credit: freedigitalphotos.net by Stuart Miles
Well it’s over a week into the New Year and I’m finally getting to this post. So my New Year’s resolution should probably be to stop procrastinating! Actually, I don’t like to make New Year’s resolutions because I almost never follow through with them anyway. But with a New Year and a new start, here are a few things that I think should be on everyone’s to do list. Plus, these are pretty simple and easy to do.
Make a Budget
I have to admit that my wife and I don’t really have a budget. I know what you’re thinking, “what kind of personal finance blogger doesn’t make a budget?” Well, my wife and I have listed all of our expenses and made a determination as to how much we should save each month, but we don’t track our spending. We live within our means and are pretty frugal, so there was no real need to have one. Keeping a budget just seems like too much of a hassle. But I’ve been reading a lot about Personal Capital from fellow bloggers and finally tried it out. I like the interface and the ability to see all my accounts on one site. No more having to log on to each individual account to see how it’s doing. It also tracks our expenses which will be helpful to see if there are leaks in our budget that can be cut. Also, Personal Capital is free so why not try it? To read a more thorough review, check out the review from Jacob who blogs at Cash Cow Couple.
Start Investing/Invest More
If you are still on the fence about whether you should start investing, well you really shouldn’t be. As I posted in When Lazy and Cheap is Better, investing does not have to be time consuming or complicated. So, if you haven’t started saving and investing for the future, now is the time to do it. Start contributing to your 401k. Go open an IRA account.
Whenever I read articles about starting to invest at a young age, I pat myself on my back for starting to invest in my 401K plan and opening an IRA retirement plan when I first started working. After reading an article from Matt who blogs at Mom and Dad Money, I realized that good habits can go bad. While, I’ve increased my contributions into my 401K plan, my IRA contributions have stayed the same. Yes, I still contribute the same amount as when I just started out and was making a much lower income. That pat on my back has turned into the kick in the butt I need. I will be increasing the amount that I contribute into my IRA.
Travel for free
One of my big regrets is not getting into travel hacking sooner. I did churn a couple of cards and received 2 free roundtrip tickets and a stay at a luxurious hotel, among other things. But now with a little baby, I don’t know if I’ll be traveling much in the near future. In addition, we are looking at taking on a mortgage, so we don’t want any dings on our credit report. But, I will definitely be looking to get back into the game ASAP. If you want to learn a little more about traveling for free, check out How to Travel the World for Pennies on Budgets are Sexy. I’ve told many friends and family about traveling for pennies using credit card rewards and bonuses, but many are skeptical or don’t want to make an effort to do it. For those who need some extra hand-holding, Brad from Richmondsavers offers a free travel rewards coaching program where he will teach you how to travel for free. His blog also offers instructional guides to travel to different locations for free, so make sure to check it out.
I am JUST starting to get into travel hacking and I have been looking for a podcast (I tend to learn well listening to podcasts). I have subscribed to the UPGRD podcast, but haven’t gotten around to listening to it yet. I am hopeful it will be helpful!
Dave @ The New York Budget recently posted…Anatomy of a Chore: How to Motivate Yourself
Interesting, I’ll have to check that out too. Good luck with travel hacking!
Dave: If you want to get started, definitely sign up for the free coaching program. No gimmicks or anything — it is just free. I’m from Long Island, so most of our reward redemption activity will be out of the NYC airports, so I can absolutely help you out very easily…
Andrew: Thanks for the mention!! That was incredibly nice of you…
Brad @ RichmondSavers.com recently posted…Travel Rewards: Free New York to Bermuda Vacation in Style
We want to start getting more into churning cards and travel hacking as well. I just spent the majority of my points on 5 roundtrip flights for me and my friends, so it’s like I have to start all over again!
Michelle recently posted…Plenty of Wedding Planning and Weekly Update
That’s pretty amazing that you were able to get 5 roundtrip flights for you and your friends! I’m sure you’ll be able to rack up more points in no time.
I need to get on opening an IRA. I’m hoping to have that done by the end of the month. I track my spending, but in a plain old excel sheet, so I have to manually update it. I may have to look into Personal Capital. I’d love to make travel more of a priority this year.
E.M. recently posted…Random Gift Giving: For or Against?
Yes, you should definitely do it! Plain old excel sheets are good too, I’m just too lazy to input my spending each month. Easier for me to have a program take the information and put it into a nice spreadsheet, chart and graph for me!
Brad from Richmondsavers is getting a lot of action today in various PF blogs! I do this somewhat, but would like to be more efficient in travel hacking. My biggest concern is annual fees and canceling credit cards to avoid them and having it negatively affect my credit score, so maybe that’s something I should ask him about.
Tonya@Budget and the Beach recently posted…Imbalance and Lifestyle Inflation
Haha, I was thinking the same thing! What a coincidence…well at least for me. As for annual fees, they are generally waived for the first year and if they’re not, many times the bonuses are worth more than the annual fee. With regard to canceling cards with annual fees affecting your score, often times, you can call up the credit card company and switch it to a no annual fee credit card.
Definitely sign up or shoot me an email! I’ll be happy to respond to all your questions via email or a phone call. I’m currently putting together a FAQ page and all of your questions are prominently featured (as they are the most common and important questions…)
Brad @ RichmondSavers.com recently posted…Travel Rewards: The Nines Hotel in Portland with Starwood Points
We are working on budgeting too. We actually just got Quicken software and it is amazing. Makes setting up a budget painless. It’s a little expensive, but I think it will be worth it!
Liz recently posted…Should I Get a Master’s Degree?
Yes, budgeting can be a little tedious and boring. Anything that makes it painless is a good thing.
Brad at Richmond Savers is helping us get into travel hacking, too. That guy’s a treasure trove of good info.
Lots of great links in his post. I’m a big fan of Matt at Mom & Dad Money, too…that post of his is pushing us to get our savings rate above 80% this year (or at least until Sept, when the missus’ income is less certain).
Done by Forty recently posted…The Lottery: You Can’t Win If You Don’t Play
Cool…I heard you guys are going to Europe or something? Sounds like a lot of fun! 80% Really?! Stop bragging man! haha, just kidding…you guys are doing awesome with that savings rate!
Yeah, Brad got us 16 nights for free in 4 different cities: Budapest, Prague, Krakow, and Berlin, using just two cards. We’re churning the first now, and then will do the second. Crazy stuff. Now I want to be greedy and see if we can get some free flights. 🙂
Done by Forty recently posted…The Lottery: You Can’t Win If You Don’t Play
Sounds like an awesome trip! Can’t wait to hear about it and see pics.
Thanks Mr. DBF — very glad I could help! We’ve had some fun rewards worked out, especially the 16-free nights in Europe… (best I’ve seen!)
Brad @ RichmondSavers.com recently posted…Travel Rewards: Two Free Boston to Dublin Round-Trip Flights with One Credit Card Signup
Thanks a million for the mention. I’d agree with you that Personal capital is a fantastic free service. We are also just learning the travel hacking game. It’s never too late to start…
CashCowCouple.com recently posted…Scottrade Review: A Client Centered Brokerage
Yea, I’m still learning about all that it has to offer. And I haven’t gotten my “free financial consultation”…though I’m not sure I want to. I’m fine with my low cost Vanguard index funds…but maybe they can optimize other aspects of my portfolio. You guys are still young…definitely not too late to get into the travel hacking game. I wish I did earlier!
We’re also putting vacationing on last place, unfortunately, as it seems indeed more difficult with the little fellow on board. I’d love it if they had that kind of rewards here in Romania on credit cards… but they don’t. However, if I’d manage to stick to your first two must do’s, I’d be happy.
C. the Romanian recently posted…Why Do We Care What Others Think of Us?
I know some couples who travel still with a little one, but I’m not sure we want the stress. Maybe some road trips.
“investing does not have to be time consuming or complicated.” I could not agree more Andrew! I find that it’s when we try and make it difficult that we tend to screw it up and shoot ourselves in the foot. We just started getting serious about churning last year and our first fully paid for trip is next week. 🙂 Now that I’ve finally converted my wife on the idea I think we’re on to bigger and better things, but it’ll be a challenge with the kiddos.
John S @ Frugal Rules recently posted…40 Thoughts On Turning 40
I did a little churning a little over a year ago…but with a pregnant wife and now a little baby, we won’t be traveling much. It is a bit of a challenge…but still doable!
Thanks for the tips on travel hacking. I’m going to check out the articles on traveling for pennies using credit card rewards and bonuses.
No problem! Definitely check it out…who doesn’t love traveling for pennies?!
With the boyfriend in Europe for the next six months travel hacking is a priority for me this year. I signed up for the Barclays Master Card to offset at least $400 of that trip.
Stefanie @ thebrokeandbeautifullife recently posted…When FREE Isn’t Worth It.
Sounds good. I haven’t looked into the Barclays Master Card but it looks good. Some of the other cards give points or miles which might be worth more than $400 if used for flights/hotels so check them out too.
I also like the Personal Capital interface, actually better than mint. Investing in my new solo 401k is a big goal of mine this year. As far as travel hacking, it is my new favorite hobby. We are going to Hawaii in a few months for 7 days with flights for three people and awesome hotel stays for around $500 after all the credit card rewards. I have a big goal for 2015. 10 days in Europe with business class airfare, all for minimal cost. We’ll see how it pans out!
Kim@Eyesonthedollar recently posted…Investing Your Health Savings Account in the Stock Market
I agree. I used mint briefly awhile back but a lot of my accounts weren’t compatible and it seemed more geared towards budgeting and not investing. Hawaii is an amazing place, my wife and I went for our honeymoon and always wanted to go back! Business class airfare sounds great…it’s tough taking long flights.
Thanks for the shout out! I’ve been reevaluating a lot of my own habits recently and trying to make improvements. It’s a tough process but can add some real improvements.
Matt Becker recently posted…How Much Life Insurance Do You Need?
Thanks for giving me the kick in the butt. I really need to reevaluate some of my habits.
I just booked our 2014 trip. Airline tix anyway. Nothing like watching 320k miles and $200 go down the drain for a pair of international 1st class tickets to India and a stopover in Beijing.
Elroy recently posted…Saving Money at Lowe’s and Home Depot
1st class tickets to Asia are awesome. I flew to Hong Kong a few years back in coach and my back was killing me. I was very envious of the people in 1st class who were able to lie down.
I’m definitely interested in learning more about traveling hacking as well. I have so much to learn!
Connie @ Savvy With Saving recently posted…Help Me Decide Where To Travel To!
Yes, you should definitely look into it…especially since you guys are planning a trip to Asia later this year!
Great post! I am definitely doing those 3 things! Travel hacking is my hobby.
Holly@ClubThrifty recently posted…Does Churning Credit Cards Hurt Your Credit?
Thanks Holly! I can’t wait to get back into travel hacking.
One thing I’d like to accomplish this year is traveling for less. I’ve got airline miles for some free travel, but I’d like to extract some free or greatly discounted hotel nights as well.
Tie the Money Knot recently posted…4 Health Moves to Help You Get Wealthy
Yes, hotel stays can be discounted or free too! I stayed at the Grand Hyatt using some points. I think that was the nicest hotel I’ve ever stayed at.
Hotels are the easiest to get for free! Sign up for my travel coaching and we’ll get you on your way for sure…
I just came across some new tips for free hotels through Club Carlson (Radisson, etc.) that get can you tons of free nights!
Brad @ RichmondSavers.com recently posted…Travel Rewards: The Nines Hotel in Portland with Starwood Points
“investing does not have to be time consuming or complicated.” Very true! Everyone assumes it needs to time consuming and complicated in order to be good. While there are always cases where people do have very complicated financial situations, most of us don’t. Simplicity is often the best. Even though it sounds like you were living within our means, I’m glad you’re going to start tracking your expenses. Another things that doesn’t need to be complicated or time consuming, but you may find a few surprises and tracking is the best way to ensure you’re spending your money on the things that truly matter.
Shannon @ The Heavy Purse recently posted…Good Versus Entitled Life: The Unintended Consequences
I know. Many people have the assumption that it is complicated and time consuming which prevents them from ever starting. I’m also glad that we’re starting to track our expenses, it is good to know where your money is going!
I just recently have been learning more about credit card churning. I’m not sure why I never gave it much thought previously (actually, I do know. I was scared it would impact my credit score). Now that I’ve seen others traveling for free, it’s really motivated me to look into this more and get started.
KK @ Student Debt Survivor recently posted…5 Tips for Planting the Seeds of Wealth
Yea, I was scared that it would impact my credit score, but I think it isn’t that big of an impact and with a little bit of time, it will recover. If you aren’t looking to get a mortgage, it shouldn’t be a big issue. That is what’s preventing me from churning right now.
I’m definitely churning credit cards this year! I plan on spending very little (or nothing) on our vacation this year by using credit card rewards.
DC @ Young Adult Money recently posted…15 Ways to Improve your Finances in the New Year – Part 3
Great! Where are you guys going? I’ll live vicariously through other’s travel plans as I don’t know if we’ll be going anywhere too exciting.
Andrew my big goal is travel hacking this year. I’ve got airline status, with miles redeemed my wife will have the same upgrades as I do. So I’m accumalating through credit cards like you.
Oh yeah and my wife told me I’m not allowed to buy any more properties this year.
charles@gettingarichlife recently posted…I’ve Joined The Yakezie Challenge
You travel a lot for work too right? You should be able to rack up a good amount of miles or points through that too. Hey, a one year break is okay…although if you see a great deal, I feel like you’ll be able to convince your wife to allow you to buy more!
Investing and traveling are definitely on my to do list for this year. I want to pay off my credit card debt first by the spring and then focus on investing and traveling.
romona@monasez recently posted…Real Estate Investing for Beginners: No Money Strategies
Oh yes, paying off credit card debt is the #1 priority.
I am doing no. 1 well but I need to start investing this year. Hopefully. Congrats on the free tickets and hotel you got. I need to learn how to do the hacking and churning.
Demaish @ Borrowed Cents recently posted…Keeping up with the latest technology
Yes, definitely start investing this year.
Travel rewards is helping us with lodging for our honeymoon (at least with the vendors that accepts credit cards)! I like your list, and just heard about Personal Capital from Done By Forty – so is it also like Mint in a sense?
anna recently posted…No Debt is Boring
Great! I think Mint is more focused on budgeting whereas Personal Capital focuses more on investing. They are both pretty good, but I had some problems with Mint because certain accounts I had weren’t compatible.
Our budget is pretty loose, too. Our 401(k) retirement savings are automated to max out every year, and then we make sure to save and invest at least another $2,000 every month. Then we can spend whatever is left. Of course we don’t just spend to be spending, so after paying off bills, we save any additional funds at the end of the month.
Bryce @ Save and Conquer recently posted…Fighting Consumer Fraud with the Consumer Financial Protection Bureau
Wow, it sounds like you guys have a great savings rate. I definitely need to boost my savings rate!
Travel hacking is definitely on my list for this year, too! Thanks for sharing those links, I really need all the help I can get since I’m such a noob at it.
Ryan @ Impersonal Finance recently posted…the hidden costs of pets
It’s not too complicated…you’ll get the hang of it. If you have any questions let me know, and of course Brad offers his free coaching program.
Budgeting has been life-saving for us, Andrew. On our must-do list this year? PAY OFF DEBT! 🙂
Laurie @thefrugalfarmer recently posted…Best Personal Finance Articles for the Week Ending 1-18-14
Yes paying off debt should be number on the list! My student loans have a very low interest rate so I’m not in too big of a rush to pay that off.
Opening a Roth IRA is my immediate goal for me and my husband. I am like you though and procrastinate. I am trying to figure out whether to stay with etrade or go directly through Vanguard . We don’t make a budget either..glad l’m not the only one. It’s all in the head, but it works.
I have my Roth IRA through Vanguard and I like them. My budget is in my head too, but it probably works better to have them down on paper or on the computer. I’ll have to see if I can keep track of the budget and determine if it’s worth my time. Also have to get my wife on board with it too.
Is it really that easy to travel for free? I’ve been seeing so much about frequent flyer rewards lately, that I may just be pushed over the edge to actually get one of those rewards credit cards. Free sounds darn good to me right now.
Great list of “to do’s” for this year. I definitely agree.
Kraig @ Create My Independence recently posted…CFF Episode #9 – Last Chance to Join My VIP List and an Interview with Sean Ogle
Close to free travel is relatively easy. I know I always question things that are “free” but in this case, I’ve gotten the freebies and seen others who were successful in getting free or close to free travel. Of course, for those who are not good with credit cards and paying their balances in full, then this would be something they should avoid.