Since COVID restrictions have been easing this year, I’ve started traveling more. As I mentioned in my last blog post, I treated my whole family of 5 to a week long vacation in Maui, Hawaii. I showed how I used credit cards to save money and earn points for my next vacation. Now it has been a month since my week long solo trip to Seoul, South Korea. As I was preparing for my trip and during my trip, I took the time to research tips to help me save money, both domestically and internationally. In this blog post, I share the 5 tips that have helped me save money the most during my travels.
1. Opt for Off-Season
I’ve gotten decent deals traveling during off-season. Since businesses know when there are less tourists, they are more generous when giving out deals just to drive business. This applies to things like accommodations, tours, and even food. An added bonus is that there are less tourists crowding the places you'll be visiting. I can say, Maui was definitely more quiet since all the families with kids were back on the mainland since school had started back up.
2. Use cards with NO Foreign Transaction Fees
Whether you’re taking out cash or swiping your credit card, if you travel internationally, you may be paying for foreign transaction fees. These fees are determined by your bank or the ATM itself and usually take around 3% of the entire purchase. That is expensive and an unnecessary expense.
I personally brought my Chase Sapphire Reserve® and American Express® Gold Card to Korea and didn’t have to pay any foreign transaction fee at all as it is one of their benefits.
I do want to note that these cards are premium credit cards that have annual fees. There are credit cards out there that have no annual fee and do not charge foreign transaction fees. Some examples would be the Wells Fargo Autograph℠ Card, Discover it® Miles, and Bank of America® Travel Rewards.
3. Need Cash? Use a Debit Card with NO Withdrawal Fee
There are some instances when traveling internationally that you need to pay in local currency. If you didn’t convert enough in the beginning, you’re most likely going to look for an ATM to grab cash. It definitely pains me to see the ATM charge $3-$4 per transaction. That adds up in the long term. Fortunately, there are bank accounts with debit cards that have no withdrawal fees or even credit you back the fees. Some examples would be the Schwab Bank High Yield Investor Checking Account (I personally use this) and SoFi Checking Account.
4. Travel to places where your home currency takes you farther
This is a great tip to help lower the price of travel, saving money, and maximizing your budget during times of inflation. For example, if I were to take the same vacation I took to Seoul back in 2019, my $1 USD equaled roughly ₩1171 Korean Won. During my trip, my $1 equaled approximately ₩1429. That is an extra 22% that the USD was worth which helped my save hard earned money when buying food and souvenirs.
My McDonald’s meal costed ₩10,500 Korean Won. When converted to USD, my whole meal costed $7.29. Now compare that to a normal combo meal in America, I would pay $10.16.
5. Consider various housing options, from hotels to hostels
A majority of people opt for hotels when traveling. It is one of the most convenient ways for lodging. I highly recommend, before booking, to make sure you check multiple platforms to make sure you are getting the best deal.
With the rise of AirBnb, you can find apartments and bed-and-breakfasts for great deals too!
I’d recommend to be open to looking at different accommodation types. For Seoul, I stayed at a hostel with my own room and bathroom for roughly $26 per night, all fees included. If I were to stay at a 3 star hotel, it would be roughly $70 per night. For 7 nights, I saved almost $300!
I hope you get to try these tips out so you can save some money on your vacation. I know these will come in handy when I travel to Japan during cherry blossom season in April. Also, with a possible looming recession, it’s always a good idea to cut costs where you can. If you are looking for better budgeting practices or an investment plan for your nest egg you’ve saved for future vacations around the world, make sure to schedule a meeting with either Tori or Alex by CLICKING HERE. If you are looking for a personalized credit card portfolio that can maximize earnings to subsidize travel or redeem as cash back, set an initial consultation with me HERE.
Best,
Brandon