Walgreens Balance Rewards Changes Are Coming, So Use Up Those Points Now

A woman looks through a Walgreens circular.


Walgreens is changing their Balance Rewards program. They will be limiting redemption rewards to just $5 per transaction.
Sharon Steinmann/The Penny Hoarder

I recently wrote about how to get the most out of Walgreens Balance Rewards after I accumulated enough points to redeem a $20 reward in just one month.

Then this week, I started hearing that Walgreens is making some major changes to its rewards program. I hadn’t seen anything about it on the Walgreens site and thought for sure I would have received an email.

With no luck tracking down an official statement by Walgreens, I reached out to the company via email — and it turns out what I was hearing was true.

Walgreens Balance Rewards Changes Take Effect Nov. 4

A Walgreens drugstore is pictured on September 18, 2018 in St. Petersburg, Fla.
A Walgreens drugstore is pictured on September 18, 2018 in St. Petersburg, Fla. Sharon Steinmann/The Penny Hoarder

They say all good things come to an end, and that seems to be the case with Walgreens Balance Rewards.

According to email correspondence with Emily Hartwig-Mekstan, senior manager of retail and owned brand communications, the Walgreens Balance Rewards program is “moving to a simplified five-tier redemption structure wherein every 1,000 points equals $1, instead of the previous eight-tiered redemption structure. With this change, redemptions will be limited to one 5,000-point redemption per transaction.”

This means rewards members will no longer be able to redeem the $10, $20, $35 or $50 rewards and will be limited to a $5 redemption per transaction as of Nov. 4.

Hartwig-Mekstan went on to state, “This change affects a small percentage of Balance Rewards members who redeemed at the escalated tiers in the past.  We believe the new policy will incent customers to redeem their points more regularly and lead to more frequent shopping and engagement with the program.”

Walgreens has added a notice of changes to the Balance Rewards explainer page and placed fliers in stores.

These changes will only affect point redemption, not existing balances.

So if you’re one of those Balance Rewards members who’s been saving up points for a big reward, you have until Nov. 4 to redeem at an escalated tier. Otherwise, you’ll have to plan on redeeming in increments of $5 per transaction from now on.

Jessica Gray is an editorial assistant at The Penny Hoarder.

The Penny Hoarder Promise: We provide accurate, reliable information. Here’s why you can trust us and how we make money.

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Culture With a Side of Exercise: Try a Bicycle Tour of Your City’s Murals

Bicyclists ride past a mural


Bicyclists head out for the next stop on the bike tour of the annual SHINE Mural Festival in St. Petersburg, Florida., on Sat., Oct. 6, 2018. In addition, Florida CraftArt hosts a monthly bike tour, an inexpensive way to see the city’s art. Chris Zuppa/The Penny Hoarder

Greg Stanek hopped off his bike and switched on his microphone headset.

“I can see six murals standing here,” he said, pointing as he counted them one by one. Meanwhile, 40 more bicycles circled up around him in a St. Petersburg, Florida, alleyway tucked between shops and nightlife hotspots.

The cyclists were not there for the exercise, although they covered several miles together under the bright October sun. Instead, they had joined a bike tour of the city’s murals, of which there are at least 50.

Local arts organization Florida CraftArt hosts a monthly tour, but this was one one of several expanded tours added to celebrate St. Petersburg’s annual SHINE Mural Festival. It not only offered a chance to see large-scale works of art locals might miss when going about daily life; it also offered participants a chance to see new work in progress by local and visiting artists. The program invited 17 artists to create new murals in the city for the 2018 festival.

Bikers ride past murals
Bicyclists explore the city’s murals before taking a break at Chief’s Creole Cafe. The St. Petersburg tour costs $20 if you bring your own bike and an extra $5 if you rent a bike. Chris Zuppa/The Penny Hoarder

As Stanek explained how the city has embraced murals and their origins from graffiti and street art, he was peppered with questions: “Do the murals last forever?” “Do the artists get paid?” “What neighborhood are we in now?”

Nancy Ferrara of Tampa organized a group of nearly 20 to join the bike tour. The avid cyclist runs a regional Meetup group for couples ages 45 and up and thought the mural tour might make a good outing. “I’ve never done a tour like this before,” she said during a break at a cafe serving sweet tea and beignets. “It’s a great option to see what’s out here.”

A couple rides past a mural on their bicycles
Elise Barnes (left) and Andrew Odell (right) ride past an apartment complex in St. Petersburg, one of many buildings in the city painted with murals. Chris Zuppa/The Penny Hoarder

Meanwhile, Andrew Odell of St. Petersburg and Elise Barnes of Atlanta navigated the streets via Coast Bike Share. The 3 1/2-half hour tour cost $20 for those bringing their own bikes, but for an extra $5, riders could take the tour via on-demand rental bikes that are typically docked around the city.

Odell explained the pair had gone on a walking tour of murals in St. Petersburg before Barnes learned about the bike version of the tour through SHINE’s Instagram feed. “It’s really cool to see the artists in action,” Odell said. They had already picked out a few murals-in-progress to revisit once completed.

The large group kept a leisurely pace that at times felt unwieldy for a group so large, but the tour’s winding route with plenty of stops meant even the most novice of cyclists were well-equipped to keep up. As the pack of 40 coasted down St. Petersburg’s business district on Central Avenue, a hairstylist burst through the door of her salon to wave and wish us good morning. Along the Pinellas Trail, a popular spot for cyclists, others passing the group often welcomed us with shouts of hello and fist pumps.  

Guide Greg Stanek talks about the “You Are Beautiful” community mural, a public-art display, during a tour stop. Chris Zuppa/The Penny Hoarder

Bike tours have long been an option for travelers, but those highlighting outdoor art put a creative spin on typical sightseeing spots. Marlene Rodriguez of Tampa brought her bike to St. Petersburg for the tour. The frequent traveler said it gave her a chance to play tourist in a nearby city.

“When I get to a [new] city, if I have limited time, I grab a bike tour of the city and see most of it in a short amount of time,” she said. She said she had just missed the mural festival in Montreal while visiting this summer and wants to go back next year during the event.

For now, she already has plans to revisit St. Pete’s murals by bike; she and a friend signed up for next month’s mural bike tour to see some of the new murals once they’re finished. Instead of bringing her own bike, she’ll rent one from Coast.

You miss so many of the murals when you’re driving in your car, Rodriguez explained. “It’s the best way to see them,” she said of touring the murals by bike. “And you still can’t see them all.”

Hop on These Mural Bike Tours

A pedestrian walks past a mural.
A pedestrian walks past one of the many murals in Los Angeles. Chris Zuppa/The Penny Hoarder

Want to play tourist by pedaling through your own city — or want to see somewhere new? These bike tours will help you see murals and other art you might have missed otherwise.

Los Angeles

The Alley Adventure Urban Art/Graffiti Bike Tour costs $19 with your own bike or $30 with a rental bike for 2 1/2 hours of touring street art in downtown Los Angeles.

Miami

Tour the Wynwood graffiti district in a three- to four-hour tour. It’s a splurge at $59, but bike rental is included.

Philadelphia

Philly has had a thriving Mural Arts program for more than 30 years. The Mural Mile two-hour walking tour will run you $23. A newer biking version of the tour lasts three hours and covers 15 miles for $49.

Phoenix

The two-hour Downtown Art & Mural Bike Tour costs $25 and uses the Grid Bikeshare program. Bikeshare membership is not included in the tour cost.

San Antonio

San Antonio Mural Ride offers two different 10-mile routes in the city. The two hour tour costs $40, or $30 if you bring your own bike.

San Francisco

In San Francisco, spend a half day touring the Mission District art scene mixed in with local food tastings and a picnic lunch. You might guess this trip, which includes a bike rental, costs a bit more — tickets are $74 for those under 18 and for older students with identification and $79 for adults.

Even Cheaper Ways to Tour Art by Bike

Bicyclists ride down a road
Greg Stanek leads bicyclists down Central Avenue on a tour of the annual SHINE Mural Festival in St. Petersburg. Chris Zuppa/The Penny Hoarder

Not sure you want to spend $20, $50 or more on a guided bike tour? You can set off on foot or pedal your own way by designing a tour of your own.

Many cities have resources to help you plan such a journey. Download a map or scroll the interactive version of a directory of murals in Portland, Oregon, for example. In Atlanta, check the map to plot your own route or choose from five different free, self-guided street-art tours.

Don’t forget to check for apps that can help. For instance, download the Sacramento Urban Mural Bike Tour app from Sacramento Cycling Tours for $4.99 to explore downtown and Midtown Sacramento murals at your own pace.

Lisa Rowan is a senior writer at The Penny Hoarder.

The Penny Hoarder Promise: We provide accurate, reliable information. Here’s why you can trust us and how we make money.

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Fall Into These Good Credit Habits

Good habits are the foundation of a stable life. Little things like exercise, hygiene, meditation and reading can have a tremendous impact if done consistently. It’s about taking a holistic approach to improving and maintaining yourself day in and day out. 

The same holds true for your finances. By forming a system of healthy habits, you can avoid the stress that most people associate with managing their money. You may still have setbacks and downturns, but the road to your financial goals will be smoother and less complicated.  

The best way to start is by paying closer attention to your credit habits. Here are some of the best ways to do that. 

Pay Every Bill on Time 

By far, the best thing you can to improve your credit score is to pay every bill on time. Punctual payment accounts for 35 percent of your credit score, and it’s one of the best ways to build your score quickly.  

Despite the benefits and ease of paying on time, nearly 26 percent of Americans admit to regularly making late payments on their credit cards. If you can afford the bill, don’t let this avoidable mistake destroy your credit score. 

There are two ways to ensure you never miss a payment. The first is to set up autopay on your credit card from your bank account. Every month, the credit card issuer will deduct the amount due from the checking account you selected. This strategy is fool-proof and guaranteed to succeed, as long as you have the funds to cover every bill. Watch your credit card statement for the first month after you enroll in auto-pay, as it can take one or two billing cycles to kick in. 

You can also pay manually, creating calendar reminders for each separate due date. If you notice that your due dates all fall on the same week, you can choose one day to make all the payments. This plan is a great way to feel more connected and aware of the money you’re spending, but it’s also harder to maintain. Don’t use this method if you struggle with reminders.  

Late payments won’t show up on your credit report until they’re 30 days past due. That gives you a little bit of leeway, but it’s still best to pay before the due date. If you’re struggling to find the money to pay on time, that’s probably a sign that you need to cut back on spending. 

Use Less Than 30% of Available Credit 

How much credit you utilize makes up 30% of your total credit report. This number only applies to credit cards, which have a total credit limit, and not installment loans. 

Credit bureaus ding consumers who use more than 30% of their available credit. If your Chase Sapphire Preferred card has a $12,000 credit limit and you have a $5,000 balance, you’re using 41.67% of the card’s credit limit.  

Using too much credit makes the bureaus think you’re relying too heavily on credit cards to fund your lifestyle. Even if you pay off the balance every month, the utilization will still be reported to the credit bureau. 

There’s no easy way to avoid utilizing more than 30% of your available credit. You have to log onto your credit card account to check the balance and then divide it by the available credit.  

If you find yourself going over 30% every month, try this trick: Pay half of your credit card bill before the billing cycle closes. The billing cycle date determines what balance is posted on your credit card bill. If you pay before the billing cycle closes, it won’t go on your credit report.  

It works like this. You spend $6,000 a month on your credit card, which has a credit limit of $11,000. If you wait until the cycle closes, the credit card issuer will report a credit utilization percentage of 54.54%.  

If you pay half of your credit card bill, $3,000, a few days before the billing cycle ends, you’ll only have a credit utilization percentage of 27.27%. This method isn’t the easiest to implement, but it will prevent negative credit scores. 

Open New Accounts Carefully 

Opening too many new accounts is a great way to tank your credit score. Credit bureaus get nervous when a customer opens several credit cards or loans in a short period of time, as it can often be a sign of financial instability. This component is responsible for 10% of your credit score.

Opening a slew of new accounts at once also drags down the average age of your credit history, which counts for 15% of your credit score. Lenders want borrowers to have the highest credit history age possible. If you’re young and have a relatively new credit history, you should avoid opening multiple new accounts. 

When you want to open a new account, whether it’s a travel rewards credit card or home equity line of credit, consider if it’s really worth taking a ding on your credit score.  

Monitor Your Credit Report 

Ignorance may be bliss, but knowledge is power when it comes to credit. You can’t improve your credit if you don’t monitor your credit report for errors and identity theft. In a 2012 report, the Federal Trade Commission found that 26% of credit users had a mistake on their credit report affecting their overall score. Chances are, you or someone close to you falls into that category. 

The only way to find a mistake is by regularly checking your credit report for free at AnnualCreditReport.com. You can also sign up for a paid credit monitoring service or use a free site like CreditKarma. Credit card issuers sometimes offer free monitoring as part of their perks. 

As more and more companies announce hacks and data breaches, identity theft doesn’t seem to be slowing down anytime soon. By staying on top of your credit report, you can catch problems early before you need access to a new line of credit. 

 

The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or view of Intuit Inc, Mint or any affiliated organization. This blog post does not constitute, and should not be considered a substitute for legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Zina Kumok (32 Posts)

Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Debt Free After Three.

How to Kickstart an Emergency Fund

Besides having a spending plan and saving for retirement, one of the major tenets of financial wellness is to have a healthy emergency fund. But the reality is that when you’re juggling multiple financial priorities—or simply have a rough time covering your bills each month—building the recommended three to six months for the unexpected is super challenging.  

I remember when I was making $30,000 at my first full-time job. While that doesn’t seem like terrible pay, living in Los Angeles can be pricey. With rent on my tiny studio apartment in West L.A. devouring about a third of it, I worked super hard to save for an emergency fund. I managed to save $5,000 in my first year, along with getting SCUBA certified and going on a few fun trips. And along the way, I found a few ways to jump-start my emergency fund.  

Here are a handful of easy things you can do to kickstart your e-fund:

Sell junk

Look in your closet, garage, attic, and anything else you haven’t touched for a year or more, suggests Ben Watson, a financial coach and owner of Fiscal Fluency. Then put it up for sale on an online marketplace such as Letgo, eBay, Decluttr, or OfferUp.

“The simple act of getting rid of clutter or unnecessary items is elating as is the receipt of cash from doing things you love,” says Watson. “Use this hit of dopamine to motivate yourself to set a target amount and keep fighting until you reach it.”  

Sock away “extra cash”

Your tax refund, returned purchases, a work bonus, a small raise, someone paying you back, or a cash gift for your birthday or Christmas. Take that “extra” cash and put it right in your emergency fund, suggests Amy Schultz, a financial coach and CEO of Financial and Female.

“This is effective because you’ve already spent that money and did just fine without it,” says Schultz. “So putting it in the emergency fund is easier to accept than watching money come directly out of your checking account. It’s all about mindset.”

Use cash and save your change

Yes, using cash helps you spend less. Using cash Its effective because it forces you to only spend what you have and by saving your change, it shows how even the smallest amounts can add up over time, explains Dr. Ann James, founder of Financial Freedom Battle Buddies.

And save your change. If you don’t decide to cash it for dollar bills at the bank or Coinstar, you can use that money for gift card to spend on whatever you please. To this day I save my spare change in my doggy piggy bank. I then use that money for Amazon purchases, gift cards to restaurants to dine with friends, or gift cards to use for Christmas presents.

Go on a no-spending challenge

I’ve done a handful of these and not only does it help me save, but it has also  If you’re going to do a spending freeze, you’re certainly allowed to stock up on groceries and fill up your tank of gas ahead of time. I’ve found that it’s far easier to commit to a no-spending challenge during the week, when you’re mired in a routine and aren’t likely to lured by social events.

Auto-save 

I’m a huge fan of putting things on auto-pilot. Even when I wasn’t making much money, I commited to save $50 of each paycheck. And after six months’ time, I had $650 socked away. After a year, I had $1,300.  

To date, setting and forgetting is my favorite way to save. I auto-save as much as I can. Because that’s money I didn’t even know I had, it’s a pleasant surprise when I check my savings, and find an extra few hundred bucks—or more—socked away.

Side hustle

If you already have a day job, working after hours is probably the least exciting thing. But it’s a great way to kick-start your emergency savings. During the first year I was out on my own, I catsat, and test proctored at a local university. While I only netted $1,000 in side hustle money that first year, it really helped me bulk up my emergency savings.

If you’re side hustling just for the money, easy and fun is a great M.O. “Look at your hobbies and see if there is a way to earn some money off of it,” says Watson. “Like dancing? Offer dance lessons. Enjoy dogs? Offer pet sitting.”

If you’re doing it to drum up experience to possibly parlay into a full-time business, then figure out what you want to ultimately do, what your current skill set is, then bridge the gap. For instance, I wanted to earn more money with my editorial skills. So started off proofreading, copyediting, and eventually landed a few writing gigs. I not only earned additional dough, but gained some valuable professional skills.

Remember: no matter what your financial situation, you can certainly get your emergency fund starting. There’s no waiting for that perfect scenario. Taking action today is the best way to build your savings.  

 

The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or view of Intuit Inc, Mint or any affiliated organization. This blog post does not constitute, and should not be considered a substitute for legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Jackie Lam ( 9 Posts)

Jackie Lam is a personal finance writer. Her work has appeared in Investopedia, Magnify Money and The Bold Italic, and she’s been featured in Money, Kiplinger, Forbes and Woman’s Day. She runs Cheapsters.org, a blog to help freelancers and artists with their money, and to balance their passion projects and careers.

This Man Started a Business Hanging Holiday Lights and Made $138K in Year 3

When you have a name like Josh Trees and your job is hanging holiday lights, you have to be prepared for the inevitable question: Is that actually your name?

Trees — yes, that’s his real name — started his business, We Hang Christmas Lights, in 1997, decorating homes, businesses and assorted branched greenery in Temecula, California.

But Trees definitely gets the last (jolly) laugh.

“When we first started doing this, people were like, ‘Oh, that’s a cute little business,’” says the 43-year-old. “We were like, ‘Yeah, cute,’ —  you don’t realize people are paying us $3,500 to put lights up on their houses.

“By my third year, I was hitting a net profit of right around $138,000.”

Now Trees crisscrosses the country with strands of lights and a tiny house to teach others how they can build their own businesses hanging twinkling bulbs.

On the First Day of Christmas Lighting

Trees’ classes help pass on knowledge that he has accumulated throughout his career, such as purchasing lights from wholesale vendors who offer discounts for bulk purchases and making your own extension cords. Aileen Perilla/The Penny Hoarder

Ah, the fond memories of hauling out last year’s box of lights to add some holiday cheer to the humble abode. Haphazardly arrange the lights around the front stoop, throw a wreath on the door and voilá!

But if you’re starting a business hanging lights, that simplified recollection can lead to costly errors, according to Trees. And he should know, because he had the same idea.

“We were making mistakes on everything — we were just a bunch of guys thinking, ‘Hey, this is going to be easy,’” Trees says. “We were hanging other people’s lights — that’s a huge no-no.… The second stage was hanging the crummy lights from retailers.

“I’m surprised I made it through the first couple years.”

By the third year, Trees had moved onto purchasing lights from wholesale vendors, which offered discounts for bulk purchases. He was also buying commercial-grade strands so that when one bulb went out, they didn’t all go out.

But Trees says his biggest mistake had nothing to do with lights — it was underbidding jobs.

I got into it in the first year…  and I didn’t make any money — probably lost money,” Trees says. “I was charging $150 for jobs that should have been $850.

“I bid a job for $3,500 that should have literally been $35,000. It was horrible.”

Enlightening Business Strategies

Lisa Pinkney, 56, works for her sister’s landscape business Daylily Landscaping in Washington D.C. “I wanted to learn how to do things the right way,” said Pinkney, who flew down with her sister to attend one of Trees’ classes. Aileen Perilla/The Penny Hoarder

Trees’ students echo his refrain, noting that learning from other professionals early on can help transform a business idea into a profitable enterprise — and with a lot fewer mistakes along the way.

One of Trees’ early students was Jeff Krall, owner of American Holiday Lights in Woodridge, Illinois. In 2008, Krall attended an individual training session, which Trees conducted before he started traveling the country to teach classes.

“Josh helped me get it started,” says Krall, 53. “Everything from how to hang the lights on the rooflines… making our own extension cords, how to wrap the trees.

“It would take someone… two or three years to learn how to do it correctly, whereas Josh, in two or three days, he tells them how to do everything.”

In his first season of business, Krall estimates he had 30 clients. Now he manages 25 to 35 employees who light 35 to 40 houses a day during the season, at an average price of $1,400 to $1,500 per house.

However, those visions of sugarplums and dollar signs dancing in your head might not be in your immediate future — or at least not the first season.

Last year, Lucas Pulvermacher decided to add a light-hanging business to his busy lawn care enterprise near Oshkosh, Wisconsin.

“My first year was tricky because I had to have an inventory of the lights. That’s a fairly large cost — and also the ladder, equipment, safety stuff like that,” says Pulvermacher, who recently turned 16. “I’d say we came out about even.”

Pulvermacher says his Lucas Lights lit three houses and two businesses after launching in mid-November last year — “It was hard because we started so late.”

After taking Trees’ class this year to learn marketing and sales strategies, Pulvermacher invested in professionally designed materials, including a logo.

His goal is to tackle 10 houses this year and then double that number by 2019 — when he has his driver’s license.

Beyond Christmas Lights

Jayson Nelson and John Gereg stand on either side of Connor Graham, president of We Hang Christmas Lights, as they learn how to make their own extension cords. Aileen Perilla/The Penny Hoarder

One of the cool things about those twinkling lights is that they still work after Jan. 1. That means there’s more business after the wintry holiday season.

“A lot of the guys we work with, they do wedding lights, event lights, party lights and backyard lighting, that sort of thing, and a lot also do landscape lighting,” says Trees, who estimates that light installations for weddings bring in $1,800 on average but can go as high as $7,000.

Krall, who also owns a roofing business, hangs lights all year round for backyard weddings, Diwali festival of lights celebrations and Halloween parties — “but the majority of what we do is Christmas,” he notes.

Holiday Gigs

Anthony Dixon, from Long Island, N.Y., holds a string of lights as Dominick Sacca learns how to properly staple them on the tiny house. Aileen Perilla/The Penny Hoarder

So let’s say you’re not ready to start your own business but being outside hanging lights sounds like a better gig than working a seasonal retail job.

Considering how hot the job market is, you might be in luck.

Krall notes that the toughest part of his business is finding good, reliable help.

“We got creative this year, so we align ourselves with other companies out there that are seasonal, like landscapers or pool companies,” Krall says. “When they’re laying off, we’re actively developing relationships.”

Trees recommends that installers offer tiered bonus pay, adding an extra $1 per hour each week to incentivize continued attendance as the season winds down — particularly in January when companies have to take down the lights.

Stephen Ogles, 32, learns how to wrap Christmas lights around a tree. Ogles, who owns a roof cleaning business in Lake City, Fla., came to learn how to hang lights during the slower winter months. Aileen Perilla/The Penny Hoarder

Helpers can typically make anywhere from between… $13 at the low end to about $20 at the high end — and that’s before bonuses,” Trees says. “When you find somebody that’s good, it’s key that you keep those people, because it’s temporary, and they know it’s temporary.”

For people interested in finding holiday lighting jobs in their area, Trees suggests checking places like Craigslist, Indeed and the We Hang Christmas Lights site, which includes a directory of light installers that’s searchable by zip code — just mention your interest in a job when you fill out the online form.

Trees has found that these holiday gigs are best suited for people who work warm-weather jobs in roofing, tree trimming and window washing. All of which have at least one trait in common — no fear of heights.

And yes, the money is nice, but Krall and Pulvermacher agree that the best part of hanging bulbs is the way their customers’ faces light up when they see the finished product.

“Everybody’s in a really good mood around Christmas time,” says Krall.

Pulvermacher adds: “It’s just kind of a cozy feeling when you see a house all lit up.”

Tiffany Wendeln Connors is a staff writer at The Penny Hoarder. She covers interesting careers and job benefits. Her holiday wish list includes a subscription to a gourmet cheese of the month club, in case anyone starts shopping early.

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How to Keep Your Budget in Check this Holiday Season

Ah, the holidays. Amid the cheer, festive gatherings with loved ones, and stress from the inevitable craziness, if not careful, they could put a serious dent on your credit cards. While it’s certainly not news that the holidays happen every year, they do have a way of unexpectedly creeping up on us.

However, with a bit of prep, you can avoid those cringeworthy “overspend” moments, and avoid suffering from holiday debt hangover. Here are some ways to keep your spending in check this time around:

Create a Holiday Spending Plan

You may have a budget, or spending plan, for your your day-to-day living expenses. Create a spending plan for holiday-related expenses to see how much you’ll need saved up. This may include traveling to see family, gifts, cards, gift card, party attire for get-togethers, and pet or kid care while you’re out.

Next, estimate how much you roughly need for each expense. I have an spreadsheet just for gifts. For each person I’ll note a few gift-giving ideas plus my spending limit. That way I don’t buy something nilly-willy, and in turn spend more than you I can ultimately afford.

Reduce the Obligations

The holidays are oftentimes a mix of obligations and stuff you enjoy doing. For instance, purchasing a gift for that less-than-pleasant relative you only see once a year, or attending your company party when you’d rather nest at home, feel like obligations. But if you love to bake, then making pound cake for your coworkers is a delightful task.

Jot down what are things you feel you need to do, and things you need to do. You could separate them into “fun” and “no fun” lists. Then go over the “obligations” list to see what you can appropriately nix. If you can’t forgo the obligation completely, figure out a way to bump down the investment of time or money.

For instance, do you really need to buy individual gifts for your uncle, aunt, and their five kids? Or will a single gift for the entire family do? Or do you have to attend every holiday-related gathering, or can you be more selective?

Over the years I’ve set a no-gift rule for my friends. Instead, we plan to get together for a low-key gathering. And I’m trying to gently nudge my family to skip gift-giving altogether (swapping gift cards or cash is kind of silly) and go on a day trip instead. Not only does this save you money, but it cuts down on the stress.

Side Hustle

If you expect an end-of-year-bonus or cash gifts during the holidays, consider taking on extra work. This is only if you have the time and energy to do it. The end of year is usually a busy time, so if moonlighting will only stress you out even more, don’t do it. In the past I’ve catsat and test proctored in December, which boosted my income by $600 or so. While it doesn’t seem like a huge amount of money, it helped me stay out of holiday debt. Plus, when I was catsatting I was still about to do a lot of my work and get my holiday tasks taken care of.

If you decide to side hustle during the holidays, think of low-stress, easy, and fun jobs you could take on. For instance, if you already have kids, maybe watching another kid or two at your home won’t feel like that much extra work. Or if you love animals, take on pet sitting gigs.

Start Your Shopping Early

If you can, try to finish before Black Friday, recommends Kristen Ricupero, a financial coach and owner of Financial Fitness Coaching. “Black Friday deals tempt you to buy things you don’t need, for yourself at a time we should be giving,” says Ricupero. “If you watch carefully, there are generally just as good sales running September to Thanksgiving.”

My mom, the expert deal-spotter she is, swoops in on deals all year long. And by November she has gifts for almost everyone on her list accounted for.

Get Resourceful

There are a plenty of ways to save on your holiday spending without making major lifestyle changes. Shop in your closet, and see if you can add a fresh spin on a fancy dress or holiday party-appropriate suit. Sometimes all it takes are fun earrings, a festive tie pair of cufflinks to breath new life into an initially drab ensemble.

I also am a big fan of using craft paper and holiday ribbons in lieu of standard holiday wrapping paper. And this year I plan to bake up a storm instead of purchasing gifts for my coworking friends and neighbors.

Host a Stuff Swap

Organize a gathering where you can swap unwanted items. You never know, you might find some great stocking stuffers, gift wrap, cards, or decorations that will save you some dough. I’m part of a local Time Bank, where we offer help in exchange for hours, and a Buy Nothing Project group, where we give things away to our neighbors.

Involve Your Family

If you have a big family, do a White Elephant exchange where each family member brings a gift that’s no more than twenty dollars, suggests Amy Schultz, financial coach and CEO of Financial and Female. Holidays with my extended family resemble that of a daycare operation—there are about 20 kids, plus a swarm of pets running around.

“If you feel the need to buy for all the littles in your life, decide what the total amount you want to spend, then divide by the number of kids,” says Schultz. “If it ends up being five dollars per kid, get creative! You want to avoid setting a budget of $30 per kid only to realize you’ve spent $500 on every kid you know.

Drum Up a Plan for Credit Debt Repayment

If you’ve done all you can to keep your holiday spending in check, but fear you might still need to accrue a bit of credit card debt, first off, accept it. Don’t beat yourself up over it. While it’s not ideal, it’s worse if you don’t pay attention to what you’re doing and go hog-wild. But if you’re going to put a few purchases on your credit card, set a limit, and commit to a repayment plan after the holidays.

By preparing now, you can avoid going overboard with the spending. And what better way to ring in the new year than by being free of holiday debt?

 

The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or view of Intuit Inc, Mint or any affiliated organization. This blog post does not constitute, and should not be considered a substitute for legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Jackie Lam ( 9 Posts)

Jackie Lam is a personal finance writer. Her work has appeared in Investopedia, Magnify Money and The Bold Italic, and she’s been featured in Money, Kiplinger, Forbes and Woman’s Day. She runs Cheapsters.org, a blog to help freelancers and artists with their money, and to balance their passion projects and careers.

10 Ways to Save Money on Halloween Decorations

If you live a frugal lifestyle, holidays can test your commitment to thriftiness. It feels silly to spend money on decor, tableware and lawn ornaments that only come out for a few weeks a year. But that’s the point of a holiday – spending time and energy to celebrate a fleeting moment, regardless of how pointless it might seem.

The good news is, tricking your place out for Halloween can be a cheap treat if you approach it the right way. Here are some of our best tips from frugal experts.

Hit Up Craft Stores

Justin Pritchard, CFP of Approach Financial Planning likes fabric stores such as Joann’s, Hobby Lobby and Michael’s for their huge selection of Halloween-themed fabric prints to brighten up your home. You can drape them over your dining room table or front porch. If you’re truly crafty, you can even buy raw materials to create your own decorations from scratch.

These stores usually have readily-available coupons for 40-50% off if you’re willing to look, and they usually match competitors’ coupons.

Check Out Yard Sales and Craigslist

When you live in a home long enough, you tend to acquire an abundance of holiday decorations over time. Chances are, someone near you is looking to unload some Halloween decor.

Check local yard sales, look at Craigslist and ask on NextDoor if anyone has Halloween decorations they want to get rid of. If a friend or neighbor is moving, they might also be looking to dispose of some plastic skeletons and glow-in-the-dark pumpkins.

Thrift stores almost always have a large selection of Halloween decorations, as well as costumes for much less than you’d pay at a party store. If you’re hosting a Halloween party, you can probably find spooky tableware for just a few dollars.

Buy in Bulk

If you and a friend are both struggling to find Halloween decorations on a budget, buy in bulk together and split the cost. This also works if you’re shopping at a warehouse club, where large packages of Halloween candy are much cheaper than the grocery store.

Activate Rewards

If you’re shopping online for decorations, don’t forget to use browser extensions like Ebates for cash back. You should also check your credit card for cash back at retailers like Amazon. Look for promo codes and coupons wherever you’re shopping.

Compare Prices

Ten dollars for a skeleton sounds like a good deal, but is it? Most of us don’t have a good sense of what Halloween decorations should cost, so we fall for bad deals. If you’re looking to fully deck out your apartment or house for October, those little mark-ups can be a real budget murderer.

Before buying decorations, compare similar products at a couple stores to see what they charge. You might be surprised at the wide gulf in prices for the same items.

Scour the Dollar Store

While the Dollar Store isn’t great for items you want to last a long time, it’s perfect for seasonal decor.

“The Dollar Tree has those same plastic hands sticking in the ground as Walmart does for one-fifth the price,” said Sarah Wilson of Budget Girl.

Before you visit big box stores, check your nearest dollar store for cheap deals. Make sure not to go over budget just because the prices are good.

Recycle Your Trash

Have lots of online purchases coming to your door? Don’t throw those boxes away.

“Turn your Amazon cardboard shipping boxes into tombstone markers by cutting them out in the shape of a gravestone and painting them gray or black,” said Katie Rucke of DebtWave Credit Counseling, Inc.

You can then place these in your front yard and drape them with fake cobwebs or spiders.

Repurpose Decorations

Instead of buying individual items for every holiday, why not make things easier for yourself? There are a handful of decorations that work for multiple holiday seasons.

For instance, pumpkins and gourds are great for both Halloween and Thanksgiving. A string of white lights can work for any holiday. A plain wreath can be decorated with holiday-specific trinkets to use year-round. If you get creative, you’ll probably think of other ways your decorations can multi-task.

Use Household Supplies

Plenty of household supplies can be used for Halloween decorations. Drape gauze from your medicine cabinet onto your bushes to create a cobweb effect. Cut up a black trash bag vertically and hang it from your door (bonus points if you glue fake spiders to it). Drip red nail polish on a cheap black tablecloth for a bloody look.

“Grab garbage bags and put two horizontal holes near the bottom of the bag, insert a hanger at the bottom seem, flip over and you’ve got your ghost,” said Angela Matthews of Happy Investor Method.

You can find more ideas on Pinterest and YouTube, which have projects ranging from basic to complex. If you don’t have all the tools needed to make your own decor, ask your closest friends to come over for a Halloween decorating party. By pooling your resources, you might have enough to decorate your whole house.

Plan for Next Year

Prices for decorations drop significantly right after the holidays end. If you don’t end up finding enough decorations this year, you can stock up for 2019 the day after Halloween. Decorations will be significantly marked down, sometimes up to 80-90%.

“Invest in quality décor items if you’ll continue to use them year after year and you have a place to store your decorations,” Rucke said.

Store your decorations somewhere airtight and safe, not a leaky basement or creepy attic. You don’t want real spiders crawling over your fake ones. Remember not to buy more than you can comfortably keep.

Financial writer Leah Ingram said one year she and her husband saved seeds from their Halloween pumpkins and planted them in their backyard. The plants grew so well, they had extra pumpkins to give out to each of their neighbors. You’ll need a lot of room to grow pumpkins, so make sure your backyard is prepared.

 

The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or view of Intuit Inc, Mint or any affiliated organization. This blog post does not constitute, and should not be considered a substitute for legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Zina Kumok (32 Posts)

Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Debt Free After Three.

This Ex-Pitcher’s Product Idea Was a Million-Dollar Hit Right Off the Bat

It makes sense that Randall Thompson feels comfortable comparing his business to America’s pastime, considering how big a role it has played in his life.

“I feel as if what we’re doing, we’re playing a baseball game,” he says. “And we’re probably somewhere in the fifth inning right now.”

Growing up in central Florida, his love of the game began with T-ball at the age of 5 and led to college ball at the Florida Institute of Technology. His collegiate efforts earned him a spot as an undrafted free agent for the Toronto Blue Jays in 2011.

But Thompson’s professional career came to an end the following year, when he was released after extended spring training.

For most, following one path only to see it end sooner than expected is a major setback. But Thompson took it in stride and forged a new path by combining two things he loved: baseball and entrepreneurship.

And in a few short years, Thompson Mug Company was born.

When Life Throws a Curveball

After the Blue Jays cut him, Thompson headed back to his alma mater to work as the team’s pitching coach.

It was there, in the dugout during practice, that Thompson had a lightbulb moment.

A hitting coach cut the barrel off a bat so the players could focus on gripping the handle. Looking at the discarded barrel, Thompson wondered if he could bore out a hole and then drink out of it, like a beer mug.

Little did he know, he’d just come up with what would soon become a million-dollar idea and the foundation for his future company.

Warm-Ups

Two men stand next to baseball bugs in a production facility.
Kris Dehnert,left, CEO and partner and Randall Thompson, president and founder, pose for a portrait inside the Thompson Mug Co. production facility in Bartow, Florida. Tina Russell/The Penny Hoarder

Despite the initial idea, Thompson didn’t really pursue the concept of baseball-bat mugs until about six months later, in July 2014.

He always knew that he had an entrepreneurial side, so when he decided to move forward with the project, it was a headfirst dive.

He went through a ton of different trials and prototypes before he finally got it right. And they all happened in the converted garage apartment in his sister’s backyard, where he was living at the time.

He started out with a chop saw and a vice. He also bought a wood-burning kit from his local Michaels arts and crafts store. He attempted to bore out the barrels by hand and tried tracing a Sharpie-drawn logo with his newly bought wood-burning tool.

“It wasn’t good by any stretch of the imagination,” he says with a laugh. “But it was a place to start.”

An early version of the mug consisted of two parts, which would screw together like a billiards cue stick. This prototype led to days and days of frustration. Just imagine Thompson in his apartment, hunched over two hand-drilled pieces of barrel, trying to line them up, only for them to be offset just a little bit. Every. Single. Time.

Next, he decided to buy a drill press — despite knowing next to nothing about the tool.

He set it up his kitchen and pulled his phone out so he could record a video of the first time he used it to bore out a barrel.

“I slowly bring down the drill press and the bit just lightly touches the barrel and just BOOM!” he says. “It just flings [the barrel] against the wall.”

He quickly repacked and returned the drill press.

Over time, he started asking himself better questions and developed a solid product. By June of 2016, he was ready to introduce the Dugout Mug to the world.

Time to Toe the Rubber

A man and woman play with a white dog.
Thompson and his girlfriend, Courtney White,left, play with their dog as they work from home in St. Petersburg, Fla. Tina Russell/The Penny Hoarder

Like some of the biggest and brightest companies we know today, Thompson Mug Company started in a garage, while Thompson was working a full-time job, and then some.

When he wasn’t working as a sales rep for Sherwin-Williams, he was taking on side hustles to earn extra cash. And he wasn’t picky when it came to side jobs — he says he basically “started seeing dollar bills everywhere.”

Thompson funneled pretty much everything he made into his new company. Side gigs included repainting pharmacies overnight, flipping furniture on OfferUp and dressing up as Spider-Man — not to fight crime, but for kids’ birthday parties.

All the while, Thompson was thinking about the company’s future and how he could really kick it up a notch. The next thing that happened, he calls fate.

While scrolling through a Facebook group for ex-minor and major league players, Thompson saw a shared post; a fellow named Kris Dehnert was looking to sell some concert tickets. Dehnert’s profile revealed that he was an entrepreneur.

After a bit of Googling, Thompson decided to reach out to Dehnert in hopes of picking his brain for tips on e-commerce.  

The two met in a hotel lobby, Dehnert on a break from an entrepreneur conference taking place in the same hotel and Thompson with one of his Dugout Mugs in tow. The two chatted over a beer and parted ways.

By that point, Dehnert had dabbled in his fair share of entrepreneurial adventures but was starting to feel like a lot of them were just noise. After thinking on it, he decided to focus his efforts on Thompson Mug Company.

After all, it was beer, baseball and e-commerce — what was not to like?

“I was so busy being so busy, I almost missed out on a lot things in life, and one of the opportunities would’ve been this,” says Dehnert.

In February of 2017, Dehnert told Thompson that he was all in, but on one condition: Thompson had to be all in, too. That meant leaving the full-time job and side hustles behind.

Ready to see Thompson Mug Company reach its full potential, it wasn’t that hard of a decision for Thompson.

Swinging for the Fences

A man makes baseball bat beer mugs.
Jose Luis Vazquez works in the production facility where Dugout Mugs are made in Bartow, Florida. Tina Russell/The Penny Hoarder

The new partners spent a couple of months working on research, development and marketing for the company.

By mid-March, Dugout Mugs were being sold online — and at a rapidly increasing rate.

“March we did 26K, April we did 56K, May we did 95K… and then we just completely fell apart.” says Dehnert of the amount of money being made.

The manufacturer they were using fell through, and the company was left with a major dilemma: a whole lot of demand for Dugout Mugs and no way to supply them.

While some companies might power through and hope to come out on the other side, Thompson Mug Co. took a more cautious route. They temporarily shut down production in order to properly regroup.

Within a couple of months, they were set up with a new manufacturer and facility. And by August, the company had secured official licensing with the Major League Baseball Players Association, allowing them to produce the “Signature Series” mug collection.

From there, sales quickly ramped up again, leading to a very busy end of the year. So busy, in fact, that they had to bring in a little extra help to get orders out the door.

“We had girlfriends, wives, moms, everybody in here packing for Christmas last year,” says Dehnert. “Oh my god, my mom was in here taping boxes… it was just crazy, all hands on deck.”

In addition to a Christmas rush, Thompson’s former team decided to treat its season ticket holders and ordered a whopping 4,600 mugs.

The massive Blue Jays order was a full-circle moment for Thompson. When he signed with the team back in 2011, he got a $0 signing bonus — which is pretty rare in professional baseball.

“The joke is that, you know, they eventually did pay me a signing bonus because they ordered 4,600 mugs,” he says with a laugh.

Despite the mid-year shut down, Thompson Mug Co. sold over $1 million worth of merchandise in 2017.

No longer strictly selling Dugout Mugs, they’ve rolled out Knob Shot shot glasses, Wined Up wine glasses and the Season Opener bottle opener.

The company has branched out from e-commerce, selling mugs in several MLB stadiums across the nation — like SunTrust Park in Atlanta, Busch Stadium in St. Louis, Oakland-Alameda Coliseum and Yankee Stadium.

The company also recently launched its officially licensed MLB line. Fans of all 30 MLB teams can now get a Dugout Mug with their team logo, and the company plans to have the product in stadiums in 2019.

As of June 2018, year-to-date sales were almost matching the overall 2017 sales, and Dehnert predicts they’ll reach at least $3 million by the end of this year.

A Team Effort

A man works from home as his dog stares in the camera.
Kris Dehnert, CEO and partner of Thompson Mug Company, works from home in Lakeland, Fla. Dehnert’s nickname is Promo, because he’s constantly promoting the product. Tina Russell/The Penny Hoarder

The success of Thompson Mug Co. is very much a team effort. In a lot of ways, they operate like, well, a baseball team. Each staffer even has a nickname — for instance, Dehnert is “Promo” because he’s always out promoting the product.

Both Thompson and Dehnert practice and preach the culture instilled in their team, which is currently at nine employees. When they’re not working from home — or Thompson’s preferred spot, Panera Bread — they’re down at the warehouse helping with orders or traveling to promote the product.

Like two sides of the same coin, the partners balance each other out and bring different skill sets to the field. They feed off each other’s energy, bouncing back and forth when telling a story.

With years of entrepreneurship under his belt, Dehnert has self-proclaimed “short memory and thick skin.” His charisma is infectious and networking is in his blood — he is instrumental in securing new licensing deals.

Meanwhile, Dehnert’s fast-talking and boisterous attitude usually has Thompson smiling to himself in the background, nodding along, completely in agreement but willing to let his partner take the lead.

Dehnert thinks that if Thompson could only do one thing forever, it would be dreaming up new stuff. Meanwhile, his one thing would be selling “shoulder to shoulder,” high-fiving athletes. Together, their different mindsets create a “third eye,” and it makes the partnership work.

Thompson doesn’t think the company would be at the level it is today if it weren’t for Dehnert.

“He sped up my learning curve,” Thompson says. “He forced me to get uncomfortable and that’s… that’s where growth comes in.”

Next Season

A man watches as his daughter rides her tricycle around their block.
Dehnert takes a break from working to spend time with his daughter, Juliana Dehnert, 3, at home in Lakeland, Fla. Tina Russell/The Penny Hoarder

Dehnert and Thompson have a pretty clear vision for Thompson Mug Company’s future.

They’d like to continue to expand the product offering, but stress the “measure twice, cut once” method. And not literally, although this is wood we’re talking about, so maybe a bit literally.

“Too many times people are ‘ready, fire aim,’ and that’s when you get yourself in trouble,” says Dehnert.

On top of expanding the product line, Thompson says they’d like to focus on growing their presence on platforms such as Etsy and Amazon. They want to build consistency and ensure that their product isn’t just a seasonal purchase, like when Christmas or Father’s Day rolls around.

And they’ve both talked about the possibility and logistics of selling the company someday. They’ve discussed what point they’d like to be at and what price they would let go of it for — Thompson admits that he’d sell, but he’d cry about it.

Then again, Thompson feels like they’re only in the fifth inning, which means they’ve got a lot more ball left to play.

“I don’t want to necessarily reflect on a win until we get through the full nine. I just want to be fully engaged in the moment,” he says. “For the time being… I kind of just want to be pitch to pitch.”

Kaitlyn Blount is a staff writer at The Penny Hoarder.

The Penny Hoarder Promise: We provide accurate, reliable information. Here’s why you can trust us and how we make money.

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Ever Wonder if Groupon Getaways Are a Good Deal? We Have Answers

Don’t look.

BUT OH MY GOD, LOOK.

Look at all the places you could go  — and how little it costs to get there.

From the base of Mount Everest or the Eiffel Tower to the stretches of the Great Wall of China, Machu Picchu and the Egyptian pyramids — the world is the budget traveler’s oyster when it comes to Groupon Getaways.

What are Groupon Getaways and How do They Work?

Groupon, the popular deal website known for coupons on goods and services, also offers budget travel packages called Groupon Getaways.

The company offers three types of travel experiences: domestic hotels, air-inclusive international packages and cruises, according to Nicholas Halliwell, a Groupon spokesperson.

“We typically feature 3 ½- to four-star properties in major destinations but also have an assortment of local hotels to provide members easy access to local getaways,” he said.

As for the international deals, Halliwell said, Groupon works with a handful of tour operators who specialize in assembling air-inclusive packages.

“We chose tour operator partners based on their ability to provide packages that are affordable without sacrificing experience,” he said.

Currently, Groupon offers a small number of cruise promotions.

When you’re ready to book, Groupon Getaways work the same way as the other Groupons.

For domestic hotels, there’s no need to contact the hotel after booking. Show up on your date of arrival as you would if you used Expedia.

For all-inclusive trips, Groupon plays middleman and hands things over to a travel agent or online tour operator who books the trip from start to finish. All you have to do is contact the provider and redeem your voucher within the booking window.

What are the Benefits of Groupon Getaways?

Price

This is basically why you’re reading this: Groupon Getaways are super cheap.

Within the U.S., there are thousands of deals on hotel rooms, which Halliwell said are the most popular getaway. But the really deep discounts shine on international travel packages.

One lump sum gets you airfare, hotel, transportation, tours and several — if not all — meals included.

Attempting to price and book a similar trip piecemeal will have you back on Groupon’s website in minutes wondering how they do it.

Robert Todd and his wife, who live in St. Petersburg, Florida, used Groupon Getaways for trips to Buenos Aires, Argentina, and Central Italy.

Their $799 per person, seven-day trip to Buenos Aires out of Miami International Airport included airfare, hotel and meals.

“The best part is the price,” he said.

Even with a five-hour drive to Miami and airport parking, Todd felt like he still got a great deal.

“Look for flights out of Miami to Buenos Aires — it’s like $700 per person — and then add in five days of breakfast and a nice hotel in a very fancy neighborhood,” he said.

Todd and his wife have another getaway scheduled to Scotland in November.

“I wish I could do more of them because they’re right in my price range,” he said.

Convenience

Inclusive getaways are a one-stop shop.

After you redeem your voucher and provide your personal information, the agency books your tickets, hotels, tours, meals and transportation for you. All you have to do is show up on time.

We’ve found that our customers are much more willing to travel abroad if all of the different components of the trip — plane tickets, hotel reservations, transfers, tours — are all bundled in a single package,” Halliwell said.

That kind of stress-free travel can be priceless.

For a big, complicated trip with lots of stops, flights, shuttles and changes, having the support of a travel agency or an online tour operator can help alleviate many of the stresses associated with travel, leaving more time for you to pack and relax,” Halliwell said.

Once Todd forgot to call Gate 1 Travel, a tour operator Groupon partners with, to redeem his travel voucher in the specified 14-day booking window.

“We missed the fine print, and about 30 days later we called up and worked with them to set it up. They took care of it. It could have been a big issue, but they made it no big deal,” he said.

Variety

There’s a vacation package on every continent except Antarctica.

You can take a $200 Bahamas cruise for two days or a 17-day trek to the base camp at Mount Everest.

“They have a lot of selections, and you can pretty much go anywhere you’d ever want to go,” Todd said.

Looking for something family-friendly or a romantic getaway? Groupon’s got you. They have a variety of travel categories to peruse.

“I almost look at Groupon Getaways as a mini vacation while I’m sitting at work and I need a break,” Todd said. “They give you a lot of really cool ideas.”

Groupon Getaway Limitations

Schenck is hoping to plan another Groupon travel trip next year. Aileen Perilla/The Penny Hoarder

Deep discounts mean less flexibility and some caveats. You will have to make compromises for that cheap price tag.

Airports

There are limitations on which airports you can depart from, which means extra costs of routing yourself to the designated airports if you don’t live near one of them.

Michelle Schenck, who lives in Tampa, Florida, had that problem when she booked a Groupon Getaway to Iceland that departed out of New York City. She called Groupon directly and booked the extra flight with the company.

“It was cheaper to add Tampa to the trip than to book it independently,” she said. “I paid roughly $60 round trip to go from Tampa to New York City, so it was an all-around steal.”

Flight and Travel Times

Travelers do not get to choose airlines or flight times. You can expect early-morning and overnight flights and long layovers.

Todd said his upcoming flight to Scotland has a 7 a.m. departure with an eight-hour layover in Madrid on the way back.

“They put together some pretty wacky connecting flights,” he said. “ It’s almost expected given the price.”

Keep in mind that an advertised eight-day vacation is really more of a seven- or six-day trip when factoring in travel times. Check how many hotel nights are included to know exactly how many days you’ll really be staying.

Dates

Most trips have very specific departure dates and very little wiggle room.

While it doesn’t lend much flexibility, you select the available dates before checkout, so there are no surprises on your end.

You can book last-minute trips or choose one months out.

Other dates may be available but not listed. Contact the partnering tour operator to see what your options are.

Non-Refundable or Cancellation Fees

This is the risky part.

Once you book your trip, many portions of it are nonrefundable — especially the airfare.

The terms and conditions for each getaway vary, so you will have to read the fine print to know your rights before you buy and book.

Some charge a $250 cancellation fee, while others bill you for a percentage of the voucher if you cancel.

Halliwell advises travelers to read the fine print and cancellation policy of the hotel, cruise and tour operators before booking; Groupon’s policy is to follow the policy of its partners.

Our policy is aligned with the hotel, cruise or tour operator’s cancellation policy, which is the case with most online travel agencies, including Expedia and Priceline,” he said.

There are some exceptions for circumstances like natural disasters, but outside of that if you have a  bad experience, Halliwell said to contact the property and Groupon to work toward a satisfactory solution.

Rental Cars

Multi-city adventures call for rental cars. The cost of the rental is included in the getaway package.

The catch, as Todd learned firsthand, is you’re given cheap models with manual transmissions.

So, if you can’t drive a stick shift, then you’re forced to upgrade out of your own pocket.

He said that was his least favorite part of the rental experience.

“They give you a junker — the cheapest model they can possibly give you so… you always have to upgrade,” he said.

Location

For a one-city trip, you’ll most likely be set up in a hotel close to the action.

If you book a multi-city trip with a car rental, your hotel serves as a central hub to and from all the cities on your trip.

Todd found driving back and forth problematic on his Italy trip. He said driving 30 to 40 minutes was a light day, whereas others were five hours round trip.

To avoid spending hours in the car, he and his wife opted to spend an extra $69 on a hotel room in Florence instead of driving back to their home base the same day. That gave them a chance to experience Florence at night and plenty of time to drive back the next day.

He advised leaving some padding in your budget to book a cheap hotel along the way or risk spending your whole trip on the road.

Double Occupancy

All of the inclusive international package rates are for two people. This is plainly stated under the headline of the deal.

This means you’re expected to share a room with your travel partner.

Flying solo? That costs extra. Single-traveler fees range from $100 to $700, which forces singles to pay the same price as two people in some instances.

It might be cheaper to book elsewhere if you’re going stag.

Tips Before Purchasing a Groupon Getaway

Schenck took her mom, Eleanore, on an all-inclusive trip to Italy in 2016 using Groupon. Aileen Perilla/The Penny Hoarder

As if the price wasn’t discounted enough already, both Schenck and Todd said they used a Groupon Getaway promo code to take an extra 10% off the price, up to $50 per person.

“It made the already cheap price even cheaper,” Schenck said.

Todd’s advice is to wait until the getaway is about to expire; he said the price gets cut anywhere from $50 to $100.

With both of those tactics combined, he said, you can save up to $100 off the face value per person.

But before you get excited and book your next dream vacation, read the fine print.

“I read it beforehand, so I knew exactly what to expect,” Schenck said.

Basically, as long as you read the fine print, there will be no surprises.

Taxes and fees are summarized in the “Know Before You Go” section on the main page of the getaway.  Read the “Fine Print & Details” tab for specifics of the tour operator’s policy.

Never hesitate to contact the travel or tour company to ask questions prior to booking.

The numbers to the sponsoring agencies are provided right on the getaway page. They can clarify any uncertainties and quote you trip extensions or extra flight costs.

Don’t be afraid to shop around.

As with any purchase, it’s really important to do your research,” Halliwell said.

“Travel is an industry where pricing can vary widely, so it’s important to look at other sites out there and do an apples-to-apples comparison.”

Another biggie is to read the reviews and check the customer ratings of any hotels, cruises or tour packages that you’re thinking of booking.

Caribbean excursions rank low, while getaways to Morocco, Paris and Rome have a five-star rating.  

Ultimately, don’t let the restrictions scare you off.

Pay the price and let the tour company choose hotels, flights and cars. You have the fun.  

Yes, you’re at the booking mercy of the travel agency, but chances are you’ll see more of the world for less money.

Both Todd and Schenck knew the deal up front and haven’t encountered any kinks yet.

“I think the pros definitely outweigh the cons,” Todd said.

Stephanie Bolling is a staff writer at The Penny Hoarder. She wants to set foot on every continent and might use Groupon Getaways to do it. Read her full bio here or say hi On Twitter @StephBolling.

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The Scariest Things to Happen to Your Budget

I’ve been kicking around an idea for a scary movie. The main character leads a fairly normal life with a stable job, an affordable apartment and a partner to share expenses with. Things are going well.

Then one day, they try to make a deposit at the bank – and there’s no record of an account by that name. When they show up to their job, that position no longer exists. Every trace of financial identity has vanished, and the character’s life spirals out of control until they eventually end up in a homeless shelter.

Maybe that’s a terrible idea for a movie, but financial horror stories do happen. Even if they’re usually not so dramatic, an unwelcome surprise to your budget can ruin the delicate sense of stability we all try to maintain. If you want to stay out of danger, it’s important to stay wary.

Here are a few common scenarios that can make you fear for your budget, and how to avoid them.

Annual Fees

Last month I noticed that my gym, a large national chain, had double charged me. When I went in to ask about it, the manager informed me that I was charged an annual fee on top of my regular monthly subscription.

“What do you mean, ‘annual fee?” I asked. “I’ve only had the membership for three months.”

Apparently, an annual fee is charged three months into the membership, and will be charged every year. I was a little annoyed at being charged a fee for seemingly no reason, but I learned a lesson. Next year, I’ll be prepared for the expense.

Annual renewal fees tend to sneak up on you, throwing your budget into temporary chaos. Common examples include credit card annual fees, Amazon prime renewals, car registration fees and more. Most of us forget about these fees until they’re due.

Solution: Make a list of all the annual fees you have and write down what month they’re due. Next time you work on a budget, go through the list to see if any annual fees are coming up. If you end up finding more, add them to the list.

Seasonal Changes

Do you ever open your electric bill, silently praying that it won’t be higher than what you budgeted? How many times have you opened that bill and been shocked at the total?

I used to dread opening my utility bills for this reason. I hated not knowing how much I’d have to pay, constantly worrying about whether or not I was prepared. There’s nothing worse than wondering what you’re going to cut out of the budget to make up for a huge gas bill.

Solution: I put all my utility bills on budget billing, so I pay the same amount every month. Sometimes that amounts to giving the utility company an interest-free loan, but I prefer knowing that my budget will always stay the same.

Rent Increases

When I was moving out of my one-bedroom apartment into a place with my boyfriend, my landlord asked if I knew of anyone who wanted to take over my lease. I told him I’d ask around. I asked if the rent would stay the same, and his reply shocked me. It would be going up from $625 to $750 –  a 20% increase.

I couldn’t believe it. If I hadn’t already been planning to move out, this increase would have forced my hand. When you’re making a measly reporter’s salary, $125 a month is no small sum.

Solution: Ask your landlord about renewing your lease months before it comes up. Many will only increase between 5-10%, but you never know when your landlord will get greedy. The earlier you find out, the more time you have to scout for new apartments or negotiate for a more reasonable rate.

Income Changes

While most of us hope to move up in our careers and increase our salaries every year, sometimes the perfect job comes along and you have to take a step back financially. There’s no shame in moving backward if it will allow you to move further forward in the future.

But what happens to your budget when your income decreases and your living expenses don’t? If you’re not careful, it can lead to a plummeting credit score and high-interest debt.

Solution: If you take a pay cut, the first thing you should do is reconfigure your budget. Go through the categories and see what you can cut or change, or find a way to make up the lost income with a side job.

Variable Income

I’m a freelance writer, so my pay varies every month. No two months are ever exactly the same, but they usually fall within $1,000 of each other. Because of that fluctuation, my budget can’t be as rigid as someone on a biweekly pay schedule.

If you live on a variable income, it can be pretty scary to experience multiple lower-than-average months in a row. When that happens, I try to trim any unnecessary expenses like going out to eat, buying concert tickets or saving for vacations. Usually the months even out, but it’s always scary when my income dips.

Solution: As a freelancer with variable income, it helps to have an emergency fund with three to six months worth of expenses saved up. That way you’ll never have to skip IRA contributions, bills, and other necessities.

Tax Changes

Anytime the federal, local or state tax code changes, you’ll feel the difference in your take-home pay – and your budget. An increase in property taxes will mean you need to save more in your escrow account or risk a surprise bill at the end of the year.

If you get married, you may discover the “marriage penalty.” This is when couples get married, combine income and are subsequently bumped into a higher tax rate. For many couples, this means their take-home pay actually decreases.

Solution: Pay attention to tax changes in the news. If you’re confused about how they could affect you, ask your accountant or a CPA.

 

The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or view of Intuit Inc, Mint or any affiliated organization. This blog post does not constitute, and should not be considered a substitute for legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Zina Kumok (32 Posts)

Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Debt Free After Three.