Cutting Your Bills for Travel Freedom

Cutting Your Bills for Travel Freedom

In my previous post about saving for travel, I discussed the importance of bill reduction. When embarking on long-term journeys, aim to minimize your monthly bills. Start by reviewing your current subscriptions and eliminate any that are unnecessary, such as streaming services and memberships.

Housing Costs

Consider subletting or renting out your home. Selling unwanted items can also help, and you might ask family or friends if they can store your belongings. A small fee or a thoughtful gift can go a long way. Using platforms like Airbnb can generate income while you're away, and offering a percentage to someone you trust to manage your space can ease your worries.

Left: Patagonia, Argentina. Right: Colonia del Sacramento, Uruguay

Vehicle Expenses

Option 1: Sell your vehicle.

Option 2: Rent it out.
If selling feels daunting, consider renting your vehicle to someone in need. You could also let a friend drive it, as long as they cover the insurance costs.

Alternatively, consider using services like Relay Rides or Flight Car to rent out your car.

Reducing Car Insurance

If you choose to keep your vehicle, here are some strategies to lower your insurance costs:

Remove Liability Coverage. If your car will be parked during your travels, you can significantly reduce your bill by dropping liability coverage and maintaining only comprehensive coverage. Remember, you'll need to return the license plate, but your vehicle remains protected from unexpected damages.

Considerations: When you return, check on your car's maintenance. You may need a new battery or oil change. Remember, never let anyone drive your car without liability insurance. If your car is old or you lack comprehensive coverage, consider dropping your insurance temporarily, but consult your agent first.

USAA Insurance provides discounts for vehicles in storage, specifically for military members and their families.

Is it worth the effort? Calculate how much you can travel based on your savings!

Mobile Phone Plans

Consider suspending your mobile service. Here's how major U.S. carriers handle suspensions:

• Verizon lets you suspend service for up to six months without charge, in increments of three months.
• AT&T allows service suspension but continues billing.
• Sprint offers a Seasonal Standby Plan for $8.99/month for six months.
• TMobile provides free international data for their Simple Choice plans, which may be worth keeping.

Additional Suggestions:

• Cutting service completely means losing your phone number.
• Avoid international plans; they can be exorbitant. Consider using Skype or purchasing a local SIM card for your calls.
• Look into early termination fees; they might save you money compared to paying your bill while traveling.

Staying healthy on your travels requires good nutrition and exercise, plus consider investing in travel insurance.

Health Insurance

Evaluate whether to drop your U.S. health coverage in favor of a solid travel medical insurance plan. Most U.S. insurers provide limited overseas coverage, typically covering major emergencies that require upfront payment. If you have a significant preexisting condition, research your options carefully.

If your employer provides health insurance:

Upon leaving a job, you might have the chance to enroll in the COBRA program, which allows you to maintain your benefits for a higher fee for 18-36 months. You have 60 days to enroll, with coverage backdated to your departure date, giving you time to travel while keeping COBRA as a safety net.

Here's my approach: Before quitting, I evaluated COBRA costs against those of Obama Care. This year, I opted not to enroll but ensured I left before my 60-day sign-up window closed. If an emergency arose, I'd have signed up for COBRA to secure coverage retroactively.

Managing Prescriptions

If you regularly take medication, look into generic options abroad. Many drugs can be found at a fraction of U.S. prices, especially in places like Asia. For example, I found a $30 prescription eye drop for just $7 in Thailand!

TIP: Most insurance plans offer a 90-day vacation supply for travel. Contact your insurer to set this up at least a month before your trip.

Before canceling your health insurance:

• Investigate international coverage options.
• Check COBRA eligibility and compare costs with Obama Care before resigning.
• Thoroughly research travel insurance options. If you're adventurous, consider adding a sports rider. My current plan is $50/month, including adventure coverage.
• Non-emergency medical care abroad can be remarkably affordable; I paid $72 for two x-rays in a high-end Bangkok hospital.

What strategies have you used to cut bills while traveling? We'd love to hear your tips!