Money Sense Tips

How do you save money on travel during the holidays? This can be a big challenge. It’s no secret you will spend more during the peak season. However, you do not have to. There are many strategies to avoid paying top dollar. Here are four of the best:

#1) Stay at hostels

This may not be as nice as a hotel, but it will save you a lot of money. Of course you do not want to stay in a dump, but you can save some serious cash using this method. The truth is, hostels are nicer than they used to be, and you can have an enjoyable stay at one.

In many instances the rooms are $30-$50, compared with $100 or more for a decent hotel. Just about every big city has a number of hostels to choose from. If you are unsure of which to go with, just read reviews of the one you are considering.

#2) Use the Lonely Planet Magazine

This will often help you find better prices. In many instances you can locate great hotels for real bargains. These are generally little-known gems that are off the beaten path, and therefore are still high quality but without the premium pricing. In many instances they are just as nice as hotels that cost two to three times the price.  

#3) Do a home exchange

This is one of the best strategies for saving money, and many people do not even know about it. How does it work? You allow someone to say at your house while you stay at theirs.

Both parties will be going to the others’ city. You do not even need the same priced house. You might end up staying in a 2000 square foot home, even though you only gave up a 1000 square footer. As long as both parties are happy, that’s all that matters.

Where do you find home exchanges? There are plenty of online sites that will connect you with other travelers looking to come to your city. This is one of the simplest but most effective strategies for massive savings during the holidays.

#4) Book early

This is no big secret. The earlier you book, the more choices you will have. For instance, if you are going somewhere on Christmas break, do not wait until December 18 to start looking for hotels. Do so months in advance. The choices will be much greater, and since there are more options, you will save money.

The bottom line is, you do not have to pay top dollar when travelling during the holidays. Hopefully these tips will help you enjoy a great trip while saving a lot of money.

Want to know the best way to use your money while travelling? This is important not just for saving money, but also for the sake of security. Here are the pros and cons of the three major methods of carrying travel money:

1) Credit cards

Pros
They are incredibly easy to carry around, much more so than cash. Also, in many instances credit card firms offer car rental coverage. This can save you a lot of money. If your car insurance plan doesn’t cover rentals, you will have to get it from the company itself – which is extremely expensive.

Cons
You run the risk of overspending. This is always a danger when using credit cards, but it is even more of an issue when traveling.

2) Debit cards

Pros
Like credit cards, they are easy to carry around. Also, they prevent you from overspending. This is because once the money is gone from your bank account, you cannot spend another dime. This prevents any surprises when you get home and look at your bill.

Cons
They are riskier than credit cards. If they get lost, you might be held liable for any money that is spent. With credit cards, you just call up the company and let them know your card was stolen and to not allow any unauthorized charges. You will never be on the hook for any unauthorized spending. However, with debit you might be liable. The final decision is up to the bank.

3) Cash

Pros
You cannot spend more than you take. This is the biggest plus. With credit cards, it’s easy to lose track of your budget, but this is impossible if you do not bring more money than you need.

Also, with cash you do not have to worry about locating banks or automatic teller machines for money. And it tends to have a better exchange rate. Often times, credit card firms charge very expensive fees when using them abroad.

Cons
The main negative is that that cash is hard to bring around. Also, it is the most easily stolen of any of the three methods. If it gets taken, you have no recourse for getting the money back.

Conclusion: So the bottom line is that every method has its pros and cons. Which you choose just depends on your personality. For instance, if you are someone prone to overspending, you might want to bring cash to avoid this. However, if you are more disciplined, then a credit card may be acceptable.

The most important thing is that, no matter which method you use, you have a budget and stick to it at all costs. This will prevent overspending and ensure you have no surprises when you get home and look at your bill.