Money Management

A writer shares her tips for shaving money off the cost of a Disney trip. Read on to learn her tricks. 

Some people absolutely love Disney World. I could take it or leave it. But because it’s a place my kids enjoy visiting, we’ve made an effort to get them there three times over the past five years.

As you might imagine, a trip to Disney has the potential to result in quite the hefty credit card tab. In fact, the site Mouse Hacking says that its baseline Disney World vacation for a family of four (two adults, one child aged 10+, and one child aged 3-9) costs $6,320, or $316 per person per night, in 2023.

This cost includes flights, transportation to and from Disney World, and a five-night stay at Pop Century, a Disney resort. It also includes a five-day ticket without the park hopper option, the Genie+ service at two parks, quick service meals, snacks, and two table service meals.

Meanwhile, I have a family of five, but the last time we went to Disney World, we managed to spend considerably less than $6,320. And that included five full days at the parks. Here’s how we managed to save money on our trip.

1. We drove instead of boarding a plane

Disney World is about a 16-hour drive from my home, so clearly, driving isn’t the easiest option. But the last time we looked at flights, they were coming in at around $450 per person, or $2,250 for all of us. And that didn’t even include the cost of getting to the airport or checking bags.

We decided to make the drive instead. Between the cost of gas, lodging (on the way down to Disney, we broke up the drive with a hotel stay, but we powered through the entire 16 hours on the way back), and food on the road, we spent somewhere around $700 to $800. That’s far less than what a flight would’ve cost us.

2. We stayed at a non-Disney property

Full disclosure: I have a friend who owns a home near Disney World, and he’s been generous enough to give us a free week’s stay. So clearly, this was a huge source of savings for us, and I recognize that most people do not have the option to score a free stay.

However, before taking my friend up on his generous offer, I researched prices for non-Disney hotels in the area and found that we could’ve easily saved $150 a night by staying off-property. And I also found that the Disney-adjacent hotels were very convenient for getting to the parks. Many even offered a free shuttle.

3. We didn’t really eat at Disney

Disney World’s food policy is actually quite reasonable — you’re allowed to bring in your own food and beverages if you don’t want to pay the sky-high prices you’ll be charged inside the parks. On our last trip, most days, we ate a quick breakfast at the place we were staying and packed sandwiches for lunch. We also brought in our own snacks.

Now, we did allow our kids to choose one Disney snack per day — usually ice cream, since it was so hot when we went. And we did eat dinner out most nights. However, we opted to dine at non-Disney restaurants, which were way cheaper than the ones in the parks.

The only exception to this was when we visited Epcot. Epcot is known for its cuisine from around the world, so we treated ourselves to dinner onsite that day only.

Visiting Disney World is not going to be an inexpensive trip. This especially holds true for a larger family. But there are steps you can take to lower your costs, so consider doing some of the things I did this last go-round. Because we spent less than expected, we had money left over to take another family trip later on in the year. And that’s something I’m really grateful for.

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Having zero savings could lead you into serious debt. Read on to see how to build up some savings. 

A recent SecureSave survey found that 67% of Americans are not equipped to cover a $400 emergency expense. But what if your savings account is in even worse shape than that? What if you don’t have any money in the bank earmarked for emergency expenses?

Having no emergency fund could leave you extremely vulnerable to debt when an unplanned bill arises. It could also be catastrophic in the event of a lost job. So if you’re sitting on no emergency fund at all, it’s imperative that you do what you can to build some sort of cushion.

Don’t leave yourself at risk of debt

You never know when your car might break down, your washing machine might stop working, or your kid might come home with a broken bone that leads to an expensive medical bill. That’s why it’s so important to have money in savings.

If you don’t have any sort of emergency fund, you might end up having to rack up a large balance on a credit card to cover an unplanned expense. That could leave you owing lots of money in interest.

Now ideally, you should aim to have enough money in emergency savings to cover three months of essential expenses. That way, if your emergency is the loss of your job, you’ll have a way to cover your bills in case you’re not entitled to severance or unemployment payments, or in case those payments fall short in paying for all of your expenses.

But if you’re sitting on no emergency fund at all right now, it might take years to save up enough cash to pay for three full months of bills. If that’s the case, save something. It can be $300, $500, $1,000, or whatever it is you can reasonably manage. It’s better to have a little bit of money in the bank than none at all.

How to build up an emergency fund

Building savings isn’t easy, especially if you’re not a particularly high earner and have lots of ongoing expenses. But one step you can take to potentially free up some cash for savings is getting on a budget.

That may seem unappealing, but all it really means is being careful with your spending and allocating a specific amount of money to each expense category of yours with the goal of freeing up some amount of money each month for savings. You may end up having to cut back on a few of the things you enjoy, but the peace of mind you’ll get in return may be more than worth it.

You could also turn to the gig economy for help in building savings. If you’re willing to drive for a ride-hailing service a few nights a week or spend some evenings waiting tables, you may find that you’re able to use your extra earnings to build up a nice savings cushion.

Going without an emergency fund is a dangerous thing from a financial standpoint. If your savings account is currently empty, do what you can to sock away some amount of money — even if it’s a very small amount. You can always work your way up over time, but that way, it’s at least a start.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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For some, achieving a salary of $100,000 represents “making it.” Here’s why a large portion of those people are struggling to get by. 

You’re not alone if you’re bringing in more than $100,000 a year and still struggling to get by. It may be cold comfort, but a joint study by PYMNTS and Lending Club found that 51% of people earning $100,000 or more report living paycheck to paycheck. And yet, the average annual median in the U.S. is $56,940. How can those earning so much more spend as much as they make each month? Here, we explore a few of the factors that make it possible.

Where they live

Living in Omaha, Nebraska, is nothing like living in Long Beach, California, and Albuquerque, New Mexico, is nothing like living in Austin, Texas. Simply put, living in some areas of the country costs far more than others, and at the end of the month, there’s less left in the bank account.

To test this hypothesis, we used Sperling’s Best Places Cost of Living Calculator to compare one city to another. None of the calculations include the cost of childcare or taxes.

Here’s what we found:

Someone earning $100,000 annually in Omaha, Nebraska, would need to make more than $177,000 in Long Beach, California, to maintain the same standard of living.A person in Albuquerque, New Mexico, earning $100,000 annually, would need to make $169,000 in Boston, Massachusetts, to keep pace with their current income. A salary of $100,000 in Kansas City, Missouri, would need to jump to just over $147,000 if the person moved from KC to Austin, Texas. To keep pace with a salary of $100,000 earned in Lansing, Michigan, a person would need an income of over $168,000 in Portland, Oregon.

And it’s not just cross-country moves that change the spending power of $100,000. For example, a person earning $100,000 a year in Champaign, Illinois, would need to earn just shy of $144,000 to keep pace if they moved two hours north to Wheaton, Illinois.

Childcare

According to the Economic Policy Institute (EPI), childcare costs vary wildly too, depending on where a family lives. For example, here are the recent average annual costs of infant care in 10 states:

Alabama: $6,001Alaska: $12,120Colorado: $15,325Delaware: $11,021Indiana: $12,612Louisiana: $7,724Massachusetts: $20,913Mississippi: $5,436New Jersey: $12,988South Dakota: $6,511

In Hawaii, the average annual cost of infant care is $13,731. To put that number into perspective, infant childcare costs $4,022 more per year than in-state tuition for a four-year public college in Hawaii.

According to the humanitarian aid organization UNICEF, the U.S. ranks No. 40 out of 41 countries in providing accessible, affordable, and quality childcare. That cannot be blamed on parents.

An article from The New York Times reveals the U.S. spends only 0.2% of its gross domestic product (GDP) on childcare for kids aged 2 and under. That amounts to approximately $200 a year for most families through the childcare tax credit. Compared to the $18,000 per child Sweden contributes and the $30,000 Norway spends on early childhood care, it’s clear that American parents take a substantial financial hit when it comes to paying for quality daycare.

Let’s say a household living in Texas earns a combined income of $100,000. They have two children, ages 11 months and 4 years. After taxes, the couple brings home approximately $6,000 per month. The average cost of childcare for an infant in Texas is $9,324 annually or $777 per month. The cost of care for their 4-year-old is $7,062 annually or $589 per month.

Of the $6,000 the couple brings home, $1,366 automatically goes to childcare.

Note: These are rough numbers. While we calculated take-home pay based on taxes, we did not include other costs that would reduce the amount of their take-home pay. This includes expenses like medical coverage and union dues. Ideally, it would also include retirement contributions.

Lifestyle creep

Lifestyle creep is sometimes referred to as “lifestyle inflation.” It happens when an increase in income leads to more spending on nonessentials. For example, as a person’s income increases, they may go on nicer vacations, eat out more, or buy more expensive clothes. The things they once viewed as luxuries become necessities, eating up a more significant portion of their income.

The word “creep” is appropriate because it can happen so slowly that a person doesn’t notice it until they find themselves living paycheck to paycheck.

We didn’t even touch on high taxes in some regions, the exorbitant price of housing, or current inflation concerns. Given all the bills that roll in each month, it’s easy to understand how even higher-income households could be hurting.

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Is your emergency fund about to let you down? Read on to learn three clues an emergency fund failure might be on the horizon. 

A recent SecureSave survey found that 67% of Americans do not have enough cash reserves to cover a $400 emergency expense. So if you have an emergency fund with $400 or more, you might assume you’re in better shape than them.

But that doesn’t mean your emergency fund will be able to truly come to the rescue the next time you land in a financial crisis. Here are a few signs that your emergency fund might seriously end up falling short.

1. It’s a random amount

You may decide to save $2,000, $5,000, or $10,000 and call it a day. But landing on a random target for your emergency fund isn’t going to do you much good. Instead, that number should be based on your specific expenses and circumstances.

If you own an older home, for example, $2,000 might fall incredibly short if you end up having to replace your roof or do a major appliance overhaul. Think about your specific needs when determining how much money to put into your savings account.

2. It’s not enough to cover three full months of bills

You should aim to have enough money in your emergency fund to pay for three months of essential bills — things like your rent or mortgage, car payments, utilities, and food. The logic is that if you were to lose your job, it might easily take a good three months to become gainfully employed again. And you’ll need cash reserves to pay your bills while you’re out of work — even if you qualify for unemployment benefits (since they won’t replace your missing paychecks in full).

Comb through your expenses to determine what your non-negotiable monthly spending amounts to. Then multiply that figure by three to come up with your minimum emergency savings goal.

3. You keep dipping in for non-emergency purposes

There’s a reason your emergency fund is called what it is, and not your “dip in when you feel like it” fund. That money is supposed to be reserved for expenses that are unexpected and that you also can’t put off — for example, a car repair that’s necessary to be able to drive your vehicle and get to work.

If you keep raiding your emergency fund to cover non-essential expenses, such as to buy concert tickets when your friends ask you to join them at the last minute, then there’s a good chance you won’t have enough money when a true emergency strikes. So instead, try your best to tell yourself that your emergency fund is off-limits unless the situation is dire.

Chances are, you worked hard to build your emergency fund — no matter what sum it amounts to. So don’t put yourself in a position where your savings won’t cut it. Instead, make sure you can pay for three months of bills, and consider whether you need to save beyond that for things like home repairs. And if you do manage to boost your emergency fund, leave it alone until you really need it.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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An annual Costco membership costs $60 or $120. Read on to learn how you can save that much on just one Costco purchase. 

An annual Costco membership costs $60 for Gold Star and $120 for Executive. Most Costco shoppers will recoup the cost of their membership by shopping frequently at the warehouse store and buying items in bulk versus individually at grocery stores. But there is one purchase that will — if you time it right — save you the cost of your membership (plus more) instantly. That’s right — I’m talking about Costco tires.

How Costco Tire Center can save you $100 to $150

Every now and then, Costco will knock $100 to $150 off the final cost of tires when you buy four from a specific brand. For example, from June 12 until July 23, Costco will give you a $150 discount ($70 off the tires and $80 off installation) when you buy four Bridgestone tires and have them installed at the Tire Center.

With a $150 discount, you could cover your Gold Star Membership, plus get $90 back in extra savings.

What’s more, if you wanted to try an Executive Membership and earn 2% back on Costco purchases, the Tire Center’s $150 promotion would cover your $120 dues and give you $30 back in savings.

That’s an amazing deal. But how do Costco’s tire prices compare?

Of course, this discount only works if buying Bridgestone tires at Costco is cheaper than other discount tire shops. In other words, if you save $150, but the base tire price is higher than other stores, you’re not saving as much as the advertised promotion.

But don’t worry — as is typical of the warehouse retailer, Costco’s tire prices are nearly always on par with or lower than other tire shops.

For example, let’s say you’re buying Bridgestone tires for a Toyota Prius. One option is the Bridgestone ECOPIA EP422, which is an all-season tire. Here’s how much you would pay to buy and install four tires from Costco, Tire Rack, and Walmart:

Costco and Tire Rack are close in price, but Costco has the better deal by around $40, assuming installation at Tire Rack is $100 or more. What’s more is that Costco shaves $150 off your total purchase price, whereas Tire Rack will only take off $50 and send you a $70 Visa Prepaid Card after you file a rebate. Personally, I would rather save money than receive a prepaid card, but if you use the card on essential expenses your personal finances would likely balance out.

Should you get a Costco membership to buy tires?

If you’re not a Costco member, and you need tires right now, it’s worth considering becoming a member to take advantage of this promotion. As long as you’re okay with Bridgestone tires, you can save $150 instantly, which pays your membership dues. You can compare offers at discount tire stores yourself, but more often than not Costco’s tires and installation costs will be lower than its competitors. Plus, you can start saving on other Costco products, like groceries, clothes, and phones, adding to your overall savings.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Costco Wholesale, Visa, and Walmart. The Motley Fool has a disclosure policy.

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