How to Save Money While Traveling
Published on - July 15th, 2010 (Modified on - July 20th, 2010) (by Sierra Black) This post is from staff writer Sierra Black. Sierra writes about frugality, sustainable living, and getting her kids to eat kale at Childwild.com.
When I was packing for my trip to Argentina, a friend advised me, “Put everything you’re taking on the bed. Now put back half the clothes, and take twice the money.”
Good advice. I tried to follow it and still ended up bringing more clothes than I could possibly need. I didn’t bring much money, though, because one of my goals for this trip is to keep saving even while I’m traveling.
Saving for travel is relatively simple: You set up a targeted savings account and put a little money aside each week or each month. Setting a schedule and sticking to it is the key to saving for anything. Travel is no exception.
Saving while traveling is a bit more complicated. Even the most carefully-planned vacation is plagued with unexpected expenses. Over at I Will Teach You to Be Rich, Ramit Sethi suggests budgeting 20% more than you think a trip will cost to pay for sundry expenses along the way.
That’s a lot of dough. Where does it all go?
- Taxes and fees. Many countries levy special taxes and fees on tourists. A little research can let you know what these will be, so you can plan ahead. To find local tax, toll and fee information, check the websites for each state or country you plan to visit, or talk to your travel agent. At the airport in Argentina, for example, we had to pay $140 per American citizen to enter the country. A fellow behind us in line hadn’t know about that fee, and was miserably explaining to the ticket agent that he didn’t have that much money on him and didn’t know what to do.
- Unexpected needs. Baby Tylenol. Adapters to plug in our electronic gadgets. Groceries from the corner market. I knew we’d need something day to day on our trip, but I didn’t know what. It wouldn’t have made sense to travel with every possible thing I might need. These things were cheaply and readily available here, and would have taken up valuable space in a suitcase. Bringing cash to cover incidental needs made more sense than imagining every possible occurrence and packing ahead.
- Impulse spending. Part of the joy of travel is seeing new things and having new experiences. Some of those may cost more than you’d expected. In our travels in Argentina, I’ve had the chance to visit Eva Peron’s grave, fall in love with a local winery, and take a river cruise. Better to budget in advance for museum tickets, scenic tours, and souvenir shopping than to find yourself pinching pennies halfway through your trip because you splurged at the beginning.
- Emergencies. On our last visit to Argentina, my infant daughter caught a terrible ear infection and needed hospital care. Our insurance ultimately paid for her care, less our normal co-pay. But at the time, we had to pay out of pocket for everything here, and then chase down reimbursement for it through a maze of paperwork once we got home. Having a comfortable cushion of while traveling lets you handle real emergencies as they crop up.
There’s no doing away with all these expenses, but there are plenty of things you can do to keep your overall costs low. Here are some easy ways to save while traveling:
- Be prepared. I mentioned planning to buy some small needful things, like infant Tylenol, while you travel. A little research on your destination can help you figure out what necessities are going to be cheaper where you’re traveling to, and which ones might cost a lot more. I planned to buy a fancy dress for the party I’m attending, because clothes are generally cheaper here. But I bought my husband a video camera before we left, because electronics cost quite a bit more in Buenos Aires than they do in Boston.
- Travel with frugal companions. Just like your friends influence your spending at home, they can pressure you to spend or save on the road. I have a close friend I’ve traveled with several times during the past year. She’s more frugal than I am, and she’s great at checking my impulse to spend excessively just because I’m on the road.
- Know your weaknesses. I splurge when I’m stressed and when I’m celebrating. Travel tends to push both those buttons. I worry about making it on time through the airport, so I throw caution to the winds and pay for overpriced food rather than packing a picnic ahead of time. I want to treasure the memories of where I am, so I spend money on knick-knacks or clothes that I don’t really need. This is a habit I picked up from childhood. My normally tightwad mother would open her purse with abandon when we were traveling, and I’ve never quite shaken the habit. Knowing this about myself makes me look twice at any purchase I want to make when I’m on the road.
- Make a game of it. See how low you can keep your daily travel budget. Can you get through a whole day in a foreign country without spending a dime? Can you clip coupons in a language you barely speak? Take advantage of local specials at the neighborhood diner instead of eating in your hotel? Score points with your spouse by finding ways to save on your vacation.
- Have a savings goal in mind. What are you going to do with the money you don’t spend on this trip? Having a prize in mind helps keep me focused on saving. I have a pool of money I can afford to part with here in Argentina. Any money I take home will go into my high interest savings account towards my next savings goal: paying off our car loan. My goal is to shave time off that deadline by bringing home enough unspent “travel money” to make a full months’ car payment.
Of course for some people part of the joy of travel is being able to let go the reins of frugality and spend freely. If you’ve saved diligently and have that 20% cushion Ramit Sethi suggests, there’s no reason not to.
But if you enjoy frugality, there’s also no reason to leave your frugal habits at home. Careful spending while traveling only reinforces wise fiscal habits at home, and if you come home with part of your travel fund untouched, you’re that much closer to the being ready to book your next trip.
Oof. I have a lot to say about this one. Maybe I ought to leave my thoughts in the comments, but I’m going to be bold and append them to Sierra’s post.
I’ve become a huge fan of the packing list. As I begin to travel more and more, it’s very useful to have a fixed list that indicates the things I need to take with me. This keeps me from panicking with last-minute worry that I’ve forgotten something, but it also helps me keep costs down because I have a sort of mini-inventory of travel stuff I need. (I used my last Breathe Right nasal strip in Denver last weekend, so I bought more today because I had a coupon.) I have two packing-list apps for my iPhone, have bookmarked several packing-list sites, and even have a packing-list book on hold at my library!
The packing list also helps me to pack light, which is another way it saves me money. When I pack light, I know what I have and where I have it. Plus, I don’t have to check a bag. (My goal — even for our upcoming month-long trip to Europe — is to travel with a single carry-on bag.) In extreme cases, I’ve known people who have packed so much Stuff they’ve actually had to ship some of it home. From Europe. Now that’s expensive!
Finally, on long trips, I keep a daily log of what I’m spending. I know my overall trip budget (and what that works out to per day), so my daily tracking lets me know when I need to pinch pennies and when I can cut loose a little. And in my case, I use a specific credit card that waves overseas transaction charges while also giving me 1% cash back.
Sorry for hijacking Sierra’s post. I’ll go to the gym for deadlifts and burpees now…
[Wait! One last tip! If you're traveling in the U.S., order an Entertainment book for the city you're traveling to. When Kris and I do this, we recover the cost very quickly.]
Photo by Rick.
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Just want to add a couple of more points. The iPhone has great travel guide apps, I used one on a recent trip and it was wonderful. Instead of carrying a book, I carried my iPhone and the mapping/walking tour was so easy to follow. Also had shopping, dining, museums, etc. The app cost $1.99 and was worth every penny.
People think budgeting is a bad word, which is why I use the spending plan term, when I create our plan for our travel/vacation we don’t skimp on anything but because we plan out our spending we don’t run into the problem of spending more than we planned.
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I tend to spend a lot of time before I go somewhere using the internet to scope out local events and eateries. Google maps is great for zoning in on an area and checking out restaurants and things.
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@DreamChaser57
Yes, I have several years of sailing experience, but the Greece trip will be my longest sailing trip to date. I learned to sail (and have done most of my sailing, actually) on the San Francisco Bay, which by all accounts seems to be one of the world’s more challenging sailing venues due to strong winds, cold water, heavy traffic, and swift currents. Greece has a much milder reputation in terms of sailing difficulty.
My wife and I will be the only crew on the boat. It’s more fun that way. Although we haven’t actually booked it yet, the yacht we rent will probably be something similar to this: http://www.beneteau.com/en/sailboats/produit.aspx?GAM_CODE=1&PRO_CODE=267 which can be handled easily by two people.
If you have no sailing experience and want to take a similar trip you can rent a crewed boat, buy you’ll need a bigger boat (to house the crew), which is more expensive, and you’ll have to pay the crew’s salary (which is again more expensive). You also miss out on the feeling of being captain of a sailing vessel on the open sea, which for me is a big part of the appeal.
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I agree with most of this post. The only item I disagree with is the frugal companion. I saved for years and traveled to Europe with a friend who was much more frugal than I was. Having done my research and saved my money I wanted to be able to shop in Europe and bring something special home from the trip, however because she was so frugal we ended up not shopping. At all. And I didn’t find anything special to bring home and even felt guilty for spending money on postcards from museums. So, while it’s nice to have a frugal companion, also make sure you have the same goals in mind of what you want to accomplish on your trip.
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I’ve backpacked around Europe from Scotland to Russia. I second the opinion about medical insurance. I bought medical insurance for my trip.
However, in Russia, a French man at our hostel stepped on a rusty nail that went through his foot! I had to go with him to the hospital to translate as he spoke no Russian, only French. I spoke very little Russian but I speak Czech and Polish, which are close enough to make myself understood. I just wanted to say that emergencies DO happen.
When we lived in France as children, both my sisters broke their arms! Family visits to Spain involved trips to the ER for third degree sunburns. So especially if you have children, DO NOT skimp on the insurance.
PS- I always travel with one bag- a carry on only- and I’m super stylish. I usually hand wash clothes in the hostel.
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Even if you check the rest of your luggage, make sure you have a pair of clean underwear in carry-on (even if it’s in your purse).
Trust me on this one.
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When I travel, I write down everything I spend to keep track of where I’m going, money-wise, and what I have left. It also helps me avoid random splurges because the act of writing something down makes me think twice.
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Before our last international trip, I researched credit cards to find one that didn’t charge fees on international transactions. We actually got a Capital One card, but then we realized that it’s no better than the other cards.
Instead of charging the foreign currency fee, they use a less favorable exchange rate, so you end up paying the same.
Does anyone know of a card that *truly* doesn’t charge extra for international transactions? I’d love to find one.
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iPhone question: What packing and travel apps does everyone use? I’ve tried a couple of travel apps, but they seem terribly US-centric (sorry guys, no offense, I live in Singapore, however).
I’d love some recommendations so I don’t have to try 20 apps before I get a good one!
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after a rather unpleasant experience a couple of years ago where I was stranded on the wrong side of the atlantic with no flight home due to a bankrupt airline, and no insurance as it didn’t cover bankruptcy, I now try to make sure that I have enough credit on my credit card to pay for a single business class flight home on the most expensive carrier. We had to do this – there was literally only one carrier with seats for the next week, and they were all business class. Luckily, my companion had enough credit for both (I was about $50 short on my card), and we eventually recovered the money from the credit card used to pay for our original tickets, but that took nearly 6 months!
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If you’re traveling in Europe, I recommend the InYourPocket guides for choosing restaurants. A lot of them are free on their website.
The quality maybe varies a bit from city to city, but I found the restaurant recommendations really helped me have some great meals in Prague and Wrocław. Now I always check them them out before I go to a different city.
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Great tips, but one of the best ways to save money while traveling is by earning it! Teaching English abroad is a briliant way to pick up work overseas – if you’re interested you should check out a free copy of TEFL Uncovered: http://www.onlinetefl.com/contact-tefl-team/tefl-ebook.html
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I’d also say to do at least a little research. In my zest to save money, I once traveled internationally and was too cheap to buy a tour book before I went there. God what a mistake. Even if its just a Lonely Planet one or something, its good to get some tips on what you’ll need, and not need, on your trip.
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Packing lists– yeah! I keep mine from prior trips to facilitate packing for the next. I mark things I didn’t use ( i.e., STOP bringing that sweater). We do not travel with a specific budget, but we spend on what we love. So, on a trip last fall to Italy, we did nice 3 star hotel on the Arno, off season hotel on an island, and fantastic week in a rented lovely house ( about $100/night– check out agriturismo.it). We made our own breakfasts at the house , but had great meals in every town we visited. Wine. Views. Sigh. We still email our hosts. One carry-on size bag for 2 weeks and I felt I did not stand out as an American Don’t. Get the med insurance– AAA has a good deal, easy. You need this! (OK I’m a doctor and hear all the stories). I am too old to backpack around, but my kids can go anywhere with a pack. Use those compression bags if needed.
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Great post!
My fiancée and I are getting married in 3 weeks in Hawaii (destination wedding – we’re from Canada). We’re then flying on to Australia for a couple of weeks as she is from Sydney.
I have no idea how I’m going to pack my rented tux, summer clothes (for Hawaii), and then semi-winter wear (for Australia) in 1 suitcase, let alone my fiancée trying to pack her wedding dress! We thought about shipping the dress to the hotel before hand, but she doesn’t have the dress yet, and the cost might not be worth it.
As for costs, we usually save a set amount per month for vacation expenses, use travel miles from our credit cards for flights (except taxes), and use a packing list.
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This is a great post — I’m amazed at how many people don’t budget for unseen expenses when traveling (adapters, emergencies, etc.), and then have to start putting these expenses on credit cards. This is a good reminder!
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I haven’t read through all the comments, but in case no one else has mentioned it, gift certificates from Groupon and Living Social can be great money-savers while traveling. We’re goint to Colorado next week, and coming with us are 2 credits for whitewater rafting (50% off), a $50 certificate for a restaurant bought for a mere $20, and a 60% off credit for a spa treatment. Score!
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I had no idea about “special taxes and fees” that tourists are charged because I have not traveled out of the country with my family yet.
And many people don’t even think about clipping coupons here in the US let alone for in a country with a foreign language. Thank you so much for bringing this possibility to light.
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I’m really enjoying anything that has to do with saving money traveling right now. My husband and I are hoping to go to Japan within the next year.
On a sidenote, I wanted to recommend a couple of places for JD’s trip to Europe. I fell in love with the cathedral in Bourges, France. I would highly recommend it if you’re interested. It’s remarkably low-key compared to Notre Dame in Paris. It has relatively few visitors, beautiful and serene.
When I went a few years ago they had a couple of days during the summer where some Loire Valley castles were very cheap or free. I don’t know if it was a one time thing, but I would suggest going to the visitors center of the towns you will be in awhile to get info about attractions. Also, on Bastille Day (July 14) in Paris, at least when I went, many museums had free admission. They also have a big fireworks show at the Eiffel Tower. It’s beautiful, but transportation at that time can be a real pain in the butt.
Hopefully, this helps JD or anyone else planning a trip to France in the near future. You’re gonna have a blast!
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I would never think of traveling w/o basic medications like Tylenol (especially for kids since they usually get sick in the middle of the night!) and Imodium – we’ve had experience needing this when out of the country, and when you need it, you need it ASAP. I know someone who forgot her Tylenol on a trip to Italy and her daughter had a critically high fever and she had a terrible time finding medical care. You can resolve a lot of minor health issues by packing some first aid supplies.
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#12 Annalise-Honey, you dont know me very well, I travel for weeks with a suitcase and a carry on and am very fashionable, and I can even attend a formal event with the jewelry.
Also, I’m unsure why you equate local with Grimy-of course there are many local (read non tourist) restaurants that also whave white tablecloths and silver and cook real food. Although I cannot speak for south America, Europe is filled with small, off the beaten track, class a restaurants with class A food. The same for hotels. The best french food I have ever eaten was not in a five star restaurant in Paris (although I have been there too) but a small local restaurant in Bayeyx with crystal, silver, great food and not a soul who spoke english.
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@Barb (#71) Honey, you say you take a suitcase as well as a carry on. I was talking about only taking a carry on. My main motivation for commenting is that frugal types often assume that style or comfort are entirely unimportant when traveling, and are impossible to achieve on a budget, but I beg to differ.
And as for local French eateries, I agree they are a delight. But then again, the French as a whole value the finer things in life over counting the pennies.
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Annelise
But I was not talking about just the French. I have traveled all over the world, and local non tourist eateries are always the best. Really and truly. And for the record, Europeans are much more frugal (including the french) than those inthe us, and count their pennies much more. Which is why most true french people eat at the kind of places I am describing, at reasonable, not tourist inflated prices. Look at it this way-if you traveled to washington dc, you’re probably the kind of gal that would go to Odonnel or the Phillips place across from the hotel. whereas I would go to the place where the crabs and seafood came right out of the water, get better food, better wine, better music, and pay a third of the price.
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The advice to take half the clothes and twice that money that you think you’ll need is very good. I once ran out of money in the Bahamas (an expensive place); fortunately we found a restaurant that took credit cards for our last night’s dinner. This was before ATMs were as common as they are now.
I have a vacation document on Word; it is divided into sections: stuff to do before vacation (e.g. give family your itinerary; return library books); clothes to pack; toiletries to pack; other things to pack; stuff to do when you get back (e.g. pick up mail). While trips vary, you always need certain items: toothbrush, etc.
Definitely carry 1 pair undies, a pair sox and toothbrush (and medications if you use them) in your carry-on bag. I’ve had my bag misplaced several times by the airlines. While most places in the world sell toothbrushes and undies, I like to prewash undies before wearing them, and what if you arrive late when the stores are closed? A toothbrush can be expensive in a hotel gift shop; not all hotels give you free ones.
A fun & expensive souvenir for the folks back home is Xmas ornaments. They are small and there are fun ones. Don’t buy breakable ones, of course. I’ve bought a covered bridge in Vermont, a Pinocchio in Italy, a Beefeater in Britain, etc. Of course you won’t find them in some foreign countries.
There has been a lot of debate here about budget travel vs. luxury travel. Whatever floats your boat. There are all kinds of travel for all kinds of folks.
Study the travel guides for your destination. Note that the different guides are good for different types of travellers. I like LONELY PLANET but that’s my preference.
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You can definitely do a month out of one bag–I just got back from a trip like that, and actually brought more clothes than I needed.
My tip for keeping souvenir spending down: I like to buy one nice thing from wherever I’m going (a handmade teapot from Japan on the last trip), instead of numerous knick-knacs.
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