Aren’t vacations great? Giving yourself a week off from work and school is therapeutic for the body and soul. But when you get back from your dream vacation and your next credit card bill comes around and you’re shocked to find that you went over your budget by $250.0! Maybe next time you should consider not drinking so much at the extremely expensive bars. After recovering from the panic of seeing your bill you decide to take my advice. Save for trips now, and have a better vacation later on.

When you plan a vacation start a separate online savings account.
*Example*: You are planning to go on a one week cruise to the Caribbean in March, 2007 and all your expenses will be ~$1000.0. If you start saving in August 2006 you will need to put in $125.0 a month into your savings account. Let’s just make the amount $130.0 to make the numbers easy. In March after eight months of saving you will have $1040.0 and ~$18.0 in interest.

If you save for your trip early and you go over your budget by $250.0 then it wouldn’t be such a financial burden. Instead of paying $1250.0 ($1000.0(budget) + $250.0(too much partying)) you will only need to pay the extra $250.0 because you already paid off your trip. You can apply this principle to anything whether it’s a trip, a new TV, car, or a down payment for a house. Save on a monthly basis and get bigger and better things in the future.

If you have a trip coming up and what to start saving now, email me at JRBeaudry@efipo.com and I will send you a link from INGDirect.com (current APY is 4.35%). If you open your savings account with more than $250.0 you will receive an extra $25.0 just for opening the account! So start saving now and receive the extra money!

I know that we have talked about this topic before, but when you see the statistics (current 401(k) stats) it makes me want to talk about it some more. When an employer offers you a 401(k) that matches your contribution you need to take the offer. A lot of people think that if you’re in debt you should stop contributing; which in my book is a lie unless your interest rate is over 30%.

Example of why you should contribute:

My former employer offered a 100% match on 4% of my income in their common stock if I contributed 6% of my pay. *Let’s just make the numbers easy by saying I make $1000.0 every two weeks* When my employer takes out 6% of my pay (before taxes) which is $60.0 they will match $40.0 in their common stock. Instead of saving $60.0, I earned a $100.0. That is an immediate ~67% return on your money! Can you believe people pass up this offer?

If your employer only offers the match with their company stock, I recommend allocating your contribution to other mutual funds inside of your 401(k) for diversification purposes. Diversification just means not putting all your eggs in one basket. The reason why I don’t suggest putting all your money in your company’s stock can be explained by looking at Enron, Delta, WorldCom, and Tyco.

Here is a great calculator that displays how easy it is to get rich having a 401(k) as a retirement savings vehicle. Do not be part of the 30% of American workers not contributing to their employer matching 401(k) plans. So be rich the easy way. Contribute today!

Try some of these tips to really save your money on fuel.

1. Keep your car maintained. Your fuel efficiency will increase by 25% over a poorly maintained vehicle.
2. Don’t get high octane gas unless you have a high performance vehicle. Most automobiles run fine on the regular octane with a $6.00 gas booster (which needs to be added every six months).
3. Check the pressure. Make sure your tires are at the pressure your manufacturer recommends. This will increase fuel efficiency by 30%.
4. Think of a driving plan. Make sure your daily errands are properly designed. If you are overlapping your driving routes, change it.
5. Stop beating people off the line. Accelerate your car at a regular rate. Think of it this way. Every time you speed up at a red light you lose 25% of your fuel versus accelerating slower, and when you accelerate quickly at a traffic light people make fun of you. Trust me. They do…
6. Slow down, speed racer. If you obey the speed limit you will have your car running at maximum efficiency. You will also save money by never having to pay a speeding ticket ever again!
7. Try to cruise. Using your cruise control feature (if your car has it) can save you from constantly accelerating, and decelerating. Avoid slower cars, and anticipate future traffic so you slow down slowly instead of hitting the brakes and smashing your head on the steering wheel.