Savings experts reveal their top tricks for vacations on a budget

Summer is the prime time to get away, but rising prices are driving many Americans to reconsider their vacation plans.

Half of Americans don’t have summer travel plans, including 62 percent of households earning less than $100,000, according to a May travel survey from research and advisory firm Deloitte. Plus, only 45 percent are opting for trips with paid lodging, the survey said.

While being short on cash might rule out some traditional or luxurious travel options, it doesn’t have to mean missing out altogether. Resourcefulness can go a long way for cash-strapped travelers, said personal finance expert Andrea Woroch.

“A little creative thinking and planning can help you travel even on the tightest budget,” Woroch told The Independent in an email.

The Independent spoke with financial experts to identify smart ideas for reducing travel expenses, boosting a travel fund and making the most out of a tight budget.

Rethink accommodations

Hotel stays and vacation rentals can quickly use up a small budget. Getting creative by house-sitting or house-swapping helps stretch a budget, according to Clay Cary, senior trends analyst at CouponFollow.

“If you have some flexibility in your schedule, you can save hundreds or even thousands of dollars, which will give you extra cash for activities, meals and even extended stays,” Cary told The Independent via email.

With house-sitting, travelers find someone in their destination city who needs someone to stay and care for their property while they’re away. House-swapping, on the other hand, is a two-sided agreement where two parties exchange homes with someone in a different location.

These arrangements can be appealing if a traveler wants to immerse themselves in the culture of the location where they’re staying.

‘A little creative thinking and planning can help you travel even on the tightest budget,’ one expert said (AFP/Getty)

“Unlike many other budgeting tips for travel, which usually make you compromise something, here you will get something more valuable - a true local experience because you will be living in a neighborhood rather than in a touristy area.”

But be prepared for some work and compromise in exchange for a free stay.

“House sitting means taking care of pets, maintenance and following the schedule of the homeowner,” Cary said. “The latter one implies a lot of trust, cleaning fees, insurance issues and possible inconveniences with changing plans in a week or so.”

Cary advised approaching this money-saving strategy more like a “business deal” and having clear agreements.

Trade skills for lodging

Work-trade programs offer a unique experience with perks beyond lower costs, said Dr. Steven Crane, founder of financial planning firm Financial Legacy Builders.

Found on platforms like Worldpackers and Workaway, work-trade programs offer lodging in exchange for a certain number of work hours each day.

Work-trade programs can cover lodging expenses, freeing up hard-earned money for transportation, food and experiences (AFP/Getty)

They’re particularly popular among budget-minded international travelers, but many U.S. hosts offer unique experiences, too. Minimum commitments and work hours vary, offering flexibility for travelers.

“Working a few hours a day in exchange for lodging can dramatically reduce travel costs while allowing you to experience a destination like a local instead of a tourist,” Crane told The Independent in an email. “Every kitchen or small business needs a helping set [of] hands, and by donating a few hours after a long night, you could find compensation beyond just dollars.”

Temper expectations for income, Crane said - specifically, making a lot of money shouldn’t be the focus.

“The goal is to make travel financially sustainable so you can have more experiences without coming home to a mountain of debt,” he said.

Keep it local

A June survey from job site Monster.com found that rising costs have 52 percent of U.S. workers spending more time at home this summer.

While a staycation might seem less exciting than traveling to a popular tourist spot, it bypasses expensive travel and accommodation costs. The key, according to Cary, is to approach the staycation differently from a normal weekend in town.

“Try to live as a tourist in your city,” Cary said. “Visit museums which offer free entry days, explore new areas of the town and arrange a unique activity you've been meaning to [try] but kept postponing.”

‘Try to live as a tourist in your city. Visit museums which offer free entry days, explore new areas of the town and arrange a unique activity you've been meaning to [try] but kept postponing,’ one expert said (AFP/Getty)

But choosing a staycation doesn’t mean going without a budget. Setting a spending limit protects finances and adds an element of importance to the trip.

“Even creating a budget of $75-$150 for a couple of days will help you feel that this period is more important and special,” Cary said. “Take advantage of any discounts, coupons, local attractions, offers from restaurants and hotel day passes to make your budget bigger.”

Try a travel fund

Besides creatively cutting vacation expenses, consider ways to start a travel fund in a savings account. This is a practical solution if a traveler has at least a few months to save up.

There are multiple ways to generate cash for a travel fund, Woroch said:

• Participating in online surveys and focus groups
• Renting out spare rooms, cars, swimming pools, parking spots or baby gear
• Taking care of people’s pets
• Using receipt-scanning apps that offer travel gift cards as rewards

Using the right rewards credit card can also boost a travel fund, according to Woroch.

‘The goal is to make travel financially sustainable so you can have more experiences without coming home to a mountain of debt,’ one expert said (AFP/Getty)

“Review your bank and credit card statements to figure out where you spend the most [for] necessities and then find a card that offers more cash back or points for those purchases, which you can then save up to help pay for travel expenses,” she said. “If you're making these purchases anyway, why not get rewarded for them?”

However, discipline is essential for avoiding unnecessary debt and interest.

“The trick to [making] this effective, though, is to only spend what you planned and budgeted for towards those expenses, and pay off your balance in full to avoid paying interest,” Woroch said.

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