10 Ways To Pocket Your Per Diem

If you’ve ever been sent out of town on business, you’re probably familiar with my favorite form of income- per diem.   Per Diem is an allowance for the daily expenses incurred while traveling on business.  The best part- it’s tax-free and you get to keep any leftover money you don’t spend!   Here are some ways to cut down on travel expenses and pocket that per diem for later and better use.

1. Sublet your apartment.  If you’re going out of town for a significant period of time there’s no reason to waste rent on an empty space.  Post in Gypsy Housing, a popular facebook group for short and long term sublets, or use airbnb.com to find a sublet for as short as a weekend.

2. Reach out to family and friends.  Don’t be shy, even if it’s someone you haven’t seen in years or some distant relative or family friend, chances are they’ll be thrilled to have someone to host and show around town.  By staying with friends and family you knock out your biggest expense- hotel stay.  And families, being the wonderful thing they are, will likely stuff you with delicious home made goodness so you can save on some meals too.  A nice bouquet of flowers and a thank you card will be well worth the savings.

If you do stay at a hotel, be sure to sign up for their rewards or loyalty program.  I’ve taken two vacations with points I’ve earned while traveling on business.

3. Ask the locals.  When I first arrived in Boston, the restaurant menus gave me sticker shock.  Then I thought people visiting New York must feel the same way; I just know where to go when I’m in New York.  Ask people who’ve lived in or visited the area, ask the locals you’re working with, or ask the hotel concierge for affordable dining and activity suggestions that suit your taste.

4. Bring Breakfast. If you’ll be out of town for more than a few days, hit up a grocery store as soon as you get there to load up on your AM staples.  My favorites are bread, peanut butter, honey, and banana.  Along with a tea bag and some water boiled in the microwave, it’s the perfect way to start my day.

5. Make Lunch the Big Meal of the Day.  Most restaurants have discounted lunch prices or offer excellent lunch specials.  If you want to go out and taste the local cuisine, consider doing it at lunchtime rather than dinner.  Not only will you cash in on the midday specials, but you’ll probably get more than enough food to take home for later.

6. Microwave Meals. By picking up a few grocery items and “cooking” at “home”, you can save A LOT.  I once spent 3 days in a city living off one small trip to the grocery store- bread, peanut butter, apples, turkey, cheese, baby carrots, peppers, hummus, frozen veggie burgers, and a package of frozen burritos.   Ah, the gourmet ways you learn to utilize a microwave when you have to live off $55/day ;)

7. Stock up on Freebies.  If your hotel has any freebies (fruit, yogurt, tea bags, honey packets etc) or if you’re served lunch or snacks on the job, be sure to pocket some for later.  As soon as I saw the leftovers from catering one day, I ran out and bought myself tupperware to pack up some meals for later.  Don’t forget to grab some extra plastic forks and spoons, they’re always useful.

8. BYOB.  While spending a night on the town is a great way to socialize and see a city, consider spending some nights in.   Host a “bring your own beer” happy hour or game night in your room.

9. Walk or Take Public Transit.  Walking is one of the absolute best ways to discover a city.  Pick up a free map at your hotel and make sure you ask about any areas that are to be avoided.  Most major cities also have excellent transit systems.  If you can ride the bus or subway in your hometown, you can do it anywhere.  I spent 4 weeks working in Hong Kong and commuting on their subways.  If anything, they were cleaner, faster, and more frequent than NYC.  And I saved a ton by avoiding taxis.

10. Use the Web. To find out what’s in your area search yelp.com for information and reviews on everything from the best pubs to cheap spas. Try a google search of “Free and Cheap Things To Do in {fill in the blank} City.”  You can also find great deals for almost any city on sites like groupon.com, livingsocial.com, and restaurant.com.

Being away from home can sometimes leave you in a vacation mindset when it comes to spending, even when you’re out of town for work.  While catching a movie every now and then or getting a taste of the local flavor at a piano bar can be fun- entertainment is expensive and adds up quickly.  Don’t deprive yourself of experiencing the places you go, but don’t use “being away from home” as an excuse to overindulge and consequently, overspend.

Happy travels and happy savings!

THE MONEY DIET

I’ve found that learning to live fiscally wise is like learning to live healthy.  Crash dieting doesn’t work and neither do get rich quick schemes.  What works is a total lifestyle change.  In dieting, it’s learning to develop a health conscious mindset and implementing that mindset in the form of healthy eating and exercise.  Allowing yourself the occasional piece of chocolate cake or pint of beer but knowing it’s all in moderation.   The same goes for spending.  We need to develop a mindset that defines our true necessities and make sure our spending is in line with what we actually need and value with splurges like going out to eat and drinks in the city in moderation.

            There’s an interesting book called The Millionaire Next Door by Thomas J. Stanley.  In it, the author takes a close look at the lifestyles and spending habits of millionaires.  Millionaire being defined as someone whose net worth is over one million dollars.  What he consistently found was that with the exception of a small percentage, the millionaires lived fairly simple lives.  Instead of leasing the latest car model they typically owned their vehicles for long periods of time. They didn’t join extravagant country clubs with exorbitant fees.  They sent their children to good public schools, rather than expensive private schools.  You get the idea.

Note that millionaires are not defined by their income but by their net worth.  In other words, all their assets (home equity, stocks, cash, artwork, etc) minus all their liabilities (credit card debt, student loans, etc).  You can have a six figure income and be netting zero, and conversely, you can have a modest income and be a millionaire.  The lesson is that those who live within their means and plan for their financial present and futures are those with the greatest net worths.

            These millionaires have mastered the finance diet; finding a lifestyle that balances the necessities and luxuries through financially profitable AND financially scarce times. 

            Just as keeping a food journal can keep you on track for weight loss so can writing down your spending.  Once you’ve got it all down on paper you can see where it’s going and assess whether you’ve “oversplurged” on some luxuries or whether you need to save more to pay down your debt or whether your shopping habit is keeping you from reaching the financial goals you’ve laid out for yourself in $$$ Dreams (post from October 29th).

            The following is a list of online resources that can help you track your spending and develop a budget.  You can even link your bank and credit card accounts to many of these sites so that they automatically track your spending for you.  Just be sure to manually input your cash purchases.  Bonus: All these services are free!

-       Mint.com

-       Buxfer.com

-       BudgetPulse.com

-       MySpendingPlan.com (Does not link bank accounts, etc.  All entries must be made manually)

            You can also chose to keep track of your spending on a simple spreadsheet.  With this method you can customize your spreadsheet to your specific budget plan.  I will be offering customized spreadsheet and budget templates for those who don't feel comfortable sharing their banking information with a website.  Email here for more information.

As we approach the New Year and the time for resolutions, let’s remember that diets aren’t only for waistlines and that a little adjustment in spending can mean a big payoff in reaching financial goals.