Have you ever chosen not to take a vacation because of the expense? Trips aren’t cheap, whether you’re considering a road trip or an international trip. Flights, cruises, fuel, food, accommodations, and attractions are expensive.
However, travel hacking provides ways to save money and vacation on a budget. The deals are out there if you know where to look. So, let’s dive in and learn more about travel hacking so you can start saving money for your next trip!
What Is Travel Hacking?
Would you like to earn a free flight to Europe or a complimentary stay in a villa in the Rockies? Travel hacking is a way to do just that, saving you hundreds – maybe thousands – of dollars without costing you anything.
So, what is travel hacking? It’s signing up for credit cards to earn points and/or airline miles that you can redeem for free flights, hotel stays, transportation, and more. Although we thought this was too good to be true, it really is that easy. But there are tips and tricks to learning this art of saving money.
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Why Should I Figure Out My Travel Goal First?
Before you sign up for any credit cards to start swiping the ones you already have, you must first decide on your travel goal. You’ll approach travel hacking differently depending on what you’re trying to achieve.
Do you want to save up for a huge once-in-a-lifetime trip, or do you just want to be able to upgrade your coach seat every once in a while? Will any free flight do, or do you prefer luxury status? Is your ideal vacation on a cruise ship or in a big city?
Your spending strategies and the credit cards you choose are tools to help you achieve your goal. Every credit card company wants to suck you in, but only the ones that suit your travel lifestyle and goals are worth considering. We suggest figuring this out first so that you can choose the best ways to save money to help you achieve that goal.
Find the Best Travel-Friendly Credit Cards For Effective Travel Hacking
Once you have your travel goal in mind, you can now search for travel-friendly credit cards. Travel hacking requires you to have credit cards. If you’re against using credit cards and want to put money away every month and stay debt-free, that’s another way to save up for a trip. But you must use credit cards to earn points for travel hacking.
As we mentioned before, every credit card company wants to earn your business. They’ll tell you all the pros of their credit cards but none of the disadvantages. It’s up to you to weigh both to make the best decision to help you achieve your travel goal.
We suggest choosing a credit card with a low annual fee and no foreign transaction fees. This way, you won’t accrue additional fees when you travel abroad. You’ll also need to pay off the credit card monthly to stay in good standing with the company. If you can’t do this, travel hacking isn’t for you. The interest fees will eat up any savings you accumulate.
Other important considerations when choosing the best credit cards to help you achieve your travel goal are the welcome bonus, a low spending minimum, an added category spending bonus, and travel perks.
Introductory bonuses can be huge. Choose a credit card that will reward you early with immediate points. But to receive the bonus, you usually have to spend a certain amount of money in a short amount of time. That’s why you also want to pay attention to the spending minimum.
You’ll receive points for every purchase, no matter what, but you want a credit card that also offers added categories with bonuses. For example, a company may offer double the points on gas purchases or triple the points on groceries. Maximize this spending. If the categories change every month, how you use the credit card should also change, so you’re accumulating those additional points.
Finally, make sure the travel perks help you achieve your goal. If you don’t care about luxury accommodations and prefer free flights, choose a card that provides bonuses to suit your needs. If you want a discounted cruise fare and not a free flight, don’t choose a card that offers free airline miles unless it also allows you to redeem points for a cruise vacation.
How Does Opening A New Credit Card Affect My Credit?
If you open up a lot of credit cards at one time, you’ll hurt your credit score. This is why we recommend doing your homework to choose the best cards to help you meet your travel goal. Then, once you’ve narrowed down your choices, it’s okay to apply for a few credit cards.
You’ll also want to do this over a period of time and not all in the same month. If you’ll accrue points for a free flight to Alaska in a year, plan ahead so you can start applying for credit cards as far out as possible. You can apply for one card in March and another in April or May without destroying your credit score.
We want to mention, again, that you must pay off your credit cards each month. If you don’t, this will hurt your credit score more than applying for too many credit cards. Plus, you’ll be paying high-interest fees and losing the savings you’re striving for.
Use the Right Credit Card For the Right Purchases When Travel Hacking
Travel hacking is an art because you must learn how to do it well to succeed. If you have three or four credit cards that you’re using to accrue points, make sure you use the right one for the right purchase.
For example, if a Capital One card provides three times the points on retail store purchases, use it when buying products at Lowe’s. If a Chase Freedom card offers 5,000 bonus points if you spend $2,000 over three months on groceries, use it every time you visit Kroger or Aldi.
Why Types Of Rewards Are Available Through Travel Hacking?
Travel hacking can lead to significant rewards if you do it well. You can redeem your points for free hotel stays, flights, tours, discounted cruises, and more. Have you dreamed of going on an African safari?
Travel hacking can help you make that a reality. Do you want to send your parents somewhere special for their 50th wedding anniversary?
Travel hacking can help you surprise them with a memorable trip. Even small things like earning a free car rental will save you hundreds of dollars.
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Our Tips To Save Money On Travel
If you’re looking to travel on a budget, we have some tips besides travel hacking to help you save money. First, download local grocery store apps when you arrive. Get a loyalty card, shop the sales, and clip coupons. Groceries are one of the costliest budget items when traveling.
While we love eating out at local diners and cafes, you want to avoid this if you travel on a budget. Eating out costs so much more than cooking for yourself. And the larger your family, the more expensive it is. So, choose a night to enjoy a local hotspot, but dine in as much as possible.
Next, plan ahead if you can. This gives you more time to use those credit cards and time to choose the cheapest rates for off-season travel. You can also dig to find restaurants offering complimentary appetizers or BOGO-free nights.
Attractions and tours also offer similar deals. Choose a tour on a Tuesday morning that’s $50 cheaper than a tour on a Friday night. You have a better chance of saving money if you plan ahead.
Groupon and LivingSocial are excellent apps to help you search for tickets and excursions on a budget. Again, start searching early, but read the fine print. Notice the expiration date so you don’t purchase a deal too far in advance. AAA is another option.
This company offers discounted accommodations, tickets, and more for members. It might be worth becoming a member just for the savings.
Try Travel Hacking the Next Time You Plan A Trip!
Whether you’re looking to plan your next RV trip or want to set sail on a cruise line, travel hacking will help you save money. But it’s an art that has to be learned and perfected to be successful.
Don’t let the credit card companies intimidate you. Take your time, plan ahead, and choose the best options to help you achieve your travel goal. Eliminate unnecessary spending and enjoy the savings when you have that dinner out or want to splurge on an attraction.
Will you try travel hacking before your next vacation?
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