A Different Way to Travel
One of the most pervasive myths floating around our society is that we NEED a credit card to travel. People believe this so much that they are willing to play Russian Roulette with their finances to make it happen. Here's a very real example. One of my clients had more than $30,000 of credit card debt. It's a chunk of debt that's expanded and contracted for more than a decade. Fortunately, they decided to lock down and aggressively pay it off. Getting debt-free took about 14 months, and they celebrated mightily upon completion!
I pleaded with them to cancel their cards—I literally begged! Then, the dreaded phrase came out of their mouths: "We NEED to keep at least one open for travel." Uh oh, the myth still had them captive! Despite my best efforts, they elected to keep this card open "just for travel." You can probably guess where this is going. Life happened, and they ended up back in credit card debt.
There's a better way! A simpler way! We don't need a credit card for travel. I haven't had a credit card for more than 14 years now. I've traveled to nearly 30 countries during that span.....with no credit card in my possession. I buy plane tickets with a debit card. I book hotel rooms with a debit card. I rent cars with a debit card. I buy meals, Ubers, and activities with a debit card. It's possible to travel without a credit card. I don't just preach it.....I live it.
All that said, it's not enough for me to simply say, "Stop using credit cards for travel." I'll also share how I structure my travel life:
I have a designated sinking fund for travel. But instead of using a savings account, I have it set up as a checking account. It's a separate checking account ONLY for travel use.
Each month, we allocate money for travel in our budget. When we do, we literally take that money and move it from our primary checking into our travel fund. We treat it as an expense, and actually "pay" that expense.
When we travel, we use the debit card associated with our travel fund to pay for all travel-related expenses: cars, hotels, flights, food, activities, etc. Everything!
The money comes directly from our travel fund, leaving our monthly budget completely unscathed.
If that sounds too simple, it's because it is. Simplicity always wins. If there's money in the account, we travel. If there's not, we don't. No exceptions. There's zero chance of making a mistake, going into debt, or getting ourselves into trouble. Handling travel this way also forces us to be intentional with our budget each month, as our travel fate relies on us actually setting money aside.
I know I'm fighting an uphill cultural battle with this one, but I felt compelled to share this alternative way of thinking today. Try it for yourself. I have a feeling you'll love it as much as we do.