By Karen Galarpe

With school out and the Holy Week break coming up, the usual question is, “Where will you be this Holy Week?” Or “What will you do this summer?”

Whether it’s to the beach, the mountains or the city you’re headed for (or staying put in), here are some ways to save money on your vacation as shared by frequent travelers:

1. Book and buy your plane tickets online. You may be able to get better rates online. And if you get the no-frills ticket (no meals, non-refundable, non-rebookable, with no check-in baggage), you will get even better rates. Cebu Pacific and Philippine Airlines offer special promos for those booking and buying their tickets online early.

2. Make a checklist of all things you need to bring. Don’t forget stuff like camera batteries, cellphone charger, an extra memory card, hat, sunblock, etcetera. These things may cost you more if you buy them at your destination.

3. Research on the places worth visiting in your destination. Plan your itinerary for each day to save on gas or transportation fare. It will also clue you in on where to eat, shop, get a massage, and so on at reasonable prices. Check out places you can get in for free, such as museums and art galleries, parks, etc.

4. Have enough cash with you and bring your credit card as well. It can be a hassle looking for an ATM when you’re in a remote place like the beach. Abroad, you may also get better foreign exchange rates by withdrawing local currency from your bank account using an ATM rather than having your money exchanged at the hotel. A credit card, on the other hand, will make it easier for you to make purchases and settle hotel bills.

5. Stay at a hotel that offers complimentary breakfast and free Internet access. This will save you a lot of pesos.

6. Bring snacks. Buying snacks at convenience stores will cost a lot more. And don’t raid the mini-ref in your hotel room. Good healthy snacks to bring include peanuts, trail mix, crackers, and cereal.

7. Buy pasalubong at the public market, rather than the mall or airport pasalubong counters. You’ll get the freshest stuff at the most affordable prices. In Baguio, strawberries and broccoli are best bought at the public market. In Cebu, head to the palengke for danggit and dried mangoes. Another plus: at public markets, you can bargain and make tawad.

8. Instead of patronizing the tourist-y places, go where the locals go and eat where they eat. Food in places frequented by locals are usually delicious and cheap.

9. Walk more instead of taking public transport. You’ll see more sights, put in some exercise time, and save money with just one effort.

10. Make sure your car is in tiptop condition. A flat tire, a conked engine, and an aircon running low on freon will not only inconvenience you; these will bore a hole in your pocket as well. Before you leave, check that your car is in good condition.

Have a great vacation!

It has been more than a week after the crazy rush of Christmas past. That’s ample time to figure out the lessons that can be gleaned from under the Christmas tree.

Which gifts have you truly found enjoyable and useful? Which ones were a waste of money and time? Did the price tag matter? Come on…honestly?

I found myself thinking about these questions as I took down the tree and wondered about my Christmas spending and plans to begin saving for the 2009 holidays. Here are some realizations that surprised me (or maybe they shouldn’t have??):
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Below is one of my all-time favorite true stories, printed in a newspaper in the United States years ago, and quoted by religious leader Thomas S. Monson in his talk, The Profound Power of Gratitude. There’s a personal finance lesson in it :-).

Here’s hoping that you all have a Merry Christmas, a bright year ahead come what may, and a heart full of gratitude for all that the year will bring.

The District of Columbia police auctioned off about 100 unclaimed bicycles Friday. “One dollar,” said an 11-year-old boy as the bidding opened on the first bike. The bidding, however, went much higher. “One dollar,” the boy repeated hopefully each time another bike came up.
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We Filipinos traditionally blow away a huge chunk of our Christmas budgets on Noche Buena. We can cut back on gifts and decorations but not on Christmas dinner! Not even plates of lechon and sweet spaghetti can make us veer away from the traditional, lavish handaan. Filipino parents feel like they are lousy providers when they can’t at least provide hamon and queso de bola.

So, what are you personal finance enthusiasts having for Noche Buena? Are you making do with less or is the dinner still a tradition that will remain untouched despite the gloomy forecasts?

In the Duplito household where Christmas dinner is basically a simple family affair (no cousins, lolos and lolas because they live far away), adjusting is not a difficult thing because we have kept the traditions simple from the very beginning.

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Photo courtesy of Aladdin Cordero

I learned a few more things while preparing for my interview at ANC’s Shoptalk, as well during the show and would like to share them with you:

1. Use a budget. Makes you consciously think of what you put in your shopping carts. Write a shopping list.
2. If you must shop, go for frugal shopping hot spots. The psychological rewards of saying yes is the same whether you do it at Zara’s or Divisoria. (Read my previous post to to find a list of frugal shopping hotspots.)
3. Set aside a Christmas fund. In government finance, a sinking fund allows the government to set aside every month some money for future payments. We can do the same in our personal finances. A 12,000 budget for gifts and noche Buena every year for example will not be as heavy when you prepare for it by seting aside 1,000 a month from January to December.
4. Don’t forget the “hidden costs” of Christmas holidays, like contributions for company/church Christmas parties, Kris Kringles for children, etc.
5. The law of supply and demand in economics indicate that if you buy in January, you will get lower prices because demand is bound to drop. Not so, says Pia Hontiveros-Pagkalinawan, who is a self-confessed Divisoria shopper. She says apparently shop-owners have realized that children who get cash gifts during Christmas time go shopping in January!
6. Be a bulk customer: contact your company’s suppliers
7. Recycle gifts
8. Keep Christmas parties simple, go potluck!
9. Think of giving the gift of experience instead of toys
10. Don’t go overboard when buying toys. Some of the most expensive toys these days kill children’s imagination

Is there anything wrong with enjoying the spirit of the season that’s fast approaching? Of course not. We wouldn’t want people to think we are misers who are only concerned with the glint of money.

There is nothing wrong with enjoying what we earn. But therein is the key—the words “what we have already earned.” We should be enjoying in moderation past income with some set aside for the future. But Filipinos have to stop enjoying future income, future bonuses, future salary increases. After all, what if these don’t come in? Then we have to live with the reality of bounced checks in January or missed credit card payments when the new year rolls in.

Break the cycle by refusing to mindlessly spend. The psychology of spending is a topic that I have been studying for quite some time. Unless we face the deeper reasons why we get into debt come Christmas season—and even after—we cannot really get rid of these urges to splurge.

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(Photo by Din Cordero)

Personal Finance Reminder: avoid busting your budget by shopping early for Christmas.

Early birds get more time to look for bargains, more time to stretch artistic skills to create unique and personal  (and less expensive) gifts, and avoid overcharging credit cards and paying hefty fees.

Sometimes, the late birdies do get rewarded, because retailers have been known to cut down prices at the last minute. But would you like to fall prey to an “if?”

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(JAPAN, Tokyo : Japanese women buy boxes of chocolates as gifts a day before St. Valentine’s Day in Tokyo on February 13, 2008. Women in Japan feel the need to give chocolate to their boyfriends, work colleagues and teachers on February 14 as a social obligation more than a sign of love. AFP PHOTO / Yoshikazu TSUNO)

I would be the first to say that an expensive dinner and something wrapped in a small package speaks and drips of love (pronounced luuuv). Sure, it does!

But since we are trying to be money-smart, how about exchanging ideas on how to strive for the same effect at less cost?

**after two hours**

Whew. Seems there are no ideas in this unromantic body. Went around the blogosphere and here are some thoughtful ideas I handpicked:

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Photo from Agence-France Presse

(I have not been able to access this blog for the last four days, so I’m posting my entry for last Friday.)

It’s such a pain to withdraw money from ATM machines these days. The lines are always so long! Since I am such an OC and would only transact with my bank’s ATM, finding one always feels like Amazing Race, the Trinoma leg.

A very good friend tried to convince me it was a goofy idea to spend so many calories hunting for the right ATM machine to save up on bank fees. I’ve got all those flabs to think about, after all. I wouldn’t want them to lack nutrients nyahaha.

Seriously, I do get overboard sometimes when it comes to “financial” stuff. I mean, there I was waiting 20 minutes for my turn at the ATM machine when I charge so much more than P11 for 20 minutes of my time! Wasn’t that crazy?

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If you want a discount of P1 per liter on your gasoline and a 50-centavo discount on diesel and kerosene, go bring your four-wheeled or two-wheeled babies now to Shell, Caltex and Eastern Petroleum stations.

Playing David to the big three Goliaths, Eastern Petroleum initiated the holiday price cut at 2 pm yesterday (Wednesday), prompting Shell and Petron to follow suit. Problem is, the price cut is only being offered in “selected competitive trading areas” and I have no idea where these are. Errr…just try near your place, will ya? You have only until Monday to get the discount!

Click on this link to read the breaking news article from INQUIRER.net.