How to save money on flight tickets

1. Know what’s included in the flight ticket

Every airline has a different policy when it comes to carry-ons and personal items. Before you book the tickets, find out what you are allowed to bring in a flight. Can you bring a carry-on, or just a personal item? Find out the cost of checking in a piece of luggage.

2. Be flexible on dates

A little flexibility on dates will save you a lot of money. Small changes such as flying mid-week and avoiding Sunday travel can unlock savings. Find a way to take vacations when popular destinations are not busy with tourists. Go to places that are not popular tourist destinations.

3. Use 24-hour cancellation policy

If you book your flights at least one week before the the departure date, you can cancel the flight in 24 hours without any repercussions. That’s the law. If you see a price that you like, go ahead and book it. If you change your mind or if the price drops, you can cancel the reservation in 24 hours.

4. Comparison sites

If you use popular websites like Travelocity, Expedia, or Orbitz to compare prices, you will notice that the results are often similar. Expand your search to include websites like Google Flights, Momondo, Kayak, Air Fare Watchdog, and Skyscanner. Since not all airlines are included in these searches, (especially Southwest) remember to visit the airlines’ website directly.

5. Buy early but not too early

For international flights, the best prices are 3-6 months before departure date. But if you are traveling during holidays or peak travel time, you need to book even earlier. Start looking early, and when the deals come around be ready to book.

6. Basic economy is fine, read the fine print

Basic economy tickets are cheap. But they come with a lot of restrictions and smaller legroom. You cannot change your basic economy tickets after you buy them. Carry-ons are usually not allowed. In most cases, you will be limited to just a personal item. You will be the last group to board.

7. Use the right credit card

If you frequently use a particular airline, it may be worthwhile to get that airline’s credit card. You will get free check-in luggage, lounge passes, and other benefits. Even if you are not using an airline-specific card, use the right credit card to  maximize points, get trip insurance and rental car insurance benefits.

8. Use nearby airports

Don’t just look for tickets from your departure city. If you are willing to fly from a nearby city, it will save you a lot of money.  In many cases, you may even be able to book a hotel for a night in another city with the money you save.

9. Book tickets separately

Airlines have many pricing tiers. If you are booking tickets for a group, and the lower-tier tickets run out, you will get the higher-tier price for the entire group. To prevent this, look for prices buying all the tickets at once and for one ticket, and see if it’s worth booking separately.

10.Don’t always book round trips

While booking round trips tickets are convenient, you may be able to save money by booking two one-way tickets. Always check one-way prices and compare prices with round trip tickets before booking your tickets.

11. Use red eyes and stops

Not everyone likes red-eye flights and stops along the way. But if you are flexible with those, you can save hundreds of dollars.

• How are you going to pay for expenses once you land at your destination?
• Where will you change money?
• Do you have a credit card that doesn’t charge foreign transaction fees?

Don’t exchange money at the airport

Changing money at the airport is convenient. But exchange rates offered at the airport are terrible and the customer service is not great. They also tack on high service fees. The same goes for train stations and ports. Always carry US dollars or traveler’s checks with you. If you need to change money in another country, use a local bank that does money exchange.

Understand foreign exchange rates for the countries you are traveling to

Foreign exchange rates vary a lot. The rate your get at the airport may be very different from what you can get at a bank.  Get familiar with the exchange rates in the countries you are traveling to. This will help you understand whether you are getting a good deal when you exchange money.

Use credit cards that don’t have a foreign transaction fee

Credit cards are convenient. But not all credit cards are the same. When traveling internationally, always use a card that doesn’t charge a foreign transaction fee. You could easily save 3% or more by using the right card. If you don’t have a credit card that doesn’t charge a foreign transaction fee, apply for one and get it in time for your travel.

Always pay in local currency

When you are traveling overseas, you will have the option to pay in local currency or in US dollars. You will see this option when you swipe your card. Always choose to pay in local currency.  If you pay with US dollars, you will pay an extra 3-5% in conversion fees. Credit card companies use a third-party service called Dynamic Currency Conversion to convert the transaction to your home currency.

Pay with a credit card

Whenever possible, pay with a credit card. Credit cards will give you the best rate (as close to the interbank rate as possible). This will save money compared to paying with cash. There is also less risk with a credit card. In case you lose your credit card, you can call the bank to cancel the card immediately. You also get fraud protection by using a credit card.

Understand the fees when using ATM

When you use an ATM overseas, use a debit card that doesn’t charge foreign transaction fees. There may be two other charges – one charged by your bank and the other charged by the bank that owns the ATM. If you use the right card, you may be able to save money on one or both fees. Many banks reimburse ATM fees. Check if your bank is one of them.

Call the credit card company and inform them of your international travel

Many credit card companies will tell you that they have smart fraud detection systems and that it is no longer necessary to call them before you leave the US. I take a conservative approach and call them every time I travel overseas. There is nothing more frustrating than getting to another country and finding out that you can’t use your credit card.

Tipping

In the US, we tip more because our servers and bartenders in many cases don’t even make minimum wage. That’s not the case in other countries. In some countries, service fees are automatically added to your bill. Check your bill before you tip.

Some national parks are free all year while some charge entry fees. But there are a few ways to visit national parks that charge an entry fee for free.

How to visit national parks for free

Free entrance days

There are five days in 2022 when you can enter national parks for free. Those days are

January 17: Birthday of Martin Luther King, Jr.
April 16: First day of National Park Week
August 4: One year anniversary of the Great American Outdoors Act
September 24: National Public Lands Day
November 11: Veterans Day

Here is a list of national parks that waive fees on free-free days.

Free Pass For Fourth Graders

Kids in fourth grade can get a free pass to visit national parks across the country. Starting September 1st of every year, fourth graders can go to www.everykidoutdoors.gov and print their paper passes. The pass is good until Aug 31 of the following year.

Borrow Free Passes From Your Library

You can borrow national park passes from many libraries, just like you can borrow books. Libraries usually have limited quantities of passes. If you have a flexible schedule, you will be able to get a free trip to a national park.

U.S Military Veterans And Gold star families Get Free Access

U.S. Military Veterans and Gold Star Families can visit national parks for free. Veterans will need one of the following IDs for access to the park.

• Department of Defense Identification Card (CAC Card)
• Veteran Health Identification Card (VHIC)
• Veteran ID Card
• Veterans designation on a state-issued U.S. driver’s license or identification card

Costco, which used to be the go-to place for cheap photos, has shut down all of its photo centers. The cheapest place to get 1 passport photo taken is the UPS store ($11.99). If you need 2 passport photos, CVS is the cheapest option (regular price – $16.99, $2 OFF coupons are often available at the CVS website). Walmart is a good print-only option for $7.99 (for 2 photos)  if you take that route.

Best Places To Get Passport Photos

In-Store options to get passport photos

UPS

UPS store charges $11.99 for one passport photo (Details here)

CVS

You can get two photos for $16.99. You will often find $2 off coupons online. Remember to check for the coupon before you head to the store. (Details here)

Walgreens

Most Americans live within a few miles of Walgreens. Walgreens gives you two photos for $16.99 (Details here). Walgreens often has coupons available (sometimes as low as $5.99 with coupons)0.

AAA

Plus-level members get 2 photos free per year. Premier-level members get 4 free photos per household per year. If you are a basic member, you will pay $10 for two photos. Non-members pay $15 for two photos. (Details here)

FedEx

FedEx is not just a place to mail your packages. FedEx charges $14.95  for two photos (Details here)

Post Office

Most Post offices that offer accept passport applications also offer passport photo services for $15. An appointment is necessary to get a passport photo at the post office (Details here)

Online options

epassportphoto.com

You can use epassportphoto.com to upload a photo, have it verified that it meets all the requirements and pick it up it a drug store near you for $1 to $2.

Printing Only 

Walmart 

Walmart will print your photos for $7.44 for two photos. You can upload your photos and get them printed in an hour at the store or have the pictures sent to your house in 3-5 business days (Details here)

Target 

Like Walmart, Target will print 4 passport photos for $12.99. You need to upload your photos to the Target website. (Details here)

Take Your Own Photos

This is not my preferred option but it works for a lot of people. If you take your own photos, follow the State Department guidelines.

• Submit a color photo
• Photo must be taken in the last 6 months
• Photo must clearly show your face 
• Do not use filters
• No selfies
• Remove your eyeglasses for your photo
• Use a plain white or off-white background
• Have a neutral facial expression or a natural smile, with both eyes open

State Department has a photo tool where you can check if your photo meets the requirements. After you confirm that your photo meets all the requirements, you can upload it to Target or Walmart’s website and get them printed. Printed passport photos should be 2 x 2 inches in size but the printing store will take care of that. 

Bottom Line

You can get your passport photos printed at many stores near you. UPS and CVS stores are great places to get cheap passport photos.  Plan and get additional photos if you need them for visas.

Membership Options at Costco

Costco offers two membership options – Gold Star and Executive

Gold Star Membership
Cost – $60 per year
No cash back rewards

Executive Membership
Costs – $120 per year.
Offers cash back rewards and other benefits.

Both memberships give you access to all Costco locations.

What is the difference between a Gold Star and Executive Membership?

Gold Star membership does not have any cashback rewards

Executive membership offers the following benefits.

1. An annual 2% reward on eligible Costco purchases including travel.  Total rewards are capped at $1,000 per year
2. Additional benefits and greater savings on Costco Services (eg. insurance)
3. Extra benefits on select Costco Travel products

The reward is issued in the form of a reward certificate three months prior to the renewal date of your membership.

Is it worth upgrading to an Executive membership?

If you spend $3000 per year in Costco purchases, it is worth it

With 2% cash rewards, you will need to spend $3000 annually to break even – that is $250 per month. That may be a high bar for some people.  But if you switch to buying more at Costco, it will be worth the upgrade.

We book our vacations through Costco travel.  We also book our rental cars through Costco.  These, along with our grocery purchases and filling up gas at Costco easily help us meet the $3000 break-even.

If you upgrade to the Executive membership and don’t meet your threshold, you may be able to get a refund on your upgrade cost of $60.

Costco says “We offer a 100% satisfaction guarantee and will cancel and refund membership fees at any time if a member is dissatisfied.”

I know of people that have received a refund after they failed to meet the $3000 spending threshold but check with the Costco membership desk before you upgrade.

Executive membership also can offer big discounts on home and auto insurance, and travel packages.

Compare prices on your regular purchases

Compare Costco prices on the items you regularly purchase against other stores.  In most cases, you will find that Costco offers better deals.  This will justify any membership fee you pay Costco.

For example, in my area, Costco gas is at least $0.20 cheaper per gallon compared to other gas stations. with 2 cars, my wife and I drive about 30,000 miles.  That’s $60 in annual savings, which alone pays for a Gold Star membership.

You can get these lower prices with just a Gold Star membership. Executive membership is not necessary if you are just shopping for grocery and gas, and don’t expect to meet the $3000 annual break-even limit.

Costco Credit Card Rewards

Costco Anywhere Visa Card by Citi gives you 4% cash back on gas, 3% cash back on restaurants, and travel,  2% cash back on  Costco purchases and 1% cash back on all other purchases.  The card has no annual fee and no foreign transaction fees.

You don’t have to be an Executive member to get these credit card rewards, a Gold Star membership is sufficient.  But having the Costco Anywhere Visa Card gives you an incentive to purchase more at Costco while giving you excellent rewards.

Value of A Costco Membership

Is an Executive membership upgrade worth it?  Or are you happy with the standard Gold membership?

Only those who purchased insurance before the “cut off” date set by their insurer have coverage assuming that the policy covers epidemics and pandemics.  Although the cut off date varies across insurers, it is around late January.  That’s when the coronavirus outbreak started spreading.  This applies to third party policies purchased from insurers and the coverage that comes with your credit card.

Trip insurance provides coverage for unforeseen events.  Coronavirus has been around several weeks now and is considered a foreseen event and is excluded from coverage.  Note that many standard policies exclude pandemics and epidemics in any case. Other policies have language that limits claims for epidemics.

If you are booking a trip now, what are your options?

Even if a standard travel insurance policy won’t cover coronavirus, you have other options.  The “Cancel for Any Reason” policy allows you to cancel, as the name implies, for any reason.  These policies have to be purchased within 14 to 21 days from the date of the first payment for the trip.

Cancel For Any Reason policies cost about 40% more than a standard travel insurance policy.  It covers 75% of the cost of the trip. It typically costs about 12% of the cost of your trip.  These policies require you to cancel your trip at least two days before your departure date.

What are your options if you have a trip booked already?

Most airlines are now allowing passengers to cancel or change their tickets for any reason without fees.  Call your airlines and see if this an option for you.

Additionally, if you had purchased travel insurance and had to cancel a trip, file a claim as insurers look at some claims on a case by case basis. You want to be sure to get a refund for portions of the travel that are covered by the policy.

Staycation

Canceling your vacation and staying home is not fun.  Given the global nature and complexity of the coronavirus outbreak, it’s not a bad decision to spend time at home.

But there are places you can fly for cheap at this time for those who are willing to take a risk.

Bottom Line

If you purchased travel insurance after the cut off date (late January time frame), you will not be covered for any coronavirus related delays and cancellations. Consider getting a Cancel For Any Reason policy if you are planning your trip now.  Though these policies are 40% more expensive than a standard policy and will provide 75% coverage of your trip costs.

You postpone your vacations or at least be mindful of spending too much on leisure activities.

Your friends are losing their jobs or struggling to make their house and loan payments.

Everyone hates recessions, and for good reason.  Are there any positives about a recession?

Stock Buying Opportunities

Great wealth is generated coming out of a recession. Recessions can be a perfect opportunity to buy stocks.

Major market indexes go down 20% or more during a recession.  These are great opportunities to purchase stocks at a discount. Good companies get sold just like bad ones, and if you can buy stocks in a recession and hold them for the long term, you are going to make a ton of money.

Similarly, if you invest every month and dollar cost average into stocks or mutual funds, you will be able to buy more shares for the same amount.  This will be true if you are reinvesting dividends.

Market timing is difficult, but as long as you plan to hold stocks for the long term, recessions are a good time to buy stocks.  I usually wait for a very bad year, and then buy blue-chip companies that have been around for a long time.  I can pick up a 6% dividend yield on a good company easily during recessions.

Great Deals

Businesses struggle during recessions.  So airlines, hotels, and other businesses provide great deals to attract customers.

If you have been wanting to go on your dream vacation for a while, you may be able to do that at a discount.

Buy A Home or Refinance Mortgage

The Federal reserve decreases the Fed funds rate during recessions, which causes mortgage rates to drop.  So recessions are a good time to buy a house.

If you already own a home and have a mortgage, it’s a good time to refinance your mortgage at a lower rate. Refinancing will reduce your mortgage payments and put extra money in your pocket.

Use Government Stimulus To Your Advantage

The government typically implements policies in a recession to get the economy working again.  These can include tax cuts, income tax credits and incentives to increase consumer spending.

This puts more money in your pocket.  Use the money wisely to invest in your future.

Trim your budget

When times are good, we sign up for things we don’t need.  Recessions are a good time to review your budget and get rid of services and subscriptions you don’t need.

Could you mow your lawn instead of hiring a landscaping company?  Do you still need a subscription to a magazine you haven’t read in 6 months?

Recessions are good for the economy in the long run

Companies get bloated during good times.  Recessions help companies watch their finances closely, and get back in shape.

Excesses in certain sectors of the economy get corrected during recessions.  While it may be unpleasant at the time, these adjustments are good for the economy in the long run.

Bottom Line

Recessions can be frightening.  It’s a time of uncertainty for most people.  But recessions are also opportunities to build great wealth.  During recessions, stocks are on sale, and distressed companies offer great deals on products and services.  It’s a great time to buy or refinance a home, too.

In the long run, recessions are good for the economy and good for you. Use these times of volatility to build wealth in the long term.

If you live in a city that has limited public transport, you have no choice but to drive to work.  Did you know that some cities have vanpools which allow you to commute together and not have to drive your own car?

What is a vanpool?

In a vanpool, a group of people (usually 5-15 people) commute to and from work together in a van or an SUV.  The vehicle – usually a van is leased and paid for by the riders.  The primary driver of the van leases the vehicle but is paid for by all the riders.

Typically, there is no long term commitment.  The lease is month to month but you can get a lower lease rate if you lease for a longer period.

How much does it cost?

Vanpool costs about $120-$180 per month per person. Cities and companies provide subsidies for vanpools, so your out of pockets costs could be even lower.

The riders could take turns driving the van. Usually, the driver gets a discount or rides for free.

What is the city’s role in the vanpool program?

Vans are usually leased by the city’s Metro program and then leased to the riders on a month to month basis.  The lease includes insurance and maintenance.

The city provides assistance in recruiting riders (usually through a website).  The city also establishes policies for the vanpool that all riders must follow.

What are the benefits of vanpool?

• Vanpools are considerably cheaper than driving your own car
• Vans can use the HOV (high occupancy vehicle) lane, which saves commute time
• Reduces stress – You don’t have to drive every day
• Reduces wear and tear on your personal vehicles
• Reduced parking rates for vanpools in many areas of the city
• Your employer may provide subsidies for vanpools, covering part of the cost of your rides.
• Reduces your carbon footprint with a more eco-friendly commute

What are the challenges of vanpools?

If you are someone whose schedule varies day to day, the vanpool program will be a challenge for you.  The program works best for people who have fixed work schedules.

Vanpool includes 10 to 15 people, and getting everyone to follow the rules and policies can sometimes be a challenge.

Vanpools in major cities

Here are links to vanpool programs in major cities.

Houston

Dallas

Chicago

Los Angeles

Bottom Line

Vanpools are a great way to save money and reduce stress. Your employer may offer subsidies for a vanpool program, which reduces your out of pocket costs.  You can even catch a nap on your daily commute!

Most parts of your travel including flight tickets and hotels are non-refundable.  What happens if you are unable to make the trip for some reason?  This is where travel insurance comes in.  You don’t need travel insurance for every trip but it can come in handy on some expensive trips.

What is travel insurance?

As the name implies, travel insurance protects you in case something goes wrong with your travel plans such as an illness that causes you to cancel the trip, lost luggage and doctor visits and ambulance rides during travel.

The last thing you would want to happen to you is to book an expensive vacation (these purchases are mostly non-refundable) and watch your money disappear because you had to deal with an unexpected event.

There are several types of travel insurance.  You have the option to get comprehensive travel insurance or only the options you need.

• Trip Cancellation, Interruption, and Delay – pays you if an airline or tour operator goes out of business or you have to cancel a trip for reasons covered by the policy such as an illness or death in the family
• Baggage And Personal belongings – provides reimbursement if baggage and personal belongings are lost or delayed for a certain amount of time
• Medical Assistance and Evacuation – provides coverage if you get injured or need medical attention on a trip.  It may not cover pre-existing conditions, so check your policy.
  • Your own medical insurance (such as one through your employer) may provide coverage.  Coverage varies from plan to plan, and you may need to pay everything and request reimbursement when you return from your trip.  Coinsurance, deductibles, and other policy requirements still apply
  • Medicare does not provide coverage outside the US

How much does it cost?

Travel insurance usually costs between 5 and 10% of the cost of the trip.  If you are quoted a policy that is less than 5% of the total cost, take the time to review the policy to ensure that it has adequate coverage.  Cheap policies are cheap for a reason, and have dozens of exclusions and provide very limited coverage.

The cost of travel insurance is also affected by the age of travelers.  Since older people are likely to need medical help while traveling, the cost of insurance is higher for older travelers.

Here’s some good news about travel insurance. Unlike car insurance, your claim history has no impact on prices, neither does your medical history.  If you have a pre-existing medical condition, however, travel insurance may or may not cover it.  Review the policy before buying it if you have a pre-existing condition.

Unless you are traveling some remote or high-risk destinations, the cost of insurance does not vary based on where you are going.  In other words, going to Shanghai or Cape Town makes no difference when it comes to the cost of travel insurance.

When do you need travel insurance?

Here are some situations when you should consider travel insurance.

• If you are taking an expensive international trip that costs over $5000
• Your travel itinerary is complex with multiple stops
• You are on Medicare and intend to travel overseas.  Medicare  typically does not provide coverage outside the United States
• Travel abroad.  Medical expenses can be very high in many places and need upfront payment before any service is provided.

When you do you NOT need travel insurance?

• A domestic trip
• A simple inexpensive trip
• You intend to stay with friends and family.  In this case, travel insurance will not provide much in terms of coverage
• Your credit card provides some type of travel insurance.  If you buy travel insurance, you are buying redundant coverage.  Understand that credit cards don’t provide all the coverage that travel insurance provides.

How soon should you buy travel insurance after booking a trip?

Buying early can save you money.  The best time to buy travel insurance is within 15 days of booking your trip.

Many insurance providers allow you to buy travel insurance until the day before you leave for the trip but it won’t be cheap and the last-minute policy may have some exclusions.

Where to buy travel insurance?

Websites like squaremouth.com will help you search and compare quotes from multiple insurance companies.

Insurance brokers will also be able to get you quotes from multiple providers.

You don’t need a travel agent to book a simple itinerary. But a travel agent can be helpful in planning complex trips that involve multiple cities or countries.  If you are a busy person who doesn’t have the time to plan vacations or someone who needs a personalized trip, working with a travel agent can come in handy.

Travel agents sometimes charge a flat fee for booking a trip or ticket.  They may also get commissions from suppliers.  For the price you, you may be able to get a lot of value and personalized service.

If you are looking for a travel agent, ask friends and colleagues for a referral.  Ask your friends about the experience they had working with the agent, and how the trip turned out.

Complex Travel Plans

Planning travel to multiple cities or countries can be very complicated.  A travel agent may be able to put together an itinerary that meets your expectations faster than you figure out on your own.

Large Group

If you are traveling with a large group, it may be difficult to find tickets for flights or events.  A travel agent will have expertise in booking tickets for large groups and can help you immensely.  A travel agent can also get better deals for groups than you can find on your own.

Agent Stay On Top Of New Developments

Hotels and airlines change policies frequently.  A travel agent stays on top of these changes and can help you make informed decisions. They also get to tickets for major events that they can then offer to the customer.  You will not be able to access these offers on your own.

Years of Experience

A person with years of experience can always do some things better.  You will have access to their knowledge for a cost but in some cases, it may be worth it. For example, when planning a honeymoon trip, a travel agent can take away the stress of planning while allowing you to focus on other activities.

Personalized Travel

Travel agent can personalize a trip for you.  If you are unable to walk for long distances or are interested in only certain activities on your trip, a travel agent can with help plan your trip with those details in mind.

When Things Go Wrong

When your plans change, or you miss a flight, it’s good to know that you can call someone who you have a business relationship with.  Trust me, it’s way better than calling an airline or a hotel explaining your situation. Many travel agencies are available 24/7 by phone or email.

When To Not Use A Travel Agent

Budget Travel And Accommodation

If you are interested in just visiting one or two cities and would like to stay in budget hotels, you are better off doing the planning on your own.  Websites such as expedia.com or orbitz.com can be a one-stop-shop where you can do all your planning and booking.  In this case, it ‘s unlikely that a travel agent will provide much value or save money.

Bottom Line

Travel agents can bring a lot of value and save you stress.  But you have to use them strategically.  A good travel agent can arrange memorable personalized vacations that you cannot plan on your own without spending a ton of time.  They will also be able to get your tickets to exclusive events that may not be directly available to you.