Apr
18
First, let me say, that if you must take out a loan or go into debt to take the vacation you want, then you can’t afford it. You’d be better off taking a summer vacation within your budget now and waiting to take the dream trip when you can afford it. You don’t want to be stuck working overtime for the next five years to pay off your vacation debt. Here are my other tips for avoiding vacation loans and debt.
Plan Far Ahead
Everyone has a dream trip. Mine was my honeymoon. Thanks to the strong dollar and careful planning, we managed to spend only $3,000 on the ten-day trip, which was covered entirely by cash wedding gifts and airline miles. If you have a trip in mind, start planning for it now by researching travel deals and prices. Then start saving.
- Set a target date for the purchase of the trip and then calculate how many months away it is.
- Determine the cost of the trip. Allow at least 20% overage for cost increases and the fluctuating dollar.
- Divide the cost by the number of months. That’s how much you need to squirrel away in order to pay cash for the trip.
Note: you should actually charge the reservations, tickets, and other costs to a credit card in order to receive purchase protection and get a better currency conversion rate, but pay off the credit card in full from your savings.
Create a Vacation Savings Account
This is not your emergency fund, although it could be the same account if you’re very good at keeping the amounts separate in your accounting. If you don’t trust yourself, just open another online savings account and set up a direct monthly transfer.
Avoid Buying Tchotchkes
We all enjoy souvenirs, but the things you buy on vacation should have meaning. If you have a keychain collection that you display, then those are great souvenirs. If you have a bunch of keychains stuffed in a drawer, then they’re a waste of money. I like to buy small pieces of art when I travel. They’re displayed in my apartment.
You should plan to buy something that the region is known for. For example, if you’re visiting Venice, consider buying something made from Murano glass that you will actually use. On the other hand, don’t go to Ireland and buy an Irish wool sweater if you hate wearing wool
Set a Souvenir Budget
Before you go, set a budget for your souvenirs. For big-ticket items, research the cost of buying the imported item locally. Then look for a cheaper price (converted into their currency) over there. Avoid going over the budget unless it’s really, really worth it and you’re willing to cover the cost by economizing on another aspect of the trip (like a meal).
If you can, think about it for a couple of days before you buy it. Try to buy your souvenirs near the end of the trip (or the end of the day if you won’t be returning to that attraction again) so you’ve had time to review your options.
Don’t Be Stingy
Of course, don’t be so budget-minded that you refuse yourself any treats or souvenirs. Be sure to have at least one great meal and stay in a decent place. Making yourself miserable with uber-cheap lodgings or refusing to eat out will only prompt you to make up for it by spending more money on other things, or leave you with bitter feelings about the place.
When planning my honeymoon, I opted to save $20 on a room for one night. We regret that decision to this day - we wound up on a lumpy, rough mattress above the smoking patio of a bar where the patrons sang Billy Joel off-key for half an hour. We vowed never to return to that town again.
Yes, you do deserve a vacation, but you shouldn’t have to overspend to enjoy it. By planning ahead and sticking to my few simple tips, you’ll not only avoid debt, you’ll also enjoy your trip and your memories that much more.
Apr
17
First the bad news: if you’re just starting to plan your summer vacation, distant locales may be out of the question, but you can still find some good deals if you start now. Here are my summer vacation ideas that are both affordable and fun.
Camping
This summer, many people are discovering camping is one of the more affordable summer vacation ideas. If you want to camp, book your campsite now! Start by going to ReserveAmerica to find state parks. If your state doesn’t participate in their program, visit your state website to find out how to reserve a campsite. Some national parks may be available through the site, but you can also check the National Park reservation site. If you were hoping for any of the holiday weekends, you’re probably already out of luck, so keep some flexibility in your dates. The most popular parks like Yosemite, Grand Canyon, and Yellowstone may already be booked.
If you don’t have camping gear, see if any of your friends have some you could borrow. If you plan to make camping an annual event, now is great time to check sporting good stores, Target, Wal-Mart, and Costco for camping gear. Although it won’t be on supersale until later in the summer, they may have weekly specials on some items.
City Vacations
If you live within a couple of hours of a big city, this summer is a great time to visit. Because of the slowing economy, many cities are expecting lower tourism than usual - which means more opportunities for you. Use Bidding for Travel for help booking a hotel through Priceline. Before booking your trip, check the city’s convention and visitor’s bureau website to make sure there aren’t any big conferences or events that week. If those events are in town, your rates will be higher. Refer to my articles on travel deals and using travel deal websites for more help finding good rates, especially if you can stretch your summer vacation into the off-season or shoulder-season.
Before you leave for the city, plan a loose itinerary. List all of the sights you want to see, and then visit their websites to see if they have any free admission days. You should also check to see if you need tickets or reservations for the most popular exhibits. During the summer, museums often have free or low-cost evening events that are fun for the whole family.
To save money on eating out, plan for picnic lunches and bring portable breakfast foods with you.
Local Vacations
Sometimes it seems like going on vacation requires another vacation to recover from it. Skip the hassle by vacationing at home and visiting local attractions. Don’t tell your boss, relatives, or co-workers that you’re staying home, because they’ll feel like they can call you. If you want to pretend you’re away from home, camp in the backyard. Visit your city’s website to find local attractions. If you’re a member of AAA, visit a local office to request a guidebook for your state. It offers a wealth of local sights, complete with pricing and hours.
The best part of vacationing at home is the cheap food and lodging. To make it feel like a vacation, plan at least one nice dinner out or one night roasting marshmallows on the barbecue. You should also eat all the food you normally reserve for travel. With the money you’re saving, you can afford it.
Visit Family
I know many people don’t consider family visits to be vacations, but it can work if you make it clear that you don’t expect them to entertain you the whole time. Plan your own outings, and invite them along. You should also plan to cook for them or take them out to dinner at least one night and offer to help pay for groceries, change your sheets, etc. Of course, avoid visiting family members who make you tense!
Split the Cost with Friends
If you want to rent a summer house for a week, try to find one that is slightly larger and then split the cost with another family. That way your kids will have friends to play with, and so will the parents. Only couples and adults need bedrooms. The kids should be fine crashing in the living room. Check Craigslists’s vacation rental listings for possible nearby destinations.
Stretch Out Work Conferences
If one of you has to attend a work conference this summer, build the trip around it. Usually, the company will cover the plane ticket no matter when you fly out or back as long as it doesn’t cost them more money. Simply go a few days early or stay a few days later to save the cost of one plane ticket. You’ll probably want to change hotels - conference hotels can be pricey - but you can usually find one nearby that offers good deals for families.
Believe it or not, you can vacation affordably, if you plan early. It’s already April, so you’ve got no time to lose. Start planning now!
If you have affordable summer vacation ideas, please share them in the comments.
Feb
1
Taking Advantage of Travel Deal Websites
Filed Under Saving Money, Travel | 1 Comment
In addition to traveling off-season whenever possible and using miles, you can use travel deal websites to score cheap travel deals without sacrificing comfort. Not all sites are equal, but there are a few gems that can really save you a lot of cash, but won’t have you flying as cargo or sleeping on the floor of a youth hostel.
Travel Packages
For travel packages, I love LuxuryLink. This awesome site auctions luxury travel packages. Many of them are Dutch auctions, which means everyone gets the lowest price and the auctions rarely sell out of all the packages. My parents once bought a trip to New Orleans, but it was scheduled for shortly after Hurricane Katrina. LuxuryLink allowed them to choose any other package in the same price range. They chose Costa Rica and wound up in a small 5-star resort where they were the only occupants for that week. Needless to say, the service was amazing and the price was below $1500. Last year, I had to travel to the Midwest for a winter wedding. For the same cost, I could have bought a 5-day luxury trip to Belize and then used airline miles to fly there.
If you’re booking through LuxuryLink, follow these steps:
- Check the fine print for blackout dates
- Contact the resort to confirm availability the dates you want to go
- Place your bid.
Cheap Flights
Most people know about the leading airline sites, like Orbitz, Expedia, Travelocity, Priceline, and Hotwire. Sidestep and Kayak will both search multiple airlines for fares, even most low-fare airlines. Farecast is unique in that it predicts whether fares will rise or fall when you’re searching within three months of your flight.
If you find a good fare on most of these sites, a travel agent friend recommends writing down the flight info and then going directly to the airline website to book the same itinerary. You’ get the same price, or possibly a lower one. You’ll definitely save the booking fee. An exception is Priceline and Hotwire, which may have exclusive deals you can’t match directly.
When bidding in Priceline, first visit BiddingforTravel to find out how much to bid and develop a bidding strategy. Their tips can save you substantially.
If you do a lot of traveling, consider using the wholesaler cFares, which buys bulk tickets and then resells them. You have to pay a membership fee of $50, but you’ll typically save much more than that.
Hotel Discounts
Hotels seem to be getting more expensive, but there are strategies for saving there, too. Often you can get a lower-priced hotel room by booking it with your airline ticket. If you don’t want to do that, use BiddingforTravel to find Priceline deals. Using their tips, I scored a 4-star room near Heathrow for $80 US (I had an early flight and didn’t want to stay in central London.) I’ve also received a 4-star room on Michigan Avenue in Chicago for $32.
When traveling in Europe, consider staying in Bed & Breakfasts rather than luxury hotels. Not only will you receive more personalized service, but you’ll save a lot of money on breakfast. When my husband and I visited Ireland, all our rooms came with full Irish breakfasts. That was two eggs, sausage and/or bacon, baked beans, tomatoes, toast, coffee, and juice. We could add cereal if we wanted to. We were rarely hungry before lunch.
One tip for foreign travel: ask that they charge your credit card in the local currency. Many will convert it for you as a convenience, but they tack on a fee and the conversion rate is higher than you’d receive through your credit card.
Car Rental Discounts
When renting a car in the US, use a site like Travelocity to find great deals. Most major rental agencies offer good cars, so your main concern should be price. If possible, reserve a car from an outlet that isn’t at the airport because you’ll pay extra fees. Most have a shuttle that will pick you up. You can also use AAA discounts and other club discounts to score great rental car deals.
If you plan in advance and take advantage of all the online resources, you can usually find great travel deals that won’t make you feel like your roughing it. What are your tips for scoring great deals?
Jan
31
Frugal Travel Deals
Filed Under Saving Money, Travel | 2 Comments
I enjoy traveling and wish I could afford to do more of it. For right now, I can only dream of the places I’d like to go. When I do have the funds (read: when more debt is paid off), I plan to use these methods to score frugal travel deals without feeling like I’m being frugal. Today I’ll focus on when to travel and how to use miles. Tomorrow I’ll cover the travel deal websites.
Travel Off-Season
If possible, visit your destination of choice in the off-season. This is challenging when you have kids, but it can be done. When my sister and I were young, our parents took us to Hawaii for a week during the school year. Our teachers sent along homework and many of the spots we visited were educational, too. My parents believed, and I agree, that whatever we gained from the experience would more than outweigh missing one week of first and fifth grade. Of course, if your children are struggling in school, this isn’t a good option, but it is for parents with children who are succeeding in school.
If you don’t have kids, traveling in the off-season is much easier. Most destinations have “shoulder seasons.” These are the periods on the edges of either end of the peak period. In general it means the weather will be good and most destinations will be open, but it won’t be quite as nice as during the peak season. On the other hand, the crowds will be smaller, airfares will be lower, and flights will be cheaper so you can find true frugal travel deals. I visited Italy in mid-May and it was busy, but not ridiculously so.
One caveat about visiting the Caribbean during the off-season, which is also hurricane season. During years that are expected to have heavy hurricane activity, you might want to avoid the central and upper Caribbean during the summer and early fall. The southern Caribbean tends to have less activity, so travel there should be safe. If you do book a trip during hurricane season, make sure you have trip cancellation insurance and that it covers voluntary cancellation due to acts of God.
Use Miles
Many people like to use miles for travel. Experts recommend using miles to travel as far as possible to get the best value. I’ve used miles for Ireland and New York. According to one expert, South America is a great destination for miles - you can often buy cheap flights and then use miles to upgrade to business or first class. As a bonus, their dollar is weaker than ours and their cost of living is lower, so the prices are cheap. The Euro is much stronger than ours, so deals are more difficult to come by in Europe.
If you plan to use miles, try to book 11 months (333 days) in advance. Most awards seats are released 333 days in advance, although some airlines release them later. Call the airline to find out when they release mileage seats and then call them or go online as close to that date as possible to reserve your tickets.
If you can’t score cheap seats, you can often use miles to pay for your hotel room or car instead. That will still save you a lot of money off the trip.
The best way to get miles is with a mileage credit card. Try to find one that offers double mile rewards for some purchases. If you’re working toward a reward, put all your purchases on that card, but make sure you can pay them off at the end of the month. If you’ve got college-age students and are paying part of the tuition, charging their tuition to a mileage card (that you then pay off promptly) can score you some serious miles. My parents treated themselves to a nice trip to celebrate my sister’s graduation.
Also be aware of when miles expire. Some programs expire miles after 18 months of non-activity. Activity means earning miles or spending miles. Often, you can use a few hundred miles to buy a magazine subscription, which will then reactivate your miles if you’re getting close to losing them.
If you plan wisely, you can get free flights and travel when it’s relaxing for you, not when you’re squeezed between tour groups and fighting to find a room. Tomorrow I’ll review methods for getting travel deals with the deal websites.
Dec
20
Saving Money on Holiday Travel
Filed Under Holiday, Travel | Leave a Comment
I’ll admit that I gave up on flying for holidays nearly a decade ago. My family lives six hours away, and I eventually found that it’s cheaper and easier to drive. I did fly for several years, however, and picked up a few tips for saving money on holiday travel. These tips may even save you a bit of time.
Use Airline Miles to Fly
If you need to book flights for your holiday travel, planning ahead is the best way to save money. This won’t help you this Christmas, but it will help you next Christmas. If you plan to use miles and want to use the smallest amount necessary, plan to book in January or February. Most airlines release frequent flyer seats 333 days ahead of the flight. If you want to be sure you get the flights you want, call the airline January 1 to find out when they’ll be releasing seats for next December.
If you’re willing to spend more miles, most airlines offer “anytime” miles. You can book as late as the day before the flight, but you may also have to pay a fee. If you plan to fly during the peak holiday season and don’t book soon enough, this may be your only option.
Shop for Flights Online
If you can pay for your holiday flights, use sites like Kayak and Sidestep to research prices. If you can wait until three months before your flight to book, use Farecast. It predicts whether prices for your flight will rise or fall during the next three months. If you’re traveling for Christmas, it’s a safe bet the price will rise, so you might as well book now. You can also try Priceline, but overbooked airlines may not need to release seats to discounters during the holidays so your options may be more limited.
Try Alternative Airports
Often, an alternative airport may not be that much further away that your primary destination, but the price will be much lower. For example, flying to Burbank or Ontario instead of LAX can save you a few dollars. For New York, check Newark and Islip. Ask relatives in your destination which airports might be good alternatives for you.
Fly Nonstop
If possible, book a nonstop flight. Not only will you avoid long delays if your connection is in a storm region, but you won’t find yourself overpaying to eat unhealthy airport food while you wait for your flight.
Be Flexible in Your Holiday Travel Dates
For short flights, you can fly early on Christmas Eve or Christmas Day. You’ll avoid the airport rush and probably save money on the flight itself because fewer people fly those days.
Avoid Airport Parking
Don’t even bother taking your car to the airport. Airport slots fill up fast during the holidays and even the off-site private lots may be full before you arrive. Instead, book a shuttle several weeks in advance. Most offer discounts for multiple passengers from one location. Supershuttle offers a discount for AAA members and you can book online. Check the AAA site for your region to find your discount code.
Avoid Baggage Charges
Carefully check the baggage limits for your airline before you leave. If you have many gifts to bring, consider mailing them a week ahead of your arrival. Not only will you avoid having your gifts stolen by airport employees, you won’t get socked with a $50 or $75 excess weight charge at the airport.
Book Hotels Early
If you plan to stay in a hotel the night before your flight or in the middle of a long drive, book your hotel early. That will ensure you get a good room rate. If you wait until that day, they may quote you the rack rate because they know you’re desperate. If you’re driving, plan your stop in advance. Although most roadside motels are part of chain, prices vary. You may also find that there’s no room at the inn when you’re ready to stop if you don’t book ahead.
Holiday travel is challenging no matter what you do, but the money you save by planning ahead may be the one bright spot in that holiday flight.
Dec
19
Holiday Travel: Tackling Long Drives
Filed Under Holiday, Travel | Leave a Comment
My family lives several hours away, which means my husband and I have a long drive every major family holiday. Fortunately, we live in California, so the weather isn’t usually an issue, but it can be in certain sections. We’ve also taken road trips, though, and I learned how to plan drives to reduce time, stress, and expenses.
Check Your Route
Even if you’ve taken this particular drive many times, check the route online before you live. If you live in California, CalTrans has a road conditions website that reveals planned closures so you can either go around them or expect a long wait. You should also check the weather on the whole route so you can be aware of fog, snow, or rain warnings. It’s also a good idea to know some alternative routes for long drives. At this time of year, snowstorms or road damage can occur suddenly. Having a backup route ready can help you avoid a traffic snarl.
Pack Some Snacks
Road snacks are guaranteed to cost at least double what you could buy them for at home. Before you leave, visit the grocery store to buy a multi-pack of water bottles with squirt nozzles and your favorite snacks. Finger foods like cut vegetables, crackers, trail mix, and popcorn are best, but you can also try granola bars. If you’re the driver, ask someone to unwrap your food for you. If you live near Trader Joe’s, they have a great selection of pre-packaged snack foods at affordable prices, but your local grocery store works, too. If you have a lot of time, you could pop a big bag of popcorn that morning or make your own trail mix.
Charge Your Cell Phone
Make sure your cell phone is charged before you get on the road. Many counties have removed their highway call boxes and you don’t want to be stranded on the highway hoping a trucker or cop will stop to help you.
Pick Your Tunes
We have a large collection of CDs, so we fill a CD travel case with our favorites. During Christmas, we usually include a few holiday CDs along with good driving music. We usually listen to traffic radio when we’re leaving LA, but once we’re on the open road we pump up the tunes.
Pack Games or DVDs
If you’re traveling with kids, bring games or DVDs and a DVD viewer. When I was young, DVDs weren’t invented yet so we brought travel versions of Connect Four and magnetic games. We also brought a pack of trivia cards to ask each other questions. When we were smaller, we either colored or made shapes out of colored pipe cleaners. My cousins also have a long drive for Christmas, so they bring a selection of DVDs because their minivan has a screen in the backseat.
Pack Dramamine
I don’t have carsickness, but if you do, make sure you pack your medicine!
Pack Lunch
I’ll admit, this is more challenging for Christmas, but it does apply to long drives at other times of the year. Most highways have lovely rest stops with picnic tables and shade. If the temperature is reasonable, you can stop there to eat your lunch instead of buying pricey and unhealthy fast food. You’ll also save time because most fast food places will be packed. At Thanksgiving, we pack turkey sandwiches and chips for the drive home and stop halfway. Even if it’s windy, we can usually find a sheltered spot to eat. You could also opt to eat in the car, but it can be messy.
Check Your Tires and Oil
A few weeks before your trip, visit the shop for an oil change and ask them to check the tires and anything else. If something is wrong with your car, it’s better to know now than when you’re on the road. I once had an alternator go out on Highway 5 on December 23. We had to walk up the ramp to get help and then spend the night in a Motel 6 while they fixed it. It was not a fun way to start the holidays.
Pack Chains
If you’re driving through a snow region, pack your chains. Some cars aren’t designed for chains, so ask your dealer to recommend an alternative for your specific make, model, and year. Also remember that snow tires are illegal in some states, so you must remove them if you’re traveling to one of those states.
Leave Early
No matter where you need to go, it’s best to get an early start. The later you leave, the more cars there will be on the road with you. It’s also best to drive during daylight because it’s harder to see hazards in the dark and the roads may ice over once the temperatures drop.
Settle in for a Long Drive
My husband and I actually enjoy long drives, even if we have a break down or get stuck in a long backup. We enjoy having the time to talk, listen to music, and look at the changing scenery. It’s much more fun than when I used to make the drive alone.
