How to start travel hacking when your budget can’t hack it

asthejoeflies

Moderator
Staff member



On the last Observation Deck podcast, I had the pleasure of talking to Jonathan Khoo and Joe Cortez about a wide variety of topics. I’ve always loved having Joe as a co-host because he’s not constantly trying to travel hack like Trevor or myself, he just genuinely loves talking travel. He asked a rather poignant question after Jon shared how his family had inspired a love of travel at an early age.

Joe asked, “For folks like me, who are starting…with a little bit of a disadvantage [socioeconomically] and have that wanderlust, want to see the world – how do they start?”

I appreciated his honesty and it actually hit on something I’ve been thinking about. I’d say that the majority of travel hackers, at least bloggers and those fairly active in the community, strike me as middle class and up. While I’m sure there are a number of notable exceptions, when people are talking about staying in Hyatt 25 times in 2 months (no judgment here just an example), we are at least starting at a baseline with some level of privilege or “advantage” as Joe phrased it.

I’ve long said that even without miles and points, my family would likely travel as much as we already do. We use miles and points to subsidize or upgrade our travel, and I think many people fall into that same category. Still, because I love travel so much, I’ve been thinking about what advice I’d give to someone who wants to get into the travel game who might be starting at an economic disadvantage? And for the record, I’m not saying everyone needs to travel, but if you want to and think you may not have the means, here are some ideas about how to get started.

1. Make travel a priority mentally, emotionally, and financially


Every family needs to prioritize their recreational budget. If you’re super rich, a lot of times you might be in a both/and situation. Or you’re deciding between taking a trip and putting money in your retirement account. If you’re on a tight budget, when it comes to recreation you might be staring down a lot more either/or situations.

If that’s the case and you still feel the wanderlust, then it’s important to make travel a priority. My daughter just got her first piggy bank. She loves putting money in there, but as a four year old, she doesn’t really have any major goals for the money! But we keep encouraging her to set that money aside (aka spare change she finds lying around the house), and…I dunno one day I’ll figure out how to explain to her the value of saving.

But like Joe Cortez said on the podcast, if you want to travel it’s good to be regularly saving to do so. I like having a separate travel bank account – if the money never makes it into my day to day account I’m never tempted to spend it and learn to live without it. Then I can use that account exclusively for my travels.

But ultimately I think it’s about priorities. Where there’s a will, there’s usually a way.



Saving takes time and commitment

2. Work to get your finances in order


For most people, traveling regularly will likely take some measure of fiscal responsibility. There are too many factors at play here, but at the very least, I would say if you’re serious about travel hacking, you really want to avoid credit card debt. Many travel hackers utilize good credit scores for credit card sign up bonuses which springboard a lot of the travel that they do. Getting rid of debt can be difficult, but you probably don’t want your travel expenses to run into more debt. Figure out what the best fiscal plan is for yourself and your family as you try to enter the travel hacking world.

3. Familiarize yourself with deal sites and good deals


The good news? There are lots of great deals to be had: from flights, to hotels, to rental cars. By utilizing sites like Google Flights, airfarewatchdog, and The Flight Deal, you can save hundreds of dollars on flights. There are plenty of inexpensive hotel deals to be had and there are many ways to save on rental cars (for both, an easy thing you can do is keep checking prices and rebook if it drops. Autoslash will even do it for you for cars).

More importantly, like Jon said on the podcast, if you start searching for deals – even if you don’t plan on going anywhere – you start getting a feel for how much travel normally costs and how much you can potentially save when the deals come around. I used a misguided attempt at a metaphor related to jeans, but basically, you learn to recognize what is cheap and can make decisions accordingly. This information becomes even more important when you are working with a limited budget.

4. Learn to drown out the noise


As you get further and further into travel hacking, you’ll undoubtedly come across a ton of “influencers” (a term I’ve cribbed from mommy bloggers). There are blogs, there’s social media, there are conferences – you will be subject to tons of influence, both direct and indirect. It’s important to recognize these influencers have a variety of motivations and to use that knowledge wisely. For example, Free-quent Flyer made a pretty strong argument for ignoring the advice of affiliate bloggers who receive a commission when you are approved for a credit card through them. He himself would love for you to sign up for a subscription to support his work. My blog runs ads so of course I’m happy when people click on it, though unlike FQF, it’s just for beer money. Well, he probably uses all his money on beer too.

Influencers have a variety of motivations for the work they are doing; make your decisions armed with the knowledge of who is influencing you and why.

Another form of influence is that subtle influence that comes from having a community of people who all love to travel. What? X, Y, and Z are in Hong Kong? Maybe I need to be planning a trip? Someone found a new amazing deal to go to Europe? Maybe I should jump on it. I’ve written about the fear of missing out in the past, and that’s a very real thing, something I feel all the time. But in the end, if you’re trying to travel hack and working with very limited capital; drown out the noise and figure out what’s most important for you. Your goals should be your #1 influencer. Or like Dia and Matt say more colorfully, don’t worry about what everyone else is doing.

5. Use credit card sign up bonuses responsibly


Piggy backing off drowning out the noise, if and when you get into earning credit card rewards through sign up bonuses, make sure you use them responsibly. There are many facets of this but two at least jump out at me for those on a limited budget.



Start slowly and only get what you need and can afford


First, you don’t want to bite off more than you can chew. Make sure you can comfortable spend enough money to earn that sign up bonus without adding to your financial stress. The classic example is buying more than you normally would. Going out to lunch an extra time a week can add up quickly and the temptation can sneak up subtly.

The second obvious mistake is buying into the hype about X credit card and having no idea how to use the rewards you earn. The 100,000 point sign up bonus (still available in branch until March 12) on the Chase Sapphire Reserve is great, if you know how to use the rewards. Make sure you do your research and have a plan for the miles and points you earn. That fits right in with my next point.

6. Decide where you want to go and start saving towards it


If you want to travel hack, you have to have goals. Your goals don’t have to be incredibly specific (like “I want to go to Bucharest”), but they need to be specific enough to give yourself a road map for your plans. Some destinations are easier to hack than others. Find out what you need to do to get where you want to go and start saving cash, miles, or points to get yourself there. Find a good community of people who are willing to help, there is an amazing travel hacking community out there! Like I said at the top, if you want to travel hack you need to make it a priority, just like any other hobby in life. Which brings me to my final point.

7. Start small


Rome wasn’t built in a day, and travel hackers aren’t either. Techniques are constantly evolving, program terms are constantly changing; there’s a lot to keep track of! Just start small and get your feet wet. Like any hobby, it’s most difficult to get started, but once you do you’ll start learning, then traveling, and then all of a sudden you will be in a virtuous cycle. With each successive trip you might just find your wanderlust increases a little bit more. And that’s fine, maybe you’ll work your way up until the point where it’s a full time obsession!

Final Thoughts


Hopefully if you’re new to all this I’ve given you some good ideas about where to start. There are plenty of amazing resources out there, and I’m always happy to answer any questions you might have. I’m no financial expert, so take everything I say with a grain of salt, but I think even if you’re working with limited means, these steps should help get the ball rolling. Happy trails!



Continue reading...
 

heavenlyjane

Level 2 Member
I have been coaching some friends with tight finances (young children, one income, and private school tuition). The key with them was to identify offers that are low-hanging fruit. I encouraged them to get two IHG CCs because it guarantees a free weekend getaway per year for just the cost of the annual fee. Then I showed them how to maximize their use of it (South Beach yes! Niagara Falls no!). I told them to listen to their inner voice when it comes to acceptable levels of risk. An offer may seem doable but if it's gonna bring on anxiety, it's not worth it.

They had a magical weekend in Savannah. I told them to let the hotel know that it was their first family vacation since the birth of their daughter 6 years prior (true). The hotel gave them the full VIP treatment, with an upgraded balcony room, a bottle of wine for the parents and overflowing goodie bags for each child. It was a fairy godmother weekend that the entire family will remember forever. I was so pleased for them.
 

mlick41954

Level 2 Member
I am just starting to be committed to the miles/points game. Starting small (#7) is probably the hardest thing at this point but so important. If you just start submitting apps without a plan, you can severely limit your potential for some very good cards.
 

heavenlyjane

Level 2 Member
I am just starting to be committed to the miles/points game. Starting small (#7) is probably the hardest thing at this point but so important. If you just start submitting apps without a plan, you can severely limit your potential for some very good cards.
Planning is the key. While buckets full of various points are great for future flexibility, my novice mistake was to collect anything remotely attainable, even if I had no use for it.

I have 39K Hawaiian miles that I earned in our first apporama. Their best use is for island hopping so I envisioned a great vacation that included multiple islands in a single trip. Problem with that plan is that we live in the SE USA so Hawaii is simply too far for anything less a major annual vacation. Western Europe and the Caribbean are closer than Hawaii to us. I now realize we won't get to Hawaii until we retire, with all the fabulous destinations that are closer to our home.

I've been left to managing the expiration date on these Hawaii miles - they've passed their 18-month expiration date at least 4 times, which shows you how old they are. The original CC is long cancelled so every 18 months I have to remember to buy a pound of coffee from Starbucks and then monitor that the purchases has extended the expiration date. It has served as an ocassional reminder of the haphazard start of my hobby.
 

Lappie

Level 2 Member
Planning is the key. While buckets full of various points are great for future flexibility, my novice mistake was to collect anything remotely attainable, even if I had no use for it.

I have 39K Hawaiian miles that I earned in our first apporama. Their best use is for island hopping so I envisioned a great vacation that included multiple islands in a single trip. Problem with that plan is that we live in the SE USA so Hawaii is simply too far for anything less a major annual vacation. Western Europe and the Caribbean are closer than Hawaii to us. I now realize we won't get to Hawaii until we retire, with all the fabulous destinations that are closer to our home.

I've been left to managing the expiration date on these Hawaii miles - they've passed their 18-month expiration date at least 4 times, which shows you how old they are. The original CC is long cancelled so every 18 months I have to remember to buy a pound of coffee from Starbucks and then monitor that the purchases has extended the expiration date. It has served as an ocassional reminder of the haphazard start of my hobby.
Hey, if you leave the SW USA (Im in Orlando) at 7am, you get to Hawaii around 2pm. It aint that bad, and it is beautiful. How I wish miles could be transferred because golfing at Kapalua is one of my favs.
 

heavenlyjane

Level 2 Member
Hey, if you leave the SW USA (Im in Orlando) at 7am, you get to Hawaii around 2pm. It aint that bad, and it is beautiful. How I wish miles could be transferred because golfing at Kapalua is one of my favs.
Yeah but I bet the return flight eats up more than a day.

I risk getting my words bit off but is the Hawaii, South Pacific/Asia, the Maldives really that different that the Caribbean? If I want gorgeous snorkling and pristine beaches, do I really have to travel across the planet?
 

Lappie

Level 2 Member
Yeah but I bet the return flight eats up more than a day.

I risk getting my words bit off but is the Hawaii, South Pacific/Asia, the Maldives really that different that the Caribbean? If I want gorgeous snorkling and pristine beaches, do I really have to travel across the planet?
You leave Hawaii late at night, so coming home is not that bad either, like flying to Europe.

I don't think it is that much different for what you asked (beaches/snorkeling). But, Hawaii has a different landscape (volcanic) and its different in that respect. Its hard to not appreciate the cliffs and zip lining across mountains among other things. Ive been many times, and we are going back in May. My wife and I love it.
 

projectx

Level 2 Member
You leave Hawaii late at night, so coming home is not that bad either, like flying to Europe.

I don't think it is that much different for what you asked (beaches/snorkeling). But, Hawaii has a different landscape (volcanic) and its different in that respect. Its hard to not appreciate the cliffs and zip lining across mountains among other things. Ive been many times, and we are going back in May. My wife and I love it.
Not to mention a different culture as well.
 

GetawaysRus

Level 2 Member
Yes, Hawaii is different. Hawaii is the USA, so it has a well developed economy. It is more like visiting home, and it's an easy place for an American tourist.
I agree that the Caribbean can be beautiful, but I've been disappointed with the poverty on many of the islands I have visited. You have the beautiful beaches and the fancy resort hotels lining the beach in the Caribbean, but if you go one or two blocks inland, on many of the islands you will unfortunately discover people living in poverty.

Another very nice thing about visiting Hawaii is island hopping. Even though it is one state, the islands are remarkably different and this allows a marked variety of experiences. I have visited Oahu, Maui, Kauai, and the island of Hawaii in the past (on a couple of different trips) and enjoyed each island in a different way. Also, if you ever get the hankering to go all the way to Asia, a stopover in Hawaii can be fun if you can arrange it. Or if you plan to visit the western US, you can possibly tack on Hawaii.

Of course, I live in California, so Hawaii is not nearly so long a flight for me as it would be for you. Still, your 39K Hawaiian miles are just begging to be used.
 

scubaduba14

Level 2 Member
I think with any travel planning that its always good to work backwards. Have a goal, figure out all the possible ways to make that happen, figure out which route to said goal makes most sense, obtain the necessary points/miles/cash to make it happen, and execute. Plan well enough to avoid unknown costs. Have an emergency fund, even a small one, or don't go on a vacation that might break you if something unforeseen happens.
 

heavenlyjane

Level 2 Member
When I started out in this hobby, we were getting out of debt from years of private school tuition and expensive summer camp. I decided that if we were going on a fiscal diet, I couldn't handle years of austerity at the same time. So I started this hobby to give us periodic rewards for our good work at reducing our debt.

I built into our budget a $40 weekly transfer to a saving account, which we named our Travel Fund. I figured that by trimming our spending to the bone, we could still afford $40/week for our first love, travel. Very slowly we built up a few hundred dollars.

Our first trip was a long weekend trip to Key West in Winter 2013, using two free weekend nights at any Hyatt and airfare from a SW CC. Our primary cost was a car rental, which our Travel Fund paid for. All the other costs fell into categories already covered by our budget. Our one splurge was a round trip visit to Dry Tortugas National Park. The Key West Hyatt Resort seemed beyond luxurious to us previous motel dwellers; we felt pampered beyond our wildest dreams. We couldn't believe we were staying there for free. This was our first trip ever that hadn't created new debt.

Since then we are away nearly every long weekend, with the idea that travel can be almost as economical as staying home. We also paid off $100K in CC debt in less than 4 years, all while building up this hobby. With the miracle of spreadsheets, anything is possible.
 
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Cmonman76

Level 2 Member
When I started out in this hobby, we were getting out of debt from years of private school tuition and expensive summer camp. I decided that if we were going on a fiscal diet, I couldn't handle years of austerity at the same time. So I started this hobby to give us period rewards for our good work at reducing our debt.

I built into our budget a $40 weekly transfer to a saving account, which we named our Travel Fund. I figured that by trimming our spending to the bone, we could still afford $40/week for our first love, travel. Very slowly we built up a few hundred dollars.

Our first trip was a long weekend trip to Key West in Winter 2013, using two free weekend nights at any Hyatt and airfare from a SW CC. Our only cost was a car rental, which our Travel Fund paid for. All the other costs fell into categories already covered by our budget. Our one splurge was a round trip visit to Dry Tortugas National Park. The Key West Hyatt Resort seemed beyond luxurious to us previous motel dwellers; we felt pampered beyond our wildest dreams. We couldn't believe we were staying there for free. This was our first trip ever that hadn't created new debt.

Since then we are away every long weekend, with the idea that travel can be almost as economical as staying home. We also paid off $100K in CC debt in less than 4 years, all while building up this hobby. With the miracle of spreadsheets, anything is possible.
We are just leaving for our third trip to Key West this next weekend. Absolutely love it there. Staying at the Hyatt centric resort for the first time too.
Someday I want to do the Dry Tortugas. Just haven't worked that in yet.
 

R.R.

Level 2 Member
Not to mention a different culture as well.
Agreed. I can't get to Japan as much as I'd like, so in Hawaii, I love the presence of Japanese food, culture, and language -- all combined with the accessibility of the English language and American customs. And I enjoy the presence of other Asian culture and food, as well, including excellent Thai food!
 

italdesign

Level 2 Member
Planning is the key. While buckets full of various points are great for future flexibility, my novice mistake was to collect anything remotely attainable, even if I had no use for it.

I have 39K Hawaiian miles that I earned in our first apporama. Their best use is for island hopping so I envisioned a great vacation that included multiple islands in a single trip. Problem with that plan is that we live in the SE USA so Hawaii is simply too far for anything less a major annual vacation. Western Europe and the Caribbean are closer than Hawaii to us. I now realize we won't get to Hawaii until we retire, with all the fabulous destinations that are closer to our home.

I've been left to managing the expiration date on these Hawaii miles - they've passed their 18-month expiration date at least 4 times, which shows you how old they are. The original CC is long cancelled so every 18 months I have to remember to buy a pound of coffee from Starbucks and then monitor that the purchases has extended the expiration date. It has served as an ocassional reminder of the haphazard start of my hobby.
You can always convert HA to HH. And who knows, maybe they'll form a valuable partnership some day that gives the miles more value. I'm a fan of masasive diversification - earn the easy pts and then figure out what to do with them. Many diff programs have come in handy randomly. Right now I wish I had 100k Merrill :D
 
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