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Guide to Prime Day: Here’s What You Should Know

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Last year, Amazon had nearly $233 billion in net sales, representing about 50 percent of the total U.S. e-commerce market. Earlier this year, Amazon Prime hit a remarkable milestone, crossing 100 million subscribers for the first time. Now, everyone who is an Amazon Prime member has a major event to look forward to: Amazon Prime Day. Before the event kicks off in 2019, here’s a guide to Prime Day and what you should know.

Guide to Prime Day: How the Sale Works

Amazon uses a variety of approaches with its Prime Day event. In some cases, an item will have a discount for the duration of the sale, allowing you to buy them for less at any point during the two days.

However, Amazon also has other special deal categories. Lightning deals offer major discounts but are only available for a short period, such as a few hours or less. Additionally, these items can sell out. If you don’t get one when it goes on sale, you might have a chance to join the waiting list and hope another shopper backs out. But, if that doesn’t happen, you can’t get a raincheck.

With the Lightning deals, Amazon does try to help you score a great price on items you want. Head to the “Today’s Deals” section of the website and open the “Upcoming” tab. There, you can scroll through items that are going to go on sale and select “Watch this deal.” Then, once that sale launches, you’ll get a notification.

When Amazon Prime Day Kicks Off

Amazon Prime Day is back for the fifth year in a row. Many liken the event to Black Friday, as the retail giant typically offers dramatic markdowns and great deals, enticing Prime members to spend.

While it’s called Amazon Prime Day, it is actually a two-day event. In 2019, the sale starts at midnight Pacific Time on Monday, July 15 and comes to a close at 11:59 pm Pacific Time on Tuesday, July 16.

It Is a Prime Member-Only Event

If you aren’t an Amazon Prime member, you can’t access any of the deals the retailer will offer during the event. Those who already subscribe – either on an annual or month-by-month basis – will be able to shop the sale without having to do anything extra.

However, if you aren’t a member yet, that doesn’t mean you have to miss out. You can sign up for the free 30-day trial if you’re account has never been Prime before. Just make sure to get signed up before the event kicks off on July 15.

Where You Can Find Amazon Prime Day Deals

Once Amazon Prime Day begins, you can find all of the information on the website page dedicated to the event. It will show some of the most enticing deals and give you the ability to shop by category, allowing you to narrow down the results based on what you want to buy.

What Items Will be on Sale?

Amazon is usually somewhat tightlipped about its Prime Day deals before the event launches. However, it does preview parts of its sale as Prime Day draws near.

One of the first confirmed deals is a Toshiba HD 43-inch television. It’s the Fire TV Edition of the Smart TV. Instead of costing $299.99, it’s available for $179.99. That’s a 40 percent discount.

Amazon also commonly discounts its own devices, like Echoes, Kindles, and Fire tablets, during the event. Alexa-enabled devices are expected to have some massive discounts. Additionally, services like Amazon Music Unlimited, Kindle Unlimited, Audible, will likely also be involved in the deals event.

Otherwise, expect discounts in nearly every product type Amazon sells. Sales items will likely span a wide range of categories, including gaming, health and fitness, home and kitchen, and more.

Are you going to take advantage of the Amazon Prime Day Deals? Tell us what’s on your Amazon shopping list in the comments below.

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Wealthfront Savings Might Be Your Best High Yield Option

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We used to have such limited options when it came to getting a good interest rate from a savings account. Most banks today still offer very minimal rewards on their basic savings accounts. In the past, if you wanted to make money off of your money, then you really needed to invest it rather than just stowing it in a savings account. While it’s still true that you make more money off of investments, your options are getting increasingly better if you do want to use savings accounts.

What Is a High Yield Savings Account?

Put simply, a high yield savings account is the same as your regular savings account except that you’re able to earn more money from it.

According to the FDIC, the average interest rate on savings accounts is .10% APY. In other words, if you deposit $1000 in a savings account, then over the year you will earn $1. That’s not very much of a return on your investment.

Of course, savings accounts aren’t really supposed to be investment tools. They’re places that you can park your money and still easily access it as needed. Traditionally, you would need to put your money into a money market account or CD if you wanted to get a higher interest rate. However, you can’t pull your money out of those types of accounts so easily.

A high yield savings account, on the other hand, gives you the benefits of a savings account with a higher rate of return. You can easily earn ten times the interest rate of a regular savings account if you use a high yield savings account. The APY on a high yield savings account exceeds 1%. Therefore, you’ll get more than $10 per year on every $1000 that you deposit, compared to that $1 in your traditional savings account.

Wealthfront High Yield Savings Account

Wealthfront is one of the best options for people seeking to open a high yield savings account for the first time. That’s because it offers the highest overall rates. They recently raised their rate to 2.57%. That means you’ll earn more than $25 per year on every $1000 that you deposit into the Wealthfront high yield savings account. Why would you put your money in the bank and earn $1 per year when you could put it in a different bank and earn $25 per year instead?

Wealthfront Offers Double the Interest Rate of a 60-Month CD

If you take a look at the FDIC rate chart linked above, you’ll see that you can get higher interest rates by putting your money into longer-term CDs. For example, you can get 0.65% APY on average for 12-month CDs. If you put your money into a 60-month CD, then you can get as much as 1.25% APY.

However, that means that you can’t touch your money for five years without penalty. Moreover, you still only get $12.50 per $1000 deposited. In contrast, you can get twice that with a Wealthfront high yield savings account and your money isn’t tied up at all. Of course, the longer you keep the money in there (and the more you add to the account), the more money you’ll earn. Nevertheless, it’s comforting to know that if you have to pull that money out for an emergency, you’re not going to incur a fee.

You Can Start a Wealthfront High Yield Savings Account with Just $1

Generally speaking, the more money that you put into an account, the more likely you’ll get a good interest rate in return. The FDIC breaks savings accounts into two categories: normal and jumbo. The latter means that you put at least $100,000 into the account. You usually make more money in interest on jumbo accounts than you do on normal accounts.

In fact, many of the companies that offer high yield savings accounts require you to open a jumbo account. If you don’t have $100,000 (or whatever minimum they require), then you’re out of luck as far as those good rates go. That’s not the case with Wealthfront. Wealthfront allows you to open a high yield savings account with just $1. You can start earning your 2.57% APY right away on whatever amount you’re able to deposit.

This can serve as a great opportunity for people who are new to high yield savings accounts to check out how it works. You don’t pay a fee, you don’t have to put in a minimum amount of money, and you can start earning those high interest rates. As you see your money start to grow, it might inspire you to stick more and more into savings. As you do, you’ll earn more. It’s a win-win cycle.

There Are No Fees

It’s important to reiterate that there are no fees for this account. You don’t pay a fee to open the account. You don’t pay a fee if you fail to keep a minimum amount in the account. Moreover, you can transfer your money in and out of the account as often as you want and there won’t be any fees for that either.

Of course, come tax time, you do need to pay taxes on the interest you earn. But that’s true of any interest earnings from any bank.

What is Wealthfront?

Wealthfront is an online-only bank. Actually, technically, they’re a fintech company. One of the reasons that they’re able to offer such great rates is that they don’t have the high overhead costs of running an in-person bank.

So where does your money go? You actually place your money in a partner bank, such as Citi Bank. The reason this matters is because those banks have FDIC insurance. It’s FDIC insured up to $1 million. In other words, your money is safe with Wealthfront, even though it’s an online-only bank because they partner with brick-and-mortar banks.

If you’ve heard of Wealthfront in the past, it might be because they’re known as a terrific app-based investment tool. They offer a robo-advisor with low fees to help you begin investing. You do not have to use their investing tools in order to benefit from opening a high yield savings account with them. That said, as you get more and more used to this bank, you might discover that you do want to take advantage of all that they have to offer.

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Can You Really Retire at Age 50?

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For many, the idea of retiring at age 50 sounds amazing. However, many question if it is even realistic. Considering that anyone born after 1960 won’t qualify for full Social Security benefits until age 67, that leaves 17 years before they could access that source of income if they stop working at age 50. Plus, most retirement accounts – like 401(k) and IRA accounts – won’t allow you to make withdrawals without penalties until age 59 ½, leaving an 8 ½-year gap. But, even with that, that doesn’t mean retiring at age 50 isn’t possible.

How to Retire at Age 50

If your goal is to retire at age 50, you’ll need to start planning immediately. If you don’t plan on working once you retire, you have to have enough saved to cover the rest of your life. With the average life expectancy sitting just below the 79-year mark, that means having enough money to support yourself (and possibly your household) for 29 years or longer.

As daunting as that may seem, it is doable. It just requires some planning, diligence, and dedication. Here’s how to get started.

Save as Much as Possible

Retiring early requires a substantial amount of savings. Along with having a robust retirement account, giving you something you can tap once you reach age 59 ½, you’ll need another source of funds to cover that 8 ½-year gap.

Many who aim to retire at age 50 open investment accounts beyond their retirement savings vehicles. Often, these accrue more in interest than traditional savings accounts, allowing your money to grow more quickly. However, they aren’t risk-free, so you need to consider your risk tolerance and choose options that are right for you. For example, index funds, target-date funds, and many mutual funds provide a level of diversification, so they may be a good place to start if you are new to investing.

Reduce Your Expenses

The less you need to spend each month, the less you’ll need to save. Tackle as much debt as possible before you reach age 50, and the goal becomes more realistic. Similarly, consider cutting back on unnecessary services, like premium cable packages, or other high-dollar expenses, like dining out, to make retiring early more manageable.

Calculate Your Post-Retirement Spending

In order to determine how much you will need to save, you need to understand what you’ll spend in retirement. This includes everything from debt payments to household expenses to medical costs. Plus, you need to account for any changes to your entertainment-oriented expenses. When you retire, you may want to travel, see more movies at the theater, or embrace a hobby, all of which can impact your spending estimates. You’ll also have to contend with inflation, something that can significantly impact your spending power over time.

Planning for healthcare costs can be especially challenging. You won’t have access to Medicare until you are eligible for Social Security benefits. Even if your employee has post-retirement medical options available, the premiums are usually higher than they would be if you are still working, so you need to explore your options thoroughly to estimate the cost.

Once you calculate your spending, you can use that information to extrapolate how much you need to save. Usually, planning to use a withdrawal rate of 2 to 4 percent is a smart move. If you want to be conservative and use the 2 percent rate and estimate you’ll need $50,000 a year, then you’d have to save $2.5 million before you reach age 50 if that’s when you want to retire.

Consider a Partial Retirement

If you can’t save enough to fully retire at age 50, that doesn’t mean you can’t dramatically change your relationship with the working world by then. For example, you may be able to save enough to cover part of your expenses and then opt to work at a job you enjoy on a part-time basis until Social Security kicks in or you can access other retirement savings. Not only will this provide you with some flexibility and additional income, but it also gives you more time to lower your expenses and save.

Then, when you reach age 59 1/2, 67, or anything in between, you can reassess and shift to a full retirement if it is viable. That way, you can change your lifestyle earlier, making your years feel more fulfilling and rewarding.

At what age do you think you will retire? Does 50 sound realistic or even possible for you? Share your thoughts in the comments below.

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Cord Cutting: How to Save Money on TV

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I have to admit that I get a little bit of a kick out of how trendy cord cutting is right now. That’s because I haven’t had an actual TV in my home in years. There was one in my house in 2006, but that’s only because my roommate set it up.

I’ve been watching TV online for about as long as it has been possible. Before that, I subscribed to Netflix DVD deliveries to get my show-watching fix. I am definitely someone who is thrilled that technology has advanced to the point where we can easily stream videos of all kinds, including live. It’s become a popular way for many people to save money on TV.

Here’s How to Save Money on TV

I use a combination of Netflix, Hulu, Philo, Amazon Prime, and individual network apps to see all of the shows that I want to see. Therefore, I find it a little surprising that anyone still subscribes to TV “the old-fashioned way.” And I guess that’s why I find it funny that cord cutting is such a hot trend.

But it is. And it makes sense that it is. So if you’re still watching TV through cable company subscriptions, you might want to think about cord cutting.

What is Cord Cutting?

If you haven’t guessed by now, cord cutting is the practice of canceling your subscriptions to cable or satellite television. In their place, you can sign up for streaming services. Of course, you can still use an Internet-equipped television to watch those shows. Apple TV is one of the most popular options for people who want to watch TV on their televisions but use a streaming service instead of cable.

Why is it Called Cord Cutting?

It’s called “cutting the cord” because of the concept that you’re no longer wired to the physical system of a cable box or satellite dish. You can just get your television shows through the wireless Internet.

The people who do this are called cord cutters. Interestingly, there is also a segment of the population called “cord nevers.” These are people who have never subscribed to a traditional service where you pay for a package of tv channels.

There are also “cord trimmers,” which are people who do continue to pay for a traditional TV service but have trimmed down their package and supplement that with streaming services. Research shows that nearly half of US consumers pay for both TV and streaming services.

Cord Cutting is on the Rise

The research above came from Deloitte’s Technology, Media & Telecommunications’ 13th edition of Digital media trends survey. They noted that this was the first time in the history of the survey that more people are paying for streaming TV than paying for TV subscriptions. The difference is small (69% compared to 65%; “cord trimmers” are the reason this combined number exceeds 100%). However, the trend is that paying for streaming is on the rise while paying for traditional tv services is on the decline.

One of the biggest reasons that people still subscribe to traditional TV services is that they want to be able to watch live television. People who enjoy live news and sports will usually keep their TV subscription. The cord trimmers will pare down to a plan that allows them to enjoy just these shows, then they’ll use streaming services for other viewing. However, streaming services are increasingly beginning to offer live viewing, so it seems like only a matter of time before this won’t be a reason to keep your old service.

Who is Cutting the Cord?

Interestingly, millennials are the biggest group of both cord cutters and cord nevers. 88% pay for a streaming service while only 51% pay for traditional TV. It may not be surprising that they’re more likely to stream than their older Gen X or Baby Boomer counterparts. However, it is a bit surprising that the younger Gen Z is less likely to cut the cord. Among that group, 80% pay for streaming services and 57$ pay for regular TV. Since they grew up with streaming, it’s intriguing that they’re opting in to television services.

Why People Prefer Cord Cutting

So, why is it that people are opting out of traditional television subscriptions in favor of streaming? I know that the number one reason that I won’t pay for a traditional service is that I don’t like the few companies that offer it in my area. I’ve used their services thanks to roommates. And I’ve used their non-TV services, such as cable Internet, and I don’t like what they have to offer.

Therefore, I prefer the option to choose from a wide range of companies, including small companies, that offer streaming services instead. There are more than 300 different streaming services to choose from! (Not sure where to start? The New York Times has a great article on that topic.) If I don’t like the one I’m working with, I can easily switch. That’s my number one reason. But it’s not the only reason, of course.

Cost Comparison of TV vs. Streaming

Many people cite cost as the big reason that they prefer cord cutting. Cable TV and satellite TV are expensive. You can easily pay over $100 per month. Often, you end up paying for a whole bunch of channels that you don’t want so that you can have the few channels that you do. This is frustrating. If you only want to watch a few channels, and you can access those shows through a streaming service, that it can be far cheaper to cut the cord. So, yes, you really can save money on TV when you aren’t depending on cable.

That said, as streaming becomes the norm, it’s hard to say what will happen with the price. The Deloitte research found that people, on average, have three streaming subscriptions. That’s still currently less per month than an average cable TV bill. However, those prices shift all of the time. Whether or not they remain as low as they are right now … well, only time will tell. But if you’re looking to save money immediately, then it’s definitely worth it to see if cord cutting would work for you.

Streaming TV Has Fewer Ads

One of the major reasons that people switch to streaming is that they’re tired of commercials. In the Deloitte survey, “44 percent of respondents cited “no ads” as a top reason for subscribing to a new paid streaming video service.” However, I have to point out that this varies widely from service to service. Netflix doesn’t have ads. YouTube television does. Hulu has the option to pay more for an ad-free experience.

One of the things that I’ve noticed over the years is that the ads have gotten longer on streaming services. I remember when there were only a few commercials during a show, and they were about 30 seconds each. Now I regularly see 1-2 minute commercial breaks on my streaming services. So, this is also going to shift over time.

Other Reasons for Cord Cutting

Here are some of the other reasons that people choose streaming services:

  • There is great new original content available. Did you know that Netflix’s original shows tied HBO for the number of Emmy’s last year?
  • Many streaming services offer seamless viewing across multiple platforms. I can start a show on my desktop computer, pause it, and then pick up where I left off on my mobile phone. I can take my TV wherever I go.
  • Each platform has a different design. Therefore, you can choose the streaming services that offer you the best ability to find new content or organize the shows you love.
  • If you add an antenna to your television, you can still get some channels, such as NBC, for free. Remember when that’s the way it always was?

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10 Reasons to Consider Investing in Savings Bonds with TreasuryDirect

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There are so many different ways that we can invest our money. If you’re smart, you’ve diversified your options. However, you might have overlooked one of the smartest options available today: TreasuryDirect.gov. Investing in savings bonds that are backed by the government is a flexible, secure way to stow your money and let it grow. If you haven’t considered this option, here are ten reasons why it’s a smart course of action:

1. It’s Quick and Easy to Get Started

So what is TreasuryDirect? As they succinctly explain directly on their own website:

“TreasuryDirect is the first and only financial services website that lets you buy and redeem securities directly from the U.S. Department of the Treasury in paperless electronic form.”

In other words, you can quickly and easily go online, set up an account, and start investing in savings bonds through the site. It takes less than ten minutes to set up an account. You link that account to your regular bank account, so it is fast and simple to transfer funds. Although there is a lot that you can explore and learn on the site, you can grasp the basics really quickly and start investing in no time.

2. The Government Backs The Products

When you invest through TreasuryDirect, you do so directly through the US government. They back the investments. While it’s not foolproof, it’s one of the most risk-free options for investing today.

3. TreasuryDirect Offers More Than Savings Bonds

Savings bonds are the big thing that people invest in through the site. However, you can invest in a variety of security treasuries with this tool.

For example, you can invest in a specific type of savings bond called TIPS. That acronym is short for Treasury Inflation-Protected Securities, which, as the name suggests, protect your investment against inflation.

You can also invest in treasury bills and notes. The more you get to know about your different options, the more obvious it becomes that you have an array of good investment choices.

4. You Have So Many Options

In addition to having investment options, you really have a lot of choice about how you make your investments. There’s just a lot of flexibility with TreasuryDirect. For example, you can ladder your investments, buying 4-week bills at auction, which means that your money will never be tied up for long. Sometimes people don’t invest because they want the security of having that money easily accessible in the bank in case of an emergency. TreasuryDirect can give you a lot of that security while still allowing you to earn more than you would with a basic savings account.

5. The Investing Rates Are Competitive

People who invest their money in TreasuryDirect definitely want the risk-free security and ease of the product. In the end, though, this is an investment, so they also want a return on their money. It turns out that the investment rates these products offer are quite competitive. Savings bonds pay about 3%, which is clearly better than just sticking your money in a regular savings account.

Investing in bills and notes through TreasuryDirect.gov will give you a slightly lower return. Nevertheless, it’s still about 2%. Even if you invest in TIPS, you still have a competitive rate of about .5%. That doesn’t sound like much but considering that you won’t’ be impacted by inflation, it’s actually a great deal.

6. It Won’t Cost You Much to Earn

You always have to weigh the investment benefits with the costs. In this case, the costs are minimal. There are no fees at all. You can easily invest your money without having to pay extra out of pocket to do so. Moreover, you don’t have to put a lot of money into the account. Whereas some investment forms require huge amounts of cash to start, you can easily begin investing with TreasuryDirect.gov starting with as little as $25.

7. The Interest You Earn May Be Tax-Free

As you begin to learn more about investing in savings bonds, you’ll see that there are numerous benefits. One of them is the fact that you might not even have to pay taxes on the interest you accrue. You get just to add that money to your total net worth. Many of your investments are not so simple. Come tax time, you may be unpleasantly surprised to discover that you owe more than you expected. Nobody wants to owe extra money on the money that they’re trying to save.

This is especially important if you have a lot of money to invest. For example, let’s say that you receive a half million dollar inheritance. You could easily earn more than ten thousand dollars annually in interest from that investment. If you place that in a place where it’s taxed, you quickly lose a big chunk of it. On the other hand, if you put it into savings bonds, then you may not have to pay those taxes at all.

Of course, it’s important to do your research. Some investments will be tax-exempt at the state level but not at the federal level.

8. There Are Ways to Simplify Investing

Some people worry that putting their money into savings bonds is going to require a lot of work on their part. Indeed, if you want to get really involved in the trading, you certainly can. However, you can also automate a lot through TreasuryDirect.gov so that you don’t have to overthink it if you don’t want to. One great option is to buy the 4-week bill, set it to reinvest automatically, and then auto send the maturity directly into your regular savings account.

9. You Can Gift Savings Bonds

Savings bonds make a great gift, particularly for children – whether newborn or graduates. You can easily keep your money in your account then gift it when the time is right. That’s because the site has an easy-to-use “gift box” function.

10. Diversifying Your Investments Is Always Wise

The more places where you can place your money, the better off you are. You just never know what might happen in the market. Therefore, spreading your money out is a way to protect yourself against the unexpected. If you already have basic investment accounts but haven’t worked with TreasuryDirect, yet, then it’s another place to place your money.

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22 Ways to Save Money on Summer Travel

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Summer is almost here. It’s just around the corner. Maybe you have already planned your vacation. Or maybe you are dreading doing so because you know that it’s going to cost you money. Either way, you can find ways to save money on summer travel. In fact, here are 22 ideas to get you started:

1. Skip Summer Travel Altogether

I’m going to start with the obvious. However, perhaps it’s not so obvious. Many people feel like they have to take their vacation in the summer. The kids are off of school. There are events like weddings and reunions. We face a lot of pressure to travel in the summer. But it’s not a necessity. It’s okay to say no this year. If you’re feeling stressed for cash, then the best way to save money on summer travel is not to travel at all. You can still take a break; try a staycation instead.

2. Reduce Summer Travel

You might not feel like you can skip summer travel altogether. That’s okay. The next best option to save money on summer travel is to limit your trip. Cut your trip in half. Limit it to just a few days for a particular event. Use red-eye flights to skip hotel rooms on travel days. If you can’t reduce the number of trip days, try to reduce the number of costly things that you do during the trip.

3. Save Money on Summer Travel with Free Activities

There are so many free things to do in any city. The tiniest towns and the largest urban centers all have free events and activities. There are also parks, libraries, and other free places to spend your time. As you plan your summer vacation, make sure that you fill the schedule with fun things that don’t cost you anything at all.

4. Use Public Transportation

Many people automatically rent a car whenever they arrive at a destination. However, that’s often unnecessarily wasteful. You can save a lot of money by using public transportation instead. Plus that’s a great way to really see the city and the people who live in it. If you’re not able to use public transportation, then ride share apps or even cabs can offer a happy medium.

5. Couchsurf or Find Shared Housing

Hotels can cost a lot of money. Therefore, if you can find a cheap alternative, then you can save a lot of money on summer travel. The best option is to pay nothing, of course. Do that by couchsurfing. You can stay with a friend or a friend of a friend. Alternatively, couchsurfing websites offer free or cheap housing with strangers. You can find similar options using shared housing searches on Airbnb. Try staying in a hostel.

6. Go Camping

Shared housing isn’t the only alternative to paying for a hotel. Why not go camping this summer? If you already have camping gear, then this can be a perfect way to save money on summer travel. If you don’t have the gear, check for rentals at stores such as REI. It’s cheaper to rent this stuff than to buy it if you don’t use it very often.

7. Use Travel Apps to Book Travel

There are a lot of websites and apps to save money on travel. In particular, you can use smart tools when booking your trip. For example, use Hotwire or Hotel Tonight to get cheap last minute hotels. Use Gas Buddy to find the cheapest gasoline during road trips. Use Airport Parking to find the lowest rates if you need that service.

8. Set a Budget

It’s easy to go overboard with your vacation spending. However, if you pay attention to what you spend, then it’s much less likely. Set a budget for the trip. Subtract out what you pay for hotels, flights, etc. Then divide up whatever is left by the number of trip days for a daily spending budget.

9. Research Where to Get Vaccinations

If you are planning on international travel this summer, then you might need vaccinations. People often forget to include this expense in their travel budget. However, it can add up. Luckily, there are ways to save money on travel vaccinations. Review your insurance. Research your options. Choose the lowest cost vaccinations that meet your needs.

10. Know Banking Fees In Advance

If you travel internationally, then you also need to be aware of banking fees. Many credit cards will charge fees for international purchases. Those can add up really fast. Do your research ahead of time to make sure that the way you plan to pay for your trip isn’t costing you extra.

11. Have a Plan for Paying with a Credit Card

Whether you travel domestically or internationally, you’re probably going to use a credit card for some of those travel costs. Be smart about it. First of all, whenever possible, use a rewards credit card. That way, you get some money back. Then, make sure that you have a plan to repay that money as quickly as possible. If you can’t pay it off immediately, be sure to use the credit card with the lowest interest rate.

12. Check Your Phone Plan Before You Leave

As with banking fees, there are phone fees when you travel internationally. If you’re taking your cell phone with you, then make sure that you know all of the details about those fees. When I travel, I temporarily update my ATT plan to allow for international calling. That way, I know exactly what I’m paying for everything in advance. If you do something like this, be sure to cancel those extras on the plan immediately upon returning home.

13. Skip the Souvenirs

You don’t have to bring stuff back for the people that you left behind. It just costs extra money. I like to save money on summer travel by foregoing physical souvenirs for digital ones. I take photos of the things that remind me of specific people on the trip. Then I text those photos to let them know I’m thinking about them. Postcards are also an affordable souvenir if you feel like you must purchase something.

14. Save Money on Summer Travel with Smart Restaurant Choices

It’s okay if you want to eat wonderful food when you travel. However, you don’t have to spend a fortune to do it. Here are some ways to save money at restaurants while traveling:

  • Select mid-price restaurants instead of pricey ones.
  • Eat out for lunch then have the leftovers for dinner.
  • Order a delicious appetizer and a drink instead of an entree.
  • Alternatively, order an entree but skip appetizers and drinks.
  • Share a meal with a traveling partner.
  • Use coupons and discounts for local restaurants when traveling.

15. Bring What You’ll Need

If you pack smart when you travel, then you can avoid unnecessary expenses. For example, check the weather in advance. It’s a waste to buy raincoats and umbrellas if you can pack them instead. Double-check your toiletries to make sure you’re not forgetting something. Pack snacks.

16. Plan to Do Laundry While Traveling

One of the problems with “bring what you’ll need” is that you might end up with heavy luggage. If you’re traveling by plan, that could mean extra baggage fees. Avoid that by limiting how many clothes you bring. Instead, pack a little bit of detergent and do laundry during your trip. Of course, weigh the potential cost of that with the baggage fee.

17. Compare Prices Before Every Purchase

Speaking of weighing the baggage fee cost against the laundry cost, always compare prices. Seriously. Do a price comparison for every single part of the trip. If you explore multiple options, then choose the lowest price, you can easily save a lot of money on summer travel.

18. Do a Housing Swap

Do you know someone in a great destination who would like to visit the place where you live? Ask them if they want to do a housing swap. It’s a great way to avoid paying hotel fees during a trip.

19. Become a Housesitter

If you like to travel often and you want to save money doing so then build up your housesitting resume. You can watch people’s homes and pets all around the world. Sometimes you get paid for doing so. Even if you don’t, you get free accommodations. They’re often quite nice accommodations, in fact.

20. Look for Discounts You Specifically Qualify For

There are many different types of discounts for hotels, airlines, car rental, and even entertainment at your destination. Just a few discounts that you might qualify for are:

  • Student discount
  • Kids under a certain age
  • Senior discount and/or AARP member discount
  • Military discount
  • AAA member discount

21. Travel Where Your Money Goes Far

Maybe you haven’t picked a destination yet. You don’t have anywhere that you need to be. You just know that you want to travel. In that case, consider a destination where the currency exchange rate is in your favor. Of course, make sure that you choose a place with relatively affordable airfare as well. Otherwise, you’ll offset the cost of cheap travel with the high price of getting there.

22. Telecommute or Get a Summer Gig

Even if you do all of these things to save money on summer travel, the cost of a vacation might stress you out. You might feel better if you earn money while you’re away. Try to work while traveling. Maybe you can telecommute. Or perhaps if you’re going to be in one location for a few months, you can pick up a local part-time job.

Do you have any tips for saving on summer travel? Share with us in the comments below.

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