How to Save Money While Traveling

*This post has been reviewed by an Illinois Registered CPA. However, when making important financial decisions, it's best to speak with your financial advisor.

Last Updated on May 29, 2022

Learn How to Save Money While Traveling

If traveling is your passion, you already know it doesn’t come cheap. You might travel to a different state or a different country. Regardless of the case, there are countless expenses to cover. From transportation to housing accommodation and food, the list is long. The vacation can amount to a hefty bill.

If you’re looking for tips on how to save money while traveling, you’ve landed in the right place. We will walk you through a few budgeting strategies and teach you how to make more economical choices. Here, learn how to save money while traveling!

How to Save Money While Traveling Abroad

Saving money while traveling abroad is almost impossible without understanding the local currency. Are you used to buying anything you wish without converting the prices into dollars? Not knowing can be budget-wrecking.

To avoid spending more than you can afford, check how much a dollar is worth in the local currency. You can find this information at any exchange office or bank or use the Google converter tool. You can also use countless apps to convert prices while on the go. Rely on them for anything from souvenirs to food. As an alternative, use your mobile phone’s calculator for these operations.

Make sure you know the price before paying. Exchange money into the local currency and check the commission fees so you can shop around if necessary. Vacations are a great time to carry cash, but be careful with how much you have on hand at any given time.

A card-related disadvantage in a foreign country is the foreign transaction fee. This fee applies each time you pay by card. Check these fees before your departure. This way, you’ll avoid unpleasant surprises and better estimate how much you will spend.

Choose the Best Time to Travel

The summer and winter are the most popular seasons for traveling. Unfortunately, this is also the time of the year when accommodation and flight prices are higher. For this reason, you might want to choose a different time for your vacation. Travel in February-March or October-November because the demand for flights is lower.

In addition, traveling with fewer tourists is more relaxing and can help you get the best deals on accommodation. During these months, you can book excellent hotel rooms for a lower price, so ask about seasonal discounts.

Saving Money on Transportation

Depending on your destination and mode of transportation, there are different ways to save money.

1. Travel by night because the tickets may cost less.
2. Enjoy family or student discounts.
3. Use public transport after you get to your destination.

Traveling by Plane

Do you frequently travel with a particular airline? You probably earn miles, points, or discounts. Check out all the available options before you book. Don’t have an account with an airline? Create one. You can even subscribe to their newsletter. This way, you’ll learn about their latest offers and be able to book a cheaper flight for your vacation.

As a general rule, the sooner you book, the better. If you plan a vacation six months from now, buying the plane tickets in advance can save you hundreds of dollars. If you don’t have a particular destination in mind, you could also enjoy many attractive last-minute deals.

Plane tickets also entail different fees such as seat assignments, baggage, etc. If you don’t mind not sitting next to your partner, choose random seats to pay less. You could also try to carry all your necessities in a carry-on bag to avoid paying baggage fees.

Traveling by Car

If a car is your chosen means of transportation, pick the best routes to save money on gas. Also, if possible, travel at night when there is less traffic and on weekdays instead of the weekend. Split the gas with someone else, for example, friends traveling on the same route.

If you have to fly or take the train to your destination before needing a car, look for car-sharing services as a cheaper alternative to car rentals or consider not using a car. Public transportation is also a great alternative. These suggestions will help you save time and money.

How to Save Money for Vacations by Budgeting

Having a fixed budget for your vacation is essential to saving money. Budgeting essentially involves three steps:

1. Gather money for your journey.
2. Make a list of vacation expenses.
3. Allocate a strict amount to each expenditure.

How much you can spend depends on your destination, the duration of your stay, and, of course, your income. If you plan on traveling abroad, study the prices of the country you’ll be visiting. Once you’ve established the cost of your transportation and accommodations, research the prices to:

1. Eat out and drink in a bar or café.
2. Buy food from the supermarket.
3. Rent a car.
4. Visit museums or other places of interest.

All these will help you calculate more or less how much you will need to spend per day. Once you have the amount per day, multiply it by the number of days you’ll be there. Then, add a buffer of at least 10% for unpredictable situations (you might get lost and need a taxi, etc.). Here is a vacation budget example:

Expense	Amount per day
Food	$35
Drinks	$25
Transportation using public means	$10
Other activities (museum tickets, tours, souvenirs, etc.)	$30
Total per day	$100
Total per number of vacation days (for ten days)	$1,000
Buffer (10%)	$100
Total vacation budget (excluding accommodation & transport to the destination)	$1,100

First, establish your vacation budget. Then, start putting some money aside for a few months. Want to tackle the dilemma of ‘why I can’t save money‘? The 50-30-20 method and the digital envelope system are two popular budgeting methods that can help. The latter involves allocating your budget to your expenses. Afterward, you start putting money into different digital envelopes. Then, spend only the respective amount for each expenses category.

The first is a simple strategy that divides your budget into three categories: wants, needs, and savings. Half of your budget goes toward needs. The remaining budget is divided between wants and savings. You could also use popular budgeting apps such as Mvelopes or You Need a Budget to make sure you stick to a strict budget.

Choose More Affordable Lodging

Staying in a hotel while on vacation might be the most convenient option. There is the room service and a mini-bar. A friendly receptionist is always ready to help you out with information and tips. Yet, this is usually the most expensive option. Alternative accommodation solutions can be even cheaper. Some examples include

• Hostels
• Airbnb
• Camping
• Apartment or house rentals (for more extended stays)
• Couchsurfing
• Rental RV parks

Choosing your accommodation is one of the most critical decisions when traveling because it can make or break your budget.

Always compare several options before deciding. For example, central accommodation usually costs more than staying somewhere on the outskirts, but the latter might mean paying more for transportation. First, determine what you want to see and visit during your stay. Then, choose your lodging based on your location. The closer you stay to your area of interest, the less you will spend commuting.

How to Save Money While Traveling and Eating Out

Indulging in the local cuisine is one of the most pleasant tourist experiences. It may be the highlight of your vacation if you’re a foodie, but it can become the most significant expense you incur while traveling. There are ways to enjoy the local cuisine and eat out while still saving money. Here are a few recommendations:

• Always check the menu before taking a seat in a restaurant. Make sure you’re not eating in the most expensive place. You can also do this on the go from your mobile.
• Use websites like Yelp to discover the most affordable dining options where the food is good.
• Avoid the city center. It is usually the most crowded and expensive area. Dining just a few streets away can save you precious bucks.
• Look for discounts. Many restaurants advertise their special daily menu or discount dishes. Choose one of those to pay less.
• Eat out during happy hours. Many restaurants have food and drink specials at this time.
• Avoid drinking alcohol at the restaurant. A few glasses of wine may cost more than lunch for two. Stick to water and enjoy that good local wine by purchasing it from the supermarket.

Another good solution to save money on vacation is to eat at home instead of dining out. Will you rent a house or apartment? Then, it’s convenient to do this. You’ll probably find all the kitchen appliances you need to cook.

Saving Money on Drinks

Alcoholic beverages from the supermarket cost less than a bar, but that’s not all you can do regarding vacation drinking habits. If you love having coffee at the café in the morning or after lunch, you might want to opt for take-out coffee. It can cost less, plus you won’t feel obliged to tip.

The cheapest option? Pack your thermos. Prepare coffee at the place you’re staying. You can also take the coffee included in your breakfast. Then, enjoy it on the go while sightseeing.

Water is another quiet enemy of your tourist budget. Usually, we tend to drink more water when we’re active. Walking for miles visiting museums or going to the beach every day can make you feel dehydrated. It might cause you to overspend on bottled water.

A more affordable solution is to carry a plastic bottle. Take it with you in the morning when you leave. Refill the same bottle and use it throughout your vacation.

Buy Products from Local Shops and Markets

It’s hard to figure out how to save money while traveling if you stick to the typical tourist mentality. Instead, by thinking and acting like a local, you will be able to save money.

Choose a more off-beat approach, and you’ll feel just as good while spending less. For example, go where the locals go instead of shopping and eating in the most popular and central locations. Those might be smaller shops you don’t find right in the city center, but they can spare you some dollars.

Shopping for fruit and vegetables at the supermarket can be more expensive. Instead, try to buy in-season produce from the local farmer’s market. You might pay less and enjoy fresher products.

Don’t Buy Souvenirs on the First Day

The day you arrive at your destination is often critical for your finances. It is when the tourist adrenaline and the impulse to buy everything you see and like kick in. It is also when your traveling budget is almost intact. You feel like you’ve got plenty of money to spend.

Money can vanish fast if you indulge in a shopping frenzy from day one. It might be a good idea to leave souvenir shopping for the end of your trip. Otherwise, you risk spending more. Generally, avoid buying souvenirs from central souvenir shops where prices are usually higher.

FAQs

How to Save Money While Traveling with Family?

Make sure you have a fixed budget covering all your family members’ needs. Then, try to travel outside the peak season and enjoy all the discounts you can get for kids.

How to Save Money While Traveling with Friends?

Choose cheaper accommodation. Renting a two-room apartment will cost less than two separate hotel rooms. If you’re traveling in a large group, you might book a hostel or a house through Airbnb. Other cheap accommodation options include:

• Last-minute deals on hotels
• Camping sites
• Couchsurfing
• House swapping

Book the accommodation and transportation under one name only to get group discounts. These can also apply to other services, such as museum tickets.

How to Save Money for Your Vacation While Paying Bills?

It’s not easy to put money aside if you’ve also got hefty monthly bills. Take care of these first, and make sure you never skip on paying your bills. Otherwise, you end up paying penalties or having debts. The half-payment method can help you budget for your bills.

Here is how it works:

Day of the Month	Percent Saved
Payday 1	50% of your bill
Payday 2	50% of your bill
Bill Due Date	100% of your bill

Should You Get a Personal Loan for a Vacation?

Not sure how to save money while traveling? You might consider a personal loan for this goal, but we do not recommend it. Instead, improve your financial future by using a budget and working to fix your credit as fast as you. If you can’t afford to pay cash for your vacation, remember that saving money is always better than taking a loan.