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How to Travel on a Budget

Nomadic Matt posing in a t-shirt while hiking in the rugged hills of South America

Travel has become really expensive. Post-COVID, the entire world seems to be traveling again and prices just keep rising. I am astonished at how high they have gotten. But it’s a product of rising costs and out-of-control demand. Everyone just wants to travel. We’re all looking for an escape.

Fortunately, it’s not all bad. Airfare has started to go down again, there are more deal-finding websites online, free walking tours in more cities, and more opportunities to bypass the traditional travel infrastructure and connect directly into the local way of life via the sharing economy.

As we navigate the post-COVID world of high prices, I want to share some tips and tricks on how to travel on a budget this year!
 

1. Change Your Mindset

Changing your mindset might not be a traditional budget tip, but it’s important nonetheless. Constantly remind yourself that travel is possible while taking concrete steps to make it a reality. Action begets action — even if it’s just baby steps.

Start with a “yes, I can” mindset. Don’t think “I can’t travel” — think “What’s one thing I can do today to make my trip closer to reality?”

Life is a mental game. Do one thing every day that gets you closer to your trip and you’ll find yourself building unstoppable momentum.
 

2. Come Up with a Savings Plan

Unless you’re Bill Gates, we all need to save more money. But how do you do that? While life is expensive, I do believe there are always ways to save a little more. There’s always something you can cut. A little bit of savings adds up a lot over time.

First, start by tracking your spending. Write down everything you spend money on for a month. Groceries, rent, eating out, Netflix — everything. You can’t figure out where to save if you don’t know where your money is going.

Next, start a savings account specifically for travel. That way, you’ll have a dedicated space for your travel fund and you can watch it grow. That progress will keep you motivated. Even if it’s just a few dollars a week, every penny counts. The more you save, the more you want to save.

Finally, start cutting. Maybe it’s going to Starbucks, maybe it’s saving on gas by carpooling to work or cutting back on eating out. We all have things we can cut. Find yours.

Here are some posts on how to save money:

 

3. Score a Flight Deal

One of the things that people always tell me holds them back from traveling more is the cost of flights. But, let me tell you, there are a lot of deals right now.

All the airlines are trying to fill planes and are offering a lot of deals for summer and fall travel right now. After all, they need to make up for a lost year and are desperate to get people on planes.

The key to finding a cheap flight is to be flexible with your dates and your destination. If you have your heart set on “Paris in June” you’ll be forced to pay whatever the flight costs. But, if you open that up to “France in the summer” — or even “Europe in the summer” you’ll be able to find much cheaper flights since you’ll have a lot more wiggle room to test dates and destinations.

I like to use Google Flights and Skyscanner to browse my options. I type in my home city and then pick “everywhere” as my destination. I then base my plans around where I can fly to for the least amount of money.

Both websites also let you sign up for price alerts so you’ll get an email if the price for your ideal trip happens to drop.

And if you really want to find amazing flight deals, consider joining a flight deal site like Going. It’s the best website for finding flight deals from the US and has saved me a fortune over the years. It’s not free, but new users can get 20% off a Premium membership with the code NOMADICMATT20.

Other helpful flight deal sites are:

  • The Flight Deal – Incredible deals for flights all around the world.
  • Secret Flying – Another site with amazing flight deals from around the globe (they find a lot of Asia/Africa/South America deals not found elsewhere).

 

4. Get Points!

Collecting points and miles is a great way to travel on a budget. By getting point-yielding credit cards and using a few simple techniques, you can get hundreds of thousands of miles — without any additional spending (you can even earn points just by paying your rent!). These points can then be cashed in for free flights, free hotel stays, and other travel rewards.

I’ve earned countless free flights, upgrades, and hotel stays from my points and miles. By optimizing my spending and paying attention to which cards earn the most points where, I’ve saved thousands of dollars — and you can too!

Here are some resources to help you begin:

Even if you aren’t American, you still have options, as points and miles have gone global:

Once you have points, use platforms like point.me (for flights) and Awayz (for hotels) to manage them. These platforms help you maximize your points and miles so you earn more free flights and hotel stays.
 

5. Use the Sharing Economy

A group of budget backpackers relaxing at a pool in a hostel in Central America
The sharing economy has led to a plethora of new money-saving and community-building platforms that have made travel even more affordable, personal, and accessible. It’s never been easier to get off the tourist trail, connect with locals, and experience their pace of life. I live by these websites when I travel! You should too.

Here are some of the best sharing economy sites to help you get started:

  • Trusted Housesitters – The most comprehensive website to find house-sitting gigs. You watch a place on vacation while the homeowner is on vacation.
  • EatWith – Allows you to eat home-cooked meals with locals (it’s the Airbnb of food). It always leads to interesting encounters, so it’s one of my favorite things to do.
  • BlaBlaCar – A ridesharing app that pairs riders with verified locals who have a spare seat in their car.
  • RVShare – Allows you to rent RVs and camper vans directly from locals.

 

6. Find the Free!

The world is awash with amazing free travel resources (like this website) that can help you travel on a budget. No matter where you are going, there’s probably a blog post on what to do and see there for free or cheaply. Someone has been there and they’ve written about it! Make the best use of all of them to help you plan your trip.

My favorite search term is “free things to do in X.” You’ll always get a result!

Additionally, don’t be afraid to walk into a hostel — even if you aren’t staying there — and ask them what to do for cheap. Their clientele is budget-sensitive, so they always know what to do and where to go for little money.

Local tourism boards will also have tons of info on free things to do as well (more on that below).
 

7. Stick to Public Transportation

Old tuk-tuks parked together in Sri Lanka
If you’re on a budget, skip the taxis and rideshares like Lyft or Uber. Unless you can lower your cost by sharing a ride with other passengers, public transportation is going to be the most cost-effective way to get around. Not only will it save you money but you’ll get to see how the locals travel too.

Google Maps usually can give you a basic overview of the public transportation options and prices available. You can find information about day passes and/or multi-day passes from your local hostel/hotel staff (as well as from local tourism offices). For cheap intercity travel information, check out Rome2Rio.
 

8. Use Local Tourism Offices

Local tourist offices are a wealth of knowledge. They exist solely to provide you with information on what to see and do. They often have tons of discounts not found anywhere else and can also keep you updated on local events, free tours, and the best spots to eat. They can help you find public transportation discounts and/or multiday passes too.

Don’t skip the local tourist office! They are a severely underutilized resource.
 

9. Get Cheap Accommodation

Cozy bunk beds in a hostel dorm room in Europe
Accommodation is one of the biggest fixed costs travelers have, so reducing that cost can lead to big savings on the road. I’m sure many backpackers would sleep in a barn if it were the cheapest accommodation they could find! Heck, I’ve slept in hammocks in national parks to save a buck!

Since you have to stay somewhere every night, reducing this expense can save you a lot of money on the total cost of your trip. Stay in hostels, use Couchsurfing, stay in empty university dorms, camp, or try an Airbnb.

Since there are a lot of ways to cut your accommodation costs, here are my posts on how to get accommodation deals:

 

10. Eat Cheap

Other than accommodation, food is one of the biggest travel costs. After all, everyone needs to eat. But there are lots of ways to eat on the cheap:

Also, use the five-block rule. There seems to be this magical wall that surrounds tourist areas. Most people don’t go past it. It’s been my experience that if you walk five blocks in any direction from a major tourist area, you end up losing the crowds and finding the local restaurants.

In my experience, tourist restaurants don’t care about quality since those tourists aren’t coming back. Residents do care so places catering to them need to be better — and more affordable – or they go out of business. Those are the places you want to eat at. Use the above resources to find where the locals eat and avoid crappy food!
 

11. Travel Like You Live

The majority of people in your destinations don’t spend lots of money per day like tourists do. Neither do you in your day-to-day life. So take that mentality with you. Walk, take public transportation, grocery shop, spend a day in a park, and look for deals. Do the things you do at home every day to keep your costs down.

Too many people get into this mindset that when they go on the road, they just have to spend, spend, spend, spend. That’s not true at all. There’s no law that says you have to spend more. Be smart with your budget — just like you are at home. That will help you save money and prevent you from going home early (and broke).
 

12. Work & Volunteer to Lower Your Expenses

If you’re a long-term traveler, consider volunteering or doing a work exchange to lower your costs. There are tons of options out there such as farm stays, working in hostels, teaching in schools, and more.

You’ll usually need to commit for a week or more, however, these opportunities enable you to get a much deeper and more nuanced travel experience. Here are some websites to help you find suitable opportunities:

  • Worldpackers – Worldpackers offers travelers a chance to find volunteer experiences overseas. In addition to hostels, they can help you find experiences with NGOs, homestays, and eco-projects all over the world!
  • WWOOF – WWOOF (World Wide Opportunities on Organic Farms) is a program that connects you with farms all around the world where you can work in exchange for room and board.
  • Helpx – Like Worldpackers, Helpx offers exchanges such as farmstays, homestays, B&Bs, hostels, and sailboats.
  • Workaway – Workaway is a lot like HelpX, except it has more paid job opportunities (though it has volunteer opportunities too).

***
While prices may be higher than they were pre-pandemic, there are still plenty of ways to plan a budget trip without breaking the bank. By being flexible, getting creative, and embracing the right mindset, you’ll be able to get out the door in no time. And it won’t cost you a fortune either.

All you have to do is take that first step. Remember, action begets action. Once you start moving, everything else gets easier. So don’t wait!

 

How to Travel the World on $75 a Day

How to Travel the World on $75 a Day

My New York Times best-selling book to travel will teach you how to master the art of travel so that you’ll get off save money, always find deals, and have a deeper travel experience. It’s your A to Z planning guide that the BBC called the “bible for budget travelers.”

Click here to learn more and start reading it today!

Book Your Trip: Logistical Tips and Tricks

Book Your Flight
Find a cheap flight by using Skyscanner. It’s my favorite search engine because it searches websites and airlines around the globe so you always know no stone is being left unturned.

Book Your Accommodation
You can book your hostel with Hostelworld. If you want to stay somewhere other than a hostel, use Booking.com as it consistently returns the cheapest rates for guesthouses and hotels.

Don’t Forget Travel Insurance
Travel insurance will protect you against illness, injury, theft, and cancellations. It’s comprehensive protection in case anything goes wrong. I never go on a trip without it as I’ve had to use it many times in the past. My favorite companies that offer the best service and value are:

Want to Travel for Free?
Travel credit cards allow you to earn points that can be redeemed for free flights and accommodation — all without any extra spending. Check out my guide to picking the right card and my current favorites to get started and see the latest best deals.

Need a Rental Car?
Discover Cars is a budget-friendly international car rental website. No matter where you’re headed, they’ll be able to find the best — and cheapest — rental for your trip!

Need Help Finding Activities for Your Trip?
Get Your Guide is a huge online marketplace where you can find cool walking tours, fun excursions, skip-the-line tickets, private guides, and more.

Ready to Book Your Trip?
Check out my resource page for the best companies to use when you travel. I list all the ones I use when I travel. They are the best in class and you can’t go wrong using them on your trip.

The post How to Travel on a Budget appeared first on Nomadic Matt's Travel Site.

Travel is a Privilege

A traveler walking down a beach in the beautiful BVIs
Updated: 1/16/2020 | January 16, 2020

Let’s face it: not everyone is going to able to travel. Whether it’s money, family obligations, or circumstance, travel is out of reach for a large percentage of the world’s population.

In the “quit your job to travel the world” cheerleading that happens so often on travel websites (including this one), we often forget that it’s not so easy for everyone.

Yes, years on the road have shown me that, for many of us, our inability to travel is partly a mindset issue (since we believe travel is expensive, we don’t look for ways to make it cheaper) and partly a spending issue (we spend money on things we don’t need).

Our culture says travel is expensive and — without a frame of reference to know that that is wrong — people just assume it’s right. And yes, people that have decent-paying jobs but go shopping often or spend a lot on avocado toast (or whatever it is they spend money on) are more often than not prioritizing travel.

But there are those for whom no mindset change, spending cuts, or budget tips will help them travel — those who are too sick, have parents or children to care for, face great debt, or work three jobs just to pay their rent.

After all, 2.8 billion people — nearly 40% of the world’s population — survive on less than $2 USD a day!

In my home country of the United States, 14% of the population is below the poverty line, 46 million people are on food stamps, many have to work two jobs to get by, and we have a trillion dollars in student debt dragging people down.

No tips on any website will magically make travel a reality for those people.

Those of us who do travel are a privileged few.

Whether we quit our jobs to travel the world, spend two months in Europe, or take our kids on a short vacation to Disney World, we get to experience something most people in the world will never get a chance to do.

We overlook that fact too often. We overlook how lucky we are. As I’ve started building FLYTE — a foundation to help high schools take economically disadvantaged students on educational trips overseas — I’ve thought a lot about privilege.

I grew up in a predominately white, middle-class town with parents who paid my college tuition. I had a job after college that allowed me to live on my own, take vacations, and still save for my first trip around the world. And because I speak English, I easily found work teaching English in Thailand, where I could save to extend my travels.

That’s not to say that hard work doesn’t count. But hard work doesn’t exist in a bubble, and the circumstances that create the opportunities for hard work to bear fruit are often more important.

I’ve met people of all ages, incomes, abilities, and nationalities on the road. Folks like Don and Alison, who are backpacking the world at 70; Michael, who worked 60-hour weeks at a minimum-wage job; Cory, who travels the world in a wheelchair; Ishwinder, who didn’t let visa restrictions stop him; and countless others.

But even they had circumstances that allowed them to travel: support from family and friends, jobs that allowed for overtime, or other skills. They weren’t barely getting by or on social assistance. They didn’t wonder if they could afford their next meal.

I worked hard to get where I am. I’m sure you’ve worked hard too. One’s work isn’t less because of opportunity. But I think it’s important to remember that the circumstances around you make it easier for your work to bear fruit than for others. It’s easier to succeed when you don’t have to worry about housing or your next meal. It’s easier to succeed if you’re educated or can get a full night’s sleep in a safe community.

We are some of the lucky ones.

We get to do something that others will never be able to do.

We are privileged.

Even if you’ve hitchhiked around the world with no money, worked overseas, cut costs to travel around the world on $10 USD a day, or travel-hacked your way to a first-class ticket, you have the opportunity to do something most people go to sleep only dreaming about. You have the freedom and choice to move about the world in a way most people don’t.

That’s a form of privilege.

As we go into this new year, I think it’s important that we never forget or be ungrateful for the opportunity we have. Let’s not take it for granted. Let’s be humble. Let’s be more respectful. Let’s give back.

And let’s not squander the opportunity.

Book Your Trip: Logistical Tips and Tricks

Book Your Flight
Find a cheap flight by using Skyscanner or Momondo. They are my two favorite search engines, because they search websites and airlines around the globe so you always know no stone is being left unturned.

Book Your Accommodation
You can book your hostel with Hostelworld, as it has the largest inventory. If you want to stay somewhere other than a hostel, use Booking.com, as it consistently returns the cheapest rates for guesthouses and hotels. I use both all the time.

Don’t Forget Travel Insurance
Travel insurance will protect you against illness, injury, theft, and cancellations. It’s comprehensive protection in case anything goes wrong. I never go on a trip without it, as I’ve had to use it many times in the past. I’ve been using World Nomads for ten years. My favorite companies that offer the best service and value are:

Looking for the best companies to save money with?
Check out my resource page for the best companies to use when you travel! I list all the ones I use to save money – and they will save you time and money too!

The post Travel is a Privilege appeared first on Nomadic Matt's Travel Site.

How to Avoid Paying Bank Fees While Traveling

An ATM lit up at night against a purple brick wall

Finding the money for travel is one of the biggest challenges people face when it comes to taking a trip. It can take years to save up for that dream trip!

And, when people finally save up enough and hit the road, what do most of them end up doing?

They throw money away on avoidable bank fees!!

Banking overseas is more than just putting your card in an ATM and taking out money. When you travel on a budget, it involves knowing how to avoid bank fees, exchange rate penalties, and making your money work for you.

I know too many people who travel abroad and end up paying obscene bank fees when they travel.

And, these days, there’s absolutely no need to do that. You didn’t save up all this money in order to give it to the banks, right? I know I didn’t. I want to keep it all for myself because every avoided fee is more money for food, drinks, and activities on the road!

Here is how you eliminate ALL bank fees when you travel in 5 easy steps:


 

1. Eliminate ATM Fees

ATM fees can really add up — especially if you’re traveling for weeks or months at a time. Let’s think about it: while you’re on the road, you might withdraw money from an ATM twice a week. If you withdraw money from an international ATM with your regular debit card, you’ll be hit with three different fees:

  • Your bank’s fee for using an ATM outside of their network (usually $2.50–5 USD)
  • The ATM’s fee (usually $3–5 USD)
  • An international conversion fee (usually 1–3% of the transaction)

As you can see, these fees very quickly add up. Fees vary around the world, but let’s say that you end up paying around $7 USD per withdrawal. That is $14 per week, $56 per month, or $672 per year! Do you know how many days you could spend in Southeast Asia for that amount? Almost three weeks!

Even if you only use the ATM once a week, that’s still $364 USD per year. And most travelers I know go to the ATM even more than twice a week, which only increases the amount in fees they pay. Why give banks money you need for travel? You worked hard saving your money — don’t waste it by giving it to a bank.

To help you avoid fees, here are four things you’ll want to do on your next trip to eliminate those pesky fees:

First, you could join a bank that is part of the Global ATM alliance, the principal international banking network. The banks listed below have agreements with one another wherein if you belong to one bank, you can use the ATMs of all the other banks without being charged an ATM fee:

  • Bank of America
  • Barclay’s
  • BNP Paribas
  • Deutsche Bank
  • Scotiabank
  • Westpac

Note: Bank of America charges a 3% transaction fee on all non-USD currency withdrawals, even for banks within the alliance. (Tip: Often, if you call Bank of America, they will refund most or all of this transaction fee.)

Beyond these banks, individual alliance members have additional partnerships. For example, Bank of America also waives ATM fees with TEB in Turkey, UkrSibbank in Ukraine, and China Construction Bank in China. And Westpac has an agreement with CIMB, a bank in Indonesia and Malaysia.

It’s important to note that some country subsidiaries of the above banks might not be included in the ATM Alliance. For example, if you have Bank of America, the BNP Paribas waiver only works for its France operation (not anything else) while Westpac only works in Australia and New Zealand but not Fiji.

But, in my opinion, the best U.S. bank is Charles Schwab. While Charles Schwab doesn’t have deals with any banks overseas like those mentioned above, they don’t charge any ATM fees and will reimburse any ATM fees from other institutions at the end of each month. You will need to open an individual checking account to qualify, but there is no minimum deposit required and no monthly service fee.

You’ll never pay a fee with Charles Schwab, and their ATM card can be used in any bank machine around the world. If there isn’t a branch near you, you can open an account online by going to their website. To me, this is the current BEST ATM card to have. I never, ever think about fees because of it.

Here are some suggested ATM cards for non-US travelers:

  • Canada: Scotia and Tangerine are both part of the Global ATM Alliance.
  • Australia: ING, Citibank, or HSBC have no fee cards.
  • UK: Starling lets you avoid ATM fees abroad. Monzo has fee-free international transactions for your first 200 GBP withdrawn every 30 days.

 

2. Avoid Credit Card Fees

The next major fee we need to get rid of is the credit card foreign transaction fee. Many credit cards charge a 3% fee on purchases made overseas. That can add up since most of us use our credit card for everything. It’s become a lot more common for credit cards to have “no foreign transaction fees” so it’s unlikely you’ll have a card that does but be sure to ask.

My favorite no overseas transaction fee cards are the Chase Sapphire Preferred, Capital One, and Citi Premier, but there are tons and tons of options and you should pick the card that not only doesn’t have a fee but is good for earning points too.

For more suggestions on credit cards, including best current offers, you can find all my favorite travel cards here.

For non-US citizens, check the following websites that list cards that might not charge any overseas fees:

 

3. Minimize the Exchange Rate “Penalty”

Every time you use your card overseas, your local bank converts the transaction into your local currency for billing purposes and takes a little off the top for doing so. Thus, the official rate you see online is not what you actually get. That’s the interbank rate and, unless you become a major bank, you’re not going to get that rate. All we can do is get as close to that rate as possible. To do so, you need to:

Use a credit card -Credit card companies get the best rates. Using a credit card will get you an exchange rate closest to the official interbank currency rate so avoid an ATM or cash if you can.

Use an ATM – ATMs offer the best exchange rate after credit cards. They aren’t as good as credit cards since commercial banks take a little more off the top, but it’s much better than exchanging cash. Money exchange offices offer the worst rates because they are so far down the food chain, they can’t get the best exchange rate (plus, they usually charge a commission as well).

Don’t use ATMs in weird locations – Using those ATMs you find in hotels, hostels, local 7-11s, or some other random place is a bad idea. They’re convenient, but you’ll pay for that convenience. They always charge high ATM fees and offer horrible conversion rates. Skip those ATMs and find a major bank.
 

4. Don’t Change Money at Airports

Most exchange bureaus in airports are so far down the financial food chain they don’t have the clout to offer good exchange rates. The rates you see at airports are the worst — never, ever use an exchange bureau there unless you absolutely have to.

Another tip: avoid using the company Travelex at all costs. They have the worst rates and fees. Never, never use them. Avoid their ATMs too!
 

5. Always Pick the Local Currency

When you use your credit card abroad, you will often be given the option to be charged in your home currency (i.e., instead of being charged in euros, they will charge you in US dollars). Never say yes. The rate at which they are converting the currency is always worse than the rate your bank will give you.

Pick the local currency and let your credit card company make the conversion. You’ll get a better rate and save some money in the process.
 

6. Don’t Get Currency at Home (and Skip Foreign Currency Cards!)

While buying currency at home might seem like a good idea, you’ll end up getting a worse exchange rate. Unless you are 100% sure you’ll need cash right on arrival, avoid exchanging money in your home country.

Airports all have ATMs where you can withdraw money if you desperately need it. (However, I suggest you wait until you get to your destination and withdraw money downtown/from an ATM away from the airport. You’ll get a much better rate and pay a much lower fee. Use your credit card on arrival and then get cash later.)

Additionally, avoid any “foreign currency cards” where you can pre-load money and lock in the exchange rate. Seems like a good idea, right? Wrong! You are basically trying to predict the exchange rate and betting you can beat the market. You’re saying this rate is not going to get worse, but what if it gets better? You don’t know! (And, if you do know, you should be placing bets in the market.) Moreover, these cards come with a lot of fees that don’t make them worth it. Just avoid them.

Bonus: Make Your Money Work For You

Saved a bunch of money for your trip? Have it earn extra money! Interest rates are around 4% right now so you can have your money earn something while you’re away. It’s not like you withdraw it all at once, right? I keep my money in a high-yield savings account rather than in a big bank! Here is a list of some of the current highest yields you can get:

 

***
Bank fees can add up to some serious money over the course of a long trip. If you want to save money, you need to be proactive when it comes to banking and currency exchanges. A little planning can go a long way and save you a ton of money over the weeks, months, and years of your travels.

Be smart and bank smart. I haven’t paid a bank fee while traveling the world in over fifteen years and you shouldn’t either.

And, with these simple tips, you’ll never have to again.

 

How to Travel the World on $75 a Day

How to Travel the World on $75 a Day

My New York Times best-selling book to travel will teach you how to master the art of travel so that you’ll get off save money, always find deals, and have a deeper travel experience. It’s your A to Z planning guide that the BBC called the “bible for budget travelers.”

Click here to learn more and start reading it today!

Book Your Trip: Logistical Tips and Tricks

Book Your Flight
Find a cheap flight by using Skyscanner. It’s my favorite search engine because it searches websites and airlines around the globe so you always know no stone is being left unturned.

Book Your Accommodation
You can book your hostel with Hostelworld. If you want to stay somewhere other than a hostel, use Booking.com as it consistently returns the cheapest rates for guesthouses and hotels.

Don’t Forget Travel Insurance
Travel insurance will protect you against illness, injury, theft, and cancellations. It’s comprehensive protection in case anything goes wrong. I never go on a trip without it as I’ve had to use it many times in the past. My favorite companies that offer the best service and value are:

Want to Travel for Free?
Travel credit cards allow you to earn points that can be redeemed for free flights and accommodation — all without any extra spending. Check out my guide to picking the right card and my current favorites to get started and see the latest best deals.

Need a Rental Car?
Discover Cars is a budget-friendly international car rental website. No matter where you’re headed, they’ll be able to find the best — and cheapest — rental for your trip!

Need Help Finding Activities for Your Trip?
Get Your Guide is a huge online marketplace where you can find cool walking tours, fun excursions, skip-the-line tickets, private guides, and more.

Ready to Book Your Trip?
Check out my resource page for the best companies to use when you travel. I list all the ones I use when I travel. They are the best in class and you can’t go wrong using them on your trip.

The post How to Avoid Paying Bank Fees While Traveling appeared first on Nomadic Matt's Travel Site.