Financing Plans and Tricks

[Wiki]

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]

Look at every single cost you have in your life and eliminate any of them that you can.

[2000miler]

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]

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.

[niche11]

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]

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.

[Dogwood]

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-yea...-to-your-life/ Consider this!

I also have sharply curtailed paying daily homage to the news. http://riskology.co/kill-the-news/

[Dogwood]

Additionally, I don't chase the latest greatest you must have this electronic device. I apply this to my outdoor gear as well.

[BillyGr]

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-yea...-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.

[Poedog]

Live like a poor person.

[Vegan Packer]

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.

[Dogwood]

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]

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.

[10-K]

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]

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]

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]

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]

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]

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.

[Coffee]

Read this website: http://www.mrmoneymustache.com/