financial – Luv Saving Money

5 Ways To Save Up For Summer Vacation With Help From Gladiator Lending

This post is sponsored by Diamondlinks. Any opinions expressed are my own.

Summer vacation can be a big expense but sometimes you just need to get away. Summer vacations are possible if you plan far enough ahead. Maybe you only go every other year and save up. Here are several ways to budget for your family vacation

5 Ways To Save Up For Summer Vacation:

Jar/Piggy Bank or “rainy day” fund
Online Piggy Bank or Savings Account
Vacation Clubs
Erasing Debt you already have to free up spendable cash
Envelope System

Each one is explained in this article

The Jar/Piggy Bank Method

Some people refer to it as the “rainy day” fund too. For our last vacation I used this method. Loose change, dollar bills from your coat pocket, $5, $10, or $20 a paycheck adds up, especially if you plan far enough in advance. I ended up just shy of my goal but I purposely over-estimated my goal.

I just a clear glass jar (pickles jars work well or larger coconut oil jars) I prefer a far because you can visually see the money growing in your jar.

Why this works?

In an age where we don’t have to carry cash as much it’s easy to pull out the debit card or credit card and swipe, swipe, swipe. For some, it can be hard to keep track of or easy to spend. Having a goal gives motivation while having it in a jar at home makes it harder to spend when you see that pair of shoes you know would be great for vacation.

Online Piggy Bank or Savings

There are sites out there now that offer fee free savings and even give you decent interest rates on your savings. One of those sites is SmartyPig. I’m currently using this one for our vacation next year.

Smarty Pig is partnered with SallieMae. It touts itself as an online piggy bank. Set a financial goal then add a funding source. It could be a savings or checking account. Then choose your investment frequency. You can choose monthly or biweekly. You also can currently earn 1.75% interest.

Why this works

This is a great way to save without really thinking about it. You don’t even have to leave your house. It can be setup and handled through the comfort of your own home. Partnered with SallieMae and earning interest adds more bonuses.

Vacation Clubs

Many local banks have a vacation clubs or holiday clubs that can be used for the holidays or vacation. Check with your local bank to see how your bank handles their clubs. Some of offer interest rates, different deposit times, etc.

Why this works

Vacation Clubs are another way to save without having to really think about it. Set it and forget it until the money is deposited into your main account and ready to use for vacation. All while having the peace of mind of your money being protected by a financial institution you trust.

Reducing Current Debt

Easier said than done, I know. It’s always a good idea to work toward paying off debt whether you’re planning a vacation or not. Money freed up means more money for savings, emergency expenses, and vacations. One way to consider for quick relief is a low interest debt consolidation.

Sites like Gladiator Lending offer low interest debt consolidation. It can help get your debt into one manageable payment and reset. This option is good for those living pay check to paycheck due to debt that can be paid off.

Another option is debt help books from debt gurus like Dave Ramsey and Suzy Orman. Dave Ramsey’s books helped me climb out of $30,000 worth of debt when I divorced my first husband. I’m happy to say every dollar of any joint debt associated with my first marriage is not paid off!

Why this works

For obvious reasons, this is a longer term solution to freeing up money. Not only will you help your credit by getting rid of debt but it can also lift some current burden from your shoulder to wear things like vacations or small trips can be a reality.

Envelope Systems

I’ve never done this one personally but I know plenty of people who do and swear by it. The basic idea of the envelope system for budgeting is that you have envelopes for household expenses: groceries, mortgage payment, phone bill, credit card payments, etc. You should also have an emergency envelope for things like unexpected car repair bills or medical bills.

You can also create an envelope for vacations or outings. Put in what you can afford each pay check even if it’s only $5 or $10. When your envelope reaches an amount to take the vacation you want, then go for it. If you have envelopes for things that can be paid off such as credit cards, as you get them paid off you can start allocating that money to savings and other envelopes including your vacation envelope.

Why it works

There’s a clear amount for each area. If you have a “dining out” envelope for example anyone in the house can look in the envelope and know if there is enough money to do eat out or not. Labeling or coloring-coding each envelope can help your spouse understand where money is going and how much.

Budgeting When You’re Unemployed or Low Income

Balancing Your Budget Using Assistance Programs

It can be tough to get by on a small salary, even with careful budgeting. Luckily, there are financial assistance programs designed to help low-income families manage their money and cover daily living costs without trouble. By utilizing government and nonprofit financial services, working individuals can more easily access and save up the funds they need to achieve financial stability.

Know Your Income and Expenses

No matter what your income is, whether you rely on aid programs or not, the most important step to financial success is to keep track of your spending. There are several major expenses to take into account when planning out your monthly budget, including:

Rent and utilities
Groceries and eating out
Insurance
Medical bills
Transportation
Student loans, credit card payments, and other forms of debt
Leisure costs

Once you’ve figured out how much money you’re bringing in (or losing) each month, you can set about planning how to pad your savings account and improve your cash flow. Low-income individuals can also look into whether or not they can apply for local, state, and federal assistance programs.

Find Out What Assistance You Qualify For

Applying for financial assistance can help to boost your overall income each month and make it easier to afford necessities such as food and rent. Even if your family receives aid, you may be eligible for additional programs that can help you to manage your expenses better each month. Assistance isn’t just limited to cash grants, either. You can find programs that help low-income families to afford food, a new house, or hefty medical bills without throwing off their budget. Such financial aid and benefits programs include:

Affordable rental housing
Food assistance
Financial aid for students
Retirement and pension benefits
Programs and benefits for active military

There are plenty of government assistance programs that make it easier for families to manage their money. If you want to know whether or not you qualify for any of these programs, many offer a convenient online pre-screening tool for applicants.

Find the Right Bank Account

If you rely on government assistance programs for financial support, you may be worried that you won’t be able to apply for loans with big banking institutions. A little bit of financial assistance can make it easier to open a new bank account, however. It’s important to shop around in order to find a bank that offers accounts with financial perks such as waived account fees, no minimum deposit amount, and overdraft protection.

It can be difficult to manage your money in a low-income situation, but luckily, government branches and nonprofit organizations are on hand to step in and offer assistance. Financial aid programs not only help families to afford the essentials but also gain the financial stability that they need to pull themselves out of the red and start building a savings account.

Finding Ways to Cover Medical Expenses

One thing that always seems to be a big financial stresser is medical bills. You don’t choose when and where you get hurt or sick and you can’t very well ignore chest pains or a broken bone. Even with insurance medical bills can be overwhelming. If you find yourself with mounting medical debt or are expecting a big medical bill (labor and delivery for instance) here are some suggestions to prepare yourself for the future or help you if you’re already buried in medical debt.

Planning ahead:

–If your employer offers health insurance and you can afford it, do it. If you can get a secondary insurance under your spouse without too much money, this can be a good idea too. Then when one insurance won’t pay, it’s possible the secondary could pick it up if it’s a covered expense.

–Flexible healthcare spending accounts. This can be a way to manage debts you anticipate such as regular doctors appointments, prescriptions, or ongoing medical supply needs such as glucose test strips, etc. Some employees and even banks offer flexible healthcare spending accounts. You can specify an amount per paycheck to be taken out and put in the account. $5 per pay, $20 per pay, whatever you like. Then when you pay a medical bill, buy medial supplies, or fill prescriptions you turn your receipts in to get the cash from your flexible spending account. The downfall is, even though, it’s your money, you must use what’s in the account every year or you lose it. So you probably don’t want to overestimate how much you put in there.

–Supplemental insurance policies. There are more and more supplemental insurance companies out there. They are not health insurance but it’s a policy you pay into to help cover expenses later in the event of a medical issue. Companies like AFLAC and Lincoln, for example, offer policies that will pay you cash payments depending on your situation. They can also help pay for expenses insurance doesn’t cover, hotel stays, travel to specialty treatments centers, etc.

–Savings accounts, this can be said for anything in life, not just medical expenses. All the financial experts recommend having enough money in your savings account to cover in the event of loss of job or hardship. Depending on which one you follow, they recommend anywhere from 6 months to 1 year worth of salary in savings. I know this seems a bit impossible for those of us that are living paycheck to paycheck. Consider opening a savings though and depositing even $5 a paycheck and leave it in there. Let interest work for you to give you some free money. You never know when you might needs some money for unexpected medical bills, car repairs, etc.

–If you’re employer doesn’t offer insurance or you can’t afford it you can see if you qualify for free or low cost health insurance at healthcare.gov. Some states also have programs for children. One example would the the CHIP program in Pennsylvania.

stethescope pixabay — picture credit to pixabay.com

Dealing if you’re already under medical debt:

–First make sure all the charges are valid. It’s easy, when you’re getting bill after bill, to think you actually do owe it. Just from personal experience, we had a bill that my husband paid. Thankfully he wrote down the account number and kept the stub. They kept sending us bills threatening to send up to collections. He called several times and had to raise a little heck but after several people looking at it. It was a mistake in their computer billing system and we had, in fact, paid it.

–See if the medical facility you’re receiving the bill from has a payment plan. Some may even offer financial assistance or hardship programs if you qualify.

–If you’re already under collections make payments the best you can, even if you only send $5 per bill. You’ll be making an effort to pay. Yes they can still send you to collections even with making small payments.

–See if the debt collectors will settle. Debt collectors are hired by the companies you are in debt to. They want to collect the money. Sometimes debt collectors will settle a debt for a fraction for the original full amount. Do be honest with them. Tell them your situation and what you think you can actually pay. If it’s $10/month tell them that. Debt collectors are not allowed to harass, threaten you, or use obscenities when talking to you. For consumer information on what debt collectors can and can’t do you can check out the FTC government site on debt collection.

–Borrowing money from whole life insurance policies – This only works for whole life insurance policies and not term life insurance policies. Depending on how long you’ve had your whole life policy, how much it’s for, and the terms of your provider you can borrow money from your whole life insurance policy. This is a better option than taking out a loan or using a cash advance.

Last Resorts

Ok so maybe you tried all this stuff and you’re in a spot that none of this can fix. There are options. I do NOT recommend these unless you have no other choices

–Bankruptcy , I know that’s a dirty word. But for someone who is in way over their heads with no relief in site, this can at least relieve some stress. Chapter 7 wipes out all qualifying debt but if you own a home or cars that you’re behind on you could risk losing those. Chapter 13 combines all your debt and gives you a settlement payment you must pay each month. It’s a fraction of what the normal debt monthly payments would be. This one allows you to keep your house and cars but you will have to make monthly payments. It’s kind of a reset on your payments.

—Selling life insurance policies, again I don’t recommend this unless you absolutely have to. Yes you can sell life insurance policies,the link at the beginning of this listing give you information. You can get money to help pay debts but it also means your loved ones will no longer receive any benefits upon death.