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5 Tips to Reduce Business Travel Expenses

5 Tips to Reduce Business Travel Expenses

Business travel can be quite an expensive affair. China and the United States alone contributed to nearly $600 billion US dollars worth of business travel last year. It is estimated that close to 16 percent of all international trips and 34 percent of domestic trips are for business purposes. Besides the cost of the flying itself, traveling for business also includes the cost of hotels, cabs, and airport transfers. All of this can easily add up, especially if you are a bootstrapped business traveler. In this article, we will take a look at five ways to minimize the cost of business travel.

1. Fly the Same Airline/Alliance

It can be tempting to fly the cheapest airline each time you travel., but in doing so, you are denying yourself an opportunity to accumulate frequent flyer miles. By sticking to one airline (or alliance), you get to quickly accumulate airline miles that may be redeemed for free flights in future.

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There are a few things to remember here. First, you may sign up for more than one frequent flyer program so that even if you fly a different airline each time, you still get to accumulate miles. Secondly, many frequent flyer programs allow their members to redeem miles for flights that they have already flown. So in case you have already flown an airline a few times recently, remember to sign up and redeem these miles as well.

2. Use Off-Site Parking

Domestic business trips seldom last more than a couple of days. For such short trips, hiring a cab for airport transfer can work out to be expensive. For instance, if you are in Los Angeles, the average trip to the airport from LA downtown could be $50 (that is, $100 both ways). Shuttles are cheaper but inconvenient since they may not always fly from your neighborhood.

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A great alternative is driving your own car to and from the airport, but with the daily parking rates hovering between $25 to $30 in most major airports, this may not be the cheapest option either. For long-term savings, a good idea is to use off-site parking services that are located conveniently close to major airports.

The average off-site parking cost is $15 per day, and this is just half the price of airport parking. If you run a business with 100 trips each month and assume each trip is two days long, you could potentially save as much as $3000 each month by just using these offsite parking services.

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3. Book Hotel Chains

Most business travelers are aware of frequent flyer miles, and use it to save money. These travelers often fail to seek similar loyalty rewards from the hotels that they stay in. If you are someone who travels across the country or the world, a good way to save money is by booking rooms in hotel chains instead of stand-alone establishments. Such loyalty not only helps you save money, but can also help you win favors from the hotel management in terms of preferred rooms or extra amenities.

4. Avoid Cash

A business traveler to San Francisco is estimated to spend $509.50 each day on an average for food, car rental and hotel. At a national level too, the average daily cost for meals and car rentals work out to around $96.89 and $46.89 respectively.

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A great way to save money is by avoiding cash completely during business trips. Using corporate cards earns you reward points that may be redeemed in future for other purchases. For instance, Amex cards routinely reward you with 1 point for every dollar spent. Which means, twenty days in San Francisco would earn you enough points to cover the cost of a flight from San Francisco to Los Angeles.

5. Create a Travel Calendar

Your travel dates may depend on a multitude of factors, and this may make it difficult to book your trips in advance. But if you are a sales manager traveling the country to simply meet with your regional associates or to keep in touch with your clients, making last minute bookings may work out to be expensive.

A good idea is to prepare a travel calendar that you can share with your associates and clients in advance so that they may schedule their appointments accordingly. A travel calendar also helps you identify peak travel times for specific routes which you may avoid. For instance, international trips to India may be expensive during the local festival season in October, while similar trips to China may be expensive during their new year in February. A travel calendar helps you prepare for such expensive seasons in advance.

Featured photo credit: Pexels via pexels.com

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Anand Srinivasan

Marketing Consultant

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

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