One of the main reasons why we think we can’t travel the world is money. “I can’t afford it,” people say to me, “I have too many expenses.”
I used to use the same excuse myself until I took the bull by the horns and evaluated my own lifestyle and spending habits. What I discovered in my own life was that I was that I was bleeding money on what are called "Phantom expenses" - all those purchases that are so small we don't give them a second thought.
The thing is, those small phantom purchases add up over time and in a BIG way: a Starbucks here and there, lunch out with the girls, movie night, a weekly mani and pedi...it all adds up over time.
I sat down and listed the necessary expenditures I had to make every month - utility bills, rent/mortgage, gas for the car, insurance, groceries and so on.
Then I made a list of what I was spending on phantom expenses.
I was shocked to discover what the total of those expenses added up to! Who had I been kidding all of that time? I could afford to travel! Yes, it meant a change in lifestyle and spending habits but so be it if I wanted to be able to travel.
I greatly simplified my lifestyle and spending habits and became a discount diva when it came to traveling, learning a lot of tips and tricks along the way to help finance my travels.
General $avings Tips
SET A BUDGET & TRACK YOUR PHANTOM SPENDING
In order to save money you have to know where you're spending it frivolously and eliminate doing so. Do you really need that $7 Starbucks mocha latte every morning? Multiply that $7 per morning by 365 days a year = $2,555 per year. That amount alone will finance half a trip within the U.S.! Heck, I did a trip for 2 to Cozumel, Mexico to a 4 star luxury resort for 10 days on that amount!
ESTABLISH A TRAVEL SAVINGS ACCOUNT
No one finances my travels. I do not get free sponsored trips, I pay for my trips our of my own pocket.
I live very comfortably on $2100 per month, on a lake in a 2200 sq. foot lake house.
I did this by using the same saving strategies myself that I'll share on this page and the succeeding pages with you. I've used them myself so know they work.
I'll break them down into categories for you to make things easy.
I discovered a really simple way to do this. I have a big jar I put all of my spare change in. Every 2 months I go to my credit union and put that money in an interest bearing savings account. That's $400 saved everry 2 months by simply saving my spare change vs. spending it = $2,400 per year + interest.
Interest rates are very high these days and you can earn around 4% on your savings account! Take advantage of that!
The other thing I do to add to my travel savings account is pay myself first when I get my monthly check. Even if you can only afford to put $50 per month away, that money will be earning interest while it's sitting in that account. Out of sight, out of mind and you won't spend that money.
APPLY FOR CREDIT CARDS THAT GIVE YOU TRAVEL REWARDS
People always ask me "What's the best credit card to get?"
There is no "best card". You have hundreds of options to choose from and the 'trick' is to find the card that best suits your travel needs!
Are you interested in loyalty to a brand, free rewards, or avoiding fees?
The Bilt Mastercard is the only credit card that earns you points when paying rent (up to 100,000 Bilt Points each year) without any transaction fees (really!). It’s an overall great card with plenty of category bonuses and over 19 transfer partners.
It’s the main card I use for my day-to-day spending. I pay the balance off in full every month so I don't accrue interest charges or get myself into debt.
While I don't pay rent or a mortgage, if you're a renter you might want to consider this card.
With the arrival of the Bilt Mastercard®, you can now earn points on rent (up to 100,000 Bilt Points per year), without paying any transaction fees for doing so. And it has changed the game. (Use the card 5 times each statement period to earn points.)
Plus, in addition to earning points, the card also gives you:
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Trip Cancellation and Interruption Protection
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Trip Delay Reimbursement
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Auto Rental Collision Damage Waiver
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Cellular Telephone Protection
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No foreign transaction fee (Terms & Conditions)
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$5 USD in Lyft credits each month after taking three rides that month
Click here for a full breakdown of Rewards and Benefits and Rates and Fees.
I used to have an American Express Delta Skymiles credit card but when I quit flying I no longer needed Skymiles awarded me and certainly not at a $95 annual fee for the card!
(The annual fee has now jumped to $150!)
So I dumped the gold card and downgraded to a no fee American Express card that still gives me rewards but not the number of Skymiles I had been getting that I no longer needed.
A couple of times a year I'll go through my travel reward cards and re-evaluate them.
Are they still providing me with rewards that match my current travel style and at what annual fee? I tend to gravitate toward no annual fee cards.
I also keep a couple of credit cards for accommodations I routinely use that award me free stays and other travel rewards, like the Hilton Honors card.
There are different versions of this card to choose from depending on your travel needs.
I keep the No Annual Fee card as that suits my needs just fine.
SIGN UP FOR FREE FOR ACCOMMODATION AND RESTAURANT REWARDS PROGRAMS
When going to Disney World for 10 days my sister and I signed up for free to Rainforest Cafe's Landry's Select Club. We got $75 worth of rewards points that afforded us a FREE lunch at Rainforest Cafe right outside the entrance of the Animal Kingdom park plus priority seating - a big plus when dealing with Disney crowds.
Even if you think you'll never use them a second time, sign up for these free rewards clubs. It costs you nothing.
The Landry's Select Club also offers special deals for members, such as bonus points for
dining reservations made and kept, exclusive promotions, ticket presales, wine dinners, events and more.
PLAN YOUR TRIP WELL AHEAD OF TIME
I always plan my trips at least 6 months in advance and most often a year ahead of taking the trip. This affords me time to shop around for things like annual promotions, sales, etc. I've saved a bundle of money in travel expenses doing this!
CUT YOUR STREAMING SERVICES
How many streaming services can you watch at one time? Believe it or not, I've never once subscribed to a streaming service. I have regular cable and that's it. If I want to watch a movie, I'll use a free service like Tubi rather than pay exorbitant cable movie rental fees.
Rather than subscribe to several streaming services at once, try rotating which ones you are using. Watch one streaming service for a couple of months, cancel it, sign up for a new service, repeat.
UTILIZE TRAVEL NEWSLETTERS
These are a great way to score savings on travel and they're usually FREE to sign up to receive. If you don't want them sent to your regular email and cluttering it up, then set up a free email account to have just travel newsletters sent to and clean that account out once a month.
Airlines and accommodations (just 2 examples) offer some last minute deals that can save you as much as 50%.
Additionally, consider signing up for a website like Going.com. They hunt down deals and send them directly to your inbox — for free! They also offer a premium service that offers more (and better) deals but at the very least join their free newsletter.
BUY USED AND SAVE THE DIFFERENCE
We live in a throw-away disposable society. But as the saying goes, what is one man's trash is another man's treasure. I buy used whenever possible and put the money I saved on these purchases into my travel savings account. I've found items that are new (but now discontinued) and travel necessities that are like brand new!
Even if you live in the boonies like I do, you'll usually find a nearby thrift store or secondhand shop. There are also garage sales, flea markets, estate sales, Goodwill, where you can find some real bargains. And I don't just shop for travel necessities at such places.
For example, this is my dinnerware set that was discontinued. I've had it for years and over time pieces have gotten broken, etc.
A new set of stoneware for 8 will run you about $100 and up even on clearance.
I found a service for 8 of my wolf dinnerware at Goodwill.
Cost? $3. That's $75+ right into my travel savings account and my $3 set looks like it's never been used.
If you buy used and save the difference you'll be surprised how fast your travel fund will grow!
BECOME A COUPONER
I used to be the coupon queen of grocery shopping until stores did away with double coupon days. I once added up what I saved in one year by double couponing and sending in for free products - over $10,000!
I still coupon for travel!
The Entertainment Book, grocery coupons, Groupon, and loyalty cards all reduce the price you pay at the register.
You can find these coupon books at rest stops or your travel
destination's Visitor's Center or Chamber of Commerce. Some cities publish their own coupon books that you can purchase for a few bucks. Dining Guides for a specific travel destination are FREE and you'll find them in lobby magazine racks of stores along with the free travel pamphlets. (You can even find coupons in those!)
Also, use Rakuten, which is an app and web browser extension that gives you cash back on purchases that range from 1–20%. You can also get American Express Membership Rewards points instead of cash back if you want. You can also tie a specific credit card to your Rakuten account and get cash back in physical stores, too.
Combine Rakuten with coupon codes you find on the web and you have a very powerful combo to save money.
DEVELOP A SIDE HUSTLE TO EARN EXTRA TRAVEL CASH
The rise of the gig economy has made it easier to earn extra money on the side. TaskRabbit lets you do tasks that people don’t have time for—from cleaning to moving, doing research, or helping with errands. Websites like Fiverr and Upwork allow you to be people’s assistants, editors, designers, or a host of other professional roles, while Yoodlize allows you to rent out your unused stuff for money. These sites can provide an easy way to earn money on the side. Be sure to check them out as a way to earn extra money for your upcoming trip.
Additionally, you can become an Uber or Lyft driver, teach a skill on the side, or rent out a room on Airbnb. In the age of the “side hustle,” there are lots of ways to utilize your proven skills for extra cash. Get creative!
Here is a full list of sharing economy websites you can use to earn some extra cash on the side.
BE FLEXIBLE
The more flexible you can be with your travel dates and times, the more money you stand to save by being able to take advantage of annual, seasonal, and last minute promotions and specials.
TRAVEL DURING THE OFF SEASON OF YOUR TRAVEL DESTINATION, NOT THE PEAK SEASON
Prices will always be higher in your travel destination during the peak tourist season. By traveling during your destination's off or low season you'll not only pay lower prices but won't have to fight large tourist crowds.
USE VIATOR
If you’re looking to do any tours in your future travels, I HIGHLY recommend using Viator. They offer the best curated experiences in destinations across the US and Europe, from walking food tours to other guided sightseeing. I've found you'll save at least 15% more than on sites like Get Your Guide.
ALWAYS GET TRAVEL INSURANCE
We always tend to think "Won't happen to ME!"
On a recent trip to Switzerland, my sister fell down a castle stairway, breaking her leg. She found out Switzerland's health care system is vastly different than that of our own. She had to go to 3 different specialized hospitals just to get x-rays and her leg set and then cast.
Had she not purchased travel insurance, her hospital bills from Switzerland would have cost her roughly $50,000.
Busting 5 Common Travel Insurance Myths
CONSIDER DOMESTIC TRAVEL
I've never had the desire to travel overseas. There's still too much I haven't seen and experienced right on our own continent. Domestic travel is obviously less expensive than foreign travel and far more hassle-free as well!
Consider road trips to nearby national parks or charming towns. This allows for flexibility and the chance to discover hidden gems without the high cost of international travel.
Budget travel has become popular among those who want to see the world without spending a lot. It focuses on experiences, not expensive things. This way, people can travel more for less money.
More people are choosing to save money over spending a lot on travel. They want to explore and discover new places. Instead of fancy hotels, they prefer hostels, vacation rentals, or camping.
Traveling on a budget can be less stressful and reveal hidden treasures. Street markets, local food, and off-the-beaten-path spots offer great cultural experiences at lower prices. These options make your trip more meaningful and connect you with the places you visit.
In today’s world, it’s easier than ever to travel affordably. Budget travel lets you have amazing experiences without breaking the bank. It encourages exploration and a love for discovering new places on your own terms.
CONSIDER TRAVELING WITH A GROUP
Many travel establishments now offer discounted group travel rates. Take advantage of those discounted rates!