Travel Account. Start a separate travel account with a regular direct deposit. Even $25 a pay check will add up to $600 a year. You want this account to be separate for a couple of reasons: 1) you only touch it for travel and won’t inadvertently spend your hard-earned saved funds on something else. 2) if your card is stolen or compromised on a trip, it won’t affect your daily bills, rent/mortgage, and direct deposit. For obvious reasons, you also want this to be a high interest account and to have no international ATM fees.
Dedicated Savings. Continue to look for ways to increase your savings. Again, little deposits add up. Buying one less coffee out a week could add up to $200 a year which is easily one night in a nice hotel room or several nights in a hostel. Cutting one dinner or lunch out a month could easily equal a second night’s hotel room. One of my 2024 New Year’s resolutions was a “no buy” year. I figure at this point in my life, there is very little that I need… I was pretty successful and over the year, I only bought 17 things (non-consumables). It’s hard to prove a negative and quantify what I’ve saved but it’s safe to say it is at least the equivalent to a few meals or night stays!
Airfare. There are a few ways to reduce the amount of money spent on flights. Don’t think that being on a budget reduces your options. If flying from the US, it is not uncommon for an international ticket to be cheaper than domestic airfare. 1) Get a credit card sign up bonus and use the points for your ticket. 2) Use a go anywhere search engine. 3) Use a versatile credit card for everyday expenses. 4) Routinely monitor flight prices.
Hotel rooms. Before even looking at hotel rooms, decide on what is important to you. It is easy to talk yourself into “upgrades” that add up – more square footage, a balcony, a better part of town… If you decide up front what is important to you than you are less likely to have the costs creep up. And it is ok if variables change based on the trip. If traveling with friends, sharing an apartment can be nice but we always want individual bathrooms. At the beach I like a view or a patio, but on a city trip I am never in the room and just want something clean that is either in the center of the city or near public transportation. 1) Search engine (but always double check the price and cancelation policy against the hotel website). Booking.com is my go-to. 2) Airbnb or VRBO can be cheaper for a family or large group. 3) Hostels can be a great option and might be better than you imagine!
Meals. 1) Eating just two meals a day out will reduce your costs and save you time. 2) Snacks for throughout the day and in the room. This also gives you an excuse to visit a local grocery store. 3) Ask locals for recommendations – and eat out of the tourist areas. 4) Street food. But go to the place where there is a line. It is more likely to be safe and good! 5) Refillable water bottle (if the water is not potable then bring a steripen and/or boil the water in the room’s tea kettle)
Public Transportation. I am a huge fan of public transportation and it is a great way to see a city. However, if in a larger group, do a quick general comparison on the cost of a ride share or taxi.
Activities and Other Costs. Don’t wing it. Knowing what you what to do and what it will costs will enable you to create a realist budget that you can stick to.
Basic Research. Before your trip, have an idea about what things should cost. This will only be an estimate but should prevent you from getting ripped off or taken advantage of. Also to help create a budget, understand what additional costs may come up like tips and taxes.
Life Kinetic Travel Research 