Miscellaneous

Part 2: This Is How Much Timeshare Ownership Really Costs

October 12, 2018 By Tamila McDonald Leave a Comment

In 2017, timeshare sales volume hit $9.6 billion in the U.S. That’s a nearly 4 percent increase over 2016 and a 26 percent increase from 2013. But, even if people are buying into timeshares, it doesn’t mean they’re a great value. In fact, as a consumer, figuring out what a timeshare will cost can be a challenge. How much do timeshares cost? Many consumers will be surprised by the answer.

Understanding What You Are Buying

When you own a timeshare, you aren’t actually purchasing the property. Instead, you become one of many buyers who have a stake in the unit.

Timeshare owners buy “intervals” at a specific property. Each interval represents a certain amount of time, usually a week. If you purchase one interval, you “own” the property for one week each year. During that period, you can stay in the unit.

It’s important to note that not all units are sold in one-week intervals. In some cases, the interval is one-tenth or one-quarter of a year, but those aren’t nearly as common as those based on a week.

The Cost of a Timeshare Interval

For 2017, the average sale price of a timeshare interval was $22,180. In the vast majority of cases, this amount is due upfront.

However, not unlike buying a home with a mortgage, financing options are usually available. If that’s the route you choose, it’s important to understand that the interest rates are typically much higher than with a mortgage.

Even though a timeshare is a physical property, it isn’t one that you fully own. If you default on the loan, the lender can’t foreclose on the unit and resell it to recuperate their losses. Since the lender is taking on more risk in these arrangements that other loans associated with physical assets, the interest rate is usually higher to compensate.

On average, 10-year timeshare loans from the resort come with interest rates of 14 percent. However, borrowers with lower credit ratings or loans through specific lenders may reach closer to 20 percent.

If you finance a $22,180 timeshare for 10 years at 14 percent, you’ll pay $344 per month, or $3,440 a year, for the next decade. Over the course of the loan, you’ll pay over $19,000 just in interest. In total, buying the timeshare cost around $41,000.

If you end up with a 20 percent interest rate instead, you’ll owe $429 per month, or $4,290 a year. By the time you pay off the loan 10 years later, you’ll have paid nearly $30,000 in interest alone. That brings the total cost of the timeshare to around $52,000.

But that isn’t all you have to pay for with a timeshare. You’ll have to deal with maintenance fees too.

Maintenance Fees

In 2017, the average maintenance fee for a timeshare was $980. While that may not sound like a lot of the surface, if you consider that most timeshare owners only have access to the property for one week each year, that’s an awfully high price to pay.

Additionally, it showcases precisely how much timeshare resorts make from maintenance fees alone. If every owner has rights to one week a year, that means the property can have 52 owners. If each of those owners pays that $980 fee, that’s a total of $50,960 per year, and that’s only for one unit.

With approximately 1,570 timeshare resorts in the U.S. and 205,100 units between them, the average U.S. resort has about 131 units. Annually, an average resort brings in an astonishing $6.6+ million in maintenance fees alone.

Unlike paying for an interval, maintenance fees are due every year. Additionally, this cost tends to trend upward, so maintenance fees almost always end up more expensive over the long run, not less.

It’s also important to understand that, while the average fee is $980, some maintenance costs are much higher. Some high-end properties have maintenance fees that reach $3,000 or more for one-week interval owners, which many would deem to be unaffordable.

So, How Much Do Timeshares Cost?

Based on the metrics above, while you are paying off a timeshare property and dealing with maintenance fees, the unit costs between $4,420 and $5,270 for a single interval each year. If you only get access to the property for a week (seven days) every year, you are effectively paying between $631 and $752 per night for the 10 years you are paying off the loan on the interval for the unit.

To put that in perspective, the average cost of a five-star hotel in New York is around $362 per night. In Florida, the average is $336 for a five-star hotel, and Nevada, the home of Las Vegas, comes in at $239 per night.

Plus, when you buy a timeshare, you might not gain access to features you would get at a hotel. While the units often have full kitchens, something that may help you save on meals, not all of them do. Additionally, benefits like a continental breakfast aren’t always part of the package.

Housekeeping may also be somewhat limited at timeshares during the course of your stay, and you could be responsible for specific tasks like taking your own garbage to a dumpster on the property or putting used dishes in a dishwasher on your last day. While this isn’t always the case, you have to read the fine print to make sure. Otherwise, you could be stuck with a fine for failing to adhere to the rules.

Concierge-style services can also vary, so the amount of support you get from the organization operating the timeshare property may not rival area five-star hotels either.

Cost Over Improvements

Now, once you spend a decade paying off the timeshare loan, the cost per night at the timeshare does drop to $140, based on current average maintenance costs. However, that amount will likely increase every year, and you may not see any amenity offerings improve over time.

Ultimately, the cost of a timeshare is usually significantly higher than paying for other forms of accommodations, at least during the time you are paying off the loan. Plus, you are often locked into a particular property and possibly even a specific week each year.

If you aren’t able to vacation during that time or at that location, you don’t get your money back. Instead, it was simply wasted that year. If you can’t imagine practically tossing $4,400+ out a window if you can’t make it, then a timeshare probably isn’t right for you.

How much do timeshares cost? Did you know before reading this article? Tell us more in the comments below.

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National Bike Month: Time to Take Your Bike for a Spin

May 4, 2018 By Tamila McDonald Leave a Comment

As the days get warmer and longer, people dust off their bicycles, people gear up to spend time out in the sun.

Since 1956, National Bike Month takes over the month of May thanks to the efforts of the League of American Bicyclists. The goal is to encourage people to integrate more biking into their lives. Whether it’s a run to the corner store, a new way of handling your commute, or a fun weekend outing, biking is the way to do it.

Biking instead of driving: saves you money; you help the environment. it helps keep you fit, giving you valuable cardio to improve your health. If you haven’t given it a try, now is the perfect time to start.

Plus, bike commuting is an exploding trend. In Washington DC, there’s been a 498 percent increase of bicycle commuters between 2000 and 2013. Portland, Oregon saw 408 percent growth while Chicago, Illinois comes close to 390 percent. As you can see from that data, biking to work is an incredibly popular option, and interest is growing.

National Bike to Work Week 2018

While you don’t need to wait to start biking to work, National Bike to Work Week is a perfect reason to integrate biking into your routine.

For 2018, National Bike to Work Week takes place from May 14 to May 18.

Not ready for a whole week? How about just a day? If you want to start slow, bring your bicycle out for Bike to Work Day. It takes place on May 18.

Try a Bike Tour

Exploring a city is so much easier on a bicycle than in a car. After all, you don’t have to struggle with parking, can usually cruise down roads or sidewalks, and use paths where cars can’t go.

If you want to take a unique tour of your town, give a bike tour a try. You get to have some fun outdoors, it’s family-friendly, and you might get to see things you would otherwise miss.

Take on the National Bike Challenge

From May to September, you can take part in the National Bike Challenge for a chance to win prizes. You can log your individual rides to work your way up the leaderboard or join a team to have some fun as a group.

Earning points is easy. All you have to do is ride your bike and encourage others to get on theirs. Then, log your activity online — logging more rides increases your changes of winning a prize.

If you haven’t taken your bike out for a spin lately, National Bike Month is an ideal time to give it a go. See if members of your workplace are taking part in National Bike to Work Week, or even just the day, and plan to join them. You can also seek out bike tours in your area, take the challenge, or simply ride around your block or local park.

Are you planning to participate in National Bike to Work Week? Tell us about it in the comments section below.

Looking for more technology articles? Give these a try:

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How to Find a Good Business Lawyer

September 20, 2017 By Alexa Mason Leave a Comment

Every business, no matter how big or small, needs legal representation. For entrepreneurs, it all boils down to one question they usually struggle with: How do I find the right lawyer that can be an asset to my business and not just another expense? A lot of businesses are hiring lawyers for the first time and if you are one of them, it is one of the most important decisions you will make for your business.

Legal matters can be a huge expenditure so you have to make smart choices. When you, the client, know what you’re looking for and is very much informed, there is a greater likelihood that there will be positive results on both the lawyer and client. Plus, it can also lead to a mutually beneficial long-term business relationship.

Regardless of how you source out lawyers for your business, here are a few tips to keep in mind:

Recognize an honest lawyer. A lot of practitioners offer a free of charge initial consultation. You should take advantage of this and observe at the meeting if the attorney is straightforward and honest. Before you enter any official ties, it’s best that you feel secure knowing that your lawyer is an honest one. Nothing is worse than being caught in a legal issue and not have an honest person to defend your side. It would also be as equally disturbing to find out that the attorney representing you is creating more harm in your case because they have a questionable reputation.
It’s within your price range. Finding the right lawyer also means finding someone that you can afford. With that, it’s important that you should inquire about the costs during the initial meeting. It will be extremely alarming if you find out that the attorney is charging you in a manner wherein it will only encourage him or her to rack up the fees and drag the case longer than it should. Secure a contract that will spell out the maximum costs that you might incur to avoid any unwanted surprises.
Seek those with a good reputation and good background. It is extremely important to have a business lawyer that you can trust and at the same time, someone that has an extensive experience in the area where you require the services.
Search for different sources. The most common type is through personal referrals – but it’s not always a guarantee that they are the right fit for your legal needs. There are several other resources for finding someone qualified to represent you. Nowadays, a lot of entrepreneurs go online that can help you connect with lawyers like Steven Sugarman, but as like with everything else, you will need to evaluate and find out if the firm can help you with your legal needs.

Remember, it is important to get a good sense whether an attorney is a right fit for you or not. Having an excellent business lawyer can help protect your business while selecting the wrong one can cause more sabotage – do your research and you will definitely see results later on.

Photo: Ms. JD

How to Save on Art Supplies

June 14, 2017 By Mary Newton Leave a Comment

As fun as art is, it really breaks the bank. Whether you deal in watercolors or oil pastels, the supplies you need – and especially the high-quality ones you want – are expensive enough to put a significant dent in your bank account. If you are looking to increase your art supply collection or you’re just getting started, here are a few ways you can save money on art supplies.

1. Know your priorities.

Focus on spending the big bucks on art supplies that are the most important to you. Maybe you prefer high-quality paper over expensive paints, or vice versa. Regardless, focusing on one or two things that are the most important to you, and that you will use all the time, like paper cutters – rather than just buying into the next trend or extra items you can technically survive without – will keep both you and your bank account happy.

2. Buy singles instead of packs.

Paints, markers, pens, brushes, pencils, and much more will always be less expensive when you buy them individually. As an added bonus, buying individual art supplies gives you the ability to select only the colors you want, meaning you can prioritize which colors are most important and avoid repeating colors you already have.

3. Try out sample packs.

If you are new to your art hobby, trying sample packs is a great way to test out a variety of art supplies without dedicating money to whole sets. This rule applies to not just paints – like this set of 24 Watercolor Sample Dots from DaVinci – but also papers, fountain pen and calligraphy inks, and many other kinds of art supplies. Some are based around a single brand, while others will choose a color scheme or supply type. This is also a good option for artists who want to try a new brand but do not want to invest significant amounts of money in new art supplies.

4. Go for the art supply warehouses.

Skip shopping at Amazon or proprietary stores as much as possible. Your best bet for inexpensive supplies will always be supply warehouses that carry a variety of art supplies from a variety of brands. This is similar to shopping at Costco rather than Wal-Mart. For example, the table below compares the price of an 8mL tube of Winsor & Newton’s Cotman Watercolor in Black (Lamp Black or Ivory Black) across eight different online stores, including both standard shops and art supply shops.

Store	Price
Jerry’s Artarama	$2.77
Cheap Joe’s Art Stuff	$2.89
Utrecht	$2.77
Michael’s	$4.69
Amazon	$5.44
Blick	$2.77
Winsor & Newton	$4.62
Art Supply Warehouse	$2.69

5. Shop sales and clearance.

Sales will always save you money – especially if they are sales at art supply warehouses like the ones shown above – and clearance guarantees products for less. While it is always exciting to get that new product as soon as it comes out, it is often worth it to wait for that item to go to clearance. As an added bonus, shopping clearance puts lesser known brands in front of you that may be just as quality as the ones you know and use.

6. Rock those DIYs.

You would be surprised at the sheer amount of art supplies you can create yourself to avoid spending money. Some examples include making your own palette, – putting plastic wrap on a dinner plate, using a sandwich bag, or even following this DIY – learning to mix your own colors, or even using Crayola markers for watercolor. Making art supplies yourself from items you already have will cut down spending on frivolous items, ultimately saving you more money.

7. Review, review, review.

Never be afraid to spend time on the internet. Whether that means comparing prices across multiple sites or digging through products reviews, you will be better off knowing what you’re getting into before you actually buy it. This also helps you know you are getting the best bang for your buck, giving you a feel of the product quality and its correlation with the price.

Art supplies are expensive, but that does not mean you have to break the bank to buy them. With a little digging and a little time, your collection will grow without having to sacrifice quality or price.

Photo: Puzzle Warehouse

Money Orders: How to Track Some of the Most Popular Money Orders

September 30, 2016 By Amanda Stewart 1 Comment

Have you ever needed to send or receive money from someone but didn’t know what the safest way to make the transaction would be? A money order may be the answer. Money orders are a safe way to both send and receive cash. They are similar to a personal check but are prepaid and therefore safer for the person receiving money. They don’t expire and are widely accepted.

Where do you get money orders and how do you track them?

How to Purchase and Track a Money Order

If you think that you could benefit from purchasing a money order you should know where you can buy one and how to track it. Money orders are not available everywhere, however, you can purchase money orders at each of these three convenient locations:

USPS Money Orders

Money orders are available for purchase at your local post office. USPS limits the amount you can send to $1,000. Simply walk into the post office and ask an attendant for a money order. You can fill out the form and send it immediately. If you send between $0.01 and $500 you will pay a $1.25 fee to send your money order through the post office. The fee for sending money orders over $500 is $1.65.

To track a money order from USPS use the serial number at the top left of the order. You can check the status of the money order on the USPS website or by calling 1-866-459-7822.

Most post offices offer this service but you should call ahead before going to your local branch to be sure.

Walmart Money Orders

Walmart also offers money order services and is a convenient place to buy one. Many people do their regular shopping there already. Walmart uses MoneyGram for money order transactions. You will have to purchase the order from the store’s money center. Tell the cashier how much you want on the money order (up to $1,000). There is a $0.70 charge for all money orders at Walmart.

You can track your MoneyGram from Walmart using the number on the left hand side of the order (in red in the photo above). You can enter this number and the last name of the person on the Walmart website or you can call 1-800-MoneyGram to track your money order.

CVS Money Orders

CVS is another great place to purchase a money order. If you are there picking up your prescription or buying something you can also pick up a money order. CVS has a limit of $500 on money orders and charges $0.99 to process the order.

CVS and Walmart both use MoneyGram as their money order service. If you purchase a money order at CVS you can track it by using their website or by calling 1-800-MoneyGram.

How to Track a Money Order

Whether you purchase a money order at one of the above locations or somewhere else it is important to know how to track your money order. You should always be sure you have the tools you need to be able to track your money order.

Make sure that you always:

Get a receipt. Be sure that when you purchase your money order that you receive the proper receipt. In many cases the receipt is in the form of a stub on the side of the money order.

Locate the serial number. Call the customer service number for your money order (which will be located on the order). The automated service will prompt you to hit a button to track your order. It will then ask for a serial number, located on the order. You will then receive the location and status of your order.

Some money orders will allow you to track the order online, however, it is not a common practice. You will likely need to make a call to track your order.

Money orders are a reliable way to send payment and get paid, especially from a distance. Instead of writing and sending a personal check you can send money almost instantly. By using the money order services at any of these locations (and more) you will be able to safely make monetary exchanges and track them without having to worry.

Have you use any of these money order services? What was your experience?

Managing A Financial Windfall

August 25, 2016 By James Hendrickson 2 Comments

Financial windfalls are double edged swords. One the one hand, you have a large sum of money. On the other, you can be placed into a situation you are not prepared to handle. Sales of real estate or businesses usually involve the conversion of an liquid asset into large amounts of ready cash – presenting potentially unforseen tax and accounting difficulties. Death and divorce not only cause trauma and dislocation, but can result in role reversal when unprepared family members are thrust into the position of managing family wealth. For those who are organized, lucky or fortunate enough to be in the position of managing a financial windfall, you may have some questions:

How Do Financial Windfalls Happen?

Inheritances: These can often involve receiving retirement accounts or assets held in trust.
Lottery winnings: Lottery winnings can be taken as either a lump sum or a series of payments.
Legal settlements: The proceeds of legal action include personal injury settlements, workers compensation or employment discrimination settlements.
Retirement lump sums: Retirement lump sum payouts can usually be taken in lieu of a lifetime series of annuity payments.
Sudden increases in income: These can originate from stock options; bonuses or selling shares from an IPO.
Insurance settlements: Funds from insurance settlements can be death benefits, pre-death cash surrender values; or as life insurance settlements, or the sale of a life insurance policy by the owner to a third party.
Gifts: The value of gifts is typically capped by tax law including annual gift exclusions and the lifetime estate taxation credit limit.

Other typical sources for sizeable lump sums are:

Business sales
Real estate sales
Divorce or death

If you do have to deal with a windfall, here are four considerations to keep in mind.

1. Keep Secrets

Managing a financial windfall involves information discipline. Consider telling NO ONE who you cannot legally compel to silence. This means telling only your attorney or CPA (if you have one). Otherwise it’s best not to share the news with other family, friends, or anyone else, especially for larger windfalls. Your relationships with these people will be complicated by your new wealth. Also, consider NOT telling your spouse. Your relationship with your spouse is likely to be changed unless you have a strong foundation together. Your spouse may have very different views about being wealthy, so you’ll want to take time to work through those issues before you tell him or her.

2. Get Educated on Windfalls

Since education is a basic component of success, another strategy for managing a financial windfall is getting educated.

Consider one of the following four books. These are ranked in order of user reviews on Goodreads.com

Sudden Wealth: Blessing or Burden? by David Rust
Sudden Money: Managing a Financial Windfall by Susan Bradley and Mary Martin
The Challenges of Wealth by Amy Domini
Windfall: Managing Unexpected Money So It Doesn’t Manage You by Maria Brill

3. Don’t Mess Up

There are famous stories about lottery winners who come into wealth, but then lose it all. Most of the time this is because the winner hasn’t developed the money management skills, judgement or a wealth building/preservation mentality. You’ll have to very quickly develop these skills and judgement. So here are some guidelines to help protect you from yourself.

1. Take your time to make a plan. Set goals and work backwards from them.
2. Learn the basics of investing and money management.
3. Don’t spend your money on things that will take money out of your pocket. Buy only things that will put money in your pocket. Think stocks and real estate. Collectibles, clothes, etc. are a nonsensical waste of cash.
4. Make basic “no brainer” money moves. Fund your 401(k), savings, ROTH IRAs and Regular IRAs. Remember that any successful investment strategy you have can probably be scaled up. So if you are successful with investing $100 or $1,000 dollar amounts in index funds, can you do it with $10,000 or $100,000 amounts as well.
5. Pay off your debts. Dump any high interest non-deductible debt, pay off your students loans or mortgage. Debt reduction is almost always a safe bet that improves your bottom line.

Do be aware that the shock of having a lot of cash can undermine the process of managing a financial windfall – the cash can go to your head. Sudden windfalls can trigger irrational behaviors, like giving all the money away, becoming a hermit, hiding or hoarding the cash or blowing it in lavish nonsense. Other people can descend into self destructive behavior like alcohol, drug or sex abuse. Counteract this by eating right, sleeping enough, exercising and positive self talk.

4. Hire Help

If the windfall is in the form of a lottery winning, hire an attorney to set up a blind trust. People will be coming out of the woodwork to get “reconnected” with you and you’ll get a lot of pitches or subtle requests for cash. Keep your cash out of the public eye unless you want social pressure to spend money on non-productive assets. Consult a CPA to determine the best tax strategy. The Federal and state tax codes can be incredible complex regarding finance and you’ll be better off hiring and expert rather than going the do it yourself route. Hire an expert via a referral from someone you know is competent in finance, don’t go with help out of the phone book.

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Photo Credit: Andrew Magill