Tips for Traveling on a Budget

How to Save Money for Travel

Saving money for travel or taking a vacation isn’t unlike saving for any other big purchase. If you’ve learned how to start saving money at almost any other point, you’ve got the basics down for how to save money for travel:

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• Set a goal amount. Whether it’s the exact amount you’ve heard that your dream vacation costs or a ballpark estimate of what you think a fun time will take, save more than you think you’re going to need. And maybe a bit more than that.
• Update your budget—or create one for the first time. If you don’t have a budget but you’re saving to travel, now would be a good time to get in the habit of setting and sticking to a budget, only coming back to it when financial needs change. Review your budget for space to save and see how much opportunity there is to save for travel while saving for anything else, like establishing an emergency fund.
• Track expenses then eliminate unnecessary ones. Say bye-bye to subscriptions that are nice-to-have but not need-to-have and cancel those unused memberships. Then save all that money in an out-of-the-way account just for travel.
• Plan ahead for savings. Whether you’re taking fewer trips or optimized routes to cut down on gas usage and buying frequency, doing meal planning to reduce weekly grocery bills, or buying in bulk (when the cost-per-unit savings bear out), pennies make dollars. Anything saved? Stick it in your travel fund.
• Set it and forget it. Automate where you can. See if your accounts offer the ability to round up purchases to the nearest dollar to deposit the extra nickels and dimes into a savings account. Consider creating a travel-specific direct deposit from your employer into your travel account (you may already do this with your emergency fund—it’s just as easy to set up).

How to Plan & Book Travel on a Budget

As you near your savings goal for your wanderlust needs, start researching your options for travel, lodging, excursions, transportation—anything and everything you will or might spend money on to plan and enjoy your trip. Here are some jumping off points:

• Check for cardholder benefits and airline miles. Most credit card companies offer cardholders reduced prices on lots of travel bookings if you use that card to make your purchase—which will be easy to pay off right away with your travel savings. If you have a card you use to earn airline miles, see what you have saved up and what your options are.
• Ask your employer about employee travel benefits. Many large businesses offer employee perks like discounted travel arrangements through partnership accounts—ask your HR department and/or check your employee handbook.
• Consider off-season travel for extra savings. If your dream destination is an indoor city or you prefer museums and dining to sun and sand, explore off-season rates—they’re cheaper and you’ll find yourself fighting fewer crowds everywhere you want to explore.
• Consider choosing a destination based on flight and lodging costs. Hungry for travel but undecided on where to land? Browse flight-and-hotel-cost aggregators and see where might be cheapest during your travel window. Not every airline or hotel participates in these, though, so be mindful of looking elsewhere before booking—these aggregators are a good place to understand cost averages for several of your bucket list destinations, though.

How to Save While Traveling

Once you’ve arrived at your destination, budgeting is still an important part of making the most of your getaway. The last thing you want is to run out of cash before you see and do everything on your agenda. Some of these tips may help you save money on travel once you’re in the thick of your next adventure:

• Become a frugal gourmet. Depending on your travel party’s size and dietary needs, food costs can add up fast. Consider booking lodging that offers free breakfast, a cost-saving meal plan (if it’s a resort), or that offers rooms with a kitchenette (or at least a mini-fridge and microwave) so you can spend less on meals. If you won’t have easy-to-access food shopping options at your destination, consider packing shelf-stable snacks in your luggage to tide you over and keep you from temptation.
• See what’s free. Many cities with robust library systems offer visitor passes to popular municipal attractions that reduce the cost of entry—sometimes to the cost that a resident would pay or even making a visit free. Check online with the library system or a local branch to see if this is an option and skip the ticket fees at landmarks, museums, and more.
• Look for package deals. Whether you score a great price on a tour from a coupon deals site or your destination’s office of tourism has great bundles for top destinations, there’s always a way to shave a few bucks off the typical cost of an excursion.
• Understand local customs around money. Tipping isn’t customary everywhere. In fact, in some places it is considered rude or frowned upon. Brush up on how locals handle tips in a variety of situations to make sure you’re tipping appropriately rather than offending while reducing your available cash.

The world is waiting for you to take advantage of your wanderlust. With some adjustments to your budget, patience, and prudence, your next adventure is closer than you think—more affordable, too.