The state of the economy and the world in general can make it anxiety inducing – especially from a financial perspective – to travel. But don’t miss out, out of fear! (or a light wallet…). There are plenty of ways to take in cultures around the world, even if you’re on a budget.
We chatted with Diana Yáñez, a certified financial planner and registered life planner, to get her best kept secrets.
Always, know thyself! Why are you traveling?
- Is it to see a place you’ve been dreaming of seeing for a long time?
- To learn more about a particular culture?
- To attend a specific event, be it a concert, family reunion, or cultural event?
- Spend time with friends or have a romantic getaway with your partner?
- Relax and rejuvenate?
- Inspire envy in others through social media or stories of adventure?
“Once you know the main one or two reasons you’re traveling, focus on spending time and money on those things. It’ll make decision making easier and also help you plan out how much you’ll need to spend while traveling.”
Do your research.
“Before you book any travel, do a little bit of light research on where you’re going and what you’d like to do. If things are pricier than you were anticipating, focus on the things you can control. Can you postpone the vacation while you build up savings? Can you find more affordable alternatives either in activities or location? Can you prioritize one or two of the pricier activities and let the rest go? Can you go at a time that’s considered low season when things may be more affordable? You always have options.”
Include rest time.
“Remember to include plenty of rest in your travel plans! Often people will share they want a vacation after their vacation because they packed so much into their time away. As someone who has been traveling continuously for the past 18 months I’ve got bad news: you won’t be able to see everything. Make peace with that and truly enjoy restful (and free) activities like lounging after dinner at a park and going for a run. We often spend more money than we mean too when we’re stressed and want to wind down, so avoid this pitfall by reducing stressful ‘gotta see and do and eat and visit everything’ energy. By resisting the urge to pack it all in you’ll finish your vacation both more well rested and having spent less money.”
Plan to cook.
“Unless you’re taking a vacation because you do not want to cook, try and rent a place with access to a kitchen or mini fridge. Your health and your wallet will thank you if you cook every once in a while, or at the very least assemble some simple foods at your lodging at least once a day. If you’re traveling abroad, going to a local market can be really culturally rich, just make sure to be flexible – they probably won’t carry your favorite brand of peanut butter. This is an invitation to try out something new so stay away from often pricier imports from your home country. You can always have those once you’re back home.”
Avoid going into debt for travel.
“Spending on credit while on vacation can actually make the experience less enjoyable because it adds a tinge of financial fear. On the other hand, sometimes you just need a break, for example after a stressful divorce or other difficult experience. If you decide to go into debt while traveling make sure you set up a plan to pay it back quickly. There’s nothing fun, relaxing or rejuvenating about spending more than you planned to on vacation because of 20%+ credit card interest rates.”
