vacation | Online Savings Blog

Saving For Multiple Goals: Tips From Vanguard
04.04.08 | Money | 0 Comments | by junger

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One of the most difficult things we're facing right now is saving for a number of different things.

In the short term, we're going on vacation in May, which requires some cutting back in the next few weeks to pay for the trip.

In the mid-term, we're saving for a down payment on a house, which will hopefully come in the next year or so.

In the long-term, we're saving for retirement, which we attack pretty aggressively with two Roth IRAs and a 10% contribution to my 401(k).

Tom is facing this situation, too, dealing with long-term and short-term goals.

We're not the only ones dealing with these issues. Thankfully, Vanguard has put together a podcast about this as part of their Plain Talk on Investing series.

In this podcast, we explore a question that many investors face: "How do I juggle multiple savings goals?"

Retirement, debt reduction, college expenses, and buying a house all require significant savings and investing. Jack Brod, head of Vanguard Asset Management Services™, says that to reach multiple savings goals you will need to prioritize them and you may need to make some tough choices along the way.

Listen to the podcast below; click play to get started.
We're Going On Vacation: How We're Saving For It
04.03.08 | Consumerism, Money | 0 Comments | by junger

For the first time since we've been married, Debbie and I are no longer on school vacation schedules. Debbie's new job, while in a preschool, is technically more of a daycare-type position, so she works year-round without spring/winter/summer breaks.

It's different for her, since she has always worked on school schedules — but now she actually accrues vacation days. So, we've been looking to head out of town for a vacation for awhile now, and we finally settled.

At the end of May, we'll be flying across the country to Los Angeles and driving up the California coast.

We love California, so it'll be exciting — but could also get expensive. We got a great deal of flights via Airtran, but we still need places to stay, a rental car, and things to see.

Yahoo! Finance has a great article on last-minute ways to save for vacations — we'll be heeding many of these tips.

1. Start with a spending plan
2. Sacrifice now for fun later
3. Build cash with a 'Pantry Week'
4. Eat out less, save big
5. Make a savings wall chart
6. Sell your stuff
7. Use your tax refund — now
8. Let credit cards pay you back

The biggest thing we'll be doing is cutting back on our spending in April in preparation and trying to put that money aside for the trip. We're also on the lookout for great deals, including hotel stays with included tickets to attractions and cheap rental cars.

It helps that May is one of the two months I'll receive a third paycheck (thanks to three Fridays), but we don't want to count on that entirely for paying for the trip.

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