Fabulous Financials

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My Mom instilled in me my love for road trips. Being one of six kids, we would fight for the honor sitting in the passenger seat, beside Mom. Shot gun came with its responsibilities (we had to keep Mom awake and look for wildlife) but it also meant that we had her attention one on one until the next stop.

The hubby and I take many road trips during the summer. Even with the cost of gas, the lack of airfare needed immediately puts it in the frugal travel category. We have a couple other tricks to keep costs down.

Cool Like That

The cooler is the road trip buddy’s best friend but that cooler space is precious. We maximize it by filling it with frozen bottles of water and low filled beverages (including drinking boxes, a healthier fruit slushy) instead of the messy ice. Ice melts, gets dirty, and spills. It also makes sandwiches soggy. Frozen drinks are a neater solution.

Backseat Peace And Quiet

When we went on a long road trip, we knew what to expect and we looked forward to it. My Mom would always buy us new coloring books and a brand new mega pack of crayons. It was the only time we got our own books.

That bought Mom peace and quiet in the backseat. Happy little faces all around.

Some more modern Moms, I know, save special video games and toys for their trips. Same result, happy kids, peace and quiet.

AAA Or Other Vehicle Assistance

As the hubby and I always kick with the older vehicles, we consider vehicle assistance part of the maintenance cost. One tow and the membership pays for itself. Plus if you’re female or in a bad neighborhood, you don’t want to step out of the car to try to fix the mystery problem yourself. Uh, not worth it.

Another benefit of AAA is the access to maps and my fave, TripTiks. These are route maps with construction zones, rest stops, and blurbs on passing towns. Educational and entertaining for the person (or child) riding shot gun.

Of course, even with vehicle assistance, run down your pre-drive checklist. Check all fluids, oil, antifreeze/coolant, windshield washer solvent (for the bugs all road trip vehicles collect). Check the tires, ensuring that they are properly inflated and in good condition. Check all belts and hoses, looking for wear and tear.

Now, I’m sure I’ve missed some road trip tips. If I have, I’d love to hear them. Oh, and what was your all time favorite road trip?

Kimber Chin writes romance novels based in the business world and blogs at No Limit Ladies. One of her favorite annual road trips is to Taste Of Chicago the first weekend in July.

This is a guest post from a fabulous reader whom I admire and respect for many reasons. Read what she and her hubby have agreed to share with us and you’ll understand why:

photo credit: Thirty6Red

When Single Ma contacted me about my statement that there is no “head of household” in our home [in response to this post - SM], I did not think it was a very different approach to married life. But, when I started to think about why this was the case for us, I realized how it relates to our household finances, family management and career aspirations.

My husband and I have been married for over 10 years. From the beginning, we both wanted careers and a family and realized that for both of us to have successful careers where we reached our potential would require some give-and-take, especially with children in the plan. When we married, we were both people used to making decisions in our lives.

Finding the Comfortable Groove

In the beginning, we tried to have one person manage all of the household finances. We quickly found that this resulted in too much pressure and discord. In order to make OUR marriage work, we decided to divide the responsibilities and play to our strengths. Now, each takes the lead on what we do best. I am a frugal person by nature, but my husband has a degree in thrift. I am more interested in different investments and allocation methods than he. So, my husband “does the math” on the day-to-day household finances and I take the lead on managing our investments. We always make sure to keep each other in the loop.

Give-and-Take

• Most things are done with compromise and by consensus. For example: I don’t mind cleaning my house, but I refuse to work 40+ hours and do it all myself. My husband HATES house cleaning, but also acknowledges that it is not fair that I do all the cleaning in addition to working as much as he does. The solution is a weekly cleaning service that is an agreed to family expense.

• Another example was when I was offered a really excellent project that required long hours for about 6 months. Before accepting the assignment, I talked to my husband about what was on his horizon at work. We also discussed what was going on with our son over the same time period. Our conclusion was that I should go for it. My husband agreed to handle most of the childcare and household responsibilities so that I could purse this opportunity.

There have been many examples of this give-and-take over the years, sometimes with me making the “sacrifices.” The result is that both of us have been able to advance our careers (maximizing our earnings) and manage our family as the circumstances required. When “nothing special” is going on at work, we split childcare responsibilities - my husband takes the mornings and I take the evenings.

Why It Works

The reason this works for US is because we value the same things: honesty, hard work, loyalty and freedom of choice. Above all, our family (immediate and extended) comes first. Also, neither one of us are people who have to be in charge all the time. We don’t want what we consider the unnecessary pressure of making all the decisions. But we also know each other so well that when a family decision needs to be made and one us of isn’t around, we do what we think is best. In addition, we respect each other tremendously. My husband always tells me how impressed he is with my solutions to problems and analytical skills. I am impressed with his capacity for acceptance and understanding. I have thrown him some real curve balls over the years and he has handled each one.

Finally, we both know that we are a lifetime partnership of two independent people who love and support each other. It is not easy and takes a lot of work and communication. We both know that we could do fine alone, but we don’t want to do so. We are better and stronger together.

This reader not only has a successful marriage, but she also has a successful/demanding career, earn well over six figures, and has a household net worth bordering $1M. Now do you see why I admire her so much? LOL She gives me hope that I, too, will one day find a “life partner” who will view me as his equal. One that I can learn from, support, and grow with - together.

This is a guest post by Kimber at No Limit Ladies. If you like what you read, please check out her blog and subscribe to her feed.

During a recent party, while chatting it up with my girls, I was introduced to a new person. She asked the standard ice breaker, “What do you do?”

I honestly didn’t know. I was stunned at first and then blabbered through some convoluted explanation, my buddies, all the time, snickering into their beverages. Ever since, they ask me what I do at the beginning of every conversation.

What DO I do? Am I a corporate consultant? An investor? An entrepreneur? A blogger? A writer? No one wants to hear that laundry list of occupations. I have to pick one.

Very difficult.

Many of us have this issue, especially women. If we take maternity leave, are we temporary stay-at-home Moms or corporate gals on a break? If most of our income comes from investments yet we work as accountants, are we investors or accountants?

And why does it matter?

Because our “label” tells others what our focus is. If I say I’m a writer, the conversation will turn to writing. Perhaps the newcomer knows a book reviewer or better yet, a small press friendly agent (do they exist?). There is potential for growth. There is potential for wealth and career building.

The natural inclination is to “be” who you’re best at being, to impress people. I do the opposite. I introduce myself with my weakest title, the one I need most help with. If I’m looking for an agent, I’m always a writer. If I need a contract gig, I’m always a consultant.

It is when I don’t need anything that it becomes challenging.

How do you define yourself? Does it change depending on the circumstance?

Kimber Chin also writes romance novels based in the business world , in addition to her blog at No Limit Ladies.

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photo credit: danesparza

This is a guest post by Miranda Marquit, a blogger from All Business Personal Finance Corner.

$1 trillion. That’s how much American’s have amassed in revolving credit, according to the Federal Reserve. That’s a lot of debt. And if you feel as though you are drowning in debt, it can seem overwhelming to try and dig your way out of it. But having a plan for paying down debt can help.

Paying down debt as wealth building

One of the reasons paying down debt doesn’t always get top billing as an important priority is due to the fact that it just feels like you are spending more money. In order to change this, you need a new mind set. Realize that paying down debt is a wealth building tool. Debt - especially credit card debt - isn’t money that you have. It’s a loan against your future income. You’ll actually have more to spend in the long run if you get rid of your debt and live within your means. The New York Times offers this compelling illustration of the cost of debt:

For example, the typical American carries a $9,000 credit card balance from month to month. Say this card charges an annual 18 percent interest rate and allows paying as little as 2 percent of the balance each month. Even if no more charges are made on the card and the minimum payments is made on time every month, it would take 47 years to pay it off, according to the National Foundation of Credit Counselors. By then, total payments would be $32,994, including $23,994 in interest.

In the above scenario, you are paying $23,994 in interest - money that gets you anything in return and you have nothing to show for it. All interest charges represent is a payment for the privilege of putting money on your credit cards. Imagine what you could get with ~$24,000: a new car, contributions to your retirement account, a year of college (including living expenses), three or four family vacations. When you look at how much debt costs, getting rid of it becomes more important.

Prioritize your spending

In order to pay down debt, you need to free up some room in your budget. This means you need to take a good look at what you have been spending and decide what is most important. Bills, food, transportation to work and school and shelter are the essentials. You can also look at ways to reduce expenses in these necessary areas. Cook meals at home rather than order out. Use public transportation to get to work. Downgrade your cable package (or get rid of it altogether). Think about what you need, distinguishing those items from what you merely want. Make a list of your expenses, from most important to least important. You should also consider setting some money aside (even if it is a small amount) for savings.

You can also prioritize your wants. But make sure paying down your debt ranks ahead of your wants on your list of priorities. Figure out your budget based on your priority list. If you run out of money before you complete your list of priorities, it will be the least important things that are “sacrificed.”

Which debt to pay down first?

Next, you have to figure out which debts to pay off first. Most financial planning experts agree that you should pay off the highest interest, revolving debts first. Revolving debts are those that, like credit cards, allow you to continue borrowing money as you make payments - as long as you don’t exceed the limit the creditor sets for you. These debts are likely to cost you the most in the long run and should be paid off before you tackle the installment accounts (debt with usually fixed rates, like car loans, that you make regular payments on without adding to the balance).

Make a plan to pay off each debt, one at a time (while paying the minimum on the others) until it is paid off. List the lowest balance first or the highest interest rate first. The key is to create a plan and set priorities to pay off debt.

Miranda Marquit writes about personal finances for the All Business Personal Finance Corner and edits information on debt consolidation for DestroyDebt.com.

Check out my guest post on Consumerism Commentary!

Oh yea, he’s also the brains behind my fabulous new blog!