View Full Version : Financing Plans and Tricks
How is everyone's finances for the hike coming? Any tricks folks had come up with? I currently have money coming off my checks getting sent to a bank account I don't have a card for and all that, it's working really well so far.
Walkintom
05-17-2015, 10:48
Look at every single cost you have in your life and eliminate any of them that you can.
2000miler
05-18-2015, 16:31
What's worked well for me is using Mint to track my spending, exporting all my credit card / bank account data to excel, and analyzing each month's expenses to see where I can trim fat.
Seeing that I spend $200 a month on booze and extra restaurant outings was a slap in the face. Got that corrected, now able to put an extra $200 into the AT fund each month! Simple things like that add up. It's about priorities; If hiking the AT is the most important thing to you, you'll make the uncomfortable changes in your spending habits to make your hike a reality.
Folks, track your income and expenses. It's not easy and it's not enjoyable, but it's dang important. I feel like finances are arguably one of the biggest wildcards for potential thru-hikers.
jamisonr
05-19-2015, 09:56
We use mint. The financial issue hasn't been with having cash to buy equipment or live on the trail, but rather the upkeep on mortgage and 3 cars. One idea, if possible, is to refi the house right before you go. There's typically a two month period before you have to make the first mortgage payment.
Another is being patient if your cars are close to being paid off. My wife and I originally wanted to do a through hike in 2016, however we soon realized that in 2017 all 3 cards would be paid off, and in May of 2016 I no longer have to pay child support on one of two children. As long as we don't go buy a new car we should have a very small nut to worry about, and we our emergency funds can cover that.
Hi guys - this is a super broad answer but basically I wasn't going to be able to hike for financial reasons. I found a blog called mrmoneymustache.com back in November 2014 and by Jan 2015, I had reworked my finances and it totally changed my thinking. Now I'm on track for a 2016 thru hike. It took me about a month to read through his whole blog and back articles, and another month or so to put a lot of it into practice, but it's made SUCH a difference. Highly recommend giving it a look.
And I absolutely agree with using the Mint app, both for pre-hike planning and for tracking once on-trail. It's amazing.
MuddyWaters
06-09-2015, 21:53
Dont spend money, save it.
Dont take on debt.
If you need something, pay cash.
If you dont have the cash, well hello...you dont have the money for it.
Live BELOW your means.
90% of things people buy is junk thats not needed. Set your priorities, and buy only things that really matter to you.
I churn credit cards.
That means i get a couple new ones each year, then cancel the old ones., just to meet spending minimums to get initial bonus miles. After 2-3 years after cancelling you can reapply and you can get the initial bonus again.thats why you rotate cards each yr. I meet the spend amts with normal spending.
This gets me 1-2 free plane tickets per year, and $500 of other free travel related. About $1000 -1500 tax free value, each year. All for doing .. nothing...but planning well in advance.
Then i fly somewhere to hike for a few weeks. It cushions the financial hit so wife cant object.
A big part of using frequent flyer miles for tickets, is on short notice, a sameday ticket might be $750, but its still the same # miles as always. This works great when dont know completion date.
Consider, killing your TV. I did and was pleasantly surprised by the greater resources at my disposal including having less fear and stress in my life as well as having more expendable income. http://riskology.co/how-to-add-8-years-and-133369-to-your-life/ Consider this!
I also have sharply curtailed paying daily homage to the news. http://riskology.co/kill-the-news/
Additionally, I don't chase the latest greatest you must have this electronic device. I apply this to my outdoor gear as well.
Consider, killing your TV. I did and was pleasantly surprised by the greater resources at my disposal including having less fear and stress in my life as well as having more expendable income. http://riskology.co/how-to-add-8-years-and-133369-to-your-life/ Consider this!
I also have sharply curtailed paying daily homage to the news. http://riskology.co/kill-the-news/
TV use isn't that expensive, just watch the free channels.
Vegan Packer
06-10-2015, 01:06
I churn credit cards.
That means i get a couple new ones each year, then cancel the old ones., just to meet spending minimums to get initial bonus miles. After 2-3 years after cancelling you can reapply and you can get the initial bonus again.thats why you rotate cards each yr. I meet the spend amts with normal spending.
Not to take anything away from all of the bonuses that you are getting by doing this, there is a down side to this practice. Getting new credit, and closing established credit, lowers your credit scores. Part of what gives high credit scores is the length of time that credit has been established on the lines of credit that you maintain. It is only one of the factors that determines your scores, but this is a factor.
TV use isn't that expensive, just watch the free channels.
Haha. Think about the time wasted or how you've allowed yourself to be brain washed(programmed according to someone else's desires) as you nod off lying on the couch or in the Lazy Boy after downing that dozen Oreos. Think about the negative emotional buttons being pushed. Do you really feel empowered to be all you can be as you vegetatively let the airwaves wash over you filling you with all that junk? I'm yet to hear anyone state they have achieved their goals financial or otherwise by zoning out in front of the idiot box. And, a I write this, to be fair, a computer w/ internet access can be the new idiot box too.
MuddyWaters
06-10-2015, 03:34
Not to take anything away from all of the bonuses that you are getting by doing this, there is a down side to this practice. Getting new credit, and closing established credit, lowers your credit scores. Part of what gives high credit scores is the length of time that credit has been established on the lines of credit that you maintain. It is only one of the factors that determines your scores, but this is a factor.
You have to have good credit to do this. And pay bills in full each month.
Inquiries decrease it about 3-4 pts when get a new card from a new bank. Temporarily thats it. If you are already a customer, some do soft inquiries that dont even count. The new credit increases outweighs that after a few months. Assuming dont run a balance. You can call up and ask for credit line increases and effect positive changes too. Its mostly about whats outstanding vs total extended credit.
I have no need for credit. If i need a car, i go buy a used one and pay cash. There is no advantage to an 840 score over a 760. Its all the same. Pay your bills, your credit score will be great. Live on borrowed money, you cant afford,it will suck. Mine runs about 824 at the moment, good enough for me.
The unfortunate thing today, is credit card transaction fees are priced into everything you purchase by default. If you dont purchase with a credit card and get ~2% reward back in some way, you are simply getting charged more than you need to by that amount on virtually everything you buy or pay for. This adds up to hundreds over the course of a year. Over 10 years, its thousands of dollars. Ovet a working lifetime, it can be tens of thousands.
Dont leave money on the table.
Not to take anything away from all of the bonuses that you are getting by doing this, there is a down side to this practice. Getting new credit, and closing established credit, lowers your credit scores. Part of what gives high credit scores is the length of time that credit has been established on the lines of credit that you maintain. It is only one of the factors that determines your scores, but this is a factor.
Like MW says, if you don't need credit you can afford to ding your score 25-30 points but they do quickly recover.
I play the credit card game too - the real juice is in travel awards but I stick with cash back.
ShelterLeopard
06-11-2015, 13:35
Bike to work if you can. 1) Saves on gas. 2) Trains your body up a bit. 3) Ya can cancel a gym membership if you're like me!
Another Kevin
06-11-2015, 14:33
My plan to finance hiking? Keep on being a clueless weekender at least until I'm collecting a pension.. (It helps that I can count the years without taking off my boots.)
Of course, I'm blessed that I live in good hiking country. For weekend trips, I can drive myself or shuttle cars with a buddy. (Or get my patient and longsuffering wife to shuttle me.)
Maui Rhino
06-11-2015, 14:35
About a year before my last long hike, I picked up a second job. All money from that job (wages plus tips) went into an envelope that I kept hidden away. Seeing the pile of greenbacks grow motivated me to keep adding to the envelope. By not keeping it in my bank account and not carrying it around, I couldn't easily tap into it for a whim purchase. If I needed to buy some gear for the hike, I took the cash needed for that purchase to the bank, and the receipt went into my envelope, allowing me to track hike expenses from the beginning. This system motivated me on several levels to save money and make wise purchases.
atraildreamer
06-12-2015, 10:45
Dont spend money, save it.
Dont take on debt.
If you need something, pay cash.
If you dont have the cash, well hello...you dont have the money for it.
Live BELOW your means.
90% of things people buy is junk thats not needed. Set your priorities, and buy only things that really matter to you....
www.daveramsey.com
fiddlehead
06-12-2015, 21:55
Dont spend money, save it.
Dont take on debt.
If you need something, pay cash.
If you dont have the cash, well hello...you dont have the money for it.
Live BELOW your means.
90% of things people buy is junk thats not needed. Set your priorities, and buy only things that really matter to you.
I churn credit cards.
That means i get a couple new ones each year, then cancel the old ones., just to meet spending minimums to get initial bonus miles. After 2-3 years after cancelling you can reapply and you can get the initial bonus again.thats why you rotate cards each yr. I meet the spend amts with normal spending.
This gets me 1-2 free plane tickets per year, and $500 of other free travel related. About $1000 -1500 tax free value, each year. All for doing .. nothing...but planning well in advance.
Then i fly somewhere to hike for a few weeks. It cushions the financial hit so wife cant object.
A big part of using frequent flyer miles for tickets, is on short notice, a sameday ticket might be $750, but its still the same # miles as always. This works great when dont know completion date.
BEST answer^
I've been doing this ever since paying my house off in '96.
Swore I would never go in debt again.
Although I have the money for a new car (and I need a car), I posted on my FB that I am in need of a cheap, reliable car.
Lo and behold, someone has a '96 Pontiac that they'll sell me for $500.
Sold!
Pleasant hiking everyone.
Read this website: http://www.mrmoneymustache.com/
The unfortunate thing today, is credit card transaction fees are priced into everything you purchase by default. If you dont purchase with a credit card and get ~2% reward back in some way, you are simply getting charged more than you need to by that amount on virtually everything you buy or pay for. This adds up to hundreds over the course of a year. Over 10 years, its thousands of dollars. Ovet a working lifetime, it can be tens of thousands.
Dont leave money on the table.
Many, but not all things.
A couple examples:
We have a number of gas stations that offer lower prices for cash - if it's 6 cents less on a $3 price point, that's the same as the 2% reward.
A local dentist offers 5% off with cash (or check) vs. 2% for a credit card - cash still saves 1% even after rewards.
Not to mention the places that are still cash only. Or in smaller places asking an owner for a cash discount - they might just offer a deal.
kayak karl
06-22-2015, 18:00
www.daveramsey.com (http://www.daveramsey.com)yep. we use his books and tapes. classes at church help by being a support group. my big thing is taking coffee, instant drinks and food for lunch. i never go to a Wawa ;)
CarlZ993
06-22-2015, 22:17
Proper money management hinges on 3 principals: live beneath your means, pay yourself first, and manage your debt wisely. Of course, the devil is in the details. For managing your debt wisely, that means watching out for revolving credit. Especially Credit Cards (the crack cocaine of the financial world). Pay those cards off every month. If you are unable to do so now, establish a debt reducing plan from Dave Ramsey or Mary Hunt & whittle that balance down to zero. It works. Hopefully, you'll eventually reach a point where you never borrow money to buy a depreciating asset (car, furniture, etc). Only borrow money to buy a (hopefully) appreciating asset (real estate, a business, etc).
Back in the early 80s, I made monthly pre-payments for a ski vacation w/ a local ski club. Before I left for the vacation, it was completely paid for. When I got back from the vacation, no bills. Sweet! It was one of 'eureka' moments. I set up a special savings account for vacations. I didn't raid that fund for other purposes. Over time, it built up rather nicely.
Fast forward a bunch of years, I'm still doing it. Money still flows into my vacation fund. Most of vacations are backpacking related. Sometimes the travel can be expensive (NZ, Chile, Argentina, etc). But the rest is fairly economical. I charge everything on a credit card. Transfer money from my vacation savings account to my checking account & pay the monthly bill in full. Easy peazy.
As far as what to cut in your budget & what to keep, you have to establish what is important to you. Set priorities. For me, I always put more emphasis on experiences (travel, usually cheap travel) over 'things.' Things break, you misplace them, you grow tired of them, etc. Experiences stay with you forever (assuming no Alzheimer's Disease).
Everybody dies... but not everyone lives. You want to be the one who truly lives (and merely having a pulse is not living in my book). 10 yrs from now, which statement do you want to make? - "In 2016, I bought the latest iPhone 7" or "In 2016, I hiked the Appalachian Trail and it was awesome!"
Not sure if this is the type of planning you are considering. If you don't have anyone at home that you trust with your finances and you have budgeted for an extended hike, pay ahead on a credit card a couple thousand. Each month your balance due will be zero so you don't need to worry about late payments. Bills can be paid automatically and you still get all the cash back/ flyer miles from using the card as you go. It will work like a debit but with the protections that come with a credit card.
Read this website: http://www.mrmoneymustache.com/
Good one I had forgotten about. THX Coffee.
...A local dentist offers 5% off with cash (or check) vs. 2% for a credit card - cash still saves 1% even after rewards....
Also, consider going south of the border(SOB) for major dental work. I got this tip from a strapped for dental cash self employed hiker friend who used to live in San Diego who saved $3100 by taking a bus to Tijuana for his dental work. That $3100 he parlayed into thru-hiking the PCT and moving to Hawaii. I did some pre traveling homework first finding reviews of accredited dentists mostly trained in American Dental Schools who set up SOB practices. It helps if you live near the Mexican border and/or know some Spanish but still consider I flew from New Jersey to San Diego, paid for my RT flight, visited SD, stayed at my friend's place, took the bus down to Tijuana and back to SD three times over a 16 day period, and SAVED $1900 on two root canals, two porcelain crowns, and one filling, easily paying for the whole cushy trip, where I had a blast both in Tijuana and SD. I'm not exactly fluent in Spanish either but I got by.
Prescription drugs are also cheaper in Can and Mex. And, don't be fooled. These are the same drugs you'd obtain in the U.S. at a 40-60% increase.
Bike to work if you can. 1) Saves on gas. 2) Trains your body up a bit. 3) Ya can cancel a gym membership if you're like me!
I did this. Despite having a good PU getting decently OK MPG I still opted to bike, bus, car pool(remember when this was in fashion? what happened?), or walk more than drive in most fair three season weather. I even calculated the bus ride to take me 25 extra mins total to/from work but costing me $1.50 each way(purchased a monthly pass, six days/wk x $3 = $18) compared to me driving(gas, tolls, parking, etc., $14/day, $84/wk). On the bus I went over work related duties, made biz calls, read, listened to audio tapes, or just napped!
What a good way to work out preparing for a thru-hike by walking and bicycling more while learning to duplicate many of the exercises I once did at the gym at a $$ cost. What I couldn't duplicate with the specific machines at the fancy paid gym I now do at a local college gym that charges me only $2 WHEN I GO. I still get the views too but of the coeds! Love the college scene.
www.daveramsey.com (http://www.daveramsey.com)
Read two of his books and have on occasion tuned into his show. Comes from a Christian perspective. Seems many of the financial ideas are longer term
being realized IMO.
atraildreamer
06-23-2015, 13:25
yep. we use his books and tapes. classes at church help by being a support group. my big thing is taking coffee, instant drinks and food for lunch. i never go to a Wawa ;)
I listen to him all the time. My only regret is that he was not on the air in the 70's. I could have use his knowledge back when I was starting out. :(
Ever wonder what would happen to the economy of this country if everyone started living the way Ramsey suggests? :-? I doubt that we would have an 18 trillion dollar deficit.
(Just heard that the deficit is now 20 trillion!)
If you can, pick up a second job at an outdoor retailer, especially during Christmas season, easy time to get hired.
Some of the perks, hanging out with other people who love the outdoors (hopefully), helping customers who love the outdoors and swap stories, learning about the gear, and of course, the sweet discounts.
I've worked in an outdoor specialty shop for a number of years as a college student, while the pay is not the greatest I can get discounts anywhere between half off MSRP to half off wholesale. Huge help for purchasing shoes/socks/tent/food, just about everything related to the AT.
Traveler
07-07-2015, 06:54
One of the better tricks for saving is whenever you actually save a few dollars buying something or NOT buying something, take the amount you saved and squirrel it away. Too often people do make wise purchases that saves them money but end up spending it on something else. This works on a number of things in life actually. If you save $6.00 at the grocery store using coupons, put $6 in the jar or savings account. If you finish your car payments, take that payment money in subsequent months and stash it away for a year or two and be amazed how much cash you have on hand.