Family of Four Taking Flight to Financial Independence

Showing posts with label New York City. Show all posts
Showing posts with label New York City. Show all posts

Moving Abroad: Four Take Flight During A Global Pandemic

In the last few weeks we retired early (financial independence retire early (FIRE)), obtained our Non-Lucrative Visas, moved abroad from Houston, Texas to Granada, Spain ...and all during a global pandemic.  Whew.


No wonder I am tired?  Thankfully we can embrace the siesta in Spain!


What was it like to move our family abroad?  And during a global pandemic?



Granada, Spain



First, we’ve been preparing for a few years to travel lightly.  We travelled like turtles with our belongings mainly on our backs.  No checked luggage!  (Some people travel like this ...some opt to load up as many suitcases as an airline will let them.  Some opt to ship a little or a lot over.)  So what about all our stuff?  Part of this new journey of ours focuses on people and experiences over stuff.. so we wanted to get down to minimal.  We purged a lot.  Then we got down to important keepsakes and such.  Luckily we have very generous family members holding some items in the US.  (We do plan to ship our kid’s golf clubs soon).


Travel Gear 




What travel gear did we use?  And what made the cut?  Erik did extensive research, and we went with all Tortuga bags.  We got the largest Tortuga Setout Backpacks for us, and two smaller ones (Tortuga Setout) for the kids.  Erik ended up carrying the kids bags, but as they get older they will be able to carry them on their own.  In retrospect, we could have maybe gone even smaller for them.


I also got a Tortuga Setout Laptop Backpack that I wanted to keep under the airline seat with me.  It’s also been great for daily use in Granada, Spain.  The kids carried on their back Tortuga Setout Packable Daypack.  We’ve had these two bags for a few years now.  These are great for carrying a few lightweight items if you don’t mind the inability to organize the items within the bag.  They did the trick for the kids (they basically carried a few toys).


We also had some packing bags / cubes we got as a gift, and then we bought the Tortuga packaging cubes that specifically fit the bags.  What about smaller stuff?  I wanted to buy reusable bags.  Although geared towards kids, (I have tried many reusable bags) I really like Bumkins.  They do have some prints that could work for adults too.


Bags: Tortuga


Packing Cubes: Tortuga Packing Cubes


Reusable Bags: Bumkins


So what made the cut in the bags?  To sum it up, minimal clothing wardrobe, minimal shoes, very minimal bath / body products, tech / camera gear, a few important items, and a few important toys.  And of course ID / passports, and important Visa paperwork.  Oh, and our PPE gear.


Clothes: Erik and I have been working on our travel clothes for a while now.  Most of our clothing is from Bluffworks.  He also has a few items from Myles Apparel.  I also have travel jeans from Aviator and comfy joggers from Vuori Clothing.  We have underwear from Uniqlo (I have bras from Pepper), and we have socks from Bombas and Smartwool (and we have a few other winter items from Smartwool).  Erik’s jacket is from Arc’teryx, and my jacket is from National Geographic Craghoppers.  I am not sure that my exact one is sold anymore, but you can maybe find a similar one.


All of our clothes were very well researched, and in many cases specific for travel (such as light weight, quick dry, wrinkle free, etc).  And some items are just well made and will stand the test of time (for example, our socks).


What about the kids clothes?  We took this much less seriously.  They grow so fast so we didn’t want to invest in too much clothing,  We brought basics (like for a week), and we bought some more when we arrived at El Corte Inglés for some colder weather clothes.  We will probably do the same or check out Zara in May to get some more warmer weather clothes.


Shoes: All of our shoes are either Vivobarefoot or Xero.  They are barefoot and lightweight shoes.  Better for your feet and travel!  I also have a pair of MoMA Vans I got for Christmas that I brought.


Bath / Body Products: I decided to take very little of these.  For the most part, you can buy whatever you need once you get there.  Bath / Body products tend to be heavier and take up some space anyways.  I ended up bringing just a few essentials to get us by ..or a few items I use daily / may be harder to find.


Tech / Camera Gear: Let’s talk about the latter first.  I decided to bring my nice Nikon camera.  I want to focus on more and better photography eventually.  I also brought our son’s new Polaroid; I want the kids to play around with photography too.


We decided we needed to upgrade our tech in order to communicate better with family / friends, for World Schooling, etc.  I already had a new iPad from early 2020, but we bought three more iPads for Erik and the two kids so they could each have their own.  I already had an Apple Keyboard and Pencil, and Erik got a case and keyboard off of Amazon.  It probably isn’t the greatest, but it works okay.  I also got a new iPad case since I tend to break things easily.  I got it from SUPCASE.  I can take it off at home if I choose to use the keyboard.  We got the kids their iPad cases off of Amazon.


We bought our headphones from Cowin, and the kids headphones (volume limiting) from Puro.  All four have Bluetooth and wired capability.


I also got an iPad adapter to be able to use some other devices and connections, and we received some electrical adapters as gifts so we had those already.


What about phones?  This is a big question for many expats.  It may require a whole separate post.  We decided that we needed new phones anyways.  We purchased new phones in Madrid and went with the Orange cell phone service so now we have Spanish cell numbers (which we felt we needed for their school and doctors).  We kept our US numbers and switched them to Tossable Digits (Google Voice wasn’t available for our numbers).  We are communicating with family and friends in the US mainly through our iPad / Apple services, WhatsApp, Facebook Instant Messenger, etc.


A Few Important Items / A Few Important Toys: For me this included some jewelry / purses (or bags), a few art supplies, and a few Christmas ornaments.


For the kids this meant some jewelry, their travel journal and compass, and the toys they wanted to bring that fit in their small Tortuga.  I ended up making extra space in their larger Tortugas so we did fit some toys in there.  What did they end up picking?  Not completely comprehensive, but our son picked ...his Nintendo Switch, two important monkeys, baby blanket, action figures / Ken, small cars, marble game, and maybe a few other miscellaneous items.  Sadie picked her American Girl 1980s Doll - Courtney, 3 Husky Stuffed Animals, her baby blanket, her baby doll accessories (she bought a baby here in Spain), and a few other miscellaneous small toys.


Erik made sure we had two copies of the Bible including a Kids Bible.


ID / Passports / Visa Paperwork: Of course we have our IDs and Passports, and our Visa Paperwork.  I tried to make all other important paperwork and items digital copies.  I found some sturdy file folders at Target to hold the Visa paperwork.


PPE: We are currently living through a global pandemic so what PPE did we bring?  I have a fantastic and talented friend that makes our cloth masks so I had plenty of those to bring.  I also ordered n95 masks for the adults for plane and train and future bus travel.  I also had on hand disposable adult and kid masks so we can double mask during riskier situations like travel.  I ordered adult and kid size disposable gloves, but I didn’t even find those necessary.  I had some wipes and of course hand sanitizer too.


Four Taking Flight


So then I packed ...repacked.  Packed again.  Took stuff out.  Packed again and again.  Then it was time to travel during a global pandemic.  What was that like?



.


We had airline credits with Delta and TAP Air Portugal All of our plane experiences and our train experience we received individual hand wipes and in some cases individual hand sanitizer as we boarded.  We flew from Houston’s IAH to NYC - La Guardia to see family before heading to Spain.  It wasn’t required, but we got COVID-19 tests in Pearland, TX before flying to be safe(r).  These seem to be covered by insurance.  The airports in Houston and La Guardia seemed to be a little busier than I thought they would be (despite Covid and a 6 am flight).  But Delta was still skipping the middle seat when we flew.  Note, we did have to fill out an online health questionnaire for NY State due to COVID-19 At the time, Delta did not have onboard refreshments like normal, but they did bring around bottled water / treats in individual packages.


We normally would take the bus / train to get into Manhattan, but due to Covid and our bags, we took a taxi (and rolled down the windows).


Another big stressor for those moving on the Non-Lucrative Visa to Spain is the current COVID-19 test requirement.  You have to have a negative PCR test within 72 hours of arrival to Spain.  They also require (check with your consulate for any changes!) on the test results: your full name; passport number; date of the test; identification and contact details of testing location; test technique used; and of course negative results.


This was all challenging, but not impossible.  My sister sent me a testing location near her: Sameday Health.  I contacted them via phone and email, and they said they could provide what we needed.  (I should have known it would not be THAT easy). We booked two appointments since we were concerned about any possible flight delays.  We booked one Friday at 5 pm (our flight was Sunday at 11 pm), and we booked another one Saturday at 8 am.  We did pay out of pocket for the PCR test in SOHO NYC which was quite a lot, but Erik had health money put aside for this purpose (you could probably file a claim with insurance though).  The actual testing for the entire family went smoothly both times (and all negative tests!), but the test result page didn’t go so smoothly.  They got our results back in under 36 hours, but the result page didn’t have what we needed (as they originally stated it would).  I immediately called the number on the results page.  The number actually directed me to the lab that completed the Covid test.  The woman on the phone was very kind, but said she didn’t understand why Sameday Health is promising people all that information on their results when they don’t normally provide that info.  She directed me to an email, and she said they would fix our result information page.  I also contacted Sameday Health and made the same request.  Thankfully both places were quick and helpful and fixed our result page immediately with everything we needed for travel.  Note, we also needed to fill out online questionnaires for both Portugal and Spain.  I printed out QR codes once I completed both questionaires.


...after many years of preparation, we were finally ready to take flight to Spain!  What was that like during COVID-19?  We flew on TAP Air Portugal from Newark to Madrid with a one hour layover in Lisbon.  Newark’s security was very busy (not our airline), but our flight was very empty.  Maybe 50 people or less.  Note, your printed at home boarding pass is not enough.  Go to the counter at your gate and get another one.  They did check our Covid tests here, and they checked them again when we went through customs in Portugal.  The plane was so empty we spread out and each had a row.  They served two meals on the overnight flight...a late dinner and breakfast.  They also gave the kids a bag of nice goodies.  I would definitely fly TAP again.


We were concerned about our one hour layover and missing our second flight.  Turns out we landed early, and we were okay with time to spare.  The second flight was also fantastic and a quick flight to Madrid.  It was a smaller plane, but it wasn’t full (also TAP Air Portugal).


Once we landed in Madrid we got a taxi to our Airbnb.  At that point we were exhausted...especially the kids, so staying a few days in Madrid before heading to Granada was a good idea.  We will save that visit for another post!


There you have it ... we finally took flight (and during a global pandemic)!





How do you prefer to travel?  Pack light or no?  Have you flown yet during COVID-19?  If you have specific questions about taking off with a Non-Lucrative Visa, moving abroad to Spain, or questions about travel during COVID-19, please comment below!


Want to learn more about how Erik may be able to help you take flight to financial independence?  Read more here, and contact us.


-Tara














How Can You Join Our City School Adventure?

As many of you know, we decided to delay our FIRE (financial independence retire early) adventure to Spain due to COVID-19.  In the meantime, we moved to Houston’s Museum District, and we are City Schooling the kids for most of the 2020 - 2021 school year.  What is City Schooling?  Read more here and here!

But let’s back up ... why City School?  And how can you now join our City School adventures?

So why City School?  I did explain this somewhat in previous posts, but let’s back it up some more ... some of my passions include art, art education, education ... but another passion of mine is experiencing life out and about in the city.  After my undergraduate degree, I moved to New York City to pursue a career in advertising.  NYC is so alive, and one of my favorite “hobbies” was just exploring.  Fast forward ... when the kids were born (in Houston), I started “City Schooling” with them immediately (we were constantly out and about) before I even had a name for it.  I would often seek out free or low cost adventures with the kids (and balance those sometimes with ones that cost more) - for example enjoying public programs at the library or exploring murals on our “Art Thursdays.”  We lived in Houston until our oldest was 2 years old, and it is great to be back.  Our main activity in the summers was “City Schooling” (again, before I had a name for it) - exploring life through the city.  Now I am excited to fully immerse in City School this coming Fall (even if ... unexpectedly!), and even better ... you can now join us for our City School Art Adventures.

What are your learning / schooling plans this Fall?  If you are doing a version of Homeschooling or Remote Learning, our City School Art Adventures may be right for you!




Why offer City School Art Adventures?  Well, initially I thought I could dive into side hustles such as VIP Kid, Outschool, and / or even Teachers Pay Teachers (which I may still look into those)... but then I was thinking City School Art Adventures make the perfect sense right now.  First, I am going to be creating them regardless for my kids, and I will have the ability to do something I love to do (City School AND Art)!  This will also maybe give my own kids the opportunity to safely socialize with others outside (and maybe meet new people.).  (And the same goes for the artists that participate!)

Remember it is always important to build up those safety margins (you never know when the next financial apocalypse is going to hit).

Also as a somewhat related side note... I’ve been thinking a lot about the families that need public school the most ... the families that do not have the privilege of choice.  How might we adjust City School Art Adventures to have a more positive impact on our community?  Or how might we as a family help fight for equality in education and contribute in positive ways in our community?  I don’t have an answer, but it is on my mind.  (I do have a few ideas, but nothing concrete ... yet).  What do you think?

New to our blog?  You can check out our new page - Start Here (work in progress!).  Read more about FIRE / FI here, and read about how I was able to early retire from art education this year.  Check out Erik’s latest financial post here.

Want to join us on your own FI journey?  Need some help getting there?  Contact us!

We would also love your feedback on our City School Art Adventures.  Email me at fourtakeflight@gmail.com.  Will you join us?

-Tara




What If Your Life Was Off The (Traditional American) Beaten Path?

 A non-traditional approach to education this day through a Girl Scout opportunity outside of the classroom.


We’ve touched on this / these subjects before ... and in fact our whole blog really is about living life in a non-traditional way.

But as we approach early retirement, I’ve been thinking about it more.  Why not take a different path?

Work until retirement age.  Why not retire early?!

Buy a home ... stay put for 30+ years.  Why not rent?  Travel?  Not be tied down to one location?

Work hard to buy lots of nice things ... !  Nice things can be great and all ... but what if we focused on less material things and more on experiences?

Have a family ... find a great public (and for some private) school system (in fact buy the house near that school / school system).  Why not think outside of the traditional educational approach?

Save up money and vacation days ... take vacations when the children are not in school!  What if we weren’t tied down to a calendar?  Travel whenever you want?  After all, isn’t exploring the world one of the best ways to learn (hands-on!)?

On the one hand I’ve been sitting with some of these ideas for years now ... and within the past year or so in social media groups with like-minded people (lurking and reading about their adventures) so the non-traditional approach almost seems not so out of the box to me.  On the other hand, the traditional approach is what we know so some of that is taking some getting use to.

What if we ... retired early?  Were not tied down to a home?  Had more experiences than things?  Had a more non-traditional approach to education?  Had more flexibility when it comes to travel (or had a life of travel)?  Is a different way of life necessarily a wrong way?

Given that our kids are right in the middle of childhood (9 and 7 years) I’ve thought a lot recently about how these (non-traditional) decisions may affect them now, in the (near) future, and in the more further off future (young adults / college age).  Pushing them (and all of us) out of our comfort zone I think can be a life-long positive experience for all of us.  Why not experience life a different way from a different perspective and culture?

But also I think a big part of childhood for many is “school” so that has been on my mind too (“School” now and in the future).  Even though at this point we plan to continue a more traditional approach to school (we plan to put them in school in Spain to immerse them in the culture and language), I am working to change my perspective on education and tear down those 4 walls of a school.

One thing I do like about the school we plan to put them into in Spain is they will go to school from 9 am - 2 pm (with an optional lunch at 2:00 pm).  This is a much shorter day than we are use to (8 am -  3:15 pm for them now although since I am a teacher it is often much longer).  Although I’ve always felt educational activities and experiences can happen anywhere ... and I try to supplement with my kids (science, history, the arts), I am often unable to do this during the school year because school takes up so much of our time and energy (we are often there 7 amish to maybe 4 pmish many days!).  So I love the idea that they will have a shorter school day.

And at this point we still plan to take a World Schooling approach after maybe 2 years of school in Spain.  But time will tell ....

But what if their educational experience (either when they are in “school” or not) ... involved more (in no particular order):

-Play?  (What about learning from local Spanish kids outside of school.... and other expat kids from around the world?)
-Activity? / Athletics?  (What if “activity” was more than PE every other day ... and recess for 30 min or less a day ... what if we were able to learn about and play sports in a different culture?)
-Nature?  (Need I say more here ... we all benefit from nature!!)
-The Arts?  (Making art in museums?  Learning Flamenco in Spain?)
-Science and History?  (Time to do science at home or outside of home?  Visiting historic sites and supplementing the classroom or books?)
-Hands-On Experiences?  (Learning about money and finances by helping buy groceries at a local market?)
-Real World Experiences?  (I love our “Field Trips” in the summer .... museums, parks, new neighborhoods / local eating ... what if our life wasn’t limited to one Field Trip a year in the school year ... and just when we had time?)
-Travel?  (How about learning about Morocco in Morocco?)
-Learning Experiences on the Internet?  (Outschool anyone?  Maybe the kids can pick up a few French classes online?)
-Less worksheets?  Less or no Standardized Tests?  (Do I even need to elaborate here?)
-Life-Long Skills?  (Cooking anyone?)

I’m in no way knocking their current and past teachers.  In fact ... if anything, I wouldn’t be sitting here today preparing for a move to Spain (our kids have benefited greatly from the Dual Language program in our public school) if it wasn’t for them.  I also don’t think our kids would be as prepared for more independent learning if it wasn’t for the teachers, and I am talking about their pre-school teachers all the way to their current teachers.  But now that we have that educational foundation ... why not begin to take a more non-traditional approach?

There are some of my thoughts on the non-traditional approach to life.  What do you think?  If you could FIRE or when you FIRE, could you or would you take a leap outside of your comfort zone?  What do you think about the non-traditional approach?  What path might you take?

-Tara

The Stock Market This Century: Would The 4% Rule Be Safe?


As you know by now, I’m always running our numbers in planning for our (very quickly approaching) ER (early retirement).  While I was doing some research on historic market returns, I came across this great website that lists the yearly returns of the stock market from 1928 to current day.  

While scrolling through the numbers, I thought it would be a great idea to see how well a person would have done if they had retired at the beginning of this century and applied the 4% rule.  


New York City's Financial District is home to the New York Stock Exchange


I did this for two reasons: 

One: After looking at the data, it doesn’t take a rocket scientist to see that retiring in the year 2000 was really bad timing, so therefore a good way to test the 4% rule.

Two: I wanted to compare a portfolio withdrawing 4% no matter what the market is doing with one that will apply safety margins via a smaller withdrawal rate and / or tapping into a cash cushion (this would be similar to our future strategy). 

Lets take a look at the results.  



The above table illustrates what a 4% withdrawal rate would look like from 2000 - Present.  

As shown, after retiring right when the dot com bubble was bursting, and Enron was imploding, along with September 11th, two major wars (Afghanistan and Iraq), and with the housing bubble looming, this person would have an overall loss of ($108,443.40) to their portfolio.  This certainly isn’t a good outcome, but this is also a scenario in which a person literally retired at one of the worst times in history and with that said, it's not a terrible outcome (they still have almost $900k invested!)  They have clearly been able to weather the storm, and my guess would be over the next 20 years their account value will go up even while withdrawing their 4%.  

Also note, this person didn’t apply any safety margins during this time frame, which IMO (in my opinion) is a reckless way to go about early retirement.  But, to each their own.



This table illustrates what would be much closer to the way our withdrawal strategy would have worked had we retired in the year 2000.  In this scenario the person / family lives on 3.5% of their investments in the good years (Safety Margin 1: 3.5% withdrawal), and they lowered that down to 2.5% in the bad years by tapping into their cash cushion as needed (Safety Margin 2: 2.5% withdrawal).  

Also remember, in this plan, each year’s withdrawal rate is based on the previous year's market performance.  For example, even though in the year 2000 the market was down over 10%, they still withdrew their 3.5% because in 1999, the market was up 19.53%. 

As we can see (and hopefully this is obvious) the results in table 2 are better, but still not really great.  After dealing with such volatility, I expect a better return than this, and again my guess would be the next 20 years are set to provide that.

Note, table 2 isn’t even a true representation of our plan because it does not factor in any extra income coming in, which we absolutely intend to have in some shape or form at some point.  This income would be used to lower our withdrawal rate even more (potentially to zero for at least some of the time).

What this exercise shows us is that despite the historic bull run that the market has been on the last 10 years, this century overall has been extremely volatile.  While we expect and even embrace the volatility that the market brings, this leaves me feeling (dare I say) optimistic with what the next 20 years has in store for market returns ...?!

Also, it is important to keep in mind that it is very rare (though possible) to retire at a historically bad time like this post illustrates.  For example, if the person from the first table would have decided to work just one more year and retired in 2001, their account balance in 2019 would have been positive by over $38k.  Work a few more years and retire in let’s say 2003 ... and withdrawal their 4% as shown in table 1, their current account balance in 2019 would be over $1.7 million!  Had they adopted the withdrawal strategy shown in table 2 (and retired in 2003), their account balance in 2019 would be over $2 million.

Key Takeaways

  • Stay flexible in retirement (and really in life in general) because there will be stretches of years where returns aren’t great. 
  • Plan to have safety margins, and implement them as needed. 
  • Don’t be scared to earn some income in ER (early retirement).  This doesn’t mean your ER has failed, this just means you are a relatively young, healthy, educated, and productive human being (pat yourself on the back).

Lastly, I leave you with a quote from Mr. Money Mustache:


What do you think?  What withdrawal rate feels safe to you?  Would you apply safety margins?  What might yours be?

-Erik

5 Year Window: Would You World School?

If you are a parent / caregiver of some kind ...maybe you've thought about what is best for my kids now? elementary age? ... middle school age? ... high school?  And beyond?

I've thought recently about a 5 - 7 year window we have for our kids before they reach high school age (not counting this next year since we plan to be in our same home / school).

Once we reach FIRE / Financial Independence (FI) we will have the flexibility to travel with our kids full-time (or part-time if we choose).  As of right now we plan to try Spain for at least a school year.  But what about beyond that ... ?  Spain another year?  World School?  NYC for a school year (and to be close to family)?

CO (Rocky Mountain National Park)
What if the world was your classroom?

Wait ... what?  Have you heard of World Schooling?  I think it can mean different things to different people, but to me it means basically schooling through traveling the world.  You are teaching your kids on your own (like Homeschool), but instead of being in one place (or home) you are on the road / traveling.  There's actually a really large World School community (I've joined a few groups via social media).  They share curriculum, ideas, network, and even plan in person meet ups, etc.  I think it would be an awesome opportunity to slow travel for a year or two and World School the kids.  I love the idea of doing hands on learning in a museum, at a historic site, and in nature (to name a few).

Learning at The Museum of Fine Arts, Houston this summer.


Taking advantage of the free day / free family workshops at the MFAH this summer.

Of course World Schooling comes with some concerns for me ... 1) My kids (and most kids) listen to others (teachers) better than they listen to their parents when it comes to learning.  2) The work load is put on my shoulders.  

I am not too concerned about losing the social aspect of school since getting social time with other children would not be a problem (in my opinion).  I am also not too concerned about learning how to succeed in a traditional school setting since my kids have been in a traditional school setting since pre-school (and I am guessing most of their schooling will be traditional).

So to overcome concern #1?  I think that will be all about setting expectations and routine.  Even if we are traveling, we can still set a routine.  Also they can take advantage of learning from others on our travels through the different World School groups and even outside of that (just like you may sign up for different tours or adventures on vacation!).  Concern #2?  Well, the good news is I will be RE (retired) so I will have the time to dedicate to teaching them.  And we can do anything for a year.  Right?

So our thoughts right now are maybe 1 - 2 years Spain (school years), 1 - 2 years World School (school years), and 1 school year NYC.  If we go for the maximum amount of time (2 Spain + 2 World School + 1 NYC) that would add up to our son's 5 year window before high school.  Of course, plans can change, and maybe we will want to be back in the US before that.  We shall see!?  (And what about those summer months?  Right now our main idea is to be in the US with family most of the time).

Exploring CO (Waterfall Trail at Snow Mountain Ranch, June 2019) in our Vivobarefoot land & water shoes.
Texas kids found snow!

What do you think?  If you could FIRE ... or when you FIRE, would you World School?  What obstacles am I not thinking of?  What benefits might you see?

-Tara

Travel Hacks: Flights and Running Up Those Credit Cards

Wait.  What?  Run up credit cards?  How will you ever reach financial independence if you do that?  First, if you are a person who lacks the discipline to pay off your credit card bills in full each month, this post is not for you (yet?!).  Head on over to our post on: Can You Reduce Your Spending?  If you use credit cards for spending and consistently pay them off in full each month, then continue reading about one of our travel hacks (or two!).

But before we get to credit cards ... 

Flights

Last year we booked a surprise trip to Disney World for over Thanksgiving Break 2018, and of course it was one of the busiest and most expensive times to travel to The Most Magical Place On Earth.


When we booked the flights back in May 2018, we ended up paying an average of $587 per person round trip to fly from Houston to Orlando!  And that was for flying Southwest Airlines.  I’m sorry, but when we fly Southwest, I expect to pay between $200 - $350 per person (for this flight).  I was determined to get a lower rate.  I would check the airfare everyday (it literally takes a minute or less), and finally in mid-September 2018 I noticed our return flight had come down by $115 per person.  

Headed to our Southwest Airlines flight to Walt Disney World.

I really didn’t have any experience with this sort of thing (which is why I called instead of doing it online myself), but I assumed, “ok, now I’m going to be on hold for 20 minutes or more, and then the agent is going to come on the line and tell me some reason that is buried in the fine print as to why I can’t switch my flight to the new lower fare.” 

Much to my surprise, none of this happened!  The agent looked up our reservation, saw the new lower rate, and immediately applied it.  We immediately saved over $460!  And this only took 5 minutes.  You heard that right.  

But I wasn’t done yet!  The next day the price came down on the departing flight for another $15 per person.  I was convinced that they would just say, “sorry you already changed to a lower rate ... we can’t help you.”  Again, I was surprised, and I had the exact same positive experience with Southwest as I did the day before.  (Note, the wait time for both calls was less than a minute).  Within 5 minutes we had saved another $50 to give us a $512 credit that we had to use by 5/31/2019.  

This in and of itself was absolutely a form of travel hacking!  By taking a minute or two every morning to check the fares, we were able to earn a $512 travel credit.

Ok, so now the “problem” is we had to use the credits by 5/31/2019 (or we lose them); this means the flight had to occur before 5/31/2019. 

We were only planning to take one (big) trip in 2019 (Colorado for us this year) because by 2020 there is a good chance that our lives could become one long trip so we thought it would be a good year to hang around town and save up a little extra cash in the process.  However, now we have this $512 credit, and we certainly don’t want to lose it (as this is money we have already spent).  So now what?  Bring on the credit card hacks ...

Credit Card Hacks

At that point I realized it had been a while since we had signed up for a new credit card so I did a quick search to see what kind of deals are out there.  When we sign up for cards, we look for 2 criteria: 

  • Ideally no annual fee (or at least the first year free). 
  • Strong sign up bonus with reasonable spending limits to achieve sign up bonus.

I did a quick search and (at the time) Capital One had a new card out that easily met both of our criteria: No fees for the first year and $500 cash rewards once we spend $3,000 in the first 3 months.  Success!

Will we ever pay the annual fee for this credit card?

No.  When the anniversary approaches, we will do one of two things: 1) cancel the card or 2) downgrade the card to one of Capital One's zero fee cards.  

Will this hurt our credit score? 

Again, no.  We have been using credit cards like this for probably over 5 years now, and our credit scores are pushing 800.  

So how do we plan to meet the spending criteria in order to get the bonus?

This part is easy!  All of our bills are set up for automatic payment, so whenever we get a card like this I simply switch the autopay bills from the current card to the new card.  This typically takes about 20 minutes.  So 20 minutes of work for a $500 reward is the equivalent to paying ourselves $1,500 per hour.  I could go for that!

Here are some of the things we autopay (you can find an example of our budget here):

  • Tithe
  • Electricity
  • Water Bill
  • Car Insurance
  • Cell Phones
  • Internet
  • Dog Food

We will also use this as our primary spending card until we meet the spending criteria as well, so you can add the following to the list:

  • Groceries
  • Gas
  • Variable Spending

Once all of these things are factored in, we easily reached the spending limit in about 6 weeks or so. 

Another Credit Card Trick

If you are a married couple you can sign up for these cards individually and have $1,000 cash rewards instead of $500.  Just don’t sign up at the same time unless you plan to spend $6,000 in the next 3 months.  

As an example, I signed up for a Capital One card in September 2018, and once I received it I switched all of our autopay bills to my new card.  We reached the spend limit by mid-November so in early November we ordered a card for Tara and switched the autopay bills to her card.

So by early 2019, we had about $1,000 free and clear to use towards our unplanned trip in 2019.  

That gives us $512 in travel credits and $1,000 cash so $1,512 total.  We also planned the trip during a month (January 2019) where we know our variable spending is typically low or lower.  That way we could apply some of our variable spending towards the trip as well.

So where was our unplanned travel hacking trip, you ask?  New York City to see family!  Minus the plague of 2019 that hit our family (that hit 6 out of 8 family members), it was a great trip because we were with family.  (Plague you ask?  A detailed account of this trip is for another post.  And you may want to be spared the details of the plague anyways.)

And it was another surprise for our kids.  No school!  We are headed to NYC.  (Have you done any surprise trips?)

Surprise!  We are headed to NYC instead of school.


Another travel hack?  Use public transportation (MTA NYC)!

Do you enjoy the local food favorites when you travel?  We always get pizza in NYC.

Andy Warhol exhibition at The Whitney.


Andy Warhol exhibition at The Whitney.



FI: Free public art in the subway system.


Gourmet Chocolate in NYC: Jacques Torres


FI: Walk!  We love walking cities / cities with public transportation.


FI Exploring: Bryant Park and the NY Public Library 


FAO NYC


FAO NYC


Thank you Southwest.  See you next time!  (Photo taken by S.)

Tip

If you intend to use this type of travel hacking, it is a good idea to create a spreadsheet (or whatever makes sense to you) to track the cards that you sign up for along with the bonuses, spending criteria, and fees (if any).  This will make it much easier to keep everything organized.  

You don’t want to pay fees if you don’t have to, and you certainly do NOT want to pay even $.01 of interest to the credit card companies.  You DO want to get paid to use their cards while going about your normal everyday life.  

So what do you think?  Have you tried travel hacking?  What are your favorite travel hacks?  Or ... would you try it?

-Erik




Start Spreading The News: FI (Financial Independence) and Travel


When we decided to take flight towards FIRE (financial independence retire early), we continued to make travel a priority for our family (among other things!).  Yes, we can live off one salary (a teacher’s salary), save over 60% of our take home money, and still be able to afford travel!

This year we’ve been able to budget a snow trip to Colorado (Snow Mountain Ranch), trip to New York City to see family / for my birthday, and we have a (surprise) trip for our kids to Disney World later this year.  (We also had a cruise gifted to us this past summer so that doesn’t really count).

But how can we make this work?  The key is to plan and budget for the expenses.

Travel hacking and sometimes even the small things help too!  I’m going to share a few key tips from our recent summer trip to New York City (one of the most expensive cities in the world).  (I will preface this with saying, I did spend five years living here after college so I do know some ins and outs more than most people.  My sister and her family also live there so we can save by cooking at her apt for some meals, etc.  But we still have some helpful tips regardless!).

For this post I will focus on a few things (not everything!) on travel, lodging, and food.  I can go on and on, and I have much to share so we will revisit NYC in future posts.

Milk and Cream Cereal Bar in NYC

Travel

One of the most exciting travel hacks for us was the transportation to and from the airport.  That may not seem like a big deal, but not only can this be a long adventure with kids (traffic! smelly car!), it can be expensive (a car service would have cost us at least $75 if not closer to $100 one way).  Yes, car services are maybe the most convenient, but that is definitely not the most affordable option.  Now I will say when I travel late at night (I’ve flown in before at midnight), that is the way to go.

If you fly into La Guardia (LGA) you can take the La Guardia Link Q70 bus from the airport terminal right to the subway!  The cost for one ride is only $2.75 (this can be cheaper depending on the NYC MTA Metrocard you buy), and you get a free transfer to the subway.  You do NOT need to pay again once you reach the subway.  Traveling with kids??  From their website: "Up to three children 44 inches tall and under ride for free on subways and local buses when accompanied by a fare paying adult."

Once we left the airport, we got off at the first stop for the subway (Jackson Heights Subway Connections) where the subway options were E, F, M, R, 7.  We were able to take the E directly to a stop that we needed in Lower Manhattan.



So how does this all work?  Watch this video to be walked through the entire process!  1) Once you have your luggage go buy a Metrocard at one of the machines.  2) Next go outside to the LGA Link Q70 stop.  Insert your Metrocard into the machine to get your Q70 ticket (you are not charged again).  3) Get on the Q70 when it arrives.  4) Get off at the Jackson Heights Subway Connections to catch the E, F, M, R, 7.  Take the appropriate train to Manhattan / your destination!  The YouTube video sums it up best.

But what about your luggage?  We tried to travel light.  We only had one suitcase (with wheels that rolls pretty easily), and the rest of our luggage was on our backs / shoulders.  We only had to carry the luggage a few times on stairs in the subway (some subway stations have elevators).

But how long did it take?  Isn't a taxi / car service / Uber faster?  It only took an hour or less door to door, and we had to go all the way to Lower Manhattan (Tribeca).  A car might be faster, but that depends on traffic!  And we did this with two kids (age 5 years and 7 years).

We will definitely plan to fly into LGA our next trip and use the La Guardia Link Q70 / Subway to get into Manhattan.

Subway: I highly recommend learning the subway and using this form of transportation during your visit.  Not only is this the cheapest way to go, but it's usually the most convenient way to go.  Just check ahead of time for subway service alerts (the subway lines can change - even more so on weekends), and put an app / map on your phone prior.  Or if you prefer, buy yourself an old school map.

And be sure to walk when you can.  The best way to enjoy NYC is by walking around and seeing everyday sights.

Lodging

What about lodging?  Aren't hotels expensive there?  

We try to use travel hacking (such as airline / hotel points) for plane tickets and hotels, but we will save those details for another post.

One small tip is to look for a hotel that offers free breakfast.  That is one meal you don't have to worry about.  For example, we stayed at the Hampton Inn Soho.  Not only was the price of the hotel affordable, but it also offered free breakfast.

You may also want to consider AirBnb (depending on your length of stay, number of people, what you want to do in the city).

Food

What about food?  Is everything more expensive there?  

Yes, it can be.  For example, many places in Midtown (tourist central) may have their prices hiked because much of their clientele includes tourists.  Don't go to Times Square and eat at Olive Garden!

NYC has any type of food you can imagine.  If you are a big foodie and want to go to a high end restaurant, just budget that into your spending prior.  You can save on your other meals and get some cheap(er) authentic foods in NYC too.

For example ... 

  • Pizza: I always have to get pizza when I go to New York City.  This is the real deal y'all.  For our last trip my sister treated us to Il Mattone.  Another great spot is Lombardi's in Little Italy.

  • Bagels: You can't go to NYC without treating yourself to a bagel.  I personally prefer a toasted Everything Bagel with cream cheese and lox.  My favorite place is Ess-a-Bagel, but this past trip we went to a place near my sister - Sadelle's (see photos below).  Delicious!






  • Hot Dogs / Street Vendors: Of course our kids love hot dogs.  When we were in Battery Park we got them a cheap lunch at a Nathan's street dog vendor.  



  • Pretzels / Street Vendors: These are huge, cheap, and entertaining for our kids.  (And yummy too!).  In the photo below, my son is enjoying a pretzel in Central Park.





None of these food choices will break the bank, and they will keep both the adults and kids happy.  Plus you can't go to the Big Apple without enjoying some New York pizza (and other New York favorites).

These are just a few things to share about NYC travel, lodging, and food.  Stay tuned for many more NYC tips and tricks (such as why not take the "carousel tour (SeaGlass Carousel in photo below)" through NYC?), but if you have any specific questions about New York, let us know.  I often help co-workers / friends plan their trip to NYC.




How do you budget for travel?  How do you find ways to reduce spending / save money when you are traveling?

-Tara