How to Travel the World in Retirement Without Breaking the Bank

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One of the best parts about retirement is finally having the time to travel. But fixed incomes only go so far. And even if you’ve saved for retirement, you probably don’t want to run through it with a couple of trips.

It takes a lot of thought and planning, but it’s doable. Here are some ways to travel the world without breaking the bank.

Travel vs. Vacation

There is a difference between traveling and vacationing. With a vacation, you may take a week or two-week long trip. But with traveling, you’re trading in your normal life for a life based on travel.

Are you willing to rough it sometimes to travel to a specific destination, or do you need to stay in a comfortable hotel all the time? What you decide to do will affect your budget.

Lodging When Traveling

If you like animals, this type of lodging is for you. Cover the cost of lodging by housesitting in another country.

International families travel as well and may need someone to watch over their homes and pets while they are on vacation. You can be their house/pet sitter while they are gone.

The website Trusted House Sitters will connect you with people who live in unique places around the world and need a house sitter.

When the family returns to their home, arrange to go to another home that needs watched. You'll see the world from a locals’ perspective and your lodging will be free.

While you’re at it, shop locally for your food instead of going out to eat all the time. You’ll save even more money.

Pay Attention to Airfares

Plan your trip as far in advance as possible. Start looking at airfares so you'll know when one is a good deal. Airlines in the United States open their schedules around 11 months before the flight. That gives you plenty of time to find the best rate.

Booking a plane ticket should generally be done one to three months before a domestic flight and two to eight months before an international trip.

Book With Multiple Airlines

Although booking all your flights with the same airline is easier, it may not be the least expensive. Different airlines cut prices at various times and for different destinations.

The international leg is usually the most expensive part of the trip. Look for deals from other airlines, airports, and cities than you usually use.

When choosing a carrier, beware of an airline hub for flights, including connecting flights. Because the carrier dominates the service at their hub airport, they have a monopoly when it comes to pricing.

Many other airlines will cut prices from those same airports on popular routes. Their intent is to take the larger hub’s airline business.

Take Advantage of Flexible Schedule

You’re retired and not bound to a schedule, take advantage of that. Fly during off-peak times. Prices will be lower, and the plane may be less crowded.

Avoid business travelers who generally fly out on Sunday and return on Thursday. Tuesday or Wednesday are the least expensive times to fly. Since you have a flexible schedule, you can fly those days and save money.

Avoid Credit Card and ATM Fees

Many credit cards charge foreign transaction fees. These typically run 3 percent per swipe which can add up quickly.

Research different credit cards before you travel and switch to one that doesn’t charge fees. But many of these cards have an annual fee.

Using ATMs abroad could cost you a lot. Both the foreign country’s bank and your domestic bank will charge a fee. A foreign fee can be up to $5, while a domestic bank will charge about 3 percent.

Before traveling, check with your bank about charges. Tell them about your trip and see if they'll waive the fees.

Another way to avoid the fees is to open a bank account abroad. If you’re going to be traveling in a country for a while, it could save you money. You can open a bank account in another country as long as it’s not for tax-evasion purposes.

Avoid Renting a Car

Car rentals are expensive in foreign countries. Explore the city on foot or rent a bike if you’re in shape.

Many countries have great public transportation systems that are inexpensive. Since most are easy to navigate, you can use them to travel around the country.

Make a Grocery Run

If you’re in a house, go to the grocery store to buy food instead of restaurants; you'll save. Even if you’re in a hotel room supplement some nonperishable items instead of going to restaurants. It’s even easier to do that if your hotel has a small refrigerator in the room.

At least have snacks available so you won’t be tempted to buy goodies from street vendors or cafés.

Great to Travel When Retired

There are many ways to travel the world and not spend every penny you have. Housesit and take that pup for a walk through the neighborhood where you can hobnob with locals. Research plane flights for the best deals and try to grocery shop when possible.

This all takes planning, but it will be worth it to see the world.

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