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5 Expensive Emergencies That Happen Right After You Cancel Insurance

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Canceling insurance might seem like a quick way to save money, especially when budgets are tight or you feel like you’re paying for something you never use. But the moment you cancel insurance, you expose yourself to risks that can cost far more than any premium. Emergencies have a knack for showing up at the worst possible time—often right after you let your guard down. Whether it’s your health, your car, your home, or even your pet, the financial fallout from being uninsured can be devastating. Here are five expensive emergencies that tend to happen right after you cancel insurance, and what you can do to avoid turning a short-term saving into a long-term regret.

1. Medical Emergencies That Drain Your Savings

Health insurance is one of those things you hope you never need, but when you do, it’s often for something big. Cancel insurance, and you’re suddenly on the hook for every doctor’s visit, prescription, and—worst of all—emergency room trip. Medical emergencies don’t wait for a convenient time. A broken bone, sudden illness, or unexpected surgery can cost thousands, if not tens of thousands, of dollars out of pocket.

According to the Kaiser Family Foundation, a three-day hospital stays in the U.S. costs around $30,000. Without insurance, even a minor accident can wipe out your savings or leave you with crushing debt. If you’re considering canceling your health insurance, think about how you’d handle a sudden medical bill and whether the risk is truly worth it.

2. Car Accidents That Leave You Financially Stuck

Auto insurance is legally required in most states for a reason. The moment you cancel insurance on your car, you’re exposed to the full financial consequences of an accident, whether it’s your fault or not. Even a minor fender bender can cost thousands in repairs, and if you’re found liable for injuries or property damage, the costs can skyrocket. Worse, you could be left with no recourse if an uninsured driver hits you. The Insurance Information Institute reports that about one in eight drivers in the U.S. is uninsured, making the risk even higher. Canceling your auto insurance might save you a monthly payment, but it could cost you your car, your savings, and even your ability to drive legally.

3. Home Disasters That Destroy Your Biggest Asset

Homeowners’ and renters’ insurance protects you from the unexpected—fires, storms, theft, and more. Cancel insurance on your home, and you’re gambling with your largest investment. Imagine a kitchen fire, a burst pipe, or a break-in. Without insurance, you’re responsible for every repair, replacement, and temporary living expense.

Even renters can face huge losses if their belongings are damaged or stolen. The cost to replace furniture, electronics, and clothing can add up fast. Home disasters don’t just threaten your comfort—they can threaten your financial stability for years to come. Before you cancel insurance on your home or apartment, consider the true cost of starting over from scratch.

4. Travel Mishaps That Turn Vacations Into Nightmares

Travel insurance often feels optional—until your dream trip turns into a logistical and financial nightmare. Cancel insurance before a big trip, and you’re left exposed to canceled flights, lost luggage, medical emergencies abroad, or even trip interruptions due to illness or political unrest.

Medical care in another country can be shockingly expensive, and some hospitals require payment upfront if you don’t have coverage. If you have to cancel your trip last minute, you could lose thousands in nonrefundable expenses. Travel mishaps are unpredictable, and without insurance, you’re left to navigate the chaos—and the bills—on your own.

5. Pet Emergencies That Break the Bank

Pet insurance is easy to overlook, but vet bills can be just as shocking as human medical expenses. Cancel insurance for your furry friend, and you might find yourself facing a heartbreaking choice if your pet gets sick or injured.

Emergency surgeries, treatments for chronic conditions, or even routine care can cost hundreds or thousands of dollars. Many pet owners end up putting expenses on credit cards or, worse, having to make difficult decisions about their pet’s care. If you love your pet like family, think twice before canceling their insurance. The peace of mind is often worth the monthly cost.

Why Canceling Insurance Is a Gamble You Can’t Afford

Emergencies don’t wait for a convenient time, and they certainly don’t care if you just decided to cancel insurance. The financial risks are real, and the costs can be life changing.

While it’s tempting to cut insurance when you’re looking to save money, the short-term relief rarely outweighs the long-term consequences. Instead of canceling, consider adjusting your coverage, raising your deductible, or shopping around for better rates. Protecting yourself from expensive emergencies is one of the smartest financial moves you can make.

Have you ever faced an emergency right after canceling insurance? Share your story or thoughts in the comments below!

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10 Vacation Spots That Are No Longer Worth The Time or Money

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When planning a vacation, expectations are often high, but some once-popular destinations no longer live up to the hype. Crowds, rising costs, overtourism, or declining appeal have made certain hotspots less enjoyable than before. Knowing which destinations to avoid can save you disappointment, valuable vacation time, and money. Here are ten vacation spots that have lost their charm, with insights into why they’re no longer worth your attention or budget. It may be time to update your travel list and explore more rewarding alternatives.

1. Venice, Italy

Venice’s charm has diminished significantly due to overwhelming tourist crowds and increasing environmental issues. Mass tourism has turned picturesque canals into crowded pathways, stripping away the romantic feel. Prices for lodging, food, and transportation have skyrocketed, making the city expensive without delivering authentic experiences. Environmental damage from cruise ships has also impacted Venice’s beauty and ecological balance. Additionally, the city’s continuous flooding problems are a constant inconvenience for travelers. Today, Venice’s charm is largely overshadowed by the hassle of navigating an overcrowded and overpriced destination.

2. Cancun, Mexico

Cancun, once a serene paradise, is now overrun with loud nightlife, congested beaches, and expensive tourist traps. Resorts have multiplied, resulting in over-commercialization and an overwhelming atmosphere that sacrifices tranquility for profit. Tourist scams, overpriced restaurants, and aggressive street vendors have increased significantly in recent years. Safety concerns stemming from occasional crime reports also deter cautious travelers. Environmental degradation of nearby reefs further diminishes Cancun’s original allure. Travelers seeking genuine relaxation and cultural authenticity should now look elsewhere.

3. Phuket, Thailand

Phuket’s pristine beaches have increasingly become overcrowded and polluted, taking away from its original appeal. The island’s natural beauty has been compromised by unchecked development and excessive tourism. Prices for accommodations and activities have soared without matching quality or comfort. Tourist scams and inflated prices targeting foreigners have become common, souring the overall experience. Noise pollution from nightlife and overcrowded beaches makes genuine relaxation nearly impossible. For authentic experiences in Thailand, quieter islands and rural regions offer far better value.

4. Niagara Falls, Canada/USA

Niagara Falls, though iconic, has turned into a heavily commercialized tourist attraction lacking in authenticity. Crowds can be excessive, especially during peak seasons, diminishing the natural wonder’s appeal. Overpriced attractions and hotels focused more on profits than visitor experience have diluted the genuine charm. Constant upselling and tacky souvenir shops surrounding the area further decrease its attractiveness. Limited viewing space forces tourists to compete for prime photo opportunities. Travelers seeking awe-inspiring waterfalls may prefer quieter alternatives elsewhere.

5. Bali, Indonesia

Bali, once a tranquil island paradise, has become overcrowded with tourists and suffers from pollution and traffic congestion. Overdevelopment has significantly degraded Bali’s natural beauty, with once-idyllic beaches littered with plastic waste. The rise in mass tourism has driven prices upwards, leaving travelers spending more for subpar experiences. Authentic cultural interactions are harder to find as many locations cater exclusively to tourists. Traffic jams are common, detracting from the relaxing vibe the island once offered. For peace and authenticity, travelers should explore less commercialized Indonesian islands.

6. Hollywood, Los Angeles

Hollywood’s glamorous reputation no longer matches reality, as tourists now encounter crowded sidewalks, tacky souvenir shops, and overpriced tours. The famed “Walk of Fame” is often dirty, overcrowded, and disappointing compared to its cinematic portrayal. High costs of accommodation and entertainment don’t align with the area’s limited genuine attractions. Persistent street vendors and aggressive solicitors further diminish the overall experience. Traffic congestion and high parking fees make visiting stressful rather than exciting. Travelers seeking authentic movie experiences might better enjoy studio tours outside Hollywood proper.

7. Times Square, New York City

Times Square has become an exhausting tourist trap rather than the vibrant cultural hub it once represented. It’s persistently overcrowded, noisy, and filled with chain stores and expensive restaurants catering solely to tourists. The iconic area is often chaotic, with aggressive street performers and solicitations distracting from its allure. Food and accommodation prices near Times Square are significantly inflated without offering commensurate quality. Authentic New York City experiences can be found far more affordably and enjoyably in other neighborhoods. For meaningful exploration, visitors should explore beyond this tourist-heavy epicenter.

8. Santorini, Greece

Santorini, famous for its blue-domed churches and breathtaking sunsets, is now severely affected by overtourism. The influx of cruise ship passengers leads to crowded streets, diminishing the relaxed, romantic atmosphere once associated with the island. Accommodation and dining costs have dramatically increased, with prices often far exceeding quality. Popular photo spots are overcrowded, leading to long waits and less enjoyable experiences. Local infrastructure struggles under tourist numbers, affecting overall enjoyment. Travelers seeking romantic and peaceful Greek experiences should consider less popular but equally charming islands.

9. Barcelona, Spain

Barcelona has fallen victim to its own popularity, facing issues such as overcrowded streets, overtourism, and rising costs. Iconic landmarks like La Sagrada Familia and Park Güell often require advance reservations, and their appeal is marred by overwhelming crowds. Tourists frequently encounter inflated prices for meals, lodging, and attractions, which don’t reflect genuine value. Pickpocketing and tourist-targeted scams have also increased significantly, further dampening the experience. Authentic interactions with locals have become challenging, as many neighborhoods cater exclusively to tourists. For genuine Spanish experiences, quieter cities or rural regions provide better value.

10. Dubai, UAE

Dubai, renowned for luxury and modernity, now feels artificial and excessively commercialized to many travelers. Attractions and shopping centers focus heavily on materialism rather than authentic cultural experiences. High costs and limited opportunities to engage genuinely with local culture make visits feel superficial. Overcrowding, especially during peak seasons, diminishes enjoyment of popular attractions like the Burj Khalifa and malls. Extreme temperatures and lack of natural greenery reduce outdoor activities and sightseeing. Travelers looking for culturally immersive and genuine Middle Eastern experiences will find better options elsewhere.

Seek Authenticity Over Popularity

Travel is most rewarding when destinations offer authentic experiences, genuine cultural immersion, and meaningful interactions. These 10 spots, despite their historic popularity, no longer provide travelers with the quality or satisfaction they expect. Avoiding overcrowded and over-commercialized locations will save you both time and money, allowing you to explore hidden gems and lesser-known destinations. Prioritizing authenticity and meaningful encounters over fame and trends will ensure more enriching vacations. Ultimately, thoughtful planning and awareness of current realities can guide you toward experiences worth remembering.

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House Sitting: 10 Ways To Travel for Free

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House sitter

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In an era where wanderlust is high but wallets are thin, savvy travelers are turning to an age-old practice with a modern twist: house sitting. This burgeoning trend allows globetrotters to explore the world without the hefty price tags of hotels or Airbnbs.

As remote work becomes commonplace and the sharing economy flourishes, house sitting is transforming from a niche option to a mainstream choice for budget-conscious adventurers. Let’s explore ten innovative ways you can leverage house sitting to traverse the globe without breaking the bank.

1. TrustedHousesitters: Global Pet-Loving Community

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TrustedHousesitters has revolutionized the house-sitting scene by connecting pet owners with animal lovers worldwide. This platform’s genius lies in its win-win model: homeowners get peace of mind knowing their furry companions are cared for in familiar surroundings, while travelers enjoy free accommodations.

With listings spanning from Manhattan penthouses to Tuscan villas, it caters to diverse tastes. The key to success? Build a stellar profile showcasing your pet-care skills, collect glowing reviews, and be open to less-trodden destinations.

2. MindMyHouse: Budget-Friendly Starter Option

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For those testing the house-sitting waters, MindMyHouse offers an affordable entry point. With a nominal annual fee, it provides access to a global database of house sitting opportunities.

While it might not boast the numbers of larger platforms, its lower cost attracts homeowners seeking trustworthy sitters without subscription fees. This creates a less competitive environment, ideal for newcomers. Focus on safety, reliability, and clear communication in your profile to stand out.

3. WorkAway: Cultural Immersion Through Service

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WorkAway ingeniously blends house-sitting with cultural exchange. Here, you offer skills, be it gardening, teaching English, or web design, in exchange for lodging. Many hosts are families or individuals seeking help with home projects or personal growth.

This arrangement provides an intimate glimpse into local life, far beyond tourist trails. In rural Japan, you might assist with rice harvests; in Costa Rica, help run an eco-lodge. It’s not just free travel; it’s an education in global citizenship.

4. HouseCarers: Long-Term Opportunities

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As remote work untethers professionals from offices, many seek extended stays abroad. Enter HouseCarers, a platform specializing in long-term assignments. Popular among retirees and digital nomads, it features house-sitting opportunities lasting months, perfect for truly immersing in a locale. Imagine spending a season in a Provencal farmhouse or wintering in a New Zealand beach town. To secure these coveted spots, showcase your ability to handle prolonged responsibilities, from maintaining gardens to managing utilities.

5. Nomador: Trust-Based House Sitting

Rustic kitchen couple

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Nomador takes a unique approach, emphasizing trust over transactions. Their “Trust Profile” system allows members to vouch for each other, creating a network of verified, reliable sitters. This community-driven model is particularly popular in Europe, where homeowners value personal connections. Nomador also offers a “Stopover” feature, letting you stay briefly with local hosts while between house sits, a fantastic way to bridge gaps in your itinerary and make lasting friendships.

6. HouseSitMexico: Regional Specialization

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While global platforms offer variety, regionally focused sites like HouseSitMexico provide depth. Specializing in a country allows them to understand nuanced local needs, like managing properties during hurricane season or caring for unique pets like iguanas.

They often have stronger local networks, connecting you with expat communities or language exchange groups. For those dreaming of extended time in a specific region, these niche platforms are goldmines.

7. MindahHome: Australian Adventure

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Australia’s vastness and high living costs make it daunting for budget travelers, but MindahHome changes that narrative. This Aussie-centric platform connects sitters with homeowners across the continent. From Sydney’s bustling suburbs to the tranquil Tasmanian wilderness, options abound.

A unique feature is its focus on rural properties, where tasks might include collecting eggs or feeding kangaroos. It’s an unparalleled way to experience Australia’s famed Outback hospitality without the outback prices.

8. TravellingWeasels: Personal Network Building

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Nick and Laura, the duo behind the TravellingWeasels blog, showcase how personal branding can unlock house-sitting opportunities. By documenting their global house-sitting adventures, they’ve built a loyal following. Homeowners, inspired by their stories, now reach out directly, offering sits in exchange for blog features.

This approach demonstrates the power of content creation in the digital age. Start a blog, YouTube channel, or Instagram account chronicling your house-sitting journey, your next free stay might come from an impressed follower.

9. Sabbatical Homes: Academic Circuit

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For academics, researchers, and educators, Sabbatical Homes is a hidden gem. This platform connects scholars taking sabbaticals or attending conferences with peers willing to home-swap or offer free stays. It’s particularly valuable in university towns, think Oxford, Cambridge, or Berkeley, where accommodations are pricey.

Beyond free lodging, it fosters a global intellectual community. You might find yourself discussing philosophy over breakfast with a Sorbonne professor or joining a local academic’s book club.

10. House Sitting World Summit: Networking Events

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In the digital age, sometimes the most effective connections happen offline. The annual House Sitting World Summit, held in different global cities, is proof. This event brings together seasoned sitters, homeowners, and platform founders for workshops, panels, and networking. Attendees share strategies, swap horror stories, and often, exchange house-sitting opportunities on the spot.

It’s an investment, tickets aren’t free, but the relationships forged can lead to years of free travel. Plus, many find mentors who guide them from novice to professional house sitter.

Your Key to a World Without Hotel Bills

House sitting

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In a post-pandemic world, where remote work is standard and over-tourism concerns many, house sitting has emerged as a solution aligned with contemporary values. It offers slow, immersive travel experiences that benefit local communities. You’re not just passing through; you’re participating, shopping at farmers’ markets, attending town events, and even helping neighbors. This approach supports local economies more sustainably than traditional tourism.

Moreover, in these times of social distancing and hygiene concerns, a private home feels safer than a busy hotel. House sitting lets you control your environment, providing peace of mind alongside adventure. As we collectively reassess our relationship with travel, prioritizing quality experiences over quantity, house sitting fits perfectly.

The platforms and strategies outlined here are your keys to unlocking a world of free stays. Whether you’re a digital nomad seeking long-term bases, a retiree wanting to explore slowly, or a student on a shoestring budget, there’s a house-sitting niche for you. But remember, it’s not just about free lodging; it’s about cultural exchange, personal growth, and contributing to a more connected, understanding world.

Ready to embark on your house-sitting journey? Start by choosing a platform that aligns with your goals. Create a compelling profile that showcases your unique skills, be it your green thumb, your fluency in multiple languages, or your knack for caring for exotic pets. Begin with shorter, local house-sits to build your reputation. Most importantly, approach each opportunity not just as a free stay, but as a chance to make a positive impact, however small, in someone’s life and community.

11 Ways Travel is Changing for Millennials and Gen Z

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Millennials and Gen Z are reshaping the travel industry with their unique preferences, values, and behaviors. From the way they plan their trips to the experiences they seek, these younger generations are driving significant shifts in the travel landscape. Here are 11 ways travel is changing for Millennials and Gen Z.

1. Tech-Savvy Booking

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Millennials and Gen Z are digital natives who prefer to research, plan, and book their travel experiences online. They rely heavily on travel apps, review websites, and social media platforms to plan their trips. Specifically, they use these tech savvy tools to find inspiration, read reviews, and make reservations, bypassing traditional travel agents in favor of digital convenience.

2. Experiential Travel

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Unlike previous generations who may have prioritized material possessions, Millennials and Gen Z value experiences. For this reason, they seek authentic, immersive travel experiences that allow them to connect with local cultures, communities, and traditions. Whether it’s participating in cooking classes, volunteering, or staying in unique accommodations like eco-friendly resorts, treehouses or working farms, these generations value unique experiences. Increasingly, Millennials and Gen Z are planning travel around these experiences, as well. Approximately three in five Gen Z  and Millennials confirmed they have traveled in the past 12 months for in-person events like concerts, sporting events, comedy shows, and book readings that are more than 50 miles from home.

3. Solo Travel

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Millennials and Gen Z are more likely to embrace solo travel. Solo travel is a way to explore the world on their own terms, gain independence, and foster personal growth. Overall, they’re drawn to destinations where they can meet like-minded travelers and forge meaningful connections along the way.

4. Social Media Influence

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Social media plays a significant role in shaping Millennials’ and Gen Z’s travel decisions, with platforms like Instagram, TikTok, and YouTube serving as virtual travel guides and sources of inspiration. Travel influencers and user-generated content influence destination choices, itinerary planning, and even the aesthetics of travel experiences. More than ever, travelers seek Instagrammable moments and shareable memories.

5. Sustainable and Responsible Travel

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Concerns about climate change, environmental conservation, and social responsibility are driving Millennials and Gen Z to prioritize sustainable and responsible travel practices. Because of this, they seek eco-friendly accommodations, support locally-owned businesses, and participate in activities that minimize their environmental footprint. This can look like anything from carbon offsetting to wildlife conservation projects.

6. Flexible Work and Digital Nomadism

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With the rise of remote work and flexible employment arrangements, Millennials and Gen Z are embracing a nomadic lifestyle that allows them to work from anywhere in the world. This newfound freedom enables them to combine work and travel seamlessly, living as digital nomads and exploring new destinations while maintaining their professional careers. Recently, van life culture has become popular among Millennials and Gen Z, where vans are repurposed into tiny homes on wheels. Flexible work and digital nomadism are forever changing the travel industry.

7. Alternative Accommodations

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Millennials and Gen Z are increasingly opting for alternative accommodations beyond traditional hotels, such as vacation rentals, homestays, hostels, and co-living spaces. Altogether, these options offer greater flexibility, affordability, and opportunities for authentic cultural immersion, catering to the preferences of budget-conscious travelers seeking unique and personalized experiences.

8. Adventure and Outdoor Activities

Ziplining

Millennials and Gen Z are drawn to adventure travel and outdoor activities that allow them to push their boundaries, embrace adrenaline-fueled experiences, and reconnect with nature. From hiking and rock climbing to surfing and zip-lining, they crave outdoor adventures. These outdoor activities offer excitement, challenge, and the opportunity to unplug from the digital world.

9. Food Tourism

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Millennials and Gen Z are passionate about food and culinary experiences, viewing travel as an opportunity to explore diverse cuisines, flavors, and dining traditions around the world. Increasingly, they seek out food festivals, farmers’ markets, street food stalls, and immersive culinary tours that allow them to indulge their taste buds and expand their culinary horizons. Also, Millennials and Gen Z have helped increase the popularity of local breweries and distilleries, and often plan their travel around the best destinations for beer and spirits.

10. Community-Based Tourism

community-based tourism

Millennials and Gen Z are drawn to community-based tourism initiatives that empower local communities, preserve cultural heritage, and foster meaningful interactions between travelers and residents. As a result, they support social enterprises, community-led tours, and homestay experiences that provide authentic insights into local life and contribute positively to the destinations they visit. This is changing the way the travel industry operates.

11. Wellness and Mindfulness Travel

wellness travel

Millennials and Gen Z prioritize wellness and mindfulness in their travel experiences. They seek out opportunities for relaxation, rejuvenation, and self-care. They’re drawn to destinations that offer wellness retreats, yoga and meditation classes, spa treatments, and outdoor activities that promote mental and physical well-being. Millennials and Gen Z have a holistic approach to travel that encompasses body, mind, and soul.

Redefining The Travel Industry

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Altogether, Millennials and Gen Z are changing the travel industry with their tech-savvy approach, experiential mindset, and commitment to sustainability and social responsibility. As these generations continue to shape the future of travel, industry stakeholders must adapt to meet their evolving needs. Ultimately, travel experiences of tomorrow must be inclusive, immersive, and impactful to satisfy the needs of these generations.

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How To Ask for Reimbursement of Travel Expenses

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At this point in time, business travel is less common than it used to be. I have a hunch that it will never return to pre-pandemic levels, as employers found it easier and less expensive to accomplish this through Zoom. It’s still important to know the ins and outs. Today we will cover how to ask for reimbursement of travel expenses.

What are travel expenses?

Travel expenses occur when an employee travels for business purposes. A business trip can include conferences, business meetings, client meetings, training, job fairs, etc.  One thing about travel expenses, is you need to be sure you’re getting the best jet card program.  You want to get as many points or cash back rewards as possible.  

Travel expenses include lodging, food, rental car, tips for servers and bellhops, etc. Most organizations that require employees to travel on a regular basis have policies in place.

If an employee is traveling for an extended period of time or is at a particular location for an extended stay, the business may also include reimbursement to pay for your family to visit.

When entertaining a client or a business partner, there are limits on entertainment expense reimbursement, so make sure you check your company’s guidelines so you don’t breach that threshold.

How do employees pay for travel expenses?

Company credit cards, personal credit/debit cards, cash, or allowances given by the employer.

How to ask for reimbursement of travel expenses

If the corporate policies are unclear about the process, write a letter first. Before you go on a trip or take a client out for lunch, request the payment of the expense, or at least ask for some information about what is covered, what isn’t, and what the limits are. Establishing communication upfront is very important.

Per diem, aka travel allowance or an expense account, is recognized by the IRS. Per their guidelines, your expense report is due to your employer (usually HR) within 60 days. The report should include dates, location(s), and receipts.

If you have any allowances or advancements that haven’t been used or can’t be justified as a business expense, then you must return that to your employer. If you don’t return it, that money can be classified as taxable income.

Conclusion

As I said in the opening, I don’t believe business travel will return to pre-pandemic levels, but it’s important to know what travel expenses are and how to ask for reimbursement of travel expenses.

Review your company’s business travel policy for more information, and if your company doesn’t have one, speak to them about what’s covered, what’s not covered, and any limitations.

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**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

When are Per Diem Payments Taxable?

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Per diem payments are used when businesses have employees that travel. These payments are designed to relieve the employee from certain costs associated with traveling. Particularly meals and incidentals (ground travel, laundry, room service, etc.), and lodging.

This is great for both the business and the employee, but there are certain situations when per diem payments are taxable. In this article, we’ll explore exactly when an employee will pay per diem tax.

Two types

There are two types of per diem payments, meal-only, and meal and lodging. The names imply their use. One pays for meals, the other pays for meals and lodging.

It’s important that we specify the meals must be “non-entertainment related” meals.

Stipulations

As with many parts within the tax code, per diem rules are very specific. Meals and lodging have different rates.

Also, different cities have different rates. These differences are typically relegated to “big cities” and “small cities”, with bigger cities getting the larger rates. This is referred to as the high-low method. Businesses may also make payments based on the state in which you travel.

The per diem payments must be equal to or less than the federal allowable limit (depending on what method is selected). The employee is responsible for filing an expense report within 60 days. The expense report needs to include, date and location of the trip, purpose of the trip, and lodging receipts (if the meal-only option is selected).

You’re not allowed to “transfer credits”. What’s meant by this is if you use less on your lodging than is allotted, you can’t use the excess on food, or vice versa.

Tax Consequences

As I mentioned in the introduction, per diem payments can have tax consequences.

  • If per diem payments over the limit are taxable on the employee’s wages
  • If an expense report isn’t filed, or the filed expense report doesn’t include the required information, those per diem payments become taxable to the employee.
  • If the employer allows you, the employee, to keep whatever you don’t spend.

If you travel for business and receive per diem payments, just make sure you keep good records, and you hang onto your receipts. It’s better to have too much information than not enough.

Related reading:

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*Be advised: Securities America and its representatives do not provide tax advice. Please consult a tax professional for specific information regarding your individual situation.

5 Surprising Tips to Supersize Your Family Vacation

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Memorial Day is right around the corner. Have you started planning your summer vacations yet?

Do you take a family vacation every year? Where do you typically go and how much does it cost you? What if I told you that you that for the same amount of money (or less), I could teach you how to go somewhere nicer or do more at that vacation spot you love. Yes, it is possible. Let’s check out the list!

 

My 5 “Not So Obvious” Family Vacation Tips

 

1) Stop Planning – I know, it almost sounds counterintuitive to what you should do to save money on your vacation. Typically, you’re taught to plan where you’re going in advance because if you wait until the last minute, everything will be much more expensive. While this is still the case for some items, there are benefits to waiting before choosing your exact destination. Websites such as TravelZoo or CheapCaribbean offer last minute deals on all-inclusive getaways and cruises all over the world. I once saw a weeklong trip to Aruba for only $800, which included the flight, the hotel stay, some events, and all of the food! Sometimes it pays to wait.

 

2) Stay Connected to Your Friends – With the help of Facebook, it’s pretty easy to stay connected to your friends today. And, since our world is becoming so globalized, your friends will most likely move to all corners of the world. While this may be tough to deal with at first (since you no longer get to see your friends every day), it provides a great reason to visit a new area on the globe and to do it for cheap (since you’ll be staying with your friend)! Just offer to pay for their food for the week and it’s suddenly a win-win situation.

 

3) Buy Groceries, Not Fine Dining – The purpose of your vacation is most likely to explore a new area that you’ve never experienced, not to eat at a chain restaurant that is prevalent in your own hometown. With a week-long vacation, it is much cheaper to go to the grocery store at the beginning of the trip than to eat out for every meal. This small tip could very easily save you $200-$400!

 

4) Learn From the Locals – No matter where you’re vacationing to, there will be “must see” attractions that are sent your way which aren’t really that great of an experience. Unfortunately, you won’t know this until your money is already spent! Do your due diligence on this one and try to learn from the locals. Whether your vacation is at the luxurious belmond cap juluca in Anguilla or a magnificent riad in Morocco, find a blog about local fun or connect with a friend of a friend that can give you some quick tips on what to see. Oftentimes, the best attractions are the ones that are free!

 

5) Explore, Then Do – For many of us, when we go on vacation we feel like we have to hurry up and do as much as we can, but this is no way to vacation at all. Once you finally get home, you’re more exhausted than when you left, and you’re way poorer than you expected too! Instead of charging forward and doing a bunch of activities that are presented to you that first day, take it easy and go for a stroll around the city. Make a mental note of what you’d like to do and see. Not only will you enjoy yourself more, but you’ll have save some of that money in your pocket.

How do you save money on family vacations without skimping on fun? Let’s share notes in the comments below….

Photo: Stevendepolo

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5 Methods I’m Contemplating to Avoid American Airlines this Fall

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Just my luck.

Reliable news organizations such as the Wall Street Journal and CBS News are asking an important question: Is American Airlines a trusted travel source this holiday season? According to the CBS piece, American Airlines cancelled over 300 flights two weeks ago, purportedly due to disgruntled employees. Yesterday’s news about loose seats makes me even more nervous. Whether this is caused by staff sabotage or oversights due to overworked and unhappy employees is irrelevant to me; I think I’ll look elsewhere.

That’s where my trouble begins.

Each November and December we make the trek twice (Thanksgiving and the December holiday season) halfway across the country to visit family in the Midwest.

For many, this is a no-brainer: take another airline. However, in our quest to live in small town America, we moved to Texarkana nearly four years ago. Guess how many airlines service our town?

You’ve got it: exactly one….American Airlines.

So, now I’ve created a list of (hopefully) inexpensive ways to avoid American Airlines. Here are our choices the way I see it:

1) While Shreveport (75 minutes away) offers me nothing exciting unless I’m headed to Vegas or Orlando, Little Rock (two hours) and Dallas (three hours) might give me some interesting options. Experts always recommend checking neighboring cities. In my case, Southwest flies into Little Rock. However, the Little Rock – Detroit trip has never been an inexpensive proposition for some reason. Dallas gives me plenty of possibilities, but between gas, parking and the six hours of combined travel time there-and-back, I’m almost a third of the way to my destination if I’d driven it.

2) So…I’ve scheduled alerts on Hotwire and Expedia to tell me if prices decline in Little Rock or Dallas. I’m not hopeful, but I like the fact that I can electronically monitor rates without having to flip through several websites each day.

3) I’ve also begun the search for discount options. I could try to sell our AA miles and buy miles in other programs, but this is fraught with risk (and I’d still have to drive to Shreveport, Little Rock or Dallas to catch a flight). The last thing I want is to end up with no ticket because I violated the airline’s terms of service. It isn’t against the TOS to swap miles with family (I transfer my AA miles to them while they give me an equivalent on another airline). While there have been times where giving miles in an unstable airline sounded like fun, I can’t do this in good faith to my family.

4) We could drive or take the train. Hold on. I just wrote, “Take the train!” Just a minute while I catch my breath…man, that was funny. I COULD take Amtrak if I wanted to pay a bundle AND arrive just after my retirement date.

Seriously, though, in the past we’ve driven, but that kills two days from the trip, instead of a few hours to fly. The first day we arrive and the initial day back home I’m still tired from all that time in the car. As in the past, if we stick with hotel deals (like on Hotels.com, use gasoline smartphone apps and the awesome Wasi social driving app, we can make it there in 15 hours.

5) For now, I’ve set an alert in Google for “American Airlines” news to follow the situation closely. I have maybe two weeks before I need to pull the trigger on this decision. Hopefully conditions improve and I can just schedule a flight out of Texarkana.

Which would you choose? Any ideas I’ve forgotten?