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15 Ways to Travel in Retirement on a Fixed Budget

By U.S. News & World Report

Sharon Ellison is a 62-year-old retired school secretary in Lowell, Michigan. Her husband, 66, spent much of his career self-employed in modest endeavors. The couple doesn’t fit the mold of retirees who have enough disposable income to jet off to Europe regularly. And yet, they have visited the continent five times in recent years.

“My son wanted to go to Stonehenge [in 2007],” Ellison says of their first trip. “We totally got hooked on it.” Since then, they’ve been to Budapest, Prague, Paris, Switzerland, Vienna and Dublin, among other European cities. In between, they have traveled the country, camped in Yosemite and taken cruises. Now they are planning a journey to Thailand, Vietnam and Cambodia, and have Africa in their sights as well.

[See: 10 Retirement Hot Spots in the U.S.]

The Ellisons aren’t rich. However, they began setting money aside for retirement travels early and have been smart about how they spend their dollars. Here are 15 tips for traveling in retirement, even if you aren’t sitting on a pile of cash.

Weigh your priorities. For people of modest means, traveling in retirement often requires foregoing other things such as expensive gifts, home renovations or dinners out. “I think you have choices with how you spend your dollars,” Ellison says. “What’s important to you: a new car or a trip to Europe?”

Start planning early. Jake Serfas, a financial strategist at O’Dell, Winkfield, Roseman and Shipp in the District of Columbia, says early planning is key for saving money. “There are more opportunities for deals,” he says. If you have a specific itinerary in mind, shopping early is best.

Stay flexible. On the other hand, travel operators often slash prices at the last minute to fill empty seats and rooms. “If you’re willing to travel on a moment’s notice, there are all sorts of deals,” says Ken Moraif, a certified financial planner and host of the radio show “Money Matters.” He recalls recently seeing roundtrip airfare to Paris drop to $350 for those who could leave immediately.

Travel during shoulder seasons. With no job to tie them down, retirees are free to travel in the shoulder seasons — those times in which the weather is still good but the peak tourist rush is over. Ellison estimates this strategy saved her $600 in airfare on her recent trip to the U.K.

[See: 10 Places to Retire Overseas in 2017.]

Be smart about your destination. You could spend a week at Disney with the grandkids or pay the same amount and stay a month at a different destination. “Our favorite country is Croatia,” Ellison says. “The people are nice, the waterfalls are beautiful and it’s cheap.”

Combine multiple stops. One reason Ellison has been able to cross so many countries off her list is that she flies into one city and out of another for each trip. Serfas says that’s a smart way to reduce expenses and finish the journey feeling like you’ve made headway on travel goals. “I think it’s important to make a bucket list and then maybe you can cross off one or two on the same trip,” he says.

Look for discount airfare. Discount airlines such as Southwest, Ryanair and WOW air offer no-frills travel options in the U.S. and abroad. Ellison books her flights through Cheapoair.com and uses a rewards credit card that earns her dollars to maximize her savings. However, be careful to read the fine print, since many low-cost carriers charge additional fees for everything from baggage to in-flight entertainment.

Look for low-cost, value-added accommodations. Moraif has one client who travels nearly full-time for around $1,000 a month by driving to each destination and staying in motels. Likewise, Ellison keeps her costs down by staying in inexpensive hotels. “I try to average $60 a night and get a meal at the hotel,” she says. When booking, priority goes to places offering a free breakfast.

Skip the rental car. Another one of Ellison’s tricks is to always stay within walking distance of attractions in big cities. “We have rented a car, but only a couple times,” she says. “We try to travel like the locals.” That means taking public transportation whenever possible and often logging seven or eight miles of walking each day.

Keep food expenses in check. Eating out can quickly bust any travel budget. Instead of dining at restaurants, shop at a grocery store and pack picnic lunches if possible. When you do need to dine out, remember that lunch is cheaper than dinner. Splitting meals or ordering appetizers instead of entrees are other strategies to limit runaway food costs.

Go long for big trips. Ellison notes the most expensive part of going to Europe is usually airfare. To make the most of that money, the Ellisons spend at least three to five weeks overseas for each vacation. By selecting budget destinations and lodging, the overall cost of the trip remains reasonable for the couple.

Stick close to home. Another option for budget travelers is to skip the big trips entirely and focus on places within driving distance. “Everyone can take a day trip down to the bay or the ocean,” Serfas says.

Find some travel companions. Some fixed travel expenses, such as certain hotel rooms or a rental car, can be made less expensive by splitting the cost among more travelers. Finding another couple or a few friends to join your adventures may bring down the per-person cost for everyone.

[See: 10 Tips for Finding a Great Place to Retire.]

Try your hand at timeshares. If you don’t mind sitting through a high-pressure sales pitch, many timeshare companies will give prospective owners a free stay at their property. However, you may need to meet certain income requirements to be eligible. You could also skip the pitch by going to sites like RedWeek.com where timeshare owners often rent their property at a deep discount.

Buy an RV. This is another way many people are able to travel in retirement on a fixed budget. “We’ve got national parks. We’ve got beaches,” Moraif says. Those and other camping options can make for a cheap way to see the country. Moraif just cautions to have an exit strategy and enough money in the bank to set up a new place to live after it’s time to put the RV in storage.

More from U.S. News

12 Ways Retirees Spend Their Newfound Free Time

10 Financial Perks of Getting Older

10 Tax Breaks for People Over 50

15 Ways to Travel in Retirement on a Fixed Budget originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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