, and paying a surcharge, you are paying too much. Find another card or tell your current provider you need a more affordable pricing plan. If you are traveling out of the country, make sure your calling card has international calling capabilities. Don’t assume it does. If you travel outside the country a great deal, then you want to check into a service called “international call-back.” International call-back, which is becoming more widely available as the technology allows it to do so, will offer you huge savings on international calls. Here is how it works: You place a call from London, for example, to New York. You have an international call-back service in place, the call is connected in New York, terminated, and then you are immediately called back at the location in London where you made the call. You see, it is cheaper to call London from New York than it is to call New York from London. That may change in the next ten years as the telephone companies work on connecting the telephone systems of the world together, which should further reduce rates. This service offers major savings for companies with offices in cities around the world but could also benefit you if you travel abroad often. Beware of credit cards that also offer you calling-card privileges. You will often pay much higher prices for calls in order for the credit card company, or whoever is marketing the long-distance service, to earn commissions. Make sure your pin number, which is a pass code you are required to dial in order to complete your card call, is not printed on the card itself. If it is and you lose the card, or it is stolen, someone else will be able to use your card and you will get the bill. Also, as a safety precaution, be careful to cover the dial pad when you dial your access numbers at a phone booth, especially at airports where thieves specialize in stealing your calling card numbers and reselling them. If the only reason for using your calling card is to place calls to one location, like home or the office when you are away, I suggest you look into getting a toll-free number to use instead. That way you don’t have to worry about losing a calling card or dialing in lots of access numbers.

Again, if you are traveling outside the country, be sure your toll-free number has international capabilities. A toll-free number for your home won’t cost more than $5 per month and should be as cheap per minute as a regular long-distance call at no more than 4 to 5¢ per minute. Not even the incredibly popular and convenient cellular telephone service can beat that price per minute. Pre-paid calling cards are another great way to both save money and control the cost of long-distance calling. Commonly used in Europe and other parts of the world for many years, pre-paid calling cards have only recently caught on in the United States. As the name implies, you pre-pay for a certain amount of talk time, an hour for example. When you are ready to make a call, you dial some access numbers and you are connected. At the beginning of each call, a recording will inform you of how much talk time you have left. When you have used all of the talk time, more time can be added to the card. This is called re-charging the card and can be done by calling the company that issued the card and adding more time and paying for it with a credit card. Or, the calling card can simply be thrown away. There are many benefits to the pre-paid calling card if you can find a good price. A good price per minute would be no more than 10¢ per minute with no access charge. Watch out for access or connection fees that can be as high as $3 for each call that you make. That money comes right out of your allotted time on the card. The connection fee is charged as soon as you connect even if you connect with an answering machine, voice mail, pager, or wrong number. You must calculate the per-minute charge at the time you buy the card. Just divide the cost of the card by how many minutes of talk time you are purchasing. For example, if you buy a one-hour (sixty minutes of talk time) card for $15, you’d be paying 25¢ per minute ($15/60 minutes 25¢). However, the connection fees per call must also be calculated into your ultimate cost per minute. Look for these fees either printed on the card or posted where you purchase the card. If you are not sure what fees you will pay, generally there will be a toll-free number on the card where you can call to recharge it. Call and ask for a listing of usage fees. Watch out for the access fees on pay phones also. These fees are federally mandated in this country and also eat into your calling card’s allotted value. The billing increments of your card are important to know also; the lower increments the better. For example, six-second billing increments are better than three minute increments, meaning that, even if you talk for only one minute, you will be charged for using three minutes. Sometimes even six second billing increments are still rounded to the next minute. It pays to read the fine print. If you lose a pre-paid card or if a thief steals the access codes from you your liability is limited to the amount of time already on the card. The thief won’t be able to exceed the pre-paid call time, unless he also has your credit cards. Businesses like the pre-paid card because it allows them to have more control on costs. By pre-paying, a company can decide in advance how much it wants to spend on long-distance. Parents with children away at college or on other school or vacation trips find this technique valuable as well. First-year college students tend to get lonely and call home a lot. They also make friends from all over the world and like to keep in touch with them, on the telephone. They will occasionally let a friend use their card. If your child has access to a regular, unlimited, long-distance calling card, you run the risk of getting a surprise in the mail in the form of a huge long-distance bill. With pre-paid calling cards, parents can decide how much they are willing to spend each month for long-distance and then recharge the card for a certain number of minutes. Once those are used, the student can add more time herself or simply wait until next month for you to refill the card. Many parents report that this is just one technique they use to teach their children the value of money. Cheap cellular telephone costs are allowing cell phones to quickly take over as the communication tool of choice for everyone, especially travelers. If you are going to rely on your cellular telephone when you travel, be sure to check with your provider before you leave to make sure you will have uninterrupted service in the areas you will be visiting. Often, some simple programming is required before you leave your home city in order to get service in your destination city. I once spent a month in California without cellular service because I did not perform a simple programming task on my telephone before I left, so the California provider could not recognize my telephone as being part of its system. Also, check the costs of using your cellular telephone in the cities where you will be traveling. Roaming fees can sometimes make the cost of using your cellular telephone very expensive. Ah, the high price of convenience. For safety during car trips of any length, cellular phones cannot be beat. Don’t forget to bring extra batteries or your charger.

SAVING ON CAR RENTALS
Back on the road, literally, let’s talk about winning the car rental game. All of the rules that apply for booking airline tickets are valid for renting vehicles. Advance reservations are the key to saving money. If you book your rental seven to fourteen days in advance, you will almost always receive discounted rates. If you show up at the car rental counter unannounced, anywhere in the world, be prepared to pay top dollar. If you must rent a car at the last minute like that, you are advised to pass up the big, well-known companies, and seek out smaller, local companies with locations away from the airport. You generally always save money by picking your rental car up off the airport’s property, even if you rent from the name-brand companies. Again, the Internet gives you incredible research power when it comes to shopping rates for rentals. Ask for discounts and special promotional offers. Memberships that you have in different organizations may provide a discount or you may qualify for a senior discount. Remember, the quoted price will usually not include taxes, location fees, insurance, second driver fees, drop off charges, and other extras that can add 10 to 30 percent to your cost. Always choose to return the rental car with a full tank of gas. It may be inconvenient but you will save a lot of money. The rental company will charge you a very high, premium price per gallon, plus additional sales tax and airport fees could also be tacked on to the bill. Another task often overlooked in our zeal to get going after a long flight is the inspection of the vehicle. Go over the car very carefully before you take possession and note any existing damage carefully. It may seem inconvenient, but you will be glad you caught the dent in the bumper before you drive off because the rental company will catch it when you return the car and the repair will not be cheap. Finally, be sure to ask your airline and hotel if they have any special money-saving, promotional programs with any car rental companies.

ADVANTAGES OF THE MINI-VACATION
There has been a real trend growing over the past few years for people taking short two-, three-, and four-day trips, as opposed to full one- and two-week vacations. This is mostly due to the fact that, though our leisure time is supposed to have increased, people work too much to even consider taking a week or two off at a time. Many are afraid to be away from the office for too long, especially in a difficult economic environment, which accounts for continuing downsizing. It is a shame that so many employees fear being perceived as expendable. But, who can blame them, especially after what has happened in the last year? Actually, taking shorter trips, but more of them, is a great way to recharge the batteries. Longer vacations can actually make you weary, which is the opposite of what you were trying to accomplish. Also, with longer trips, we tend to go to the big destination, bypassing the great local spots that weekend trips allow us to enjoy. Think about how many great places and things there are to see and do that are just a car ride away. There may be places you don’t even know about within a few hours from where you live that would make fabulous mini vacation spots. If there are resorts or attractions located within driving distance or a short flight from where you live that you would like to visit, perhaps more than once a year, contact them and ask about any discount offers or savings programs they may offer frequent visitors. Many cities and towns offer local residents, or people from the same state, a discount. It is very common to save a great deal of money and enjoy your travel more if you travel and stay off of the beaten path. Independent inns, hotels, and bed and breakfasts in smaller towns can give you a more realistic feel for the area you are visiting. Don’t be afraid to venture off of the interstate highways. Travel should always be an adventure.

WORK WITH A TRAVEL AGENT—OR BECOME ONE
If all of this research and negotiation seems like it will be too much for you, you might consider using the services of a travel agent or travel consolidation company. Many people don’t use travel agents because they are not quite sure how those agents make their money. The truth is that travel agents still make most of their money in the form of commissions from the airlines, hotels, cruise lines, and car rental agencies. There was a time when it cost the traveler nothing to use the travel agency’s service. But, that is changing now that the airlines and other travel vendors have drastically cut commissions they pay to travel agents. Airlines and others are opting to sell their product online. Displacing the human workforce is one of the ill effects of the growth of the Internet. In many respects, the Internet, with its vast amount of information and fast search capabilities, has taken the place of the travel agent. A good travel agent can be very helpful in organizing your travel plans and doing research. Individuals should consider using a travel agent for special trips. For example, some inside knowledge will be very helpful if you take a cruise or a trip to some exotic location or foreign country that you’ve never been. It is my experience that you can do just as well on your own for basic, domestic travel planning that consists of little more than airfare, hotel, and a rental car. Remember, travel agents are salespeople paid on commission. The more you pay for the trip, the higher the commission the agent will earn. There may also be financial incentives offered to agents if they use certain vendors, regardless of your particular financial needs. So, it is not in their best interest to push too many discounted fares your way. Even though you don’t technically pay the commissions to the agents, you actually do by paying higher travel prices. As with anything, you have to be an informed consumer. Leaving every detail in the hands of professional salespeople leaves you at risk of paying more than you have to. If you decide to use a travel agent, call some agents in the city where you are planning to travel. Since these agents will be much more familiar with what is going on in their city, they may have access to information or special pricing, which your local agent may not be aware of. Here is a great strategy if you really love to travel and like the idea of making money while doing something you enjoy. Consider going into business as a home-based travel agent. There are some good, legitimate programs out there that allow you to start your own travel business for less than $400. These business-opportunity companies provide training, credentials, and give you access to real travel agencies so you can earn referral fees and commissions when clients book travel through you. Sometimes these programs are offered directly by travel agencies. One of the major benefits to being in the travel business is the opportunity to earn what are known in the business as FAM trips. (FAM is short for familiarization.) Resort owners and other travel wholesalers and retailers know that the more familiar you are with a destination, the more apt you are to recommend it to your travel clients. So, if you are selling travel legitimately, you will often have the opportunity to visit great destinations very inexpensively and often for free. As a home-based travel agent you will have the opportunity to earn credentials that identify you to others in the industry. This identification can allow you to receive special discounts on all types of travel as well as free and low-cost FAM trips if you are really selling travel to people other than yourself. Not to mention all of the benefits of owning your own small business. However, due to abuse by people masquerading as travel agents simply to save money, and unscrupulous business people selling travel agent IDs, the travel industry has tightened up in regard to who gets access to travel agent discounts. So you may be scrutinized a bit more these days than in the past. If you have earned legitimate credentials and are honestly trying to do some travel business, you have nothing to worry about. If you do consider getting into the travel business and decide to enroll with a company offering a home-based travel business, be careful to deal only with companies that are actually operating real travel agencies or at least have solid connections to established travel agencies. I suggest you contact the travel agency through which you will be ultimately booking travel and verify everything about the program. Visit the agency in person if at all possible and check with the state that the agency is based in to make sure the company has the proper licensing. Also, verify that the travel agency is a member in good standing of organizations such as the International Airlines Travel Agent Network (IATAN), Cruise Line International Association (CLIA), and the American Society of Travel Agents (ASTA). There are no federal licensing requirements for travel agents. Nine states require some form of registration or certification of retail sellers of travel. As a home-based business, your state and local governments may require you to have a business license. The agency should also be accredited by the Airline Reporting Corporation (ARC), and the International Air Transport Association (IATA). As with any business opportunity, check the company out completely before investing any money. And do not just get into the business to save money; there are plenty of travel savings clubs you could join for a lot less than the cost of starting a home-based business.

CRUISING LIKE A MILLIONAIRE
You can travel like a millionaire in other ways as well. Cruising is wonderful! Amazingly, a very small portion of the population has actually been on a cruise. However, year after year, cruise companies keep forecasting huge demand for their product, which causes the construction of new cruise ships. With such great supply and little demand, discounts can be had at 50 percent or more off of the retail price of cruises. Because of the high cost of building cruise ships, like airplanes, these ships tend to remain in use for a very long time. That is why one of my biggest pieces of advice to you is to check out the cruise line thoroughly and ask for actual pictures of the cabin you will be staying in during your cruise. Never assume you will be staying in a luxury suite like those you saw on the television show The Love Boat. Remember, that was TV. In reality, depending on how much you spend for your shipboard accommodations, you could end up in a cabin that is twenty years old with bunk beds and extremely small bath and dressing areas. Keep in mind, even though cruise ships are huge, it is still a boat, not a resort or hotel, so there is limited space to begin with. Some ships, on the other hand, are very luxurious. They also cost much more. The best way to avoid any surprises when you get to the ship is to do your homework, even if you are booking a trip on one of the more popular cruise lines. The ports of call are also very important when choosing a cruise. That is where you will spend your days, and often some nights, and you should make sure there are activities available for everyone in the family, especially the kids. Cruise lines are attempting to become “child-friendly” with the addition of children’s activities but I suggest you check on what night-time activities, if any, are available. This is crucial if you and your spouse plan to enjoy some of the entertainment and gambling facilities aboard the ship after dinner. Most of the shows take place in bars, and the gambling is certainly not suitable for minors, either. There is usually a movie theater that may or may not be showing a family movie. Be sure to ask for a schedule of movies to be shown in advance. Some cruise lines offer babysitting and childcare. Get a schedule in advance so you can plan your vacation just as you would at any other destination. Here is a quick cruise tip that the cruise lines will hate me for giving out. But my allegiance has to be to you, my loyal reader. On board the ship, the cruise line will offer to sell you tickets too many things such as scuba diving trips, gambling junkets, sightseeing trips, and more. Pressure is put on you to purchase these items before the ship docks at the port. Most of the time, you can save money by purchasing these items off the ship once you get into town. You can actually negotiate better prices on shore, by dealing directly with the providers, as you won’t be paying extra to cover the cruise line’s commission. But, as with anything you buy, be careful to deal with legitimate businesses. Ask for identification. A receipt tells a great deal about who you are dealing with. Illegitimate operators rarely give receipts with business addresses and telephone numbers imprinted on them and they usually demand cash only. Keep in mind that when you travel to distant lands, the locally accepted way of doing business may not be exactly like what we are accustomed to here in the United States. Many times salespeople meet you as you leave the boat and will offer you a wide variety of discounts. Not all of them are going to be working for real travel companies. Some may be working for themselves and may not have all of the trappings of a “legitimate” business, but could still provide wonderful service. I am reminded of one cruise my wife Lori and my son Drew, who was two years old at the time, took to the Bahamas. We thought it would be great to go on a snorkeling trip and waited to get off the ship before purchasing the outing. Upon leaving the ship we took a taxi ride to a town square and were directed to the beach where we found a gentleman selling snorkeling trips for less than half of what was being charged aboard the cruise ship. The salesman was in an official looking uniform and had legitimate looking receipts. The snorkeling boat was about to leave for the half-day adventure so we went for it. It was definitely an independent group hosting this trip aboard what seemed to be a very old—if rust is any indicator—and often-used vessel without a lot of luxury seating. But, hey, we were there to snorkel and, besides, we just got off of a luxury liner. The trip called for a ride of about two miles out to sea where we would then snorkel. I suppose we were about a quarter mile away from the dock when I began to fear what can happen if these gentlemen were not legitimate. Here I was with my two-year-old on an old boat in a foreign country on our way out to sea with a camera and money and feeling very vulnerable. I thought the worst. But, we were on the boat with several other people from our cruise, which was comforting. Nevertheless, the thought did cross my mind that I had jeopardized the safety of my family to save some money. Once we started snorkeling and enjoying the beautiful underwater scenery, my feelings of anxiety were gone. The crew couldn’t have been more friendly and courteous. They made a special effort to entertain Drew by spearing some fish and bringing them aboard, to his delight. That snorkeling adventure and the pictures we took of it are some of my favorite travel memories. I can’t imagine if we had missed it. And, to make it even better, we saved a great deal of money. Fall is bargain time to cruise the Caribbean. June through August is high-season and will be more expensive. The most expensive time to cruise is Christmas and New Years. If you do not live within driving distance to the port from which your cruise ship will be leaving, and most people in the United States do not live that close to a port, you will be required to fly or drive to the port city. This is a good reason to utilize a travel agent, who often can put together an attractive cruise package that includes the airline and possibly a hotel stay in the port city either before or after the cruise. Don’t forget that taxes and port charges will always be added onto whatever prices you are quoted for a cruise.

TAKING ADVANTAGE OF FREE VACATION OFFERS
Have you ever received a travel certificate in the mail? These are those official-looking certificates that arrive in the mail announcing that you have won a vacation. In order to receive your vacation you need to place a call to the company’s office where you will then speak to a tele-sales person who will attempt to sell you a vacation. These programs aren’t all bad, but don’t be fooled by any promise of a free vacation. You will need to pay something. And do not call any 900 numbers to find out if you are an instant winner of a fabulous trip for the whole family. That is simply a ploy to get you to call the 900 number, which will cost you money to find out you did not win. But, there are many, legitimate travel marketing companies offering good, discounted trips if you agree to stay at a certain resort. Some require you to agree to attend a time-share sales presentation in order to get the discounted trip. We will talk about time-share shortly. The fine print is very important on these offers that come in the mail. Read the offer several times very carefully. Then have two or three other people in your family read it to catch anything you missed. If you are the type who is easily persuaded to make impulse-buying decisions, do not call for information. Let someone else with a stronger will make the call for you. Ask the company to send you information like pictures of the resort, and details of the trip and prices in writing. Don’t let high pressure tactics such as, “You must make a decision today or you will miss out,” cause you to make an expensive mistake. Check the company out thoroughly before you authorize any purchase. Call your state’s attorney general’s office and ask if they have had any complaints on the company. Check with your local postmaster if you receive an offer in the mail and ask about any problems with fulfilling the products offered. In most states, organizations that sell or market travel are required to be registered. Request the business’s state license number and ask the salesperson how long the company has been in business, where the office is located, and for a local telephone number where you can call back. Hesitation in answering these types of questions signals either a very new salesperson or an illegitimate company. Ask if the company is listed with the chamber of commerce or Better Business Bureau. Be sure to write down the exact details of the trip the company is selling. You will need this information so you can shop the same trip on your own to see if you are truly getting a bargain. When you decide it is safe to proceed further with the company and you are given a price for the trip it is selling, negotiate with the salespeople. Ask them if that is the best they can do. For more on negotiating, refer to chapter 5 for tactics and strategies that will save you money. Beware of companies that demand you send cash only. This is a sign that the company is attempting to do business without any paper trails like cashed checks or credit card statements. Legitimate operators will send money orders. normally take credit cards, checks.

TO TIME-SHARE OR NOT TO TIME-SHARE?
As I say, most free travel offers are a way to get you to attend some sort of time-share sales presentation. The topic of time-sharing could be a book subject unto itself. Also known as Interval Ownership, buyers purchase ownership in resort accommodations for seven-day stays. These are known as time-share weeks. You purchase a week of the year during which you have access to the accommodations. The initial investment can be from $5,000 to $30,000, which most people finance. You will also have to pay annual maintenance fees, which can average $300 to $500 per year. It is really hard to justify investing that much money in buying and maintaining time-share accommodations unless you have a really good reason. Many people buy a week with the idea of trading for stays at different resorts each year. Yes, in many cases, you can trade weeks at other resorts if weeks are available at a resort where you want to go. Be sure to read the fine print of your contract and get a list of fees that will be required to trade weeks. This process can be time-consuming and costly, depending on where you want to go. The more popular the resort, the tougher it will be for you to get a week there. In my opinion, you need to decide if the money invested on an annual basis in the mortgage and maintenance of the time-share accommodations would not be better off invested properly and growing for you in some other financial instrument. If you are thinking it will be an investment that will grow in value, reconsider. The time-share re-sale market is tough because there are so many bargain basement repossessions for sale and owners who want out of their commitment that it would be difficult for you to recoup a large investment. In fact, the place to buy a time-share is on the secondary market. If you want to buy a week, look in the paper for owners who are motivated to sell their investment. You can often buy weeks for a third of what the original owner paid. He may only owe a couple thousand dollars on the week but doesn’t have the time to travel or is tired of paying the annual maintenance fee. The question to ask yourself is why are you considering time-share. If it is to save money, you may be mistaken. Certainly you can buy a trip for the same or less than the cost of the payments. annual maintenance and mortgage.

AND DON’T FORGET THE COUPONS!
There are so many ways to save money when you travel and so many places to find bargains, discounts, special promotions, and freebies that it is impossible to include everything in one chapter. My newsletter dedicates an entire section monthly to the subject of travel and will continue to be a great source of up-to-the-minute travel savings information. An often overlooked way to save money is to request coupons in advance. For example, one year as we planned a skiing trip to Park City, Utah (one of my favorite destinations in the entire world, by the way), we asked each travel company we spoke with, like the rental car company, if any discounts or special promotional offers were available in addition to the discount we were getting on the car rental. The clerk told us of a special winter promotional package that he would send to us. Just a few days later, we received much more than we had hoped for in the mail. In fact, a large discount book full of money-saving coupons and discount offers was sent in addition to a complimentary membership in a National Ski Association, which gave us access to many additional discounts and services. This package became an invaluable companion during our trip and the savings allowed us to enjoy twice as much as our initial budget had room for. We learned about many great local shops and attractions that we might have missed without this package. Always ask the hotel or resort you plan to stay at, as well as the airline you’ll be flying, and any other travel vendor you come in contact with while planning your trip, about money-saving offers and promotional programs that might be available. If they don’t have any available, often they can tell you who does. Manufacturers of products are a good source of money-saving programs especially if they create and sell specialty items for special seasons. If you are planning a ski trip and need to buy snow boots, check for special offers like free ski lift passes with the purchase of a company’s boots. Once you get to your destination, begin looking for visitor coupon books, magazines, and other publications when you visit stores and restaurants. Hotel lobbies and rooms are other great places to look for these publications. Don’t forget to check the phone book. In most cities the phone book will include money-saving coupons. Travel magazines are full of discount offers and news about special events in cities around the world. When looking for magazines, be sure to look for copies of the local paper from the city you plan to visit. It will be full of information on local events and certainly will be full of money-saving coupons. Hopefully, you can see the value of planning travel in advance and asking many questions. All of your research can be done using a telephone and a computer in just a few hours time. Getting information in advance of a trip and using it to your advantage is the key to traveling first class for less. Once you arrive at your destination, your main goal should be to have a good

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