• Tweet
• Email

• Tweet
• Email

I first learned about the Pareto principle in my university marketing courses: it states that roughly 80 percent of sales come from 20 percent of clients. The 4-Hour Work Week applied it to personal life as well: one thing that stuck with me is that we wear 20 percent of our clothes 80 percent of the time. Even as my wardrobe has been drastically minimized, I still find myself wearing skinny jeans and a black v-neck over and over again–and laughing to myself at how predictable I am.

Even though it’s not quite the same concept, I apply an 80/20 rule to my budget when I’m traveling. Here’s how it goes: 80 percent of the time, I’m pretty darn frugal. The other 20 percent of the time, I feel free to splurge.

I’ve never actually used a budget, but I’ve always been good about managing my money. My mom instilled a few excellent money management principles in me: to always earn at least three times my rent, to use the rule of thirds (spend a third, save a third, invest a third) and to always make sure my bills were paid first.

Those aren’t always applicable on the road: I tend to work really hard and save heaps, then travel for a while on what’s in the bank–without actually touching my “savings.”

The ways I save 80 percent of the time:

• Walk or use public transportation. Things I hate about taxis: they’re expensive, bad for the environment and isolated. I’d much rather be in the swirl of everyday life, or having the freedom to stop where I please.
• Stay in hostels. I’m lucky enough to be able to fall into a deep sleep just about anywhere, as long as I have an eye mask and earplugs. As a solo traveler, staying in hostel dormitories is the easiest way to keep my costs down.
• Automatic transfers. I set up an automatic transfer from my checking to my savings ages ago–and I always forget it’s there until I see my growing savings account!
• Smart credit card use. I use a Capital One credit card because it doesn’t charge any overseas transaction fees. I also pay off my credit card every month. I hate the thought of paying any money just to put off paying money!
• Eat right. I don’t think it’s any secret that I love eating out–but I usually stick to no more than one big meal out a day. I’ll usually pick up a pack of yogurt, some fresh fruit and a few granola bars to keep in the hostel while I’m traveling: cheap breakfasts and easy dinners! I do think eating out is an important way to experience a local culture–but in the interest of my wallet and my waist line, I try not to overindulge.
• Find free things. Gallery openings, many museums, visiting a library, coastal walks: even when it’s doing nothing, there are lots of ways to do something without spending a ton of money.
• Use common sense. When I’m low on cash, I don’t spend it–even on a credit card. I’ll pick up some extra shifts, seek out some freelance work or hold off on nights out and shopping until payday.