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How to Get the Best Hotel Deals

How to Get the Best Hotel Deals

I’m a big fan of comparison websites. They allow you to compare all your options and prices on one screen without having to spend hours researching prices on different websites. In some cases, like car rental, comparison sites can work out really well, with no booking fees, cancellation fees and no payment up front. But when it comes to hotels and accommodation, do comparison websites really get you the best deal? Before you book your next vacation, read this guide to make sure you don’t get ripped off!

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Family at the hotel check in

    Tips to get the Best Hotel Deal

    • Comparison sites like Expedia, Travelocity and Hotels.com are good for doing initial research and comparing your options.
    • Once you narrow down your choices to the hotel (or few hotels) that you would like to stay at, head to the hotel’s own website to see if their price is the same. Often they will have extra room types or prices that they don’t supply to comparison websites.
    • Look on the hotel’s website to see if they have any special deals or coupons.
    • Watch out for booking fees and credit card fees. This is not exclusive to the comparison sites; some hotels also charge for this.
    • Check cancellation and amendments policies before you book. This applies to both comparison websites and the hotel’s own website. Check to see if they charge you a fee for amending or canceling bookings. Your travel insurance may cover this, but it’s easier to get your money back straight from the hotel.
    • Check what’s included in your room rate. Some places will include things like Wi-Fi internet and local calls. Ironically, it’s usually the expensive five-star hotels that charge for these things like a wounded bull!
    • Don’t be afraid to negotiate. Try calling the hotel and see if they can offer a better price, room upgrade, or throw in some extras. This can work well if it’s close to the date and they still have plenty of rooms vacant.
    • Some people swear by bidding sites like Priceline, and others hate them. If you want to give it a shot, Gadling has an excellent guide on how to game Priceline to get the best deal.

    Resort Pool

      Let’s Look at a Real Life Example

      The following example is searching for the same hotel on various websites. In each case I’ll choose the cheapest available rate and highlight any extra costs for the booking. The hotel I’m looking at is in Australia (my home country), but I’ve tried it for several different countries around the world and got similar results.

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      Two nights (weekend) at the Mantra on Queen in Brisbane, Australia.

      Hotels.com
      Room: $298.00
      No credit card or booking fees
      Free cancellation until two weeks before the arrival date
      Total: $298.00

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      Wotif.com
      Room: $298.00
      Credit card fee: $5.50
      $25 cancellation charge up to two weeks before the arrival date
      Total: $303.50

      Mantra.com.au
      Room: $248.00
      2% credit card surcharge: $4.84
      $25 cancellation charge up to two weeks before the arrival date
      Total: $246.84

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      As you can see, even with the credit card surcharge, the hotel’s own website worked out cheaper in this case, as they had rooms that were not advertised on the comparison websites. I should point out that Mantra is quite a large chain of hotels in Australia, so they have some strict terms around cancellation and other fees. I’ve found that if you’re booking at much smaller independent hotels or B&Bs that you can often negotiate much better rates by going direct.

      Do you have a great tip for booking accommodation? Leave your best tactics in the comments below! And before you plan your vacation, don’t forget to check out my guides on getting the best deals on car rental, and how to take great travel photos!

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      Last Updated on September 2, 2020

      How to Set Financial Goals and Actually Meet Them

      How to Set Financial Goals and Actually Meet Them

      Personal finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. That’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?

      In this article, we will explore ways to set financial goals and actually meet them with ease.

      4 Steps to Setting Financial Goals

      Though setting financial goals might seem to be a daunting task, if one has the will and clarity of thought, it is rather easy. Try using these steps to get you started.

      1. Be Clear About the Objectives

      Any goal without a clear objective is nothing more than a pipe dream, and this couldn’t be more true for financial matters.

      It is often said that savings is nothing but deferred consumption. Therefore, if you are saving today, then you should be crystal clear about what it’s for. It could be anything, including your child’s education, retirement, marriage, that dream vacation, fancy car, etc.

      Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives that you foresee in the future and put a value to each.

      2. Keep Goals Realistic

      It’s good to be an optimistic person but being a Pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going beyond what you can realistically achieve will definitely hurt your chances of making meaningful progress.

      It’s important that you keep your goals realistic, as it will help you stay the course and keep you motivated throughout the journey.

      3. Account for Inflation

      Ronald Reagan once said: “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” This quote sums up what inflation could do your financial goals.

      Therefore, account for inflation[1] whenever you are putting a monetary value to a financial objective that is far into the future.

      For example, if one of your financial goal is your son’s college education, which is 15 years from now, then inflation would increase the monetary burden by more than 50% if inflation is a mere 3%. Always account for this to avoid falling short of your goals.

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      4. Short Term Vs Long Term

      Just like every calorie is not the same, the approach to achieving every financial goal will not be the same. It’s important to bifurcate goals into short-term and long-term.

      As a rule of thumb, any financial goal that is due in next 3 years should be termed as a short-term goal. Any longer duration goals are to be classified as long-term goals. This bifurcation of goals into short-term vs long-term will help in choosing the right investment instrument to achieve them.

      By now, you should be ready with your list of financial goals. Now, it’s time to go all out and achieve them.

      How to Achieve Your Financial Goals

      Whenever we talk about chasing any financial goal, it is usually a two-step process:

      • Ensuring healthy savings
      • Making smart investments

      You will need to save enough and invest those savings wisely so that they grow over a period of time to help you achieve goals.

      Ensuring Healthy Savings

      Self-realization is the best form of realization, and unless you decide what your current financial position is, you aren’t heading anywhere.

      This is the focal point from where you start your journey of achieving financial goals.

      1. Track Expenses

      The first and the foremost thing to be done is to track your spending. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you will be surprised by how small expenses add up to a sizable amount.

      Also categorize those expenses into different buckets so that you know which bucket is eating most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pumping up your savings rate.

      If you’re not sure where to start when tracking expenses, this article may be able to help.

      2. Pay Yourself First

      Generally, savings come after all the expenses have been taken care of. This is a classic mistake when setting financial goals. We pay ourselves last!

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      Ideally, this should be planned upside down. We should be paying ourselves first and then to the world, i.e. we should be taking out the planned saving amount first and manage all the expenses from the rest.

      The best way to actually implement this is to put the savings on automatic mode, i.e. money flowing automatically into different financial instruments (mutual funds, retirement accounts, etc) every month.

      Taking the automatic route will help release some control and compel us to manage what’s left, increasing the savings rate.

      3. Make a Plan and Vow to Stick With It

      Learning to create a budget is the best way to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be organized

      Nowadays, several money management apps can help you do this automatically.

      At first, you may not be able to stick to your plans completely, but don’t let that become a reason why you stop budgeting entirely.

      Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options, and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.

      You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.

      4. Make Savings a Habit and Not a Goal

      In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that, in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.

      Make savings a habit rather than a goal. While it might seem to be counterintuitive to many, there are some deft ways of doing it. For example:

      • Always eat out (if at all) during weekdays rather than weekends. Weekends are more expensive.
      • If you are a travel buff, try to travel during off-season. You’ll spend significantly less.
      • If you go shopping, always look out for coupons and see where can you get the best deal.

      The key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice, which will be harder to sustain over a period of time.

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      5. Talk About It

      Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission.

      Therefore, in order to stay the course, surround yourself with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.

      6. Maintain a Journal

      For some people, writing helps a great deal in making sure that they achieve what they plan.

      If you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.

      When you have a written commitment on paper, you are going to feel more energized to follow the plan and stick to it. Moreover, it is going to be a lot easier for you to track your progress.

      Making Smart Investments

      Savings by themselves don’t take anyone too far. However, savings, when invested wisely, can do wonders.

      1. Consult a Financial Advisor

      Investment doesn’t come naturally to most of us, so it’s wise to consult a financial advisor.

      Talk to him/her about your financial goals and savings, and then seek advice for the best investment instruments to achieve your goals.

      2. Choose Your Investment Instrument Wisely

      Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about the common ones, like a savings account, Roth IRA, and others.

      Just like “no one is born a criminal,” no investment instrument is bad or good. It is the application of that instrument that makes all the difference[2].

      As a general rule, for all your short-term financial goals, choose an investment instrument that has debt nature, for example fixed deposits, debt mutual funds, etc. The reason for going for debt instruments is that chances of capital loss is less compared to equity instruments.

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      3. Compounding Is the Eighth Wonder

      Einstein once remarked about compounding:

      “Compound interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.”

      Use compound interest when setting financial goals

        Make friends with this wonder kid. The sooner you become friends with it, the quicker you will reach closer to your financial goals.

        Start saving early so that time is on your side to help you bear the fruits of compounding.

        4. Measure, Measure, Measure

        All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments and taking stock of how our investments are doing.

        If we don’t measure progress at the right times, we are shooting in the dark. We won’t know if our saving rate is appropriate or not, whether the financial advisor is doing a decent job, or whether we are moving closer to our target.

        Measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!

        The Bottom Line

        Managing your extra money to achieve your short and long-term financial goals

        and live a debt-free life is doable for anyone who is willing to put in the time and effort. Use the tips above to get you started on your path to setting financial goals.

        More Tips on Financial Goals

        Featured photo credit: Micheile Henderson via unsplash.com

        Reference

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