Travel Globally, Spend Locally

How to Travel the World on $50 a Day

The world is a big, beautiful place, and it's time to see it. But how? Well, it's not as hard as you think. This book will show you how to travel the world on a budget. You'll learn how to avoid those pesky bank fees, earn thousands of frequent flyer points, and find the best deals on accommodation, tours, and transportation. Whether you're planning a two-week trip or a two-year adventure, this book has got you covered. So, get ready to pack your bags and explore the world without breaking the bank!

How to save for your trip

Set your intention

Having a clear idea of what you want to achieve will help you plan how to save money for your trip. Write down your intention in a journal or create a vision board. For example, "In 2023, I am going to go backpacking in Central America for three months", or "I want to travel to South America to learn about other cultures".

Plan your travel budget

Calculate how much it will cost to get to your destination and how much money you’re likely to need on a weekly basis (taking into account local transportation, accommodation, food & drink and leisure expenses). Once you know the total cost, decide how long it will take you to save.

Set up a direct debit to your savings account

Contact your bank to set up a direct debit to your savings account. Put money aside each month, no matter how much or little, and soon you’ll see your savings grow.

Cancel unnecessary subscriptions

Review your monthly subscriptions and ask yourself whether you really need them. For example, if you mostly watch Netflix, it might be time to cancel your cable TV subscription.

Cut back on expenses

In the months leading up to your trip, cut back on expenses such as eating at restaurants and impulse shopping. Put the money you save into your vacation fund.

Earn extra money

Get a part-time job or hold a yard sale to boost your vacation fund.

Make your money work for you

Use cash back rewards credit cards to earn free cash, extra airline miles and travel points.

Look for deals

Before you go shopping, check the websites of various supermarkets and shops to find the best deals.

Limit online shopping

It's easy to overspend when shopping online. Try to spend money using cash in actual shops; you'll have a better idea of how much you’re spending and a better idea of the products too.

Save on energy bills

Switch energy suppliers when your current contract ends to find a cheaper deal. Learn how to save on gas, electricity and water.

Give yourself a cooling-off period for purchases

To avoid impulse purchases, allow yourself a cooling-off period. For example, if you see a pair of shoes you like, wait three days – you may find your desire to buy them fades away.

Make packed lunches

Taking packed lunches to school or work instead of buying food from the local convenience store could save you up to $1000 per year.

Buy generic brands

There’s no need to pay top price for branded products. Generic products are often just as good as their branded counterparts.

Plan meals and shop once a week

Figure out what you want to cook over the coming week and then write down the ingredients you’ll need on a shopping list. Do one big weekly shop to avoid buying things you don’t need.

Use alternative transport methods

Before ordering a taxi or getting on a bus, ask yourself if you could walk or cycle to your destination.

How to avoid paying bank fees

Banking overseas can be expensive, but there are ways to avoid paying unnecessary bank fees. Here are some tips to help you save money on bank fees while travelling:

• Eliminate ATM fees: Withdrawing money from an international ATM with your regular debit card can result in multiple fees, including your bank's fee for using an out-of-network ATM, the ATM's fee, and an international conversion fee. These fees can quickly add up, so it's best to avoid them if possible.
• Choose a bank with no ATM fees: If you are a US resident, consider using Charles Schwab as they have no ATM fees and reimburse all your ATM fees at the end of each month. Another option is to pick a bank in the Global ATM Alliance, which is a network of large banks that have waived fees for ATM withdrawals within the alliance.
• Get a low-fee card: Some banks, such as HSBC, charge a low fee for ATM transactions when you use a non-HSBC ATM.
• Avoid credit card fees: Most credit cards charge a foreign transaction fee, typically around 3%. Look for credit cards that have no foreign transaction fees, such as Chase Sapphire Preferred, Capital One, and Citi Premier.
• Minimize the exchange rate "penalty": When you use your card overseas, your bank converts the transaction into your local currency and usually takes a small percentage as a fee. Using a credit card will generally get you the best exchange rate, followed by ATMs. Avoid exchanging cash at money exchange offices or ATMs in hotels, hostels, or random locations as they usually charge high fees and offer poor exchange rates.
• Don't change money at airports: Exchange bureaus at airports often have poor exchange rates, so it's best to avoid them.
• Always pick the local currency: When using your credit card abroad, you may be given the option to be charged in your home currency. Avoid this, as the conversion rate is usually worse than what your bank will give you. Always pick the local currency and let your credit card company make the conversion.
• Don't get currency at home: Buying currency at home may seem convenient, but you'll usually get a worse exchange rate. It's better to wait until you reach your destination and withdraw money from an ATM downtown or away from the airport, as you'll get a better rate and pay lower fees.

By following these tips, you can avoid paying unnecessary bank fees while travelling and save money for other expenses such as food, drinks, and activities.

How to get free airline tickets

The following are some ways to get free airline tickets, which can be extremely useful when travelling on a budget.

• Sign up for an airline credit card: Many airlines offer credit cards that allow you to earn points or miles that can be redeemed for free airline tickets. Some cards also offer additional perks, such as free checked bags or priority boarding.
• Pay with a credit card that earns you miles: If you have a credit card that earns you miles or points, use it for all your purchases to rack up those rewards. Just make sure you're paying off your balance regularly to avoid accruing interest.
• Take advantage of sign-up bonuses: Many airline credit cards offer generous sign-up bonuses, such as a certain number of bonus points or miles after spending a certain amount within the first few months.
• Pay your bills with a mileage-earning credit card: Put all your recurring bills, such as internet, wireless, and Netflix, on your mileage-earning credit card to quickly rack up the miles. Just make sure you're paying off the balance regularly.
• Shop through the airline's website or mall: Many airlines have online malls where you can earn bonus miles on your purchases. Sometimes you can even earn miles on top of the miles you earn with your credit card.
• Join dining programs: Airlines often have dining rewards programs where you can earn bonus miles for dining at certain restaurants or bars.
• Volunteer to get bumped: If you're flexible with your travel plans, you can volunteer to give up your seat on an overbooked flight in exchange for a voucher for a free or discounted future flight.
• Rack up frequent flyer miles: Join an airline's frequent flyer program and collect miles towards a free ticket. You can also maximise your miles by choosing longer routes when you fly and making purchases through the rewards program.
• Complain politely: If something goes wrong on your flight, write a polite letter of complaint to the airline. They may compensate you with a voucher for a free or discounted future flight, or other perks such as a free upgrade.
• Look for incentives: Free airline tickets are often offered as incentives for opening new accounts, taking out loans, or making large purchases. Keep an eye out for these deals, especially if you were already planning on making a big purchase.
• Redeem credit card rewards: Some credit cards have quality rewards programs that allow you to redeem points for free airline tickets. If you fly with a specific airline most of the time, consider getting a credit card associated with that airline.
• Get a job at the airline: Many airlines offer discounted or free flights for their employees and their immediate family members. If you fly frequently, consider getting a job with an airline to take advantage of these perks.
• Ask for tickets as a gift: If you have an upcoming trip, suggest that friends or family contribute towards the cost of the tickets as a gift.
• Ask for miles instead of money: If you know someone who travels frequently for work and racks up a lot of miles, ask them if they'd be willing to transfer some of their miles to you.
• Enter sweepstakes and contests: While your chances of winning any single contest are low, if you enter systematically, your chances of eventually winning free airline tickets go up.
• Watch for airline mistakes: Sometimes airlines make mistakes and offer tickets for very cheap or even free. Keep an eye on travel forums, as people will often post about these deals as soon as they happen.

These strategies can help you get free or heavily discounted airline tickets, making your dream trip a reality without breaking the bank.

How to find cheap accommodation

Accommodation is one of the biggest expenses when travelling, so finding ways to save money in this area can make a huge difference to your overall budget. Here are some tips for finding cheap accommodation when you're on the road.

Hostels

Hostels are a great option for budget travellers. They are safe, secure, and cheap. While many people think of hostels as being for young people, this is a myth. Many hostels cater to older travellers, couples, and families, offering small rooms, singles, and doubles. Hostels are also often cleaner and offer more amenities than hotels, including Wi-Fi, tour desks, bars, curtains, lockers, and large bathrooms.

House/Pet Sitting

Websites like Trusted Housesitters connect travellers with locals who need someone to look after their pets while they are away. In exchange for watching someone's pets, you get free access to a home with a kitchen, laundry facilities, and possibly extras like a car or pool.

Collect Points

Using reward credit cards and collecting hotel points can help you to earn free nights at hotels. Many cards have welcome offers that are equal to multiple nights of free stays, and you can earn points just through your regular spending.

Volunteer

Hostels often need workers, and in exchange for a few hours of work each day, you can get a free place to stay. Websites like Worldpackers can help you find these opportunities.

Hospitality Exchanges

Staying with a local is a great way to save money and get a unique cultural experience. Websites like Couchsurfing connect travellers with locals who are willing to offer a free place to stay.

Stay on a Farm

WWOOF (Worldwide Opportunities on Organic Farms) is an organisation that connects travellers with organic farms. In exchange for working on a farm, travellers get free room and board.

Stay in a Monastery

Monasteries often offer very affordable accommodation, with meals prepared by monks and nuns. They are family-friendly, quiet, and often located in beautiful, off-the-beaten-track locations.

Airbnb

Airbnb can be a good middle ground between hostels and hotels, offering furnished apartments that are cheaper than hotels but provide more amenities. Airbnb is particularly good value for groups or couples.

Other Tips

• Compare prices on different booking websites and the hotel's direct website.
• Stay in less touristy areas and suburbs.
• Stay close to public transport to avoid high travel costs.
• Book mid-week stays, as these are typically cheaper.
• Book early for events to avoid high prices.
• Use cashback websites to get money back on your bookings.
• Consider the additional costs of a hotel, like parking, transport to and from the airport, and nearby restaurants.
• Always book free cancellation in case your plans change.
• Use loyalty programmes to get access to members' rates and perks.
• Stay for longer to take advantage of discounted rates for extended stays.
• Sublet a room in someone's house, which is often cheaper than a hotel.

How to cut transportation costs

When travelling on a budget, transportation can often be one of the biggest expenses. Here are some tips to help you cut down on these costs and make your money go further.

• Compare prices – Use a comparison site like RideGuru to check the cost of different rideshare and taxi services. This will save you time and money, and you can also request your ride straight from the website.
• Share rides – Take advantage of ridesharing or carpooling services, such as UberPOOL, to save around 20-40% on your fare. This is a great way to meet locals or other travellers too.
• Use public transport – While public transport systems in large US cities are often rated poorly, efficient and organised public transport systems in Western European countries provide a cost-effective alternative to taxis or flying. A Eurail pass is a popular choice for tourists visiting multiple European countries, but there are reputable railway systems on every continent.
• Travel at night – If you're planning a long journey, consider travelling at night so you can sleep on the bus or train. This will save you money on accommodation and give you more time to explore during daylight hours.
• Rent a bike – Cycling is a popular mode of transport in many cities around the world, including Amsterdam and Buenos Aires. It's a cheap and environmentally friendly way to get around and a fun way to see a new city.
• Hire a car – If you're staying in one place for a week or more, it may be cheaper to hire a car than to rely on taxis. However, be aware that prices at airport car rental locations tend to be highly inflated, so it's worth travelling downtown to find a better deal.
• Avoid hotel concierges – Hotel concierges may be getting a kickback from the cab company they recommend, so do your own research to find the best option for you.
• Optimise routes for drivers – If you're planning a road trip, make sure to optimise your routes to avoid unnecessary fuel costs. Use a route planner to automate the route-planning process, taking into account traffic, weather conditions, and one-way roads.
• Monitor drivers – Even the most optimised route can be scuppered if your drivers don't follow it. Use a simple GPS to monitor your drivers' status and provide speed alerts, which can also help protect your vehicles from theft.
• Regular vehicle maintenance – A breakdown can be costly, so keep your vehicles in top shape with preventive maintenance. Track total distance travelled, the number of stops, fuel used, and regular vehicle inspections.

Frequently asked questions