What Not to Forget When Budgeting For A Trip Abroad

I recently took a trip to India. Per my usual modus operandi, I approached it from a standpoint of frugality. I booked a tour and flight through Student Universe, an organization that offers budget travel arrangements for students and young adults.

The tour and flight were relatively inexpensive, totaling about $1600.  I knew I'd have to budget some additional money for food and activities while abroad, but I didn't take into account some of the other costs associated with traveling.

Don't get me wrong, my trip was well worth every dollar I spent but as I plan for my next adventure abroad, I'll be sure to take the following expenses into account. If you're planning a trip in the near future, read on for a list of things you should be prepared to pay for...

1. Passport and Visa Fees- If you do not already have a passport, you'll need to apply for one. It'll cost you $110 plus an execution fee. The execution fee varies depending on where you apply. If you go to a nearby Passport Agency, you'll need to pay $60. If you choose to apply at an authorized acceptance facility (usually a post office, library, or municipal building) it's only $25. And don't forget that you'll need a passport photo. CVS, Walgreens, and Duane Reade all provide this service at about $10 per photo.

Visa fees depend on the country you are visiting but generally do not cost more than $50. ProjectVisa.com provides a searchable database of visa requirements and costs.

2. Transportation to and from the airport- Planning on taking a cab or renting an Uber? Budget enough money so that you're not stranded at the airport on your return. My suggestion is to take public transportation on your way to the airport and splurge on a taxi on the way back.

3. Vaccines-If you're going to a remote destination, take into consideration that you will need to be properly vaccinated against infectious diseases prevalent in the country you'll be visiting. Most health insurance plans do not cover travel-related vaccinations so be prepared to pay out of pocket. The CDC provides destination-specific information on required and suggested vaccines.

4. Travel Insurance- On the topic of insurance, travel insurance is an optional expense that may be a prudent option. Most plans are between $20 and $100 depending on how extensive your coverage is. It's a wise option if you're traveling out of the country for an extended period of time.

5. Pet Care-If you're a pet owner, this can be a hefty expense. I would suggest having a friend check-in on your furry friend as this is probably the most cost-effective option. If you're looking for a professional service, I personally recommend Throw Me a Bone. They are a fabulous pet care company that works throughout Manhattan. Just let them know the Penniless Prima Donna referred you!

How to Buy Happiness (Part 2)

In Part One, I explained how buying experiences rather than material goods promotes happiness.

Well, get ready for another bombshell. If you really want to buy happiness, spend what little money you have on other people.

Yep, that's right. It's scientifically proven that when people spend their money on others, it brings more joy than when they spend it on themselves.

A study conducted in 2013 is one of the most illustrative examples of this. The experimenters gave participants either $5 or $20 and directed some of the participants to spend it on themselves and other participants to spend it on someone else by the end of the day. Those who spent the money on others reported increased happiness while those who spent it on themselves experienced no change in their mood. Surprisingly, the amount of money didn't even matter. So even those who spent $20 on themselves did not experience the same boost in happiness that those who spent $5 on others.

This sentiment has been proven again and again. For example, people who give more of their annual bonus to charity or others report a higher degree of happiness than people who spend it on themselves.

So why does this happen?

People are social beings. Spending money on others promotes relationships and hence increases happiness. Spending money on others also improves our perception of ourselves. Ie, by viewing ourselves as altruistic, generous individuals we think more highly of ourselves. Third, when challenged to spend money on someone else, it usually forces people out of their routine schedule, bringing excitement into an otherwise monotonous day.

I had the opportunity to put this into practice a few weeks ago. When a customer gave me a $20 tip at work, I immediately thought about what I would spend it on...a new scarf, a fancy lunch, etc. But then I remembered this research and I resolved to find a way to spend it on others. Since my supportive coworkers were partially the reason I received the tip, I chose to spend it on them. I racked my brain for the best way to use it and eventually settled on purchasing a Groupon deal at a local bakery for $40 worth of pie for $20. The following day, I made a trip out to the bakery, picked out a few pies and delivered them to my coworkers as a surprise.

It was even more satisfying than I imagined to see my coworkers faces light up as they indulged in goodies I had bought for them.

So the next time you feel down in the dumps resist the urge to splurge on yourself. Instead, try buying something small for your mother, or sister, or best friend...or even the homeless guy on your block. Your wallet and heart will thank you!

How to Buy Happiness (Part 1)

Part of being smart about money is not just knowing how to save, but also how to spend. After all, money is meant to be spent. But for someone like myself who has such a small discretionary income, spending money is difficult for me so I'm intent on deriving the utmost pleasure from my purchases. In the first installment this two part series I'll share two ways in which I've found that money can in fact, buy happiness.

How? 

Spend your money on experiences not material items.

Why?

The Anticipation- Studies show that the mere anticipation of going on a trip, seeing a concert, or enjoying a good meal boosts people's level of happiness.

Eliminate Comparisons- Every new product on the market (phones, computers, cars, even shoes) are quickly replaced by a newer model. The worth of your purchase is directly correlated to the "newness" of the product and your happiness inevitably decreases as the novelty wears off and others get a newer version of whatever you've got. The same can't be said for the memories you make while taking a painting class or visiting a new city.

Shared Experiences- It's human nature to feel happy while surrounded by the people you love.  And since most experiences involve other people, it's no surprise that more happiness is derived from purchasing an experience rather than material item.

Over the past year, I've challenged myself to spend less on material goods and more on experiences. For a clotheshorse like myself, it's been a bit of a struggle. Last Christmas instead of asking for a gift from my younger brother, I requested he use the money he would have spent on a present to buy a train ticket to visit me in New York. It's hard for me to think of a material good of the same value (about $30) that would have brought me more enjoyment than hanging out with my bro for the day.

Stay tuned for part two where I'll reveal another way that money can buy happiness ;)

Find Free and Cheap Events in NYC

When looking for stuff to do in New York, it's easy to become overwhelmed. There are so many events, so many places to see, and so many things to do. It's a downright drag though to find an event that sounds super fun and then realize it costs more than a week's worth of groceries. Thanks, but no thanks. 

Lucky for us nickel-less New Yorkers, we have The Skint. The Skint (which is British slang for poor) is a website that publishes a list of the best free and cheap events happening in New York each day. Posted around 2 PM on weekdays, the list includes events like pop up markets, concerts, lectures, and parties. They also post a weekend report on Friday nights for events happening on Saturday and Sundays. I have been a faithful reader of the Skint for many years now and can honestly say that I've discovered some of my very favorite spots from their recommendations. It is truly the best resource for fun free and cheap events in New York. You don't have to spend an arm and a leg in New York to have a good time, I promise.

So take a peek, you won't be disappointed!

Save $1378 This Year

If you haven't heard of the 52 Week Money Challenge, get ready for your mind to be blown! The only way to save money is to make it a sustainable habit. And here's an easy way to do it.

The challenge is simple. Each week for the next year put one dollar more in savings than you did the week before. Since I'm assuming last week, you didn't put any money in savings, this week, put one dollar away. Next week, put two dollars away. On week three, put away three dollars. And continue all the way until week 52 when you will put $52 away. By the end of the year, you'll end up with almost $1400 saved. You can hold onto it, or spend it on whatever your little heart desires.The gradual increase is manageable and the most you'll ever be putting away in one week is $52...so the challenge is definitely doable. 

This printable version is the prettiest representation I've seen yet. I'm committing to the challenge and have put my chart up in my room next to a pictures of things I may want to spend the money on at year's end...a tropical vacation, a new pair of shoes, an Ipad to replace my 5 year old laptop. All three perhaps?

So what's stopping you from saving this year?

Best Affordable Yoga Studio in NYC

I recently got super into doing yoga. I had no trouble finding a yoga studio, there seems to be one on every block, but I had difficulty finding one that I felt was both well led and affordable. My options were either paying $30 for an hour long class or settling for a free one inside a dingy, sketchy studio. I was determined to find a happy medium so I tested out several different studios that offer inexpensive classes. The best one by far is Yoga to the People.

There are so many things to love about Yoga to the People.

1. All skill levels are welcome- There are beginners and people who look like they've been doing yoga all their lives. Instructors encourage participants to modify or intensify any of the poses according to their skill level. 

2. Classes all the time- there are classes all day, every day so it's easy to find one that fits into your schedule. The classes are on a first come, first serve basis and do not require registration. Classes are popular but in the few month's I've been going, I've only been to two or three class where they reached capacity. 

3. So many locations- there are five studios in NYC so it's easy to find one that's close by.

4. Most importantly for this girl...it's inexpensive. None of the classes cost more than $10 and many are donation based. You leave whatever contribution you can in a tissue box on your way out. There is absolutely no judgement! Patrons who don't want to schlep their mat (or don't have one) can rent a mat for just $2.

Check out their website for the full class schedule and enjoy zenning out without spending an arm and a leg.

Disclaimer: I am not affiliated with Yoga to the People in any way and my opinions are entirely my own.

Easy, Healthy, and Cheap Brown Bag Lunches

I know you've heard it a million times but packing a lunch saves SO MUCH money! How much money? Let's do a quick estimate:

Let's say that the average cost of a take-out lunch in NYC is about $6, and that's being very conservative. If you buy lunch every weekday, that's $30 a week. That may not seem like a lot but if you could cut that cost in half and packed lunches that cost around $3, you'd save almost $800 a year. 

One of the biggest deterrents to packing a lunch is that there simply is not enough time and brown bag lunches are tasteless. I've been packing a lunch (and sometimes a dinner too) almost everyday for the last three years and I've got it down to a science. Most of the lunches I pack don't involve cooking and can be thrown together in 15 minutes or less.

Read on for some of my go-to options: