This column was written by one of our Savings Stars. Our RetailMeNot Savings Stars panel is made up of master couponers and bargain hunters who share their personal journeys and expert advice with us every month. Learn more from them here.
The year is 2007. I am standing in line at a ticketing counter in the Alfonso Bonilla Aragón International Airport in Calí, Colombia. I am crying. I have missed my flight home. Smartphones have not been invented. I have -$11 in my bank account.
The reason for my less-than-baller bank balance wasn’t that I’d gotten kidnapped or scammed on a vacation package. It was worse — I had failed to budget properly for my trip.
It was the summer of my freshman year of college, and I was — like many students — broke, idealistic and lousy with money. I’d decided to take a trip around Central and South America with a bank account balance of $443 (which was, in my defense, a reasonably large sum of money in college kid dollars).
“Hostels and beer are cheap in Latin America,” I reasoned. “I definitely have enough for a two-month trip.”
I did not have enough for a two-month trip. I ran out of money somewhere in Panama, hit my parents up for help and still found myself out of money that fateful morning at the Calí airport.
Embarrassing? Yes. Scary? A little bit. Humbling? Very much so. But the story has a happy ending: Through tears and garbled Spanish, I explained my situation to the Copa Airlines agent and managed to finagle myself onto the next flight back to the U.S.
I’d also learned a lesson: the importance of setting a budget and sticking to it. I resolved I’d never again find myself in a foreign country with an overdrawn bank account.
In the decade that followed, I traveled and lived in destinations across Latin America, Asia and Europe, often staying abroad for months at a time. I taught English in Hanoi, Vietnam. I trained in Muay Thai in Koh Yao Noi, Thailand. I bartended in Cusco, Pero. I freelance wrote in the digital nomad-packed cafes of Mexico City.
Over time, I picked up new tips and tricks for cutting down my spending while maximizing my travel budget. Ahead, I’ve shared my five essential hacks for globetrotting on a shoestring.
Never Check a Bag
Select airlines offer a free checked bag on qualifying international flights For example, American Airlines grants a free checked bag on transatlantic and transpacific flights for all passengers except basic economy. However, if you fly domestically within your destination country(ies), many carriers — particularly budget carriers — will charge you fees, and hefty ones at that. You can save $30 to $75 per flight by sticking to carry-on.
Speaking as someone who has taken multi-month journeys with nothing but a purse and a standard-size backpack, traveling light is more doable than you think. Laundry is widely available in most popular international travel destinations, and often for quite cheap. If you need extra room, I suggest investing in the DreamShore Travel Pillow, which can be stuffed with excess luggage and carried on flights without incurring fees.
Don’t Eat and Drink Out (Much)
Chowing down on local cuisine is truly one of the finest joys of globetrotting, but a shoestring budget doesn’t typically allow for restaurant dining three meals a day. Try to strike a balance between treating yourself to meals at local eateries and cooking for yourself at your hostel or Airbnb. I recommend buying your groceries at local markets, where the produce is fresh and the prices are the cheapest.
If you’re lucky enough to be in a country with a street food scene, don’t hold back. From bubbling pots of Bún chả to sizzling satay to roadside tacos al pastor, street food tends to deliver big on variety, flavor and value.
Don’t Change Money at the Airport
Seen those colorful money-changing kiosks in the arrivals area of international airports? Stay away! These wiley businesses take advantage of their captive audience by charging fees of $5 to $15 and an exchange rate that’s inflated anywhere from 10% to 15%.
To get the best exchange rates, change money before you leave the country at your bank or credit union. If it’s too late for that, you can still withdraw money at an airport ATM for a competitive rate and low fees (usually around 1% to 3%). If your bank charges you extra to use foreign or out-of-network ATMs, withdraw large amounts at a time. I always withdraw the maximum amount of money from an ATM while abroad to minimize fees, then keep the bulk of that cash stashed in a safe at my Airbnb.
Use a No-Foreign-Transaction-Fee Credit Card
When I first started traveling, many of the places I visited weren’t credit card-friendly. Since then, however, credit card usage has risen, even in developing countries, as levels of socio-economic and technological development increase.
The bad news is foreign transaction fees on credit cards generally range from 1% to 3%, which can add up when booking hotel rooms, excursions and other pricey endeavors. The good news? You can avoid foreign transaction fees by using a credit card that doesn’t charge them. (I use the Bank of America Travel Rewards credit card, but there are plenty of other good ones.)
Participate in a Hostel Work Exchange
I had some of my most memorable stays volunteering as a bartender at hostels in Latin America. In exchange for a few hours a week, these establishments would hook me up with a bunk bed in a shared dorm, plus a free meal (sometimes two!) per day.
I found work exchange programs by contacting the hostel directly, but today there are plenty of work exchange sites, like Worldpackers and Workaway. These sites typically list accommodation-volunteer opportunities all over the world — not just working at hostels, but tasks like working on a farm and teaching English.
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