It’s A Wonderful Life. Save a Little.

I don’t think it’s a coincidence that the main character in the movie “It’s a Wonderful Life” is a banker. Okay, so he’s a poor, failed banker. That’s true enough. And the bad guy is a rich, miserly banker.

One of the many messages I hear in the movie is that it’s the little things that make up the purpose of your life. It’s not a huge act that you commit one afternoon. With a bang. Accompanied by white lightening. In front of a arrow that points to a sign that says “oh! This is why I was born!”

Rather it’s the smaller acts of kindness that ripple on without us knowing where they go or how far. Money is a little like that. You never know how much good you could be doing with spending that $10 in just the right way.

Saving that $10 for tomorrow or the next day just gives you more choices that you will exercise later. You will spend it eventually. It will either go to the mortgage, or it will go to your heirs. Or to a latte that might make the day better. Or a gift that might make a friend or a stranger’s day. Or to paying off a student loans. Or it will go to your favorite charity.

That’s why we try not to spend it on things that don’t matter. Because it is a wonderful life. And money can be our ticket to the next great memory.

3 easy-to-avoid vacation expense bloopers that can save you hundreds.

    

Or How My "Free" European Travel Vacation Really Cost $2,500

When I started saving money for my 8-day European dream vacation, my biggest focus was on earning enough Delta Frequent Flyer Skymiles to get a free round trip ticket. 75,000 miles gets you a free round trip to the European continent.  That’s the most expensive part of the tab, right? (Hint: yes, it usually is the biggest single ticket item in a trip to Europe, but other items add up quickly)

Hotel rooms are high too, but I have a relative in one country who was willing to put me up for a few nights before I headed out for my real dream destination: Florence and Venice Italy! So how expensive could the whole trip be? I got back from my vacation yesterday and added up $2,500 in vacation expenses. Gulp.

After careful review, I realized that some of the biggest expenses were due to my ignorance about travel in Europe and could have been avoided:

1) I didn’t realize how expensive Eurail passes could be. If you are going to more than one location, understand that even with Eurail passes, transportation costs in Europe can be high. And there aren’t always direct trains connecting your city to the next. My ticket from Luxembourg to Florence was $240 and took twelve hours with four train connections (Luxembourg to Basel Switzerland, Basel to Nancy, France, then Nancy France to Milan and Milan to Florence).   I booked a flight back from Florence to Luxembourg because it only took 4 hours and cost about the same amount. After all I’d heard about Eurail passes being so cheap, I felt pretty jipped.

2) Try to make your plans first re: what cities you want to visit, then book your flight “open-jaw” if you can. If I had flown into Brussels, then flown out of Florence (instead of flying into and out of Brussels round trip), I would have saved the $240 it cost me to get back to Brussels to catch my plane home. Once I booked the plane ticket, I couldn’t change it back without hefty penalities.

3) When I had to cut my trip short because my budget was running out, I was stuck with a $100 change fee from Delta. It was still cheaper for me to shorten the trip, so I took the hit. But I thought travel insurance would cover it. WRONG. I didn’t realize that the basic travel insurance I purchased when booking my flight would only cover me if I had a medical illness and had to return early or change my plans. It also required documented evidence from a physician that I had been ill and what dates. Realize that travel insurance won’t cover your plane fare if you simply change your mind.

I'll be posting more tips on what I got right -- and how you can do the same -- in my next blog re: Real Money In Europe!

Links:
Booking Eurail passes
Delta Frequent Flyer Miles Reward Travel Info

Do you have travel money tips or rip-offs to share?

Health Care Reform Implementation Timeline

It's been awhile since my last post.   A family health crisis put me in the ICU waiting room for the last couple of weeks.  During that time I had a first hand look at how health care reform legislation may make a huge difference in my (and your) financial future.

An easy-to-read timeline for the health care insurance reform changes is available on the Senate website or by clicking on this link.

One of the topics you'll find covered in the time line is the section that extends coverage for young adults.  "Extending Coverage for Young Adults. Requires any group health plan or plan in the individual market that provides dependent coverage for children to continue to make that coverage available
until the child turns 26 years of age. Effective six months after enactment."

My daughter graduated from college this May and has a job managing a restaurant -- but no health insurance. Luckily, I have a job that does provide coverage, and has already begun offering coverage to employees whose children are twenty-six-years old or younger.   What a benefit!  I was considering moving jobs, but now I'm not so sure.  This strategy of early adoption has given me a new appreciation for my job and my current organization.

At the same time that my daughter is now covered, I have friends and colleagues who are not, and their financial futures are at great risk.    These are working people....but they have jobs that offer work for 38 hours per week or less so that the employer doesn't have to provide benefits.  The majority of the uninsured are working people.  They are forced into using .  And they are hoping to hold out until they can find a job with benefits, or in some cases, until they can age into Medicare.   Some other friends are "under insured," thinking they have benefits, but the lifetime insurance caps leave them vulnerable.

This isn't a blog for politically posturing, but for common sense advice born of real-life experience.   A friend asked me recently if I agreed with the health insurance reform plank that "forces" everyone to buy health insurance.  Being known as a rebel in so many areas of my life, I'm sure my answered surprised him.  I'm absolutely delighted to be able to access insurance, and gleefully pay for it every month.  Thank you to my company for providing it.   My advice to you if you can buy insurance?  Grab it.