Is there anything more fun than traveling around the world? Visiting new countries and seeing the sights is as enjoyable as it is eye-opening. Of course, it isn’t cheap, either. To save up enough to travel for a long time, you’re going to have to make sacrifices. They are worth it, but they can be frustrating. At least you can maintain your sanity by remembering that these cost-cutting techniques won’t last forever.
Once you hit the magic number, you can stop worrying about penny-pinching. Or can you? The reality is that lots of travelers waste money while they are abroad, too. And, this is a surefire way to cut your trip short and return home to the post-travel blues. Nobody wants to come back early, which is why it’s essential to stop forking out for additional payments.
The first step is acceptance. Now that you accept that you can cut back, you can move on to understanding the ordinary expenses and preventing them. If you’re ready, you can check out the list underneath and start adding to your budget today!
It’s time to lose the car. After all, you’re not going to use it for a couple of weeks/months, so there’s no reason to pay the couple of hundred bucks it costs to cover the expenses while you’re away. And, the money you can get for selling it outright will ensure you’ve got a nice little nest egg for your trip.
Sure, if you need it when you return, then you shouldn’t sell it as the cost of buying a new one will outweigh keeping it. However, there’s no point in insuring it and paying taxes as they are easy to cancel. The only insurance you need is medical, which is why you should call your insurance company and cancel your policy. Usually, it’s less than $100 and you can purchase a new one after your trip is over.
Alternatively, you can rent it to a friend or family member and get them to cover the expenses while you go traveling.
A mortgage is a tough one. You can’t sell the house just because you want to travel more, but you don’t want to pay $500 plus every month either. You must find a solution, and, thankfully, there is a simple one – renting the property. With houses too expensive to buy for lots of first-timers, there is a massive demand for rental properties.
Realtors will advertise the listing and find a tenant, but they also take a hefty cut. For those who want to negate the costly agent fees, there is Airbnb. Yes, there is more risk involved, but every penny you receive goes into your back pocket. Plus, there are cleaning fees included in the listing so that you don’t have to fork out for disrespectful guests.
You might be insured, but you might not be, either. So, it’s smart to take a look at this Confused post to check whether you have protection or if you need to buy an add-on.
Your phone goes with you everywhere, including on vacation. Still, it’s not as if the money you pay is good debt. In truth, it might be a lot of money that there’s no need to splash out on because the contract could be outside of your budget. For instance, can you use the phone while you are away without incurring charges? If the answer is no, there is no point paying for texts, calls, and data that’s unusable. You’re better off canceling the contract and using WiFi or finding a provider that lets you use your phone as if at home.
Just because your contract includes traveling costs doesn’t mean there aren’t ways to cut back. Even if it’s functional, you might not be using all of your allowances every month. Regarding calls and texts, it is hard to get your money back, so you might want to renegotiate. Data is different thanks to SMARTY mobile as they refund the data you don’t use at the end of the month. That’s a potential saving of $5 to $10 per month, which adds up in the long run.
Gauge your cell phone usage and decide whether your current contract is suitable before flying.
Credit Card Debts
We’ve all been there – the debts racked up from last year’s trip haven’t been paid off yet. And, like a self-respecting traveler, you are determined not to let your credit card arrears prevent you from seeing the world. That’s why the interest is 0% and you only have to pay the minimum each month. While this is a smart tactic, it can be quite risky and potentially expensive.
This is how: you continue to spend on your card as if the limit is free money. Over time, you’ll find there is too much to pay off in a short period and that the minimum amount creeps up to over $100. Suddenly, the 0% interest rate doesn’t seem as risk-free as it did previously. Therefore, the best option is to pay off some of your debts before you leave. That way, the amount you must pay is lower, and the overall limit won’t be as high.
Another savvy move is to try and resist the urge to put payments on your credit card. Buy essential items, by all means, but be sure to pay them off at the end of the month.
Not all card fees are created equal. Credit card fees might be tougher to eliminate, hence the reason the rate is 0%, but withdrawal and card payments are straightforward to negate. All you need to do is switch your account to a bank that doesn’t charge for essential transactions. Whether it’s withdrawing money from an ATM or paying by card, you should have the flexibility to do both without incurring penalties.
Switching might seem like an overreaction, and it might be if you don’t travel all the time and don’t need the perks all year round. Still, there are options for people who want to keep their current account and stop paying transaction fees abroad. Travel credit cards are fantastic assets as they are free to use and offer excellent perks.
By signing up, you can earn points that go towards the cost of flights and accommodation. Here’s what to consider before applying.
Some payments are big and easy to notice, such as your mortgage or car insurance premiums. Others, however, are smaller and seemingly less significant. As a result, they can slip under the radar, yet that doesn’t mean they don’t have the potential to cost a fortune. A streaming service, while only $10 a month, is unnecessary if you aren’t going to listen to music the same way during your trip.
Depending on the length of your travels, it can quickly add up to $60 or $70, an amount that’s quite large when your living costs aren’t as high. Plus, Spotify has a free service that isn’t much different from the premium one, so it isn’t as if you can’t continue using the app. Movie and TV platforms are different unless you are eligible for a trial that doesn’t cost a penny.
If you aren’t, you should cancel them for the sake of your budget. A tip: ask a friend or family member if they will lend you their login details. Then, you can have your cake and eat it, too.
Do you pay for any of these while you’re traveling? Are you going to cancel them and save money to travel for longer?