Last updated on: Jun 16, 2020
Travel expenses can quickly add up. But there a few quick things you can do to achieve travel savings to fund your travels. Here are top tips you can implement for your next trip.
Whether you cut back on expenses, like coffee, or set up direct deposits to fund it, having a separate travel savings account is an easy way to save for travel. Just setting up $50 per week will yield $1,300 per year, excluding any interest you may earn.
A great tool for helping you to budget your finances is Mint, which allows you to track your credit card and bank accounts as well as set a budget for anything, including travel. To help you establish the budget, use a tool like Budget Your Trip, which has cost estimates for a variety categories in numerous countries.
It may be painful, but if you commit to using cash only, you will not overspend. An alternative to this is to purchase Visa or MasterCard gift cards, which allow you to avoid carrying around lots of cash.
If you just want to keep track of things without the physical restrictions, there’s an app for that. Trabee Pocket lets your organize your travel spending in an easy-to-use interface.
The more complex the trip, the more you should consider travel insurance, such as Travelex or Allianz. Aside from short trips within the US and the Caribbean, I almost always purchase travel insurance.
Depending on your age and the duration of your trip, standard travel insurance plans can cost as little as $50 for trip cancellation, delayed baggage, and other standard protections.
While this doesn’t necessarily save money initially, it can save a ton of money if things don’t go as planned.
Whether it’s a cash back card or a travel rewards card, always use a credit card with no foreign transaction fees for travel purchases and pay the balance in full each month to avoid interest charges.
Not only will you receive the best exchange rates with in-country purchases, you can also earn rewards for purchases you were already going to make. These rewards can fund your future travels, further reducing your travel costs!
Two of the best travel rewards credit cards are American Express Platinum and Chase Sapphire Reserve. That’s because they are known as transferable points credit cards, which allow you to use your point with several different travel loyalty programs.
Since most travel rewards credit cards offer sign-up bonuses, you can be on your way to discounted travel faster than you think.
Related post: How to Get a Free Hotel Stay at Four Seasons Hotels
Have you implemented any of these travel savings strategies? What additionally would you recommend?
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