How To Save On Accommodation
Accommodation, food and transport are the top three expenses in life and travel. I will break them down in a three part series.
I rented a basic tiki hut in Fiji in 2008.
Types of Budget Accommodation
Couchsurfing (Couchsurfing.org)
Locals post profiles offering their couches for FREE and are reviewed by users. The website is also a great community for meet ups and events including language groups and social activities. For safety concerns: https://www.couchsurfing.org/n/safetyBe sure to have friends provide references for you when you sign up initially.
When I moved to California, I couchsurfed while I was looking for a place to live and made a cool friend who’s also traveling the world: https://kaleenaskaleidoscope.com
Hostels
Hostels are the best place to meet other travelers. You essentially rent out a bed in a dorm of 3-20 people. They feature shared showers and lockers for your valuables. (Pack your shower shoes and a sturdy lock.) Private rooms and female only dorms are also available. Most have full kitchens and some offer free breakfast. It’s basically like being in college again without having to go to class. Prices range from $6 (Asia/Central America) to $50 (NYC).
You can find hostels and reviews on Trip Advisor or HostelWorld. To avoid booking fees, book with the hostel directly. If you are planning a long stay, only pay for the first couple nights when you arrive to make sure you like the place.
Airbnb (Airbnb.com)
People rent out rooms and couches in their homes for a fee. They post profiles about the space and guests provide reviews. Airbnb verifies the identity of all hosts, offers a secure payment platform and 24/7-customer service. It’s a great option for locations without hostels. Be sure to have a friend refer you and offer a reference. Click here to get a $25 credit when you sign up!
When I lived in California, my roommate and I rented out the Ikea futon in our living room for $75/night and met some cool folks. I found a room for $35 in Albuquerque on a road trip last year and spilt a nice room in Burlington, Vermont with a friend in October for $70. All were great experiences and cost effective.
House Sitting/Pet Sitting
I am the official house/pet sitter for Austin, Texas. Handsome chatty parrots, fluffy cats named Adam and overly energetic dogs are my specialty. My roommate’s lease ended a few months before I left for this trip. Conveniently, several friends needed house/pet sitters while I was homeless. It was a win-win situation for everyone.
It’s a good way to save on rent before your travels and find free accommodation on the road. My friend, Carla, spend several months house sitting when she moved to Australia. Make sure you leave the house better than you found it. 🙂
Mindmyhouse.com ($20 annual fee)
Trustedhousesitters.com ($60 annual fee)
Stay with Friends or Friends of Friends
The more you travel, the more your traveling network expands. Your friends also have friends. Ask around before your trip or put a post on Facebook to see if anyways in your destination.
I am eternally grateful for all the people who have let me crash on their couch. They’ve been an essential part of my traveling experience. Before this trip, I did a two-week Amtrak trip through the East Coast and stayed with friends the entire trip except one night in Vermont. When I moved to Australia, I emailed a lady I met a wedding about grabbing lunch after I got to Sydney. She instantly offered to let me stay with her family until I found a place to live. The kindness of others is astounding.
Most people will offer you a place to stay instantly. If I ask, I always make a point to say, “If that’s not a convenient time, then I completely understand.” That gives them the option to be honest if the timing is not good, and there are no hard feelings. I always make a point of leaving handmade cards for people who let me crash at their place. Or I buy them beer/wine and add them to my postcard list.
Don’t forget karma. Offer your couch to friends and friends of friends. Sign up for Couchsurfing!
A basic guesthouse room in Southern Thailand.
Four Essential Accommodation Tips
1. Be aware of high/low seasons.
Costs can triple during holidays and high seasons. Book in advance. Be aware of national holidays in your destination country. It’s easier to negotiate prices in the low season, but the weather might not be ideal. Lonely Planet guides provide a good breakdown for seasons and holidays on their first few pages. Christmas, New Years and Easter are always peak seasons.
Costs can triple during holidays and high seasons. Book in advance. Be aware of national holidays in your destination country. It’s easier to negotiate prices in the low season, but the weather might not be ideal. Lonely Planet guides provide a good breakdown for seasons and holidays on their first few pages. Christmas, New Years and Easter are always peak seasons.
During the low season, I lived well on $15/day in Khao Lak, a beach town north of Phuket in Southern Thailand. That’s cheaper than any place I’ve lived in the States.
2. Skip the A/C
Air conditioning isn’t standard outside of the U.S. Opting for a room with a fan or with cold water only will cut the price significantly. Plus, you really should be spending more time exploring than sitting in your room! Trust me, you don’t need warm water in the tropics.
3. Pay in Local Currency
Despite whether you are paying online or in person, it’s almost always cheaper to pay in local currency. Currency conversion rates usually inflated for profit.
Despite whether you are paying online or in person, it’s almost always cheaper to pay in local currency. Currency conversion rates usually inflated for profit.
4. Share a Room
Private rooms in hostels are usually the same cost per person as a dorm bed or cheaper. Guesthouses are another great option. They have fewer facilities than a hotel but offer private rooms with private baths.
I shared a three-bed room in a guesthouse with three friends in Laos a few years back for $4 per night EACH. That included an amazing private balcony, private bathroom, air-conditioning and free wifi. Seriously. Traveling is cheaper than you think.
Get out of your comfort zone and go see the world!
Next Post: Tips for Saving on Food Costs
Travel Funding: Top Saving Tips
The faster you save, the sooner you can hit the road!
Top 8 Saving Tips for Travel
1. Track Your Current Spending
In order to establish a savings plan, you need to understand how much money you make and where it all goes. Keep track of every single quarter you spend for a few weeks or a month.
Here are a few helpful budget apps: Dollar Bird, Level Money, Mint.com and Pocket Expense
(I currently use Dollar Bird to track my spending while traveling.)
2. Make a List of Monthly Bills
Write EVERYTHING down: rent, utilities, cell phone, student loans, Netflix, etc. Separate “needs” and “wants.” The “needs” column should only include housing, food, transportation and healthcare. Everything else, even my MLB.com subscription, is frivolous.
3. Cut Expenses
Where can you cut expenses? Remember “needs” versus “wants.” You NEED a place to live, but you won’t die if you cancel your Amazon Prime membership. Can you share someone else’s Netflix/MLB/Pandora account? Find a cheaper gym/apartment/car insurance plan. Get a roommate. Rent out your spare room. Move into your friend’s spare room. House/pet sit. The options are endless. Get creative. How bad do you want to travel?
4. Sell everything
I admit it. I collected Hard Rock Café shot glasses when I first started traveling. They sat on a bookshelf at my parent’s house accumulating dust for years, while I was living in other places. One day, I put them in shoeboxes. Six years later, I decided it was time to sell them. They were eBay gold and sold instantly.
Admit it, you know you still have your old Troll doll collection sitting in your mom’s basement.
5. Minimalism
Fight Club was right. The things you own, own you.
I believe it’s better to invest in experiences. There’s a new car/iPhone released every year, but there’s nothing that will replace my travel adventures. I’d rather be the old person with tons of cool stories than a house full of useless junk that my nephew will have to sort through after I’m gone.
Set a deadline before your trip. (I suggest a month before a short trip and six months before a long-term trip.) After the deadline, you can’t buy anything that isn’t for your trip. Ladies, this includes cute shoes and home décor items.
The amount of luggage you pack controls you, too. Don’t worry, I’ll cover packing in another post.
6. Make More Money
If you need more money, go out and make more money. It’s really that simple.
Get a bar job, deliver pizza or invest in the stock market. The options are endless. Bartending and waiting tables funded majority of my travels. I loved the bar world and met some amazing people.
Financial guru Dave Ramsey mentions a story in one of his books about a man who delivered pizza to get out of debt. It works the same for traveling.
What pays the bills doesn’t define you. You should always be working toward a larger goal. Who cares if your neighbor judges you for delivering his pizza? When he sees your African safari photos on Facebook, he’ll be delivering pizzas with you.
7. Debt
My ultimate goal is to have no bills while I travel.
If you have debt, I would advise using the above tactics to minimize your debt before a long-term trip or consider working while you travel. Or check out a Dave Ramsey book from the library. I will focus on both working abroad and eliminating bills in a future post.
For student loans, consider saving the minimum payment for the months you will be gone but include a few buffer months when you return. Put this in a separate savings account so it can draw interest during your travels.
8.Set Weekly and Long-term Goals
Now, you should have the following written down:
1. Record of your current income and spending habits
2. List of your monthly bills
3. List of ways to cut expenses and make more money
Now, put the plan in action. Set weekly and long-term goals for how much you will be saving. Give yourself a budget for the week. Personally, I like to save 50% of my income, but I am extreme. Do what’s best for you. The more you save, the quicker you’ll be riding a camel in Mongolia.
READ NEXT:
Travel Funding: The Cost of Traveling
I quit my first “real” job as a graphic designer at a newspaper to move to Australia on a one-year work visa. One of the middle-aged copyeditors at the paper was baffled, “How are you going to live?,” he asked. “Do you have a trust fund?”
I shook my head and replied, “No. I saved and plan to work while I’m gone.”
Traveling is easier than you think and is probably cheaper than where you live now. The biggest myth about traveling is that it’s expensive. I am starting a series about Travel Funding including how to save for a trip and ways to cut costs on top expenses. My tips are geared toward long-term travel but can also be used to extend your funds for any trip! In life, you either have time or money. In this series, I focus on money. You can find my post on finding the time to travel here.
Zicatela Beach, Mexico
HOW MUCH DO I SAVE?
For me, I try to live on $1,000 USD/month no matter where I am. That’s roughly $30/day. This is a fairly common budget for many backpackers I’ve met in Asia and Latin America. I like to have at least $10,000 before any trip, despite the length. I started with $15,000 (and no debt) for my current Central/South America trip.
Top Five Factors to Consider when Saving for Travel
1. Research Your Destination
Where are you going? Asia, aside from Japan and Singapore, is the cheapest part of the world. Central and South America, except Brazil, are fairly cheap compared to the U.S. Western Europe is one of the most expensive for Americans. And, Australia isn’t cheap either.
Guidebooks give you a rough idea of prices. Go to the library/bookstore and look through a few current guidebooks. Lonely Planet lists a daily cost breakdown at the beginning of each book for various budget ranges. Flip through to get an idea of the cost of transport, accommodation and food. This is the best starting point.
2. Be Aware of High/Low Seasons
Costs can triple during holidays and high seasons. Be aware that holidays at your destination might differ from your home country. Prices can spike but also some businesses close. Transport might be pricier and more difficult to find in low seasons. Keep in mind that low seasons can mean colder or rainier weather. Shoulder seasons are sometimes best. It’s easier to negotiate prices in low season for accommodation but easier to find ride shares for transport in high season. Do a little research.
3. Bucket List Activities
If you want to get PADI certified to scuba dive or climb Kilimanjaro, know the basic cost. This is most likely going to be your main expense so get an idea of costs to make it easier to save accordingly.
4. Talk to Other Travelers
Remember your co-worker’s cousin that teaches English in Thailand? Get his email and ask him about the cost of living. Look at online forums for travel advice. Couchsurfing.com is a great resource for meet-ups events and other ways to meet experienced travelers in your neighborhood. I went to Spanish meet-ups in Austin before I left for this trip and meet tons of cool people with great travel budget tips.
5. Cushion Fund
At some point, you might decide to go home. What is your plan? Do you have a job lined up? Are you going to crash with a friend or family? Where are you going to live?Don’t worry – you don’t need a plan, just a cushion fund to cover a couple months of living expenses when you return. For me, I feel safe with $5,000-$2,000. If you have a job lined up, then you can get by on less.What’s your target savings goal?