Budget Travel Tips

Flying and accommodation are two of the biggest travel expenses people have when they plan a trip. The cost of these two are the biggest financial barriers to going away. People look at the cost of these two and think “I can’t afford a trip this year.” However, there are many easy, simple, and convenient ways to cut the cost of flights and dramatically cut the cost of accommodations.

I’ve been traveling for over three years. I fly about 10 times per year and I spend a lot of time in hotels, hostels, and bed and breakfasts. If I traveled like how most Americans think they need to travel, I could never afford it.

Here are some big ways to save on flights and accommodations so your trip becomes more affordable and a closer reality.

Flights

Traveling is always a fun experience when you get your plane tickets at a discount and luckily, the global recession has made flying a lot cheaper than it used to be. Airlines need to fill seats and they are looking to do so through steep price cuts.

Book in Advance. When booking your flight, book about 6-8 weeks in advance. The best time to buy is around 8 weeks before you travel. If you book too close to your trip, airlines know they can charge you a lot because you need the flight. If you book too far in advance, airlines raise prices to hedge against rising costs.

Fly Round Trip. Tickets are always cheaper if you book round trip. The airlines give a “discount” to round trip tickets because they know they will have seats filled. Even if you are only going one way, always book a return portion to save money.

Travel Midweek. Avoid traveling on the weekends since this is when people have off work so are looking to fly the most. Airlines raise prices on the weekend because they know they can make more money. Therefore, the best time to fly is between Tuesday and Thursday when flights are at their lowest capacity and flights are the cheapest.

Accommodations

Accommodations are one of the biggest day to day expenses people have. No matter what your accommodation tastes may be, one thing we can all agree on is that we all want to save money on it. Most people stay in hotels but hotels are the most expensive option on the road.

Stay in Hostels. A good alternative to hotels is hostels. People often think of hostels as for young college students who want to share showers and sleep in 20 bed dorms. However, hostels are for all ages. All of them have private rooms with showers, free wi-fi, and breakfast cheaper than hotels. In New York City, that kind of room cost me $90 per night in Times Square, and the room was cleaner than any similar priced hotel and even came with TV!

Try Couchsurfing. If you are looking to pay nothing, consider using Couchsurfing. Couchsurfing connects travelers with people around the world who let them stay in their home. You get a bed or a couch to sleep on. It’s a very safe service too. People are scared to couchsurf but the people who use this service are usually very open minded people and nice people. The couchsurfing website take steps to provide security for their users. They provide various levels of verification and allow users to rate and leave comments on people’s profiles. There’s never been a problem with this service and you can see if people are worth staying with by their reviews.

Rent an Apartment. If you plan to stay in a city a long time, renting an apartment can be a good option. These furnished apartments are usually cheaper than hotels and give many more amenities like a kitchen, laundry, and TV room. You’ll get the comforts of home without spending a lot of money like you would at a hotel.

By using the above methods, you can save hundreds of dollars on your next vacation without much effort. There is a myth that travel is expensive but that is because the travel industry wants you to believe it is so you will spend a lot of money. But travel is not expensive and there are many ways to travel cheap and, as people who want to save money, we can all appreciate that.

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I’m a big fan of frequent flier miles. We used miles for our honeymoon to Hawaii. What better way to travel, than for free?

As with all the credit cards I highlight, I’ll keep the list updated so you can bookmark it and check back in the future.

Airline Rewards Credit Cards

Delta Reserve Credit Card

• Annual First-Class companion certificate, which can be used for a First-Class or Coach-Class ticket!
• Earn up to 10,000 Medallion(R) Qualification Miles (MQMs) after your first purchase
• Built-in Miles Boost(SM) – earn up to 30,000 MQMs and 30,000 bonus miles
• Complimentary Crown Room Club(R) access for you and two guests
• Access to American Express(R) Concierge Services
• Pay with Miles – pay for all or part of any Delta flight with your miles

Platinum Delta SkyMiles® Credit Card from American Express

• Earn 20,000 bonus SkyMiles(R) (including 5,000 Medallion Qualification Miles) after first purchase and another 2,500 for adding an Additional Cardmember
• Earn one companion Coach Class ticket each year upon renewal
• Earn at least 1 mile for every eligible dollar spent
• Miles never expire and there is no cap on the miles you can earn
• Pay with Miles: Pay for all or part of your flight with miles – and put the rest on your Card
• Express Approval. Get a decision in less than 60 seconds

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Taking time off and traveling is fun, relaxing and sometimes stressful. Planning ahead and getting your finances in order before you travel will allow you to get the most out of your vacation and leave some of your worries at home. Here’s a checklist to guide you through the financial preparations needed before leaving home.

1. Pay your bills ahead of time. If you use automatic bill-pay, confirm that all the payments will be sent before the due dates.
2. Make a checklist of financial needs for your trip. Hit the ATM for cash, exchange some money into the needed currency if you are traveling abroad, or purchase traveler’s checks if you plan to use them.
3. Evaluate time-sensitive purchases. Eat all the food that will spoil before leaving home to avoid wasting it (and coming home to the smell of rotted food).
4. Leave a key with someone you trust. You never know when you might have a financial emergency, and someone may need to get into your house to retrieve information or paperwork.
5. Don’t try new financial organization methods. Now is not the time to try to switch to automatic bill-pay in case something goes wrong. Save changes for when you are home and have time to follow-up.
6. Double-check rates. Confirm your flights, hotels and car rentals. If prices have gone down re-book or ask for a credit… yes, even some airlines will issue a credit if the rates drop.
7. Arrange for someone to pick up your mail or have it held. Don’t let mail with your personal information sit in your mailbox while you are gone.
8. Enroll in rewards programs. Look up the frequent flier programs for your airline and rewards programs for your hotels. Enroll before you go to get all your points and miles without hassle.
9. Consider infrequent bills. Remember to check the due dates for car titles, annual insurance payments, homeowners dues and other bills that you don’t pay regularly.
10. Research your destination. Tripadvisor has a great resource that people can review restaurants, attractions and more. Use the reviews to find great places at your destination without spending a fortune.
11. Pay bills for an extra week. Just in case your vacation is extended unexpectedly, you’ll want to have your finances in order.
12. Have fun. Knowing that you don’t have to worry about your finances while you are gone will allow you to relax and enjoy your vacation.

Once you get home from vacation, check to see that everything went smoothly and all your bills were paid on time. If there were any problems, follow up immediately. Open your mail as soon as possible to check for time-sensitive correspondence. Since you planned ahead, you should be able to pick right up where you left off before vacation.

This article is featured in: Carnival of Personal Finance.

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Photography: Oia by Wolfgang Staudt

I don’t know what it’s like in the US, but here in the UK, it’s reasonably common for people to take a gap year between finishing school and going to University. The typical gapper will spend several months working in a menial job, and then take off for a few months travelling the globe with the traditional route through Thailand, Malaysia, Australia, New Zealand, the USA and Canada.

Now, it could be argued that people would be better served by going to Uni as early as possible, getting their degree as soon as they can and then getting out into the workforce to earn, save and invest for a rich future. And, I shouldn’t really argue since that’s more or less what I did – although not deliberately.

But, I think that’s missing several important points. Firstly, the life experience gained by travelling is immense – even though most people spend most of their time in developed English speaking countries, nearly everyone goes to a less developed country at some point – if only because it’s so cheap. Coping with different cultures at the age of 18, certainly helps you grow up and makes you more self-reliant. On starting Uni, it’s always easy to pick out the very independent ex-gap year freshers.

Secondly, the very act of travelling independently on a budget is good practice – you learn to cut costs, snaffle out good deals and save money on the less important things so that you can afford to go bungee jumping in Queenstown, New Zealand. Not only are these skills useful for life as an impoverished student, they’re invaluable in the rest of your working and non-working life too.

Finally, and most importantly, the money for a gap year trip is saved up by the 18 year old themselves. They work hard for the money, and they need to make sacrifices in order to go – because there’s only a year to do it all in, and if there isn’t enough money then the trip will have to be cut short. The discipline of saving up for the things that you want to do, and paying for everything in cash, is one that everyone needs to learn at some point, better at 18 than at 30, or 40, or even later.

And a round the world trip as a lesson in personal finance is certainly one of the more enjoyable ways to learn.

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