
Budget Friendly Travel Tips When Managing Debt
There are ways to travel when living on a strict budget, but you’ll need to set a budget for your trip to avoid going further into debt. You may not be able to indulge in everything on your to-do list, but if you do your research and plan the budget accordingly, you can still have a wonderful time.
LESSON CONTENTS
6 tips to travel on a budget
Use these budget-friendly travel tips to manage your expenses when you’re on the move:
Set a budget for your trip
Setting a budget plan and sticking to it is the best thing you can do to save money on your trip. Do your best to plan out all your expenses beforehand so you know exactly how much money you have to spend. Be sure to include the cost of travel, fuel, food, drinks, entertainment, lodging, souvenirs, and any travel accessories you may need to purchase beforehand.
Vacations can be hard to predict, so leave room in your budget for the unexpected. Research the average price of drinks, food, tickets, housing, and other common expenses to ensure your budget is reasonable.
Avoid taking on additional debt
Compare your budget plan to any savings you may have set aside for your trip. If you don’t have enough money to pay for your vacation upfront, consider postponing your vacation until you have more money saved.
It’s never a good idea to go further into debt to go on vacation unless you plan to pay the debt before the bill comes due. If you plan to use a credit card to pay for a trip, pay off the charges before interest accrues. Consider using a secured credit card with a set spending limit so you don’t have to worry about spending money you don’t have.
Pay your bills upfront
Debt equals more bills to pay. Debt includes all interest-bearing debt and monthly bills reported to credit agencies, such as credit card debt, utilities, student loans, mortgage, and car payments. Bills often are due on the 1st of every month. But traveling can disrupt your repayment plan if you go over budget or spend more money than you have. To manage debt, you must still make all your monthly repayments when traveling, even if you spend more money than usual.
Log into your account for each debt/bill to pay the balance owed before you go on vacation. If you come back with a low balance in your bank account, you can rest assured your bills have already been paid. If you are traveling at the end of the month, consider paying your bills for next month just to be safe.
Automate your monthly payments
Automating your monthly payments is always a good idea, especially when taking an extended vacation. If you plan to travel for several weeks or months at a time, automate your payments so you don’t have to worry about paying them while on the go. Most companies allow you to pay your bill automatically. You’ll need to link your bank account, so they can deduct it when the bill comes due.
Look for cost effective alternatives
Traveling is expensive, and the effects of inflation can make it harder to get away, but there are dozens of ways to save money without cramping your style on the road. You should be having fun instead of worrying about your bills.
Consider traveling closer to home to reduce your travel expenses. If you need to go far, look for the cheapest mode of transportation. Public transportation is always cheaper than renting a car or having someone drive you around. Taking a bus is usually cheaper than flying or taking the train. Making time for a layover or taking a less direct route may also reduce the cost of traveling.
When you arrive at your destination, look for free or low-cost activities. Avoid the main tourist destinations and use various budget travel guides to get around as cheaply as possible. Look for free concerts, public screenings, national parks, and gardens. Most museums also provide free admission at least one day a month.
Traveling abroad? Consider visiting countries where the U.S. dollar is stronger than the local currency to stretch your budget and get more value for your money.
Use cash (with caution)
Sticking to cash can help you limit your spending on vacation, but it’s never a good idea to carry around large amounts of cash when traveling, considering the risk of theft. Take out a certain amount of cash daily to limit how much you carry on your person.
Depending on your credit limit, you can easily spend more than you can afford when using a credit card. You can also spend more money than you have when using a debit card, but your bank or credit union may charge you an overdraft fee or insufficient funds fee if you have a negative balance in your account for more than one business day. If you’re using a card, check your balance often to track how much you’re spending.
You can still travel and enjoy your life while you’re in debt. Keep these tips in mind to manage debt during your vacation to keep your spending in check.
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