Money Management

Discover five budget-friendly and fun travel methods to explore the world. Get inspired and start planning your adventure today. [[{“value”:”

Traveling the world doesn’t have to be a luxury reserved for the financially affluent. With a bit of ingenuity and flexibility, you can embark on global adventures without depleting your savings, no matter your personal finance situation. From being an au pair to organic farming, here are five resourceful and economical ways to satisfy your wanderlust.

1. Become an au pair or travel nanny

Becoming an au pair or an adventure nanny is a ticket to an exciting world of travel mingled with the joy of child care. If you’re thinking that being an au pair means staying with a family long term, think again. There’s a twist to it! Enter the world of adventure nannies — it’s au pairing, but with excitement. These roles are more like short-term gigs where you might join a family on their vacation or help out during a busy season. It’s not your everyday job; it’s about bringing fun and learning to kids while you all explore new places together.

As far as the pay? It’s pretty good! Depending on where you are and the specifics of your job, you could earn anywhere from $30 to $45 (or more) per hour as a nanny. And if you’re stepping into the shoes of a private educator, that could bump up to between $35 to $50-plus an hour. Not bad for a job that also lets you see the world, right?

This role is perfect for those who love a bit of variety in their life. One day, you could be teaching a tot how to build the perfect sandcastle on a beach in Bali, and the next, you might be guiding a tween through a history lesson in the heart of Rome. It’s about as far from a 9-to-5 desk job as you can get. Plus, you’re not just earning and traveling; you’re making memories with kids and having a hand in their learning and adventures.

2. Volunteer on a farm

Volunteering with World Wide Opportunities on Organic Farms (WWOOF) is a unique way to immerse yourself in rural and sustainable lifestyles. In this program, volunteers live and work on organic farms, receiving free room and board in exchange for their labor. This experience extends beyond mere accommodation; it’s a learning journey in sustainable agriculture, ecological practices, and local farming traditions.

WWOOFing is particularly suited for environmentally conscious travelers who are interested in organic farming methods and eager to engage in hands-on work while living in a close-knit community. The program encourages volunteers to conduct their background checks for safety, ensuring a secure and enriching farm stay experience.

3. Swap your home

Want to live like Cameron Diaz and Kate Winslet in The Holiday? You can and it can help you travel for cheap. The concept of home swapping is a fantastic way to travel the world while enjoying the comforts of a home. Through platforms like HomeExchange.com, which boasts over 150,000 members in 145 countries, travelers can swap their homes with others globally.

This exchange significantly cuts down on accommodation costs and offers a chance to live like a local in a foreign neighborhood. Home swapping is ideal for travelers seeking authentic experiences in residential areas, away from the typical tourist trails. It’s a mutual agreement of trust and exploration, allowing you to experience the world from the cozy comfort of another’s home.

4. Use credit points and flexible dates

A smart way to reduce travel costs is using credit card points or travel rewards for flights and accommodations. This strategy can unlock significant savings, especially with flexible travel dates. Airlines and hotels offer lower prices during off-peak seasons or less popular travel days. So, by being adaptable with your travel schedule, you can take advantage of these deals, making once-expensive destinations more accessible.

This approach requires careful planning and monitoring of travel deals but can be incredibly rewarding for budget-conscious travelers. Just remember, some credit cards are better for travel than others.

5. House or pet-sit

Platforms like TrustedHousesitters.com offer a unique solution for affordable accommodation by connecting travelers with house or pet-sitting opportunities worldwide. For an annual membership fee, you can stay in various locations, from urban apartments to rural cottages, without any additional cost. This service is not just about finding a place to sleep; it’s about experiencing life in different communities and, for animal lovers, enjoying the company of pets.

It’s a simple yet fulfilling way to travel — you take care of someone’s home or pets in exchange for free lodging. Members have found this method so beneficial that some, like Gretchen & Jeff from Oregon, U.S. (quoted on the website), credit it with enabling them to retire early due to the savings on travel expenses.

Exploring the world on a budget is not just a dream, but could be a practical reality. By embracing creative travel strategies like au pairing, organic farm volunteering, home swapping, smart use of credit points, and house or pet-sitting, you’re not just saving money — you’re stepping into a realm of rich, authentic experiences. Each of these options offers a unique perspective on local cultures and lifestyles, far beyond what traditional tourism can provide.

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There are lots of valuable credit card benefits. Check out recent data on each generation’s pick for the most important perk. [[{“value”:”

As you get older, your financial priorities change. You might find that what you look for in a credit card changes, too. For example, I used to be 100% against getting a credit card with an annual fee. Now, I have several of them.

If you’re trying to figure out which features to prioritize, it can help to know what people in the same age range want. Here’s a look at what people in each generation chose as their top credit card perk.

The No. 1 credit card perk for each generation

The Motley Fool Ascent recently conducted a study on generational credit card habits. As part of that study, it asked respondents the most important feature a credit card can have. Here are the answers by generation and the percentage of respondents who chose that feature:

Baby boomers: No annual fee (45%)Generation X: Low interest rate (31%)Millennials: Low interest rate (28%)Generation Z: Low interest rate (30%)

The two most popular credit card features, with each generation, are no annual fee and a low interest rate. Most generations selected low interest rates as their top pick, but baby boomers bucked the trend by choosing no annual fee. Here were the rest of the choices receiving votes:

Rewards programHigh credit limitIntroductory offer/welcome bonusRecognized/reputable card issuerWidely accepted card issuerInsurance or other protections offered through card

How to choose the right credit card

Picking a credit card might seem tough. Because there are so many options available, it can feel overwhelming sorting through them all.

If you haven’t already, the first thing to do is check your credit score. You can do this online — I like using Experian CreditWorks℠ Basic. It’s free and provides your FICO® Score (the most widely used type of score by lenders).

Your credit score is a key factor in which credit cards you can qualify for. If you have a low credit score, or you don’t have a credit score yet, your options will be more limited. Here’s what to do in these situations:

If you have no credit because you haven’t used credit cards or loans yet, look at starter credit cards. These are designed for people who are new to credit.If you have a low credit score because of past problems, such as late payments, look at secured credit cards. These require a security deposit, so card issuers are more lenient about approvals.

If your credit score is 670 or higher, congratulations! That’s in the “good credit” range, meaning you can potentially qualify for some of the best credit cards. Here’s what to look for in a credit card when you have good credit.

Get a rewards credit card if you plan to pay in full every month

Here’s one of the most important things to know about credit cards: If you pay off your card every month, the interest rate doesn’t matter. When you pay in full, you’re not charged interest on your purchases. Savvy cardholders always pay in full so they can take advantage of credit card perks without costly interest charges.

If you know you’ll be paying in full, then it makes sense to have a rewards credit card. There are two popular types of rewards cards available:

Cash back credit cards that earn cash rewardsTravel credit cards that earn rewards you can use to pay for travel spending

If you don’t want to pay an annual fee, keep in mind that many no annual fee cards earn rewards. Most cash back cards, in particular, don’t charge an annual fee.

Get a 0% APR credit card if you need to carry a balance

When you need to carry a balance on a credit card, that’s when the interest rate matters. Most credit cards don’t have low interest rates. But there’s an exception: 0% APR credit cards. These offer a 0% APR for an intro period. After the intro period ends, the APR goes up to the card’s normal rate.

There are two types of 0% APR offers:

0% intro APR on purchases: The offer applies to new purchases you make on your card during the intro period.0% intro APR on balance transfers: The offer applies to balances you transfer over from other credit cards.

If you need to make any big purchases and pay them off over time, then you’ll want a card with a 0% intro APR on purchases. If you’re in credit card debt and you want to save on interest as you pay it off, then you’d want a balance transfer credit card.

A credit card can be a valuable financial tool. To get the most value, you need to make sure you’re using the right credit card. When you figure out which credit card perks are a priority for you, you can narrow down your options and make your decision much easier.

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When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

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*Stock Advisor returns as of February 12, 2024

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Sometimes, it’s worth paying extra for things that offer you a lot of value. Read on to learn more. [[{“value”:”

Like many people I know, I’m in the habit of making New Year’s resolutions for my personal finances. And one of those resolutions is almost always to spend less so I can save more.

This year, however, I made a tweak. I decided that instead of focusing on spending less, I’d rather focus on spending more mindfully — meaning, making sure the things I pay extra for are really worth the money.

Now there are a number of expenses I splurge on to make my life easier and more fun. But these three in particular are ones I won’t let myself feel bad about.

1. Coffee

I have a Keurig coffee maker at home, and thanks to my Costco membership, I can brew my morning coffee every day at the very affordable price point of $0.32 per pod. Instead, most days during the workweek, I pick up a large coffee at Dunkin’ on my way back from dropping my kids off at school. That coffee costs me $3.29 (it cost less last year, but, you know, inflation), which is almost $3 more per cup than what I’d spend making coffee at home.

Now if we do the math and assume I buy a Dunkin’ coffee 20 times a month, that’s an extra $720 a year I’m spending on store-bought coffee compared to the price of brewing it at home. That’s a lot of money.

But my fresh Dunkin’ coffee is just so much more enjoyable than the coffee I can make at home. And I also legitimately consider it an investment in my productivity as a freelance writer who runs on little sleep. So while I am potentially spending an extra $720 a year, I’m buying myself 240 enjoyable pick-me-ups in the morning.

2. Good sneakers

Between the walking, jogging, and running I do, I probably pound the pavement to the tune of 40 miles or more per week. As such, I need decent sneakers. And I also have to replace them once they start to wear down — which happens often given how much walking and running I do.

But again, I’m not going to make myself feel bad about that. Staying active is good for you, so I consider the sum I spend on sneakers an investment in my health. Also, while I don’t buy the cheapest sneakers out there, I also don’t buy the most expensive ones, either. My sneakers almost always cost under $100 a pair and are sometimes as low as $60 or so if I spot a sale.

3. Cable

A lot of people I know have cut the cord with cable. But I hang onto it for one big reason — sports.

I have not found a way to get full access to my favorite hockey team’s games without giving up cable. And because of that, I’m keeping it, despite the fact that it costs me somewhere in the ballpark of $60 to $80 per month (the price has fluctuated based on deals we’ve been able to snag and the bundles we’ve signed up for).

Now my husband likes to make the argument that cable is a waste of our money because I really only watch the sports channels. I like to point out that a single night out can easily cost more than a month’s worth of cable. And since having access to cable allows me to enjoy one of my favorite forms of entertainment, I don’t feel bad paying that bill.

You deserve to treat yourself

If you’re down to your last $100 in your savings account and you’re carrying a massive credit card balance, then in that situation, you may want to cut back on non-essential spending until your finances improve. But if you’re in good shape financially, there’s no reason to feel guilty over the small (or even large) splurges you make that add value to your life and make you happy.

On my end, I have my savings automated so that I’m socking away a decent chunk of money each month before I spend a dime. And that helps me not feel bad about the purchases above.

If I were falling behind on savings goals, I’d consider making more coffee at home or canceling cable and dealing with more limited access to my sports games. Well, okay, to be fair, I’d probably sell my blood for cash before giving up access to hockey. The point, however, is that if you’re doing well enough financially and are saving regularly, go ahead and buy the things you love, and don’t beat yourself up over it.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

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*Stock Advisor returns as of February 12, 2024

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Getting a permit for home improvements is really important. Read on to learn why. [[{“value”:”

Home prices have been sky-high in recent years. Between that and the fact that mortgage lenders have been charging a bundle to borrow, some people are opting to renovate their existing homes rather than try to buy new ones.

In a late-2023 survey by CRAFTSMAN, more than half of Americans said they didn’t want to sell their current homes, as they’d have to give up a low rate on an existing mortgage. And 65% of homeowners see home improvement projects as a viable alternative to moving and buying a new home.

If you’re thinking of going this route, you may be inclined to do the renovation work yourself to save money. And you may also decide to skip the permitting process. That way, you won’t have to deal with potential delays or fork over the permit fees your town charges. According to Angi, building permit costs range from $460 to $2,776, depending on your location and the complexity of the work.

But renovating a home without getting a permit can backfire on you in a very big way. Here are some of the negative consequences that might ensue.

1. You could face costly fines

Doing work that requires a permit could end up costing you in the form of fines if your town finds out about it. And sometimes, all it takes is a nosy neighbor to make that happen.

Of course, the extent of the penalty will depend on where you live and the violation in question. But if your goal in not getting a permit is to save money, know that you might be costing yourself more money if you get caught.

2. You could have trouble selling your home

When you sell a home, you’re generally required to obtain a certificate of occupancy to present to your seller. That usually means having your home undergo an inspection by a town official.

If, during that inspection, an official finds work done with no associated permit on record, they may refuse to issue you that certificate. The result? You might have a really difficult time selling your home.

3. Your homeowners insurance may not cover a claim for damage

In the course of renovating your home, things have the potential to go wrong — whether you’re doing the work yourself or have hired a contractor. In many cases, homeowners insurance will pay for damage incurred during a renovation gone awry. But if you don’t obtain the proper permits, your insurer might refuse to pick up the tab.

Similarly, let’s say your renovation goes off without a hitch, only some of the work is done incorrectly, resulting in damage to your home down the line. If that project in question doesn’t have a permit attached to it, your home insurance company may not pay out.

4. You could risk damage to your home — or worse

A big reason towns require permits for renovations is that part of the process involves inspections to make sure the work is done correctly. If you skip the permit and associated inspection, you risk having improper work done.

That could, depending on the nature of the renovation, lead to damage caused by water or fire. There could also be structural implications that not only cause damage to your home but, worse yet, compromise the safety of its inhabitants.

You may be inclined to skip the permit when you’re doing a renovation that seems simple enough. But if it’s a project that your town requires a permit for, chances are, there’s a reason you’re supposed to get that permit. So your best bet is to pay the fee and go through the inspection process. That might seem like a hassle initially, but you risk incurring an even greater hassle if you don’t go through the correct channels.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

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*Stock Advisor returns as of February 12, 2024

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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