I adore traveling at least as much as the next hedonist. Just about everything about it its enthralling — choosing a location, deciding on the mode of transportation, finding the best lodging, learning about the place and it’s history. It’s all so exciting. Well, except for one detail: the bill for all that fun. As the old saying goes, when planning a trip, pack half as many clothes you think you’ll need and take twice as much money.
The fact is, vacations are almost always considerably more expensive than you anticipate. Thankfully you can keep the costs down, both before you leave and while you’re out of town.
You do not want to come home to debt. Here’s how you can avoid this.
1. Obtain a mega-reward credit card well before your intended trip
If your credit rating is excellent and you earn big bucks at a stable job, you may be able to qualify for a credit card that comes with enough points to pay for your entire flight – and then some. For example, the Chase Sapphire Reserve card offers 100,000 sign-up points, as long as you spend $4,000 in the first three months of it being granted. That’s enough to cover the cost of just about any round-trip flight, including international destinations.
If you can’t get that extra-special product, no worries. There are plenty of others with fewer sign-on points but less stringent qualification standards. Whichever card you can identify as right for you, apply early. This way you can meet the initial spending requirements before trading the points in for travel.
Oh, and keep the card empty of debt too. Don’t and the savings will be eroded by the fees on revolving balances. Pay it off on time and in full.
2. Eschew expensive airport purchases
Little irks me more than having to spend $5 on a bottle of water. Or if you’re stuck at the airport because of delays, you may be forced to dine at the absurdly pricey eateries around your gate.
To keep more money for your actual trip, refuse to give in! Sip from the drinking fountain (or bring an empty bottle in your carry-on and fill it up). Pack snacks like nuts, protein bars, fruit, and carrot sticks.
Think about it this way: the $50 (or more) you saved by NOT having that lame airport meal can be added to a wonderful one at your real destination.
3. Avoid drinking and charging
Honestly, the easiest way for a hotel, restaurant, or bar to get you to spend more than you intend is to get you drunk. Being on vacation means letting your guard down, too. It’s a lethal charging combination.
Now, I’m not implying that you should be a teetotaler if you don’t want to be, but that you can prevent excess charges that result from inebriation.
Before you leave your room, store your credit cards in the hotel safe and use cash whenever you’re out partying. You will be less free with your money, I promise. The only exception to this is if you’re in a high crime location. In that case you’re more protected carrying plastic. Fraudulent charges can be reimbursed, but stolen cash is rarely recovered.
4. Monitor your hotel charges
One of the most dangerous places to leave your credit card information with it at the hotel or resort where you’re staying. Not because of identity theft (although that’s an issue too — review your statements throughout your vacation for unauthorized activity) but because you can easily sign for things not within your budget.
When you make transactions using nothing more than the swipe of your finger on a tablet or by providing your room number, its easy to lose track of what you’re spending (or more realistically, what you’re borrowing.) Soon you may be approving charges for sunscreen at the pool kiosk that costs five times what it would be at the local drug store, or accepting the concierge’s sunset cruise suggestion, raid the minibar, or book a couples massage. Then, when you’ve got your luggage stacked up at the check-out desk and you’re presented with the final bill, you’ll faint with what the stay truly cost.
“Can this be right?,” you’ll wonder and you scan the statements. The answer is, almost always, yes.
5. Consider a vacation-only checking account
Because we’ve already established that coming home to debt is no fun, sidestep it completely by funding a specific checking account that you will only tap into during your vacation.
Figure out how much the trip will cost (then double it) and put that money in the account. Bring a credit card with you for emergencies, but the debit card that your vacation account comes with will be the one that you use for souvenirs, excursions, meals, ground transportation, and anything else that arrises while you’re out and about.
Keep track of your spending so you don’t drain this account in the first third of your vacation. It’s not hard. Doing so requires nothing more than a quick balance check every morning while you’re sipping your coffee.
But won’t a cash-only system impair your freedom? Maybe a little, but that’s OK. You’ll be grateful when you’re back home and don’t have to deal with the debt that you might otherwise have racked up. I promise.
In the end, be mindful of your spending and charging when you’re on vacation. If you don’t you’ll need another to recover from the agony of paying it all off.
Have any special tips or ways to save money on vacation? List them below to share them with other readers!
