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Calculate your cost of living, cost of living by state, cost of living by major cities, cost of living index in major cities of the united states, cost of living frequently asked questions, what is a cost of living index and how is it used, what factors are included in estimating your cost of living, review the cost of living categories used by the calculator, transportation, think about some other factors that might impact your cost of living.

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How airfares have changed

How hotels room rates have changed, how rental car prices have changed, how restaurant prices have changed, how the price of movies, theaters and concerts has changed, smart money move: use travel rewards cards to book, if you’re planning to travel in 2024….

Some good news for travelers: Airfares, car rental and hotel prices are down versus March 2023. Falling travel prices is a bright spot for customers, considering that the price of pretty much everything else is going up. In fact, average consumer prices across all items rose 3.5% year-over-year through March.

According to NerdWallet's Travel Price Index, the overall cost of travel is down 2% from the same month in 2023 and up 15% compared with March 2019 (the last fully-normal March before lockdowns). In short, expect the same trip taken this year to cost slightly less than it did this time last year, but more than it would if you had taken the trip before the pandemic.

Despite travel costs declining year-over-year, there are still things you can do to reduce the price of your trip. Check out our smart money suggestions below.

NerdWallet's Travel Price Index combines data from individual travel categories tracked by the Bureau of Labor Statistics' Consumer Price Index data, such as airfares, lodging, meals and rental cars.

Overall prices for the past 12 months through March 2024 rose 3.5% before seasonal adjustment. Still, not every individual line item experiences inflation at the same rate — especially when it comes to travel prices. Some types of trips might actually be more or less expensive than in the past, depending on if your trip involves airfare versus driving, if you’re staying in a hotel and whether it involves a rental car.

To help you better understand how travel prices have changed, NerdWallet honed in on five categories:

Car rentals.

Food away from home.

Movies, theaters and concerts.

NerdWallet then compared those costs to their same prices a month ago and a year ago. And given how significantly COVID-19 altered the state of travel, the data also compares today’s prices to the same cost of those things pre-pandemic. For example, March 2024 is compared to March 2019 as the last corresponding pre-pandemic month.

Here’s what today’s travel prices look like:

When comparing March 2024 prices versus March 2023, U.S. airfares are down 7.1%. Even compared to pre-pandemic prices, airfares only rose by 2.6% in March 2024 versus March 2019. That's not a lot considering average prices as a whole are up by 22.8% since March 2019.

Prices for lodging away from home — including hotels and motels in U.S. cities — did increase 6.7% month-over-month. Though, they actually decreased over the past year, falling by 2.4% versus March 2023.

Unlike airfares that are lower than pre-pandemic prices, hotel and motel prices are significantly higher than what they were pre-pandemic — though still not as high as the 22.8% all-items average increase.

High rental car prices were one of the biggest stories of pandemic-era travel. Though prices have leveled off, they are still up an astounding 39.3% versus the same month in 2019. Still, the costs are better now than they were a year ago. Car rental prices are down 8.8% year-over-year.

Food prices consistently rise nearly every month, and this month was no exception. In March 2024, the cost of food away from home was up 4.2% versus the same month in 2023.

And prices are far higher than pre-pandemic, with March 2024 prices coming in at 29.3% higher than what they were in March 2019. That's higher than the inflation rate across all items, suggesting that restaurant prices have risen more than many other categories of goods.

Like restaurants, entertainment prices see fairly consistent increases — save for a small dip in 2020. Prices are now up 22.6% from what they were in March 2019. The year-over-year price increases are up 5%.

Paying for travel with points and miles versus cash isn’t as daunting a task as it may seem. Frequent flyer miles and hotel points can be accrued not just for recurring travel, but through other outlets as well. Credit card rewards and welcome bonuses can be one of the most popular ways to accrue a big stash of points for a lot less effort than living your life out of a suitcase.

In addition, travel credit cards can offer various money saving perks, like:

Complimentary trip insurance .

Savings on checked bags .

Waived foreign transaction fees .

Airport lounge access .

Cash back credits that can offset the annual fee.

Here's a sampling of cards that offer travel-related statement credits.

on Chase's website

on Citibank's application

on Bank of America's website

• 10 points per $1 on Chase Dining, hotel stays and car rentals purchased through Chase.

• 5 points per $1 on air travel purchased through Chase.

• 3 points per $1 on other travel and dining not booked with Chase.

• 1 point per $1 on other purchases.

• 3 points per $1 on air travel and hotels, supermarkets, gas stations and restaurants.

• 1 point per $1 on all other purchases.

• 5 points per $1 on prepaid hotels and car rentals booked directly in the Altitude Rewards Center.

• 3 points per $1 on eligible travel purchases and mobile wallet spending on Apple Pay, Google Pay and Samsung Pay.

$300 annual travel credit .

$100 annual hotel credit on bookings of $500 or more.

$325 annual credit.

$100 in airline incidental statement credits.

If you’re building your next vacation budget based on an early-pandemic-era trip, expect to pay far more now for pretty much every expense. Yet even though prices constantly feel like they’re getting higher, you can still save on travel with a little planning.

To avoid the costs of eating out, head to local grocery stores — which can be a fun activity on its own — or pack snacks from home. While in an airport, head to the lounge. Many credit cards have partnerships with airport lounge operators ( Priority Pass is a popular one) where you can typically expect complimentary snacks and drinks.

Methodology

NerdWallet conducted an analysis of the Bureau of Labor Statistics’ Consumer Price Index data released by the U.S. Department of Labor, which was most recently updated in April 2024 and measures prices of items like travel, groceries and cars. Prices usually change every month, but some prices change more than others.

Keep in mind, this data is based on March 2024 information, even though it is released in April 2024, so prices you actually see may have actually improved (or gotten even worse) than this data, because it lags one month behind.

And even within the realm of travel, some expenses might go up, while others might go down.

The NerdWallet Travel Price Index combines data from the Consumer Price Index, weighted by the estimated spending in each category, which is based on 2019 travel expenditure data from the BLS.

Here are the spending categories considered, and how heavily each was weighted:

Flights: 29%.

Car rental: 13%.

Lodging: 30%.

Entertainment: 7%.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1.5%-6.5% Enjoy 6.5% cash back on travel purchased through Chase Travel; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

$300 Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

on Capital One's website

2x-5x Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options.

75,000 Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.

Cost of Living: How to Calculate How Much You Need

Calculating your cost of living may help you budget better and compare places to live.

How to Calculate Your Cost of Living

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Analyzing your finances is one popular way of calculating your cost of living.

Everyone, from consumers to economists to politicians, is talking about the cost of living. It sounds pretty straightforward, but what does “cost of living” really mean, and can understanding it help you budget better – especially at a time when budgets are stretched thin by inflation and rising gas prices? Let’s take a deeper look.

What Is Cost of Living?

The cost of living is the amount of money households need to cover the basic expenses of life. While the Bureau of Labor Statistics publishes the consumer price index , a list of prices consumers pay for goods and services, there is no official cost of living index published by the federal government.

However, other organizations throughout the country publish cost of living indexes. The most prominent was created in 1968 by the Council for Community and Economic Research, or C2ER, according to Jeremy Hill, director of the Center for Economic Development and Business Research at Wichita State University .

The C2ER Cost of Living Index is issued quarterly and looks at how much it costs to live in cities throughout the country. “This index includes over 60 goods and services, representing the basket of goods, which can be broken down into six categories: food, housing, utilities, transportation, health and miscellaneous items,” Hill says. "Each item included in the basket helps reflect consumer spending." He says about 300 researchers participate in a survey, and they are given instructions on the parameters for the products they need to price. The data is sent to C2ER, which checks for quality and develops the estimates.

“It is important to know the cost of living in the area (we live in) because that is where a big chunk of where our paycheck goes,” says Kate Hao, founder and CEO of Happy Mango Credit, a financial services company. “A typical personal finance budget would call for spending 30% take-home pay on rent or housing expenses, 10% to 15% on food, and 5% to 10% on utilities,” Hao says. “These basic necessities that consume at least half of our paychecks are also what drive the cost of living.”

So if you're considering a move to another part of the country, Hao says it's wise to consider the cost of living in the new area compared with the area in which you currently live since it could vary significantly. “For example, it could cost three times as much to live in Irvine, California, as to live in Wichita, Kansas. An above-average income in Ohio can barely cover the basic necessities for living in New York," Hao says.

How to Calculate Cost of Living

Here are some ways to calculate your cost of living:

Analyze your finances. One way of calculating your cost of living is to examine your budget – or create one.

Simply add up all of your monthly fixed expenses, like rent or a mortgage payment, and your variable expenses, such as groceries and gas costs. Also factor in occasional but expected purchases, such as new tires. The resulting amount, assuming you aren't going to debt every month, is your cost of living.

If you need, for example, $500 more a month to not go into debt, then add $500 to the amount you're spending each month to get your more accurate cost of living.

Use a cost-of-living calculator. A cost-of-living calculator can be a useful tool, especially if you're considering a move. Compensation software and data company Payscale.com has a cost of living calculator, as doe s, the Federal Reserve Bank of St. Louis . With the latter, you can compare cost of living not just between states but also cities, or as they put it, metropolitan statistical areas.

Cost of Living Estimates

If you compare the cost of living between states or cities, you can get a sense of what your financial life would look like in each.

For instance, using the calculator from the Federal Reserve Bank of St. Louis, if you had a $90,000 annual salary in Cincinnati and moved to New York City , you’d have to earn $122,300 just to maintain your current standard of living.

If you live in St. Louis and decided to move to Honolulu , a $50,000 salary would have to be $68,217 to maintain your current standard of living. But if you left St. Louis for Sheboygan, Wisconsin, earning $50,000, you’d end up with a little more money in your pocket. You would have to earn $49,125 in Sheboygan to maintain the standard of living you had St. Louis for $50,000.

If you live in Illinois and decided to move to Oregon, your $100,000 salary in Illinois would do pretty well in Oregon, where you'd have to earn $101,015, to maintain your current standard of living. But if you look more closely at a particular MSA, you may find that the cost of living is higher than you expected. If you’re earning $100,000 in Danville, Illinois, but you move to the Portland, Oregon , area, in order to maintain your current standard of living, you’d have to learn $128,897. If you move to a more rural part of Oregon, though, you could live more like a Danville, Illinois resident.

And if you’re currently making $100,000 in Portland, Oregon and instead moved to Danville, Illinois, you’d only have to earn $77,581 to maintain your current standard of living. So assuming you maintained your $100,000 salary while living in Danville, you’d find your money stretching much further.

How to Compare Your Cost of Living

When you’re comparing your current city to a new city or region of the country where you might like to live, you should consider more than the cost of living.

For example, the availability of jobs is a major factor, says Matias Vernengo, professor of economics at Bucknell University in Lewisburg, Pennsylvania.

“People do not tend to migrate simply because of changes in inflation rates. … Employment is what really matters, so it is unlikely that people living paycheck to paycheck would move on the basis of inflation,” Vernengo says.

He adds that the migration we've seen from the Rust Belt to the South and the West is associated with deindustrialization and the loss of jobs in the Northeast and Midwest.

Hill agrees that the cost of living generally isn’t a big reason people move. “Most people moving probably don’t check the cost of living or the taxes of the community they are moving to," he says. "The core decisions, in most instances, are job opportunity, family and quality of life.”

Still, Hill says the cost of living index is a helpful tool for those who are on the fence and trying to determine where to live between two locations.

Meanwhile, Hao points out that with more people working remotely, it is getting easier for some professionals to move to a place with a lower cost of living while keeping their current job.

What Is a Cost of Living Adjustment?

Generally, when people refer to a cost of living adjustment, also known as COLA, they’re referring to a bump in pay on a Social Security check.

Since 1975, Social Security benefit increases have been based on increases in the cost of living, as measured by the consumer price index. The federal government announces Social Security increases every October , and then they kick in the following January. If inflation is high, the cost of living adjustment goes up with it. If inflation is low, the COLA may stay relatively static. In some years it may not change at all.

Other Cost of Living Terms

Here are some key terms to deepen your understanding of cost of living.

COLI. This stands for the Cost of Living Index, which is published quarterly by the Council for Community and Economic Research. It’s the gold standard of cost of living indexes and is used by economists throughout the United States. It focuses on six categories: food, housing, utilities, health care and miscellaneous goods and services.

CPI. This is the consumer price index from the Bureau of Labor Statistics, not to be confused with a cost of living index. "That’s the index that went up 7.5% in the last year, the highest rate of inflation in more than three decades, according to the Bureau of Labor Statistics,” Vernengo says. "The CPI includes the prices of a basket of consumption of goods and services that are widely demanded. There are more than 200 items in the list, subdivided in eight broad categories: food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other.”

Vernengo says these baskets are sometimes modified to adjust for consumers’ changing tastes and demands. “These changes sometimes take time, and for that reason the CPI is not always accurate. Personal computers were available in the late 1970s, but only entered the CPI after the mid 1980s,” Vernengo says. "Also, the CPI is adjusted to deal with changes in the quality of goods – for example, the fact that computers have become not only cheaper but incredibly more efficient. The BLS basically collects all the data and creates an index that gives more weight to the goods and services that are more relevant for consumers.”

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Home / Resources / Articles / IRS Publishes New Business Travel Per Diem Rates for 2021

IRS Publishes New Business Travel Per Diem Rates for 2021

October 6, 2020

Most business travel was temporarily suspended during the spring and summer months. Now some people have started traveling for business purposes again, albeit less than before the COVID-19 pandemic began. With travel cutbacks, now may be a good time to review — and possibly simplify — how your company reimburses its workers for out-of-town lodging, meals and incidental expenses.

One simplified alternative is the “high-low method.” Instead of reimbursing employees for actual travel costs, this method provides fixed travel per diems. These amounts are based on IRS-approved rates that vary from locality to locality. Here are the details.

How It Works

Under the high-low method, the IRS establishes an annual flat rate for certain areas with higher costs of living. All locations within the continental United States that aren’t listed as “high-cost” automatically fall into the low-cost category. The high-low method may be used in lieu of specific per diem rates for business destinations. Examples of high-cost areas include San Francisco, Boston and Washington, D.C. (See the chart below for a complete list by state.)

Under some circumstances — for example, if an employer provides lodging or pays the hotel directly — employees may receive a per diem reimbursement only for their meals and incidental expenses. There’s also a $5 incidental-expenses-only rate for employees who don’t pay or incur meal expenses for a calendar day (or partial day) of travel.

The following aren’t considered incidental expenses:

• Transportation between places of lodging or business and places where meals are taken, and
• The mailing cost of filing travel vouchers and paying employer-sponsored charge card billings.

Consider reimbursing employees separately for these expenses and then deducting the amounts as ordinary business expenses.

Simplified Recordkeeping

If your company uses per diem rates, employees don’t have to meet the usual recordkeeping rules required by law. Collecting paper or electronic receipts for expenses generally isn’t required under the per diem method. Instead, the employer simply pays the specified allowance to employees.

But employees still must substantiate the time, place and business purpose of the travel. Per diem reimbursements generally aren’t subject to income or payroll tax withholding or reported on the employee’s Form W-2. Also, per diem rates can’t be paid to individuals who own 10% or more of the business.

Updated Rates

The IRS recently updated the per diem rates for business travel for fiscal year 2021, which started on October 1, 2020. Under the high-low method, the per diem rate for all high-cost areas within the continental United States is $292 for post-September 30, 2020 travel ($221 for lodging and $71 for meals and incidental expenses). For all other areas within the continental United States, the per diem rate is $198 for post-September 30, 2020 travel ($138 for lodging and $60 for meals and incidental expenses). Compared to the prior simplified per diems, the high-cost area per diem has decreased $5 and the low-cost area per diem has decreased $2.

The IRS also modified the list of high-cost areas for post-September 30 travel. The following have been added to the high-cost list:

• Los Angeles, Calif.,
• San Diego, Calif.,
• Gulf Breeze, Fla.,
• Kennebunk/Kittery/Sanford, Maine, and
• Virginia Beach, Va.

On the other hand, these areas have been removed from the previous list of high-cost localities:

• Midland/Odessa, Texas, and
• Pecos, Texas.

Important note: Certain tourist-attraction areas only count as high-cost areas on a seasonal basis. Starting on October 1, the following tourist-attraction areas have changed the portion of the year in which they are high-cost localities:

• Sedona, Ariz.,
• Monterey, Calif.,
• Santa Barbara, Calif.,
• Washington, D.C.,
• Naples, Fla.,
• Jekyll Island/Brunswick, Ga.,
• Boston/Cambridge, Mass.,
• Philadelphia, Pa.,
• Jamestown/Middletown/Newport, R.I.,
• Charleston, S.C.

Important: This method is subject to various rules and restrictions. For example, companies that use the high-low method for an employee must continue to use it for all reimbursement of business travel expenses within the continental United States during the calendar year. The company may use any permissible method to reimburse that employee for any travel outside the continental United States, however.

For travel during the last three months of a calendar year, employers must continue to use the same method (per diem or high-low method) for an employee as they used during the first nine months of the calendar year. Also, employers may use either:

• The rates and high-cost localities in effect for the first nine months of the calendar year, or
• The updated rates and high-cost localities in effect for the last three months of the calendar year, as long as they use the same rates and localities consistently for all employees reimbursed under the high-low method.

Claiming Business Travels Deductions

In terms of deducting amounts reimbursed to employees on a company’s tax return, employers must treat meals and incidental expenses as a food and beverage expense that’s subject to the 50% deduction limit on meal expenses. For certain types of employees — such as air transport workers, interstate truckers and bus drivers — the percentage is 80% for food and beverage expenses related to a period of duty subject to the U.S. Department of Transportation’s hours-of-service limits.

Example: A company reimburses its sales manager for attending a business meeting in San Diego based on the $292 high-cost per diem. It may deduct $256.50 ($221 for lodging plus $35.50 for half of the meals and incidental expense allowance).

Changing Times

Most companies expect to cut back on business travel in the post-COVID-19 era. While you’re updating your company’s overall travel guidelines, consider switching to the high-low method. Though the list of high-cost localities varies slightly from year to year, this method can reduce the time and frustration associated with submitting traditional travel reimbursement forms. Contact your tax advisor for more information.

High-Cost Area List for 2021

Source: IRS* If no effective date is listed, the location is a high-cost area all year long.

Forecasting Cash Flow in the COVID-19 Era

Home Office Deductions in the COVID-19 Era

Free Travel Budget Calculator To Help You Set A Trip Budget

By Jessie Festa. This budget calculator for travel contains affiliate links to trusted partners!

Looking for a free travel budget calculator to help you set a trip budget and stick to it?

Then you’re in the right place!

If you’re dreaming about your next vacation but feel overwhelmed by the financial planning it entails, don’t fret; I’ve got a solution that can help you manage your trip expenses in just a few clicks.

Welcome to my free Travel Budget Calculator – a simple yet powerful tool that takes the guesswork out of budgeting for your vacation, ensuring that you’re financially prepared for every part of your journey.

With escalating costs and numerous variables to consider, planning a budget for travel can often seem like navigating through a maze; however, my travel calculator simplifies this process, helping you create a comprehensive budget tailored to your unique travel needs.

And, that’s not all. Along with the free budget calculator for travel, I’ll also be sharing advice on how to properly create a trip budget as well as save money on travel.

Quick tip: Flights are often the most expensive aspect of your trip. Luckily, there are platforms that can help you easily find flight deals and error fares like Going (formerly Scott’s Cheat Flights) and FareDrop . In terms of accommodation, search Hostelworld for hostels (many of which have private rooms), consider housesitting through Trusted Housesitter s , book a vacation rental with a kitchen to save money on food through VRBO , or stay on free couches through Couchsurfing . And when it comes to car rentals, Discover Cars can help you quickly compare your options and save up to 70%! These are just a few of the many ways to score the best deals on travel. Keep reading for more!

Free Budget Travel & Planning Resources

But first, before we map out how to budget your trip, I invite you to grab access to my free  Ultimate Travel Planning Kit  — which includes 40+ travel resources — from printables to quizzes to itineraries — all meant to help you explore the world beyond the guidebook!

Some highlights of the kit include:

• Trip budgeting calculators for road trips, backpacking, cruising & more
• Free “Where Should You Travel Next?” personality quiz
• Pre-plotted Google Maps for 45+ destinations
• Printable travel journal with writing prompts
• Packing lists for different types of trips

Once you’ve grabbed your copy , keep reading for tips on creating a travel budget as well as the vacation calculator.

Why Use A Travel Budget Calculator?

While travel is incredibly fulfilling, trip expenses can certainly add an element of stress. From airfare and accommodation to meals, sightseeing, shopping, and miscellaneous costs, managing finances effectively can become a daunting task.

That’s where the role of a travel budget calculator becomes crucial. While there are many reasons to use a budget calculator for travel, here are some of the main benefits:

1. Stress-free travel planning

First and foremost, a vacation budget calculator can dramatically ease your planning process. Instead of manually listing out and totaling all possible vacation expenses, the calculator does the heavy lifting for you. It’s an efficient tool that streamlines the entire budgeting process, helping you plan your trip without getting lost in a sea of numbers.

2. Customized trip budgeting

Not all travelers are the same, and neither are their budgets. For instance, creating a solo travel budget will look different than creating a budget for a luxury trip. By accounting for your unique needs and spending habits, it helps you make informed financial decisions that fit your travel aspirations.

3. Avoid spending surprises

Unanticipated costs can be a traveler’s worst nightmare. My trip budget calculator helps you avoid unpleasant financial surprises on your trip. By considering a comprehensive set of potential costs, it provides you with a realistic budget that takes into account everything from essential travel expenses to leisure activities and even potential emergency costs.

4. Financial control

By providing a clear financial roadmap for your journey, a vacation budget calculator enables greater financial control. You can track your expenditures, identify areas where you might be overspending, and adjust your budget accordingly.

5. Facilitates travel savings

When you have a clear understanding of your travel expenses, it becomes easier to identify areas where you can save money. A travel budget calculator can help pinpoint these opportunities, whether it’s choosing more budget-friendly accommodation, opting for public transport over taxis, or prioritizing your must-do activities.

Factors To Consider When Planning A Travel Budget

When it comes to travel budgeting, knowing what to include in your calculations can make all the difference. Here are some key factors that the below holiday budget calculator takes into account, providing you with an accurate and realistic travel budget:

1. Transportation

Transportation costs are often one of the largest expenses. Consider all forms of transportation you will need: flights, trains, buses, taxis, car rentals, or even ferries. Don’t forget to account for transportation to and from airports or train stations.

For instance, I know personally that taxis to and from JFK add up to about $200, which is a pretty solid dent in my travel spending.

2. Accommodation

Lodging costs can vary greatly depending on location, time of year, and the level of luxury you prefer. From budget hostels to luxury resorts, your accommodation choice plays a big role in your travel budget.

3. Food & Drink

Consider both dining out and grocery costs. Remember, touristy areas often have higher prices for meals, and don’t forget to include a budget for trying local delicacies or more upscale dining experiences if that’s your preference. Additionally, keep in mind that alcohol can increase your bill considerably.

4. Activities & Sightseeing

Whether it’s museum entrance fees, guided tours, or adventure activities, these trip costs can add up quickly. Research the costs of the attractions you want to visit and add them to your budget. If it makes sense, consider weaving in some free experiences.

5. Local Transportation

Consider the costs of getting around your destination. This might include public transportation, taxis, or the cost of gas or car rental for a road trip .

6. Shopping & Souvenirs

Whether it’s a postcard, a t-shirt, or local crafts, make sure you have a budget set aside for souvenirs and shopping if it makes sense for you.

7. Emergency Funds

It’s always a good idea to have some money set aside for unexpected costs. This could include anything from a sudden health issue to a lost passport or unplanned extra nights.

8. Travel Insurance

While it’s an added expense, travel insurance can save you a significant amount of money in the event of trip cancellations, lost luggage, or medical emergencies. Personally, I recommend SafetyWing , which is budget-friendly while still providing robust coverage.

9. Tips & Gratuities

In many cultures, tipping is customary, and not accounting for it can lead to awkward situations. Research the tipping etiquette for your destination and include it in your budget. You might also download an app like Global Tipping to help.

10. Connectivity

Depending on your destination, you may need to consider the cost of local SIM cards or portable Wi-Fi devices to stay connected. Luckily, buying a SIM card in your destination is typically budget-friendly, as is buying an eSIM from a company like Airalo .

Free Travel Budget Calculator (With Instructions)

Now let’s go over the vacation cost calculator itself and how to use it.

Step 1. Enter your intentended budget. Start by entering your intended trip budget at the top – as in, the total budget you plan to spend – and then your expenses in the following rows.

Pro tip: when creating your trip budget, I recommend considering what aspects of travel are most important to you as well as your unique travel style. For instance, if you’re like me and think experiences are what make travel special, you might allot more of your budget to the Activities category.

Step 2. Pay attention to travel category instructions. You’ll also want to note which categories ask you for your total spend, like Flights, and which ask you for your per day spend, like Food and Lodging.

Step 3. Adjust for how many people you’re traveling with. Finally, make sure to note how many travelers you’re calculating for, which will change the “per day per person” totals. If you only want to calculate the trip budget for yourself, enter “1” as the number of travelers.

Step 4. Calculate your vacation budget. Once you hit “Calculate,” the calculator will tally up your expenses and let you know if you’re over or under your budget – and by how much. You’ll also get a pie chart visually showing you where you’re spending the most money.

Step 5. Adjust your budget. With this information, you’ll be able to see exactly where you may be overspending as well as where you have some wiggle room. Adjust accordingly.

Instructional notes:

• If there is a category where you’re spending $0, please put “0” in the line field. Otherwise, you may receive an error.
• This holiday cost calculator looks at your per person, per day costs.
• If you’d prefer to calculate by your total spend for each category – or if you’d like this calculator on its own standalone page to bookmark for later – please grab access to my free Travel Resource Library here . The library also includes other types of vacation spending money calculators for road trips, cruises, backpacking trips, and more!

Travel Budget Calculator

How to save money on travel.

One thing that makes sticking with a trip budget easier is knowing how to lessen your travel costs. A few important tips:

1. Choose your destination wisely

Calculating travel expenses typically begins with choosing your travel destination - which is one of the most important factors in your travel budget. Different locations have varying costs of living, affecting the price of accommodations, food, and activities. Research typical costs in your chosen destination to establish a baseline for your budget.

2. Consider your travel dates

Before you calculate vacation costs, realize that the time of year can also significantly impact the cost of your trip. Off-peak or shoulder seasons often offer reduced costs for flights and accommodations, while the high season can be much more expensive.

3. Use tools to find flight deals

Along with following flight deal accounts on social media - like @TheFlightDeal on Twitter - you can use platforms like Going (formerly Scott's Cheap Flights) and FareDrop to find low fares and error fares to save big.

4. Book accommodation beyond hotels

For instance, you can snag free accommodation through CouchSurfing , where you'll sleep on local couches, and TrustedHousesitters . Just note that with the latter you'll be expected to do something in return, such as housesit or pet sit.

Additionally, hostels offer affordable accommodation, and many even feature private rooms. You can peruse the Hostelworld website to quickly find great options.

5. Travel like a local

While a vacation mindset tends to lead to overspending, living in your destination like a local means being more savvy with your finances by taking public transportation, eating at non-touristy restaurants, or even cooking your own meals if you book a place with its own kitchen through a site like VRBO . This can really help you keep food costs down.

6. Get savvy with travel credit cards

First off, you'll definitely want to get a credit card that doesn't charge foreign transaction fees. From there, you'll also want to consider whether you want a card with no annual fee, or if an annual fee makes sense for the additional travel perks - such as miles and points that you can redeem for free travel.

These strategies can bring your totals in the vacation budget calculator down quite a bit.

7. Book early

In general, booking airline tickets and hotels in advance can significantly affect your spending. You'll typically pay a lot more when leaving these big expenses until last minute.

8. Compare your rental car options

9. Research airport transfers

Instead of simply arriving at the airport and hopping into a taxi, do your research to see what is the best option for getting to your hotel. While typically public transportation is the most budget-friendly, it's wise to factor in how long the trip will take and if you'll need to switch bus/train lines. In some cases, it'll make more sense to take a car or book an airport transfer even if it costs a bit more.

Final Thoughts On Using A Travel Budget Calculator

Using a calculator to budget for travel can help you create an intentional budget and stick with it.

That being said, it's important to remember that the goal is not just to save money, but to make the most of your trip within your financial means.

Travel can be enjoyed at any budget level, so focus on creating memorable experiences rather than feeling obligated to do everything.

At the very least, you'll learn skills for keeping your total cost down so you can better plan ahead for your next trip!

Have you ever used a travel budget calculator?

Enjoyed this budget calculator travel guide? Pin it for later!

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Budgeting and the most common cost-of-living expenses

Learn what those everyday expenses are and how they might relate to you..

February 4, 2020 | 8 min read

There are basic costs that are a part of everyday life—things like rent, bills, health care and groceries. These expenses are known as the cost of living. But how do you keep up as the cost of living changes from year to year and from place to place? And how are cost-of-living expenses calculated? 

Understanding how cost-of-living expenses relate to you may help you budget and plan for the future. If you know where your money will go each month, you can make more informed decisions about spending and saving—and be better prepared for the unexpected.

What are common cost-of-living expenses?

Basic cost-of-living expenses include housing, food, transportation, child care, health care and other necessities, according to the Economic Policy Institute . 

Cost-of-living expenses can vary from person to person because of factors like lifestyle and family size. For example, commuting costs could vary based on your job and how you get to work. The bigger your home, the more you may pay for things like heating and air conditioning. And having to provide for kids could increase costs in a number of different ways.

Cost-of-living estimates can also vary depending on which data is referenced, which standard-of-living measure is considered and how everything is calculated. 

How are cost-of-living expenses calculated?

Cost-of-living expenses are usually calculated based on data and estimates from official sources—agencies like the U.S. Food and Drug Administration and the Department of Housing and Urban Development. By adding up the cost of essentials, you can better calculate your potential cost of living.

The Economic Policy Institute developed a cost-of-living expenses calculator that does the math for you. It’s meant to provide a snapshot of how much money it takes to maintain a “modest, yet adequate” lifestyle. You can use it to see if your expenses align with averages in your area—or to get a better idea of what to expect if you’re planning a move or thinking about growing your family.

Housing costs in a new area

When analyzing cost-of-living expenses, one big consideration is housing. Rent or mortgage payments, utility costs, property taxes, homeowners association fees and household maintenance are all common housing costs.

Housing costs can vary widely between cities . So money may not go as far in a big city as it would in a small town. Your living situation could also affect things. Do you live by yourself? Or do you have a roommate or partner? The cost of living on your own could be more expensive if you don’t have someone to split bills with.

Food and grocery availability

How close you are to a grocery store could also affect your budget. And the type of store that’s closest to you could make a difference, too. 

Smaller grocery stores may have higher prices than supermarkets because they may not be able to buy in bulk. And if it’s the only store in the area, it may not need to offer competitive prices.

In some places, you may run into food deserts —areas that don’t have access to affordable, nutritious food. That can make it harder to maintain a healthy diet, and it can make the cost of living more expensive too.

Family expenses

Family expenses like day care or school tuition are also costs to consider. If you don’t have family or friends to look after your little one while you’re at work, paying for a nanny or day care can be costly. 

Child care costs vary depending on children’s ages and needs. Small babies require more hands-on attention, so infant care tends to be more expensive. And just like housing, child care costs vary by location. 

For example, the Economic Policy Institute says Washington, D.C. , has the most expensive child care in the nation, with infant care averaging more than $2,000 per month. Mississippi , on the other hand, has the lowest average in the country at just $453 a month.

Health care costs

Depending on your age, health, family size and whether your employer provides health insurance as a benefit, health care might be one of the larger expenses in your overall cost of living. 

In recent years, the cost of care has been on the rise . Hospital mergers and consolidations have been found to increase the price of hospital services by 6%-18% . In addition to driving up prices, it’s also been shown to affect the quality and availability of care, especially in rural areas.

You might be able to lower your health care costs by shopping around and comparing rates for health insurance and care providers. 

According to Consumer Reports®, if you purchase your own health insurance, costs could vary largely based on where you live . And if you get coverage through your employer, consider how those benefits affect your bottom line. For example, changes to the plans offered by your employer might impact your individual contributions and end up costing you more.

Transportation costs

Transportation costs can vary depending on where you live and how you get to work. The U.S. Census Bureau reports the average American spends about 27 minutes commuting to work every day. If you drive to work, the cost of gas and car maintenance could quickly add up. 

Public transportation offers cheaper, more sustainable commuting options—not to mention some additional time to read or rest your eyes. If you’re looking to lower your transportation costs, you might explore bus and train routes if they’re available. And some employers even offer transportation subsidies .

And if you’re really looking to limit your commuter costs, you could investigate whether you’re able to walk or bike to work. Or ask your employer if working remotely is a possibility.

Other cost-of-living expenses

As you look at your cost of living, there are also miscellaneous expenses to keep in mind—things like household supplies, clothing and taxes. Even if you don’t see these costs every month—like you do a water bill—they still factor into your overall cost of living.

If you have children, you’ll also want to factor in one-off expenses related to their education. This might include classroom supplies or school uniforms.

Dealing with cost-of-living increases

Whether you’re planning a move, considering a lifestyle change or just trying to better manage your money, keeping up with the cost of living can be challenging. But knowing what to expect can help you plan and prepare. And if you need a few more pointers, Capital One has tips about budgeting with a credit card .

You could also check to see if there’s a Capital One Café in your area. Café Ambassadors are available to talk to you about products and resources to help you manage your finances, plan for the future and navigate the unexpected.

Capital One also offers the Money & Life Program . It’s designed to help people connect their goals with positive financial behaviors. And it’s free for everyone—whether you bank with Capital One or not. Check out the video below to see how the program helped one woman adapt her money habits after she made a move to a new city.

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What Are Travel Expenses?

Understanding travel expenses, the bottom line.

• Deductions & Credits
• Tax Deductions

Travel Expenses Definition and Tax Deductible Categories

Michelle P. Scott is a New York attorney with extensive experience in tax, corporate, financial, and nonprofit law, and public policy. As General Counsel, private practitioner, and Congressional counsel, she has advised financial institutions, businesses, charities, individuals, and public officials, and written and lectured extensively.

For tax purposes, travel expenses are costs associated with traveling to conduct business-related activities. Reasonable travel expenses can generally be deducted from taxable income by a company when its employees incur costs while traveling away from home specifically for business. That business can include conferences or meetings.

Key Takeaways

• Travel expenses are tax-deductible only if they were incurred to conduct business-related activities.
• Only ordinary and necessary travel expenses are deductible; expenses that are deemed unreasonable, lavish, or extravagant are not deductible.
• The IRS considers employees to be traveling if their business obligations require them to be away from their "tax home” substantially longer than an ordinary day's work.
• Examples of deductible travel expenses include airfare, lodging, transportation services, meals and tips, and the use of communications devices.

Travel expenses incurred while on an indefinite work assignment that lasts more than one year are not deductible for tax purposes.

The Internal Revenue Service (IRS) considers employees to be traveling if their business obligations require them to be away from their "tax home" (the area where their main place of business is located) for substantially longer than an ordinary workday, and they need to get sleep or rest to meet the demands of their work while away.

Well-organized records—such as receipts, canceled checks, and other documents that support a deduction—can help you get reimbursed by your employer and can help your employer prepare tax returns. Examples of travel expenses can include:

• Airfare and lodging for the express purpose of conducting business away from home
• Transportation services such as taxis, buses, or trains to the airport or to and around the travel destination
• The cost of meals and tips, dry cleaning service for clothes, and the cost of business calls during business travel
• The cost of computer rental and other communications devices while on the business trip

Travel expenses do not include regular commuting costs.

Individual wage earners can no longer deduct unreimbursed business expenses. That deduction was one of many eliminated by the Tax Cuts and Jobs Act of 2017.

While many travel expenses can be deducted by businesses, those that are deemed unreasonable, lavish, or extravagant, or expenditures for personal purposes, may be excluded.

Types of Travel Expenses

Types of travel expenses can include:

• Personal vehicle expenses
• Taxi or rideshare expenses
• Airfare, train fare, or ferry fees
• Laundry and dry cleaning
• Business meals
• Business calls
• Shipment costs for work-related materials
• Some equipment rentals, such as computers or trailers

The use of a personal vehicle in conjunction with a business trip, including actual mileage, tolls, and parking fees, can be included as a travel expense. The cost of using rental vehicles can also be counted as a travel expense, though only for the business-use portion of the trip. For instance, if in the course of a business trip, you visited a family member or acquaintance, the cost of driving from the hotel to visit them would not qualify for travel expense deductions .

The IRS allows other types of ordinary and necessary expenses to be treated as related to business travel for deduction purposes. Such expenses can include transport to and from a business meal, the hiring of a public stenographer, payment for computer rental fees related to the trip, and the shipment of luggage and display materials used for business presentations.

Travel expenses can also include operating and maintaining a house trailer as part of the business trip.

Can I Deduct My Business Travel Expenses?

Business travel expenses can no longer be deducted by individuals.

If you are self-employed or operate your own business, you can deduct those "ordinary and necessary" business expenses from your return.

If you work for a company and are reimbursed for the costs of your business travel , your employer will deduct those costs at tax time.

Do I Need Receipts for Travel Expenses?

Yes. Whether you're an employee claiming reimbursement from an employer or a business owner claiming a tax deduction, you need to prepare to prove your expenditures. Keep a running log of your expenses and file away the receipts as backup.

What Are Reasonable Travel Expenses?

Reasonable travel expenses, from the viewpoint of an employer or the IRS, would include transportation to and from the business destination, accommodation costs, and meal costs. Certainly, business supplies and equipment necessary to do the job away from home are reasonable. Taxis or Ubers taken during the business trip are reasonable.

Unreasonable is a judgment call. The boss or the IRS might well frown upon a bill for a hotel suite instead of a room, or a sports car rental instead of a sedan.

Individual taxpayers need no longer fret over recordkeeping for unreimbursed travel expenses. They're no longer tax deductible by individuals, at least until 2025 when the provisions in the latest tax reform package are due to expire or be extended.

If you are self-employed or own your own business, you should keep records of your business travel expenses so that you can deduct them properly.

Internal Revenue Service. " Topic No. 511, Business Travel Expenses ."

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 13.

Internal Revenue Service. " Publication 5307, Tax Reform Basics for Individuals and Families ," Page 7.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Pages 6-7, 13-14.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 4.

Internal Revenue Service. " Publication 5307, Tax Reform Basics for Individuals and Families ," Pages 5, 7.

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Topic no. 511, Business travel expenses

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Travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. You can't deduct expenses that are lavish or extravagant, or that are for personal purposes.

You're traveling away from home if your duties require you to be away from the general area of your tax home for a period substantially longer than an ordinary day's work, and you need to get sleep or rest to meet the demands of your work while away.

Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return to Chicago every weekend. You may not deduct any of your travel, meals or lodging in Milwaukee because that's your tax home. Your travel on weekends to your family home in Chicago isn't for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located.

In determining your main place of business, take into account the length of time you normally need to spend at each location for business purposes, the degree of business activity in each area, and the relative significance of the financial return from each area. However, the most important consideration is the length of time you spend at each location.

You can deduct travel expenses paid or incurred in connection with a temporary work assignment away from home. However, you can't deduct travel expenses paid in connection with an indefinite work assignment. Any work assignment in excess of one year is considered indefinite. Also, you may not deduct travel expenses at a work location if you realistically expect that you'll work there for more than one year, whether or not you actually work there that long. If you realistically expect to work at a temporary location for one year or less, and the expectation changes so that at some point you realistically expect to work there for more than one year, travel expenses become nondeductible when your expectation changes.

Travel expenses for conventions are deductible if you can show that your attendance benefits your trade or business. Special rules apply to conventions held outside the North American area.

Deductible travel expenses while away from home include, but aren't limited to, the costs of:

• Travel by airplane, train, bus or car between your home and your business destination. (If you're provided with a ticket or you're riding free as a result of a frequent traveler or similar program, your cost is zero.)
• The airport or train station and your hotel,
• The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location.
• Shipping of baggage, and sample or display material between your regular and temporary work locations.
• Using your car while at your business destination. You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking fees. If you rent a car, you can deduct only the business-use portion for the expenses.
• Lodging and non-entertainment-related meals.
• Dry cleaning and laundry.
• Business calls while on your business trip. (This includes business communications by fax machine or other communication devices.)
• Tips you pay for services related to any of these expenses.
• Other similar ordinary and necessary expenses related to your business travel. (These expenses might include transportation to and from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer.)

Instead of keeping records of your meal expenses and deducting the actual cost, you can generally use a standard meal allowance, which varies depending on where you travel. The deduction for business meals is generally limited to 50% of the unreimbursed cost.

If you're self-employed, you can deduct travel expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship) , or if you're a farmer, on Schedule F (Form 1040), Profit or Loss From Farming .

If you're a member of the National Guard or military reserve, you may be able to claim a deduction for unreimbursed travel expenses paid in connection with the performance of services as a reservist that reduces your adjusted gross income. This travel must be overnight and more than 100 miles from your home. Expenses must be ordinary and necessary. This deduction is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Claim these expenses on Form 2106, Employee Business Expenses and report them on Form 1040 , Form 1040-SR , or Form 1040-NR as an adjustment to income.

Good records are essential. Refer to Topic no. 305 for information on recordkeeping. For more information on these and other travel expenses, refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses .

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Travelmath provides an online cost calculator to help you determine the cost of driving between cities. You can use this data to figure out a budget for a road trip. The driving calculation is based on the average fuel efficiency of your vehicle, and you can change the gas mileage in mpg or L/100 km to match your exact make and model. Gas prices are automatically estimated based on current fluctuations, and again you can adjust these to fit your local gas station prices. Both U.S. and international units are available to make the calculations easier to use, and the output is given for both one-way and round trip travel routes.

Check the driving distance for your planned route, and see if the total driving time requires an overnight stay. If it's a long trip, you may want to research some hotels along the way . Or compare whether it's better to fly or drive to your destination.

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How to Deduct Travel Expenses (with Examples)

Reviewed by

November 3, 2022

This article is Tax Professional approved

Good news: most of the regular costs of business travel are tax deductible.

Even better news: as long as the trip is primarily for business, you can tack on a few vacation days and still deduct the trip from your taxes (in good conscience).

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Even though we advise against exploiting this deduction, we do want you to understand how to leverage the process to save on your taxes, and get some R&R while you’re at it.

Follow the steps in this guide to exactly what qualifies as a travel expense, and how to not cross the line.

The travel needs to qualify as a “business trip”

Unfortunately, you can’t just jump on the next plane to the Bahamas and write the trip off as one giant business expense. To write off travel expenses, the IRS requires that the primary purpose of the trip needs to be for business purposes.

Here’s how to make sure your travel qualifies as a business trip.

1. You need to leave your tax home

Your tax home is the locale where your business is based. Traveling for work isn’t technically a “business trip” until you leave your tax home for longer than a normal work day, with the intention of doing business in another location.

2. Your trip must consist “mostly” of business

The IRS measures your time away in days. For a getaway to qualify as a business trip, you need to spend the majority of your trip doing business.

For example, say you go away for a week (seven days). You spend five days meeting with clients, and a couple of days lounging on the beach. That qualifies as business trip.

But if you spend three days meeting with clients, and four days on the beach? That’s a vacation. Luckily, the days that you travel to and from your location are counted as work days.

3. The trip needs to be an “ordinary and necessary” expense

“Ordinary and necessary ” is a term used by the IRS to designate expenses that are “ordinary” for a business, given the industry it’s in, and “necessary” for the sake of carrying out business activities.

If there are two virtually identical conferences taking place—one in Honolulu, the other in your hometown—you can’t write off an all-expense-paid trip to Hawaii.

Likewise, if you need to rent a car to get around, you’ll have trouble writing off the cost of a Range Rover if a Toyota Camry will get you there just as fast.

What qualifies as “ordinary and necessary” can seem like a gray area at times, and you may be tempted to fudge it. Our advice: err on the side of caution. if the IRS chooses to investigate and discovers you’ve claimed an expense that wasn’t necessary for conducting business, you could face serious penalties .

4. You need to plan the trip in advance

You can’t show up at Universal Studios , hand out business cards to everyone you meet in line for the roller coaster, call it “networking,” and deduct the cost of the trip from your taxes. A business trip needs to be planned in advance.

Before your trip, plan where you’ll be each day, when, and outline who you’ll spend it with. Document your plans in writing before you leave. If possible, email a copy to someone so it gets a timestamp. This helps prove that there was professional intent behind your trip.

The rules are different when you travel outside the United States

Business travel rules are slightly relaxed when you travel abroad.

If you travel outside the USA for more than a week (seven consecutive days, not counting the day you depart the United States):

You must spend at least 75% of your time outside of the country conducting business for the entire getaway to qualify as a business trip.

If you travel outside the USA for more than a week, but spend less than 75% of your time doing business, you can still deduct travel costs proportional to how much time you do spend working during the trip.

For example, say you go on an eight-day international trip. If you spend at least six days conducting business, you can deduct the entire cost of the trip as a business expense—because 6 is equivalent to 75% of your time away, which, remember, is the minimum you must spend on business in order for the entire trip to qualify as a deductible business expense.

But if you only spend four days out of the eight-day trip conducting business—or just 50% of your time away—you would only be able to deduct 50% of the cost of your travel expenses, because the trip no longer qualifies as entirely for business.

List of travel expenses

Here are some examples of business travel deductions you can claim:

• Plane, train, and bus tickets between your home and your business destination
• Baggage fees
• Laundry and dry cleaning during your trip
• Rental car costs
• Hotel and Airbnb costs
• 50% of eligible business meals
• 50% of meals while traveling to and from your destination

On a business trip, you can deduct 100% of the cost of travel to your destination, whether that’s a plane, train, or bus ticket. If you rent a car to get there, and to get around, that cost is deductible, too.

The cost of your lodging is tax deductible. You can also potentially deduct the cost of lodging on the days when you’re not conducting business, but it depends on how you schedule your trip. The trick is to wedge “vacation days” in between work days.

Here’s a sample itinerary to explain how this works:

Thursday: Fly to Durham, NC. Friday: Meet with clients. Saturday: Intermediate line dancing lessons. Sunday: Advanced line dancing lessons. Monday: Meet with clients. Tuesday: Fly home.

Thursday and Tuesday are travel days (remember: travel days on business trips count as work days). And Friday and Monday, you’ll be conducting business.

It wouldn’t make sense to fly home for the weekend (your non-work days), only to fly back into Durham for your business meetings on Monday morning.

So, since you’re technically staying in Durham on Saturday and Sunday, between the days when you’ll be conducting business, the total cost of your lodging on the trip is tax deductible, even if you aren’t actually doing any work on the weekend.

It’s not your fault that your client meetings are happening in Durham—the unofficial line dancing capital of America .

Meals and entertainment during your stay

Even on a business trip, you can only deduct a portion of the meal and entertainment expenses that specifically facilitate business. So, if you’re in Louisiana closing a deal over some alligator nuggets, you can write off 50% of the bill.

Just make sure you make a note on the receipt, or in your expense-tracking app , about the nature of the meeting you conducted—who you met with, when, and what you discussed.

On the other hand, if you’re sampling the local cuisine and there’s no clear business justification for doing so, you’ll have to pay for the meal out of your own pocket.

Meals and entertainment while you travel

While you are traveling to the destination where you’re doing business, the meals you eat along the way can be deducted by 50% as business expenses.

This could be your chance to sample local delicacies and write them off on your tax return. Just make sure your tastes aren’t too extravagant. Just like any deductible business expense, the meals must remain “ordinary and necessary” for conducting business.

How Bench can help

Surprised at the kinds of expenses that are tax-deductible? Travel expenses are just one of many unexpected deductible costs that can reduce your tax bill. But with messy or incomplete financials, you can miss these tax saving expenses and end up with a bigger bill than necessary.

Enter Bench, America’s largest bookkeeping service. With a Bench subscription, your team of bookkeepers imports every transaction from your bank, credit cards, and merchant processors, accurately categorizing each and reviewing for hidden tax deductions. We provide you with complete and up-to-date bookkeeping, guaranteeing that you won’t miss a single opportunity to save.

Want to talk taxes with a professional? With a premium subscription, you get access to unlimited, on-demand consultations with our tax professionals. They can help you identify deductions, find unexpected opportunities for savings, and ensure you’re paying the smallest possible tax bill. Learn more .

Bringing friends & family on a business trip

Don’t feel like spending the vacation portion of your business trip all alone? While you can’t directly deduct the expense of bringing friends and family on business trips, some costs can be offset indirectly.

Driving to your destination

Have three or four empty seats in your car? Feel free to fill them. As long as you’re traveling for business, and renting a vehicle is a “necessary and ordinary” expense, you can still deduct your business mileage or car rental costs even when others join you for the ride.

One exception: If you incur extra mileage or “unnecessary” rental costs because you bring your family along for the ride, the expense is no longer deductible because it isn’t “necessary or ordinary.”

For example, let’s say you had to rent an extra large van to bring your children on a business trip. If you wouldn’t have needed to rent the same vehicle to travel alone, the expense of the extra large van no longer qualifies as a business deduction.

Renting a place to stay

Similar to the driving expense, you can only deduct lodging equivalent to what you would use if you were travelling alone.

However, there is some flexibility. If you pay for lodging to accommodate you and your family, you can deduct the portion of lodging costs that is equivalent to what you would pay only for yourself .

For example, let’s say a hotel room for one person costs $100, but a hotel room that can accommodate your family costs $150. You can rent the $150 option and deduct $100 of the cost as a business expense—because $100 is how much you’d be paying if you were staying there alone.

This deduction has the potential to save you a lot of money on accommodation for your family. Just make sure you hold on to receipts and records that state the prices of different rooms, in case you need to justify the expense to the IRS

Heads up. When it comes to AirBnB, the lines get blurry. It’s easy to compare the cost of a hotel room with one bed to a hotel room with two beds. But when you’re comparing significantly different lodgings, with different owners—a pool house versus a condo, for example—it becomes hard to justify deductions. Sticking to “traditional” lodging like hotels and motels may help you avoid scrutiny during an audit. And when in doubt: ask your tax advisor.

So your trip is technically a vacation? You can still claim any business-related expenses

The moment your getaway crosses the line from “business trip” to “vacation” (e.g. you spend more days toasting your buns than closing deals) you can no longer deduct business travel expenses.

Generally, a “vacation” is:

• A trip where you don’t spend the majority of your days doing business
• A business trip you can’t back up with correct documentation

However, you can still deduct regular business-related expenses if you happen to conduct business while you’re on vacay.

For example, say you visit Portland for fun, and one of your clients also lives in that city. You have a lunch meeting with your client while you’re in town. Because the lunch is business related, you can write off 50% of the cost of the meal, the same way you would any other business meal and entertainment expense . Just make sure you keep the receipt.

Meanwhile, the other “vacation” related expenses that made it possible to meet with this client in person—plane tickets to Portland, vehicle rental so you could drive around the city—cannot be deducted; the trip is still a vacation.

If your business travel is with your own vehicle

There are two ways to deduct business travel expenses when you’re using your own vehicle.

• Actual expenses method
• Standard mileage rate method

Actual expenses is where you total up the actual cost associated with using your vehicle (gas, insurance, new tires, parking fees, parking tickets while visiting a client etc.) and multiply it by the percentage of time you used it for business. If it was 50% for business during the tax year, you’d multiply your total car costs by 50%, and that’d be the amount you deduct.

Standard mileage is where you keep track of the business miles you drove during the tax year, and then you claim the standard mileage rate .

The cost of breaking the rules

Don’t bother trying to claim a business trip unless you have the paperwork to back it up. Use an app like Expensify to track business expenditure (especially when you travel for work) and master the art of small business recordkeeping .

If you claim eligible write offs and maintain proper documentation, you should have all of the records you need to justify your deductions during a tax audit.

Speaking of which, if your business is flagged to be audited, the IRS will make it a goal to notify you by mail as soon as possible after your filing. Usually, this is within two years of the date for which you’ve filed. However, the IRS reserves the right to go as far back as six years.

Tax penalties for disallowed business expense deductions

If you’re caught claiming a deduction you don’t qualify for, which helped you pay substantially less income tax than you should have, you’ll be penalized. In this case, “substantially less” means the equivalent of a difference of 10% of what you should have paid, or $5,000—whichever amount is higher.

The penalty is typically 20% of the difference between what you should have paid and what you actually paid in income tax. This is on top of making up the difference.

Ultimately, you’re paying back 120% of what you cheated off the IRS.

If you’re slightly confused at this point, don’t stress. Here’s an example to show you how this works:

Suppose you would normally pay $30,000 income tax. But because of a deduction you claimed, you only pay $29,000 income tax.

If the IRS determines that the deduction you claimed is illegitimate, you’ll have to pay the IRS $1200. That’s $1000 to make up the difference, and $200 for the penalty.

Form 8275 can help you avoid tax penalties

If you think a tax deduction may be challenged by the IRS, there’s a way you can file it while avoiding any chance of being penalized.

File Form 8275 along with your tax return. This form gives you the chance to highlight and explain the deduction in detail.

In the event you’re audited and the deduction you’ve listed on Form 8275 turns out to be illegitimate, you’ll still have to pay the difference to make up for what you should have paid in income tax—but you’ll be saved the 20% penalty.

Unfortunately, filing Form 8275 doesn’t reduce your chances of being audited.

Where to claim travel expenses

If you’re self-employed, you’ll claim travel expenses on Schedule C , which is part of Form 1040.

When it comes to taking advantage of the tax write-offs we’ve discussed in this article—or any tax write-offs, for that matter—the support of a professional bookkeeping team and a trusted CPA is essential.

Accurate financial statements will help you understand cash flow and track deductible expenses. And beyond filing your taxes, a CPA can spot deductions you may have overlooked, and represent you during a tax audit.

Learn more about how to find, hire, and work with an accountant . And when you’re ready to outsource your bookkeeping, try Bench .

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Per diem: Meaning, Calculation, and 2024 Rates

If your employees travel for business, whether it’s internationally or locally, you might consider covering these costs by providing them with per diem pay. Per diems can be a great way to simplify expense management in your business and provide your employees with a predictable daily budget to cover their essential travel expenses.

So, what is a per diem, and what are the government per diem rates for 2024?

This article will explore the meaning of per diem and what businesses need to keep in mind when they calculate business travel expense reimbursements for their employees. We will answer common questions including “What is per diem pay?”, “What is a standard per diem meal allowance?”, and “What are the GSA per diem rates for 2024?”. We will also highlight how using software to centralize your expense management processes can help you streamline expense tracking, simplify your reimbursement procedures, and ensure compliance with per diem policies and regulations.

Per diem meaning

How does per diem work, how is per diem calculated, gsa per diem rates 2024, is per diem taxable.

• FAQ about Per Diem 
• Save time, and headaches with this Expense Management Software ⭐️

Let’s start with the meaning of per diem.

Per diem, derived from the Latin for “by the day”, is a daily allowance that covers expenses that an employee incurs while traveling or on official business. These expenses include meals, lodging, transportation, and incidental costs incurred during a trip. Traveling employees can spend up to this defined amount each day to cover their essential expenses without expense reimbursement approval.

For example, if an employee is on a business trip and their company provides a per diem rate of $100, it means they are entitled to spend up to $100 per day on expenses related to the trip. Any amount spent beyond this allowance would typically be the responsibility of the employee, while any unspent amount might not be reimbursed.

This system simplifies the out-of-pocket reimbursement process and provides a standard daily allowance so that employees do not need to submit detailed receipts for every individual expense. It is commonly used in the business world, government, and various other organizations that require their employees to travel for work purposes.

What about per diem jobs? What does per diem work mean?

This is a slightly different concept. A per diem job is an employment arrangement where individuals are hired on a day-by-day or as-needed basis, typically without a long-term commitment or fixed schedule. In this type of job, common in industries including healthcare and hospitality, employees are considered temporary or on-call workers, available to fulfill specific duties whenever the employer requires their services. We won’t be focusing on this in today’s article.

We’ve explored the per diem meaning, so now let’s take a look at how it works, exactly.

Per diem rates

Organizations, companies, or governments set per diem rates based on the location of travel and the purpose of the trip. Different places may have different rates due to variations in the cost of living and travel expenses. We’ll expand on this below.

Calculation of per diem

Most organizations determine the per diem amount by considering the following expenses:

• Meals.  Covers breakfast, lunch, dinner, and any incidental snacks.
• Lodging.  Covers the cost of the hotel or other accommodation.
• Incidentals.  Covers small miscellaneous expenses like tips, transportation to and from the airport, or other minor costs.

More on calculations below.

Reimbursement

When an employee goes on a business trip, they can claim an allowance for each day they are away. They usually do not need to provide itemized receipts, as the per diem rate is meant to cover everything. You calculate the total reimbursement by multiplying the PD rate by the number of days spent on the trip.

Total reimbursement also takes the following into account:

• Partial days. For arrival and departure days, when the traveler doesn’t spend the full day away, the daily allowance may be prorated based on the time spent on the trip.
• Non-reimbursable expenses. Some organizations may specify certain expenses that are not eligible for reimbursement. For example, personal expenses or alcohol might not be covered.

Unused per diem

If a traveling employee spends less than the allowance rate on a given day, you might decide to allow them to keep the unused portion of the allowance. However, some organizations require employees to return any excess funds not spent during the trip. Ultimately, though, this will depend on each company’s expense policy.

Accounting and reporting

Finally, accounting and reporting are vital aspects of the per diem system, ensuring accuracy and adherence to the organization’s policies. When employees go on a business trip and incur eligible expenses, they must follow specific procedures for accounting and reporting:

• Expense tracking. Employees must track their expenses during the trip. They must also note any additional costs beyond the fixed per diem rates, such as transportation expenses.
• Per diem reimbursement requests. After the trip, the employee submits a detailed expense report to the finance or HR department. The report includes the trip dates, purpose, destination, and daily expense breakdown.
• Per diem vs. actual expenses. The report distinguishes between per diem expenses and actual expenses, if applicable.
• Receipts and documentation. Depending on each organization’s policies, employees may need to submit itemized receipts as proof of incurred expenses.
• Approval and reimbursement. Finance reviews and approves the report. They then reimburse employees for any eligible expenses.
• Unspent allowances. Employees might retain any unused per diems if expenses were below the allowance. However, this will depend on each organization’s internal policies. The same applies to any excess allowances not used appropriately.
• Auditing and record keeping. Organizations must retain detailed per diem records, receipts, and expense reports. This enables efficient auditing and ensures tax compliance where appropriate.

The best way to manage all the above is by using expense management software tools . The right solution can help you create an efficient per diem request system, and ensure accurate reimbursement and financial transparency. More on this below.

The way you calculate per diem rates will depend on a variety of factors. This includes the location of travel, the purpose of the trip, and the standard cost of living in the area. However, the specific process can vary depending on the organization or government agency setting the rates.

Nonetheless, here’s a general outline of how organizations typically calculate per diems  to give you an idea.

Location plays a crucial role in determining per diem rates. This is because the cost of living, accommodation expenses, and meal costs can vary significantly from one location to another.

Let’s explore some factors related to location in the context of per diem calculation:

• Cost of living. Rates are often higher in cities or areas with a high cost of living. These locations tend to have more expensive meals, accommodation, transportation, and other daily expenses.
• International travel. For international travel, factors such as currency exchange rates, local economic conditions, and cultural factors can affect rates. Governments and organizations may have different rates for various countries to reflect these variations.
• Seasonal variations. Seasonal variations in travel demand can also impact rates. Popular tourist destinations may have higher rates during peak seasons when demand for accommodation and services is at its highest.
• Travel restrictions. Finally, travel restrictions, security concerns, or political stability in certain regions can influence rates. For example, some locations with high-risk factors might have lower rates to discourage unnecessary travel.

Meals and Incidental Expenses (M&IE)

Meals and Incidental Expenses (M&IE) cover an employee’s daily food allowance and minor miscellaneous expenses during business travel. The M&IE rate is typically calculated based on the location and duration of the trip.

Here’s a closer look at what M&IE includes and how it functions:

• Meal expenses. The M&IE portion of a per diem covers expenses related to meals. This includes breakfast, lunch, dinner, and any incidental snacks or refreshments consumed during the day. Per diem rates for meals can vary depending on the time of day and the specific location.
• Standard meal allowances. M&IE rates are often set by the government or organizations based on established guidelines. For instance, the General Services Administration (GSA) in the United States provides standard M&IE rates for various locations within the country, which can change annually to reflect fluctuations in food costs.
• Incidental expenses. Apart from meals, M&IE can also include incidental expenses, which are small miscellaneous costs incurred during the trip. These might include tips for hotel staff, bellhops, or other service providers. They might also include transportation to and from the airport or local business-related transportation expenses.

Federal or standard rates

Federal or standard rates refer to the predetermined per diem allowances established by the government or relevant authorities for specific locations or regions within a country. In the United States, for example, the General Services Administration (GSA) sets the federal per diem rates for various cities and regions. These rates are designed to reflect the average expenses an individual is likely to incur while traveling for official government business.

Federal or standard rates take into account factors such as the cost of living, accommodation, and meal expenses in each location. The government usually updates these rates annually to align with changing economic conditions and travel expenses. As a result, these rates provide a convenient and uniform way for government employers to reimburse employees for their business-related travel without the need for detailed receipts.

While federal or standard rates are typically used for government-related travel, private companies and organizations can also adopt these rates as a reference point for setting their own per diem policies. That way, they can ensure consistency and fairness in their expense reimbursement policies.

Lodging rate

Most organizations calculate the lodging portion of the per diem according to the average cost of accommodation in the area. This usually depends on hotel rates or other approved lodging options.

Total per diem

The total per diem is the sum of the M&IE rate and the lodging rate.

In other words:

Total Per Diem = M&IE rate + Lodging rate.

So, for example, if the M&IE rate for a specific location is $60 per day, and the lodging rate is $100 per day, the total per diem for that location would be $160 ($60 + $100).

Exclusions and adjustments

Some organizations might exclude certain expenses from the per diem, such as travel between the traveler’s home and the destination or expenses related to conferences or events with provided meals.

Per diem reviews and updates

Organizations, companies, or government agencies should regularly review their per diem practices to ensure they remain relevant, fair, and in line with current economic and travel conditions.

This process is crucial because:

• Economic factors, such as inflation, fluctuations in living costs, and changes in travel expenses, can impact per diem rates. Regular review allows you to make adjustments to keep rates up-to-date and reflective of current conditions.
• The cost of living directly influences per diem rates in certain locations. As the cost of living changes over time, you should review your per diem rates regularly to accommodate these shifts.
• Organizations might observe changes in travel patterns, such as shifts in the frequency or destinations of business trips. This information can help you determine whether you need to adjust your per diem rates to match new travel trends.
• Reviewing and updating per diem policies regularly promotes transparency and openness within the organization. This is because employees understand that you are continuously evaluating your rates to meet their needs.
• Finally, for government employees or contractors, per diem rates are usually based on official government guidelines. Periodic review ensures that the organization aligns its rates with any updates or changes in these guidelines.

In the U.S., Federal per diem reimbursement rates are set by the General Services Administration (GSA), in collaboration with the Department of State (DoS), and the Defense Travel Management Office (DTMO). These GSA per diem rates, set on October 1 each year, are used by Federal agencies to reimburse their employees for expenses incurred while on official travel.

GSA per diem reimbursement rates are made up of two components: a maximum lodging allowance and a meals and incidental expenses (M&IE) allowance. The standard per diem rate for most locations within the contiguous United States (CONUS), covering approximately 2,600 counties, is $157 per day. $98 of this is allocated to lodging and $59 to M&IE. However, this fiscal year (FY), there are 316 non-standard areas (NSAs) with per diem rates that are higher than the standard federal per diem rates for 2024.

Since FY 2005, maximum lodging allowances have been determined based on the average daily rate (ADR) concept. ADR is a widely accepted metric in the lodging industry, obtained by dividing a property’s room rental revenue by the number of rooms rented, providing the average rate in a specific area. You can find out more information about how lodging per diem rates are determined from the GSA’s official lodging rates webpage .

Business travel per diems in the United States are either taxable or non-taxable, depending on how your employees use them.

Here’s a breakdown of the tax treatment of per diems in the U.S.:

• Non-taxable. A per diem is non-taxable if it meets certain conditions set by the Internal Revenue Service (IRS). To qualify as non-taxable, the per diem amount must be within the federal government’s standard per diem rates for various locations. The General Services Administration (GSA) publishes these rates annually, as we have just seen above. If the per diem does not exceed the GSA standard rates and it is used for legitimate business travel expenses, it is non-taxable income. Employees are not required to keep detailed records of actual expenses when using non-taxable per diem.
• Taxable. If the per diem you provide employees exceeds the federal government’s standard rates or if it is not specifically tied to business travel, you must treat it as taxable income. Per diem amounts that you pay in excess of the standard rates or those that employees use for non-business-related expenses are taxable wages and subject to regular income tax withholding.
• Accountable plan. To ensure proper tax treatment, many employers use an “accountable plan” for per diem payments. An accountable plan is a set of policies and procedures that meet IRS requirements for reimbursing employees for business expenses. Under an accountable plan, you do not include non-taxable per diem reimbursements in an employee’s taxable income, and you treat any excess amount as taxable.

Centralize expense management with Factorial

In today’s dynamic business landscape, where remote work and travel are increasingly prevalent, an integrated and user-friendly expense management solution is essential. With its comprehensive suite of tools, Factorial provides organizations with a seamless and efficient solution for managing time and expenses associated with business travel.

For example, the platform’s time and expense tracking feature ensures that employees can effortlessly log their travel-related expenses, making it easy to keep an accurate record of expenses throughout their journeys. Plus, by enabling real-time tracking, Factorial empowers both employees and employers to stay informed about incurred costs, ensuring transparency and accountability.

Moreover, Factorial’s user-friendly interface for submitting reimbursement requests further simplifies the expense management process. Not only that, but employees can effortlessly submit their expense reports, saving time and reducing administrative burdens. As a result of this streamlined approval workflow, managers can quickly review and approve claims, allowing for a faster reimbursement process.

One of the standout features of Factorial’s expense management tool is the option for corporate expense cards . With these cards, organizations can issue prepaid cards to employees, simplifying expense tracking and reducing the need for out-of-pocket spending. You can seamlessly integrate the cards into the system, allowing for real-time expense updates and easier reconciliation.

Ultimately, Factorial is a solid solution for businesses looking to optimize their per diem management processes, foster better expense control, and empower their employees to focus on what truly matters – achieving their business objectives. Embrace the power of Factorial’s expense management feature and embark on a journey towards greater efficiency, cost savings, and enhanced productivity.

FAQ about Per Diem

1. what is per diem.

Per diem, a Latin term meaning “by the day,” is a daily allowance to cover expenses incurred by an employee while on business travel or official duties. This allowance typically includes costs for meals, lodging, transportation, and incidental expenses.

2. How does per diem work?

Organizations set per diem rates based on the travel location and trip purpose. Employees are entitled to spend up to this daily limit without needing detailed expense approval. The system simplifies reimbursement by negating the need for submitting individual expense receipts.

3. What expenses are covered by per diem?

Per diem covers:

Meals: Breakfast, lunch, dinner, and snacks. Lodging: Hotel or other accommodations. Incidentals: Minor expenses like tips and local transportation.

4. How are per diem rates calculated?

Per diem rates depend on:

Location: Reflecting local cost of living and travel expenses. Meals and Incidental Expenses (M&IE): Covering daily food and minor expenses. Lodging: Based on average local accommodation costs.

5. How is per diem reimbursement handled?

Employees claim an allowance for each travel day. The total reimbursement equals the per diem rate times the number of days. Organizations may require return of unspent funds or allow employees to keep them, depending on their policy.

6. What are the accounting and reporting requirements for per diem?

Employees must track expenses and submit a report post-trip, detailing trip dates, purpose, and expenses. Organizations review these for approval and reimbursement.

7. Are per diem rates the same for all locations?

No, they vary based on location due to differences in living and travel costs. Organizations often use federal or standard rates as a benchmark.

8. Is per diem taxable?

In the U.S., per diem is non-taxable if it aligns with federal rates and is used for legitimate business expenses. Amounts exceeding standard rates or used for non-business purposes are taxable.

9. How often are per diem rates reviewed and updated?

Organizations should regularly review and adjust per diem rates to reflect economic changes, living costs, and travel patterns.

10. What is an effective way to manage per diem expenses?

Using expense management software like Factorial can streamline per diem management, ensuring efficient reimbursement and financial transparency. Factorial provides time and expense tracking, easy report submission, and options for corporate expense cards.

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How much will you spend in retirement?

Key takeaways

• If you know your annual income while you're still working, expect to spend between 55% and 80% of that every year throughout retirement, depending on your income, retirement lifestyle, and health care costs.
• If you plan an active lifestyle in retirement, expect to ratchet up your annual retirement budget by 6 percentage points compared with a less active lifestyle.
• Expect 15% of your living expenses to be related to health care expenses after you retire, year in and year out.
• As you near retirement, consider working with an advisor to fine-tune your budget and retirement income plan.

If you're like many people, you don't buy into the traditional definition of retirement. You may be planning an encore career or looking to maximize opportunities to travel. Hopefully, new adventures and new activities await you.

But remember, as you redefine your retirement, consider your retirement income plan, mapping it to a budget based on what you expect to spend—or can afford to spend—category by category throughout your retirement.

Sign up for Fidelity Viewpoints weekly email for our latest insights.

One of the biggest and most baffling questions you'll likely face is determining what kind of a retirement lifestyle you can actually afford. Some of your expenses will go down, but others may actually go up.

How will you really know the extent of all these expenses before you enter retirement? The good news is this task gets easier the closer you get to retirement if you've already created a retirement budget and explored what your lifestyle will be like in retirement. Then you can turn your "guestimate" of retirement expenses into a detailed retirement income plan either on your own or with an advisor.

"When estimating the cost of retirement lifestyles, most people seek to maintain their standard of living, which generally peaks in your late 40s to mid-50s," says Steve Feinschreiber, senior vice president of Financial Solutions at Fidelity. "Fortunately, many people who have saved adequately for retirement can fulfill their dreams because their overall expenses are generally reduced in retirement save one important category—health care."

The 80% rule provides a guideline of what you can afford in retirement

For many people, budgeting and estimating future spending is something that they find difficult and tedious. Many simply don't do any budgeting at all—not even trying the "back of the envelope" method. We recognize that, so we've taken the approach of looking at what people can generally afford in retirement based on their preretirement income.

If you know what your annual income is today, you can start the planning process by assuming you'll spend about 80% of the income you will be making before you retire every year in your retirement—that's known as your retirement income replacement ratio. So, for example, if your estimated preretirement income is $45,000, plan on spending about $36,000 annually in retirement.

Think about this 80% figure as a good jumping-off point, and then use your income, anticipated lifestyle, and health expectations to modify your number to help you generate an even more relevant estimate of retirement expenses.

"Each family's retirement situation is different," says Beau Zhao, director of Financial Solutions at Fidelity. "The amount of time until you retire, spending habits, travel plans, health conditions, and unexpected costs can all vary dramatically. That is why it is important to adjust the spending guidelines based on your own needs and wants.

"Let's say you plan to travel around the world after you retire. You may want to increase the 80% guideline to 90% or 100%," he adds.

Determining your retirement income replacement ratio

When it comes to planning the income required to meet all your expenses in retirement, one of the big factors to consider is your current income. In general, the more money you make, the smaller a percentage of your working income you may need to replace when you stop working.

For instance, a person making less than $50,000 a year before they retire might need to replace 80% of their preretirement income on average in retirement, and cover $40,000 in expenses. Someone making $200,000 may need only 55% of their preretirement income to help fund a retirement lifestyle that could cost up to $110,000 in annual expenses.

"To get a sense of what you might need to fully cover your expenses, look beyond the 80% starting point. Try to narrow the range between 55% and 80%, factoring in your income, and then adjust your likely replacement income rate to get your number," says Zhao.

How your spending habits change in retirement

As people age, their spending patterns change, according to an analysis of Bureau of Labor Department data. 2  On average, US households under age 55 spend almost $58,000 a year on a wide variety of expenses. Starting at age 55, spending tends to increase slightly, as some younger retirees travel or take on new pursuits. In the age range when most are retired at 65+, there is a significant drop in overall spending.

The makeup of spending also changes. While spending on food, entertainment, and transportation remains relatively stable, spending on housing tends to go down and spending on health care goes up.

Expect to spend less on housing in retirement

Many retirees overestimate housing costs. In fact, average housing costs drop over time among retirees, as many downsize, move to cheaper parts of the country (or world), or find other creative ways to trim housing costs or pay off their mortgage (see chart).

"There are a number of housing decisions to consider as you transition from working to full-time retirement," says Feinschreiber. "Work with your advisor to develop a housing strategy—with several different options— as you project where you'll plan to live over the next 20–30 years. Whether you plan to downsize, relocate, or age in place—or consider such options as cohousing or living with one of your children–you can expect your overall housing cost to decline as you age."

Plan for higher health care costs, especially if you live longer

Although you may be able to accurately estimate your entertainment, food, and transportation costs in retirement, health care is the one major outlay that is unpredictable and expensive.

Fidelity estimates that on average a 65-year-old retired couple needs $300,000 to spend on health care over the course of retirement 3 . For planning purposes, you may want to factor in an even higher number, because many people experience above-average expenses—often due to chronic illnesses, longevity, or long-term care costs.

Tip: According to research by Fidelity Financial Solutions, you should plan on factoring in approximately 15% of your retirement expenses will be related to health care expenses, year in and year out. In general, the more health issues you expect, the higher the retirement income replacement rate you may want to work into your retirement income plans.

Your lifestyle choices can impact your bottom line

Lifestyle is another big factor to consider in estimating how much you will spend in retirement. You might choose activities that are relatively easy on the wallet, such as spending more time with grandkids, reading, or gardening. But increasingly people want to tap into their savings to create a more active lifestyle that includes travel, adventure, and new activities.

These decisions have a big impact on your bottom line. If you're a jet setter who plans to see the world or take up new activities, expect to ratchet up your income replacement rate significantly. Or if you are looking ahead to enjoying the simple life, this number may be significantly lower.

"We often hear about people who are worried about the stock market taking a chunk of their savings in the first few years after they stop working due to market volatility, asset allocation, or poor market performance. What they may not realize is that their own travel plans could eat up just as much of their savings," says Zhao.

Tip: Our research suggests if you plan an active lifestyle in retirement, ratchet up your overall retirement budget by 6 percentage points compared with a less active lifestyle—a difference that would equate to tens of thousands of dollars in savings at the time of retirement.

Ask the right questions before you retire

As you look ahead to a successful retirement, consider working with your financial advisor to map out a retirement income plan that works for you—and your expected lifestyle. As you explore options for your retirement plan, here are a few questions for you and your spouse/partner to discuss with your advisor:

• Should you pay off your mortgage before you retire?
• Are you funding your grandchildren's college expenses?
• How much expensive travel do you have planned?
• Do you plan to relocate in retirement?
• What impact might health issues or taxes have on your retirement planning?
• Do you have a housing strategy that details locales, living options, and amenities for the next stages of your life?

Knowing when and if you'll have to make adjustments to your spending habits in certain categories of spending can help give you the confidence to live the retirement lifestyle that you've been planning for over many years.

Start a conversation

We'll meet you where you are on your financial journey and help you get to where you want to be.

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Oh, hello again, thanks for subscribing to looking for more ideas and insights you might like these too:, looking for more ideas and insights you might like these too:, fidelity viewpoints ® timely news and insights from our pros on markets, investing, and personal finance. (debug tcm:2 ... decode crypto clarity on crypto every month. build your knowledge with education for all levels. fidelity smart money ℠ what the news means for your money, plus tips to help you spend, save, and invest. active investor our most advanced investment insights, strategies, and tools. insights from fidelity wealth management ℠ timely news, events, and wealth strategies from top fidelity thought leaders. women talk money real talk and helpful tips about money, investing, and careers. educational webinars and events free financial education from fidelity and other leading industry professionals. fidelity viewpoints ® timely news and insights from our pros on markets, investing, and personal finance. (debug tcm:2 ... decode crypto clarity on crypto every month. build your knowledge with education for all levels. fidelity smart money ℠ what the news means for your money, plus tips to help you spend, save, and invest. active investor our most advanced investment insights, strategies, and tools. insights from fidelity wealth management ℠ timely news, events, and wealth strategies from top fidelity thought leaders. women talk money real talk and helpful tips about money, investing, and careers. educational webinars and events free financial education from fidelity and other leading industry professionals. done add subscriptions no, thanks. investing for income preparing for retirement saving for retirement living in retirement 1. calculations are based on a set of income replacement targets for estimating the retirement income need. these income replacement targets in turn are based on consumer expenditure survey (bls), statistics of income tax stat, irs tax brackets and social security benefit calculators. the national spending data was analyzed across a salary range of $50,000-$300,000, therefore this calculator may have limited applicability if income is outside that range. 2. bureau of labor statistics, consumer expenditures data; 2019 3. estimate based on a hypothetical opposite-gender couple retiring in 2021, 65-years-old, with life expectancies that align with society of actuaries' rp-2014 healthy annuitant rates projected with mortality improvements scale mp-2020 as of 2021. actual assets needed may be more or less depending on actual health status, area of residence, and longevity. estimate is net of taxes. the fidelity retiree health care cost estimate assumes individuals do not have employer-provided retiree health care coverage, but do qualify for the federal government’s insurance program, original medicare. the calculation takes into account cost-sharing provisions (such as deductibles and coinsurance) associated with medicare part a and part b (inpatient and outpatient medical insurance). it also considers medicare part d (prescription drug coverage) premiums and out-of-pocket costs, as well as certain services excluded by original medicare. the estimate does not include other health-related expenses, such as over-the-counter medications, most dental services and long-term care. views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of fidelity investments or its affiliates. fidelity does not assume any duty to update any of the information. fidelity does not provide legal or tax advice. the information herein is general in nature and should not be considered legal or tax advice. consult an attorney or tax professional regarding your specific situation. this information is intended to be educational and is not tailored to the investment needs of any specific investor. fidelity brokerage services llc, member nyse, sipc , 900 salem street, smithfield, ri 02917 880147.4.0 mutual funds etfs fixed income bonds cds options active trader pro investor centers stocks online trading annuities life insurance & long term care small business retirement plans 529 plans iras retirement products retirement planning charitable giving fidsafe , (opens in a new window) finra's brokercheck , (opens in a new window) health savings account stay connected.

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These D&D 5E Free Basic Rules only contain a fraction of the races, subclasses, backgrounds, feats, items, monsters, spells, and other content available on Roll20. Check out the Player's Handbook to add dozens of more player options to the Charactermancer, the Dungeon Master's Guide to expand on the tools available for DMs, and the Monster Manual to add hundreds of more unique creatures (including token artwork) to fight!

When not descending into the depths of the earth, exploring ruins for lost treasures, or waging war against the encroaching darkness, adventurers face more mundane realities. Even in a fantastical world, people require basic necessities such as shelter, sustenance, and clothing. These things cost money , although some lifestyles cost more than others.

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The Real Cost of Full-Time RV Living [2023]: Budgeting for Life on the Road

• June 10, 2023
• Full-Time RVing

Looking to hit the open road and live a life of adventure? Maybe full-time RV living is for you! But before you pack up and hit the road, make sure you understand the costs associated with this lifestyle. Our team of expert RV enthusiasts at RV Brands™ has surveyed the full-time RV community to bring you this comprehensive breakdown of full-time RV living costs.

Full-Time RV Living – Main Costs

RV and Truck Loan and Maintenance

The biggest expense for most full-time RVers is the cost of their RV and truck. When selecting an RV or trailer, keep in mind that bigger isn't always better. Before you make a purchase, ask yourself how much space you really need. Do you value luxury finishes and amenities, or are you more interested in functionality? Once you've selected your RV and truck, be sure to budget for ongoing maintenance and repairs.

• You can make the RV your home.
• You can have a flexible home that can travel with you.
• RV breakdowns can be costly.
• Parking may be restricted.

Gas and Propane

Next up, fuel and propane. Your RV can guzzle gas pretty quickly, especially if you're taking long trips or driving through hilly terrain. Keep this in mind when budgeting for travel costs. Additionally, propane is used for heating, hot water, and cooking, so it's important to factor in the cost of refilling your propane tanks.

• You can explore many different places.
• You can choose a location based on weather preferences.
• Gas costs can be high.
• Propane tanks need to be refilled often.

Campsite Fees

While full-time RV living can be more affordable than owning or renting a traditional home, you'll still need to pay for a place to park your RV. Depending on the length of your stay and the amenities you require, campground fees can range from $10 to $100 per night. Be sure to research campsites and RV parks in advance to ensure they offer all the amenities you need.

• You can stay in beautiful natural areas.
• Campsites offer many amenities.
• You need to pay for sites.
• Availability can be limited.

Eating on the road can be affordable if you're willing to cook your own meals in your RV kitchen. However, if you're constantly eating out at restaurants or convenience stores, food costs can quickly pile up. Budget for groceries and snacks, and consider investing in a compact, portable grill for outdoor cooking.

• You can eat healthy homemade meals.
• You can save money on dining out.
• Cooking takes time and effort.
• Groceries and cooking supplies require storage space.

Your RV is your home, so it's important to protect it with insurance. Depending on your policy, full-time RV insurance can be more expensive than traditional car or home insurance.

• Your RV is protected.
• You can have a sense of security.
• Insurance can be expensive.
• Policies may differ among companies.

Phone and Internet

In today's connected world, maintaining access to phone and internet is important, even when living on the road. Be sure to budget for a reliable phone and data plan, and consider investing in a mobile hotspot for internet access.

• You can stay connected with friends and family.
• You can research and plan your next destination.
• Phone and data plans can be expensive.
• Coverage may be limited in rural areas.

Entertainment

One of the best parts of full-time RV living is exploring new places and experiencing new things. Be sure to budget for admission fees, tours, and special events.

• Get to visit landmarks and locations.
• You can budget for special events.
• Entertainment can be costly.
• Not all entertainment may be available in your area.

Best Time to Visit National Parks – Top Things to do each Month

Pro tip: You can also experience the lesser-known Bryce Canyon National Park.

Pro tip: Be sure to take a hike or a drive down the scenic Rim Drive.

Pro tip: Take a slow drive down Going-to-the-Sun Road and look for wildlife like bighorn sheep and mountain goats.

Pro tip: Visit the Old Faithful geyser at Yellowstone National Park.

Pro tip: Hike the trails in the Grand Canyon.

Pro tip: The Denali Visitor Center offers stunning views of the Alaska Range.

Pro tip: Get views of Mount Rainier and the iconic Space Needle in Seattle.

Pro tip: Hike to Mt Rainier and other nearby trails.

Pro tip: Go on a scenic drive to Maroon Bells, a popular and scenic area.

Pro tip: Take a scenic drive on the Skyline Drive or hike the Appalachian Trail.

Pro tip: Enjoy the sunrise over the Grand Canyon.

Pro tip: Go skiing, snowboarding or snowmobiling at the National Park.

RV Living – Monthly Expense Breakdown [2023]

What is a good budget for full-time RV living?

Your budget will depend on your personal lifestyle and travel preferences. While full-time RV living can be more affordable than owning a traditional home, it's important to budget for expenses like fuel, campsite fees, and maintenance. In general, expect to spend anywhere from $1,000 to $3,000 per month on living expenses.

Is it financially smart to live in an RV?

RV living can be a great way to reduce your cost of living and increase your opportunities for adventure. However, there are some financial considerations to keep in mind, including the cost of an RV and truck, maintenance and repairs, and ongoing living expenses like fuel and campsite fees.

Is it cheaper to live in an RV or a house?

RV living can be more affordable than owning a traditional home, but much will depend on your personal lifestyle and travel preferences. Factors like fuel costs, campsite fees, and insurance will need to be accounted for, as well as the cost of purchasing an RV and truck if you don't already own one.

Quick Tips and Facts

• Be sure to budget for ongoing maintenance and repairs for your RV and truck.
• Consider downsizing your possessions and furnishing your RV with space-saving furniture and decor.
• Research campsites and RV parks in advance to ensure they offer all the amenities you require.
• Be willing to cook your own meals in your RV kitchen to save money on dining out.
• Don't forget to factor in the cost of laundry facilities, as most RVs do not have their own washer and dryer.
• Don't underestimate the importance of staying connected with phone and internet – consider investing in a reliable plan with a mobile hotspot.
• Entertainment costs can quickly add up, so be sure to budget for admission fees, tours, and special events.

Living on the road full-time can be an exciting and fulfilling lifestyle, but it's important to be aware of all the costs associated with this lifestyle. We hope this guide has been helpful in planning for your full-time RV adventure. Safe travels!

Recommended: Best RV Brands in 2023

• https://rv-dreams.activeboard.com/
• https://www.rvlife.com/
• https://www.gonewiththewynns.com/
• https://www.doityourselfrv.com/

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Here’s how much it costs to raise a child in 2024: 'Far more expensive than expected’

Researchers surveyed ‘parental burnout’ across the globe and found american parents among most exhausted.

The study was put together by the university UCLouvain in Belgium and thousands of parents in 42 countries participated.

If you’re wondering how much money you will need to raise a kid this year – or how much you would save by not having one – a recent survey has figured it out for you.

According to a new LendingTree survey of more than 2,000 U.S. consumers, parents of kids younger than 18 years old spend an average of $11,505 a year per child – or $207,090 over an 18-year period.

The survey, published Monday, found that men spend the most money raising a child, at $13,901. That’s followed by millennial parents at $12,484.

Across all parents, 75% said that having and raising children has been "far more expensive than expected."

Most survey respondents (90%) agreed that it would be easier to raise a child if they had more money. In addition, 77% of parents said they’ve had to make financial sacrifices for their children, most commonly by reducing personal spending (81%), delaying investments or retirement (37%) or sacrificing their own education or career (25%). 

Almost one-third (31%) of parents said they have fewer children because of their financial situation. 

(File: RichVintage / Getty Images)

Despite this, 78% of survey respondents said they’re happy with the number of kids they have, and 72% of parents who have gone into debt raising a child said they still don’t regret it.

"Others may disagree, but I think there’s good debt," LendingTree chief credit analyst Matt Schulz said. "Good debt is that which brings a significant return on investment. Sometimes that return is financial, but sometimes it’s in the form of personal growth, family bonding, memories to last a lifetime or other things that can’t be accounted for on a spreadsheet."

How much does it cost to raise a child?

According to a U.S. Department of Agriculture study published in 2017, the average cost of raising a child from birth through age 17 is $233,610 for a middle-income married couple with two children. This estimate was based on a family of four and excluded any college costs.

RELATED: Here's how much it costs to raise a child in your state

A similar study in 2022 by the Brookings Institution ,  which used the USDA estimate as a baseline, found that parents could expect to spend $310,605 raising a child born in 2015 through age 17. The study adjusted for higher future inflation.

Last year, another Lending Tree analysis found that families were projected to spend $237,482 over 18 years to raise a child. Their yearly estimate was highest in Hawaii ($30,506) and lowest in Mississippi ($15,555).

Housing, food make up largest expenses

Taking into account the effects of inflation, the company Credit Karma found that parents can expect to spend roughly $306,924 to raise a child born in November 2023.

The company found that housing, food and childcare make up the largest percentage of children’s expenses. And, as children grow, they said you can expect to pay for things including hobbies. 

Credit Karma found that housing makes up nearly 30% of the total expenses. Based on the USDA’s annual cost estimates, they found parents pay an average of $5,235 toward housing alone each year.

Real estate outlook: Buying a home in 2024

Is 2024 a good time to buy a house? New York City real estate expert and agent Frances Katzen explains.

"Size of home, cost of living, school districts and location will all influence your expenses," Credit Karma said.

Next, food costs made up the second-largest expense to raise a child, at 18%.

There are many factors that can influence this expense — purchasing formula for babies, a child’s age, eating at home versus eating out, and more — but on average, Credit Karma said parent can expect to pay around $3,249 each year on food.

RELATED: Child care costs are highest in these cities, data reveals

Other expenses include childcare and education, transportation, healthcare, and clothing and miscellaneous expenses. 

According to internal data by Bank of America , the average child care payment per household has risen over 30% since 2019 with middle- and upper-income families seeing the biggest increase.

As of September 2023, on average, a family spent over $700 per month, 32% higher than the 2019 average. Regionally, consumers in large cities such as San Francisco and Seattle were paying the most for child care, according to the data, followed by Boston, Los Angeles, D.C. and New York City. 

Saving for child’s future

Raising a child can get overwhelming after adding up the costs.

Credit Karma suggested looking at your finances and creating a budgeting plan. A parent may also want to consider setting up a 529 college savings plan to ease the stress of future college expenses. 

This story was reported from Los Angeles.

The Wayward Home

How Much Does It Cost to Live in an RV: Budgeting Tips Included!

Posted: March 14, 2024 | Last updated: March 14, 2024

Full-time RV living continues to grow in popularity, with more and more people seeking an escape from the daily grind. However, making the transition to RV life isn’t easy.

If you’re considering an RV lifestyle, one of the important questions you need to answer is: How much does it cost to live in an RV?

If so, you’re in luck! In today’s slideshow, we’ll explore the costs of RV life so you can work out the best budget for you.

Let’s dive straight in!

1. How Much Does An RV Cost?

To help us calculate the costs, we enlisted an RV owner’s help. This RV owner lives in a 2021 Sunset Park RV Sunlite Classic 18RD . 

Here are their average monthly costs:

• Vehicle Insurance: $188
• Vehicle Payment: $500
• RV Insurance: $100
• RV Payment: $300

Before any additional expenses, the Total Monthly RV cost is roughly $1,188

Of course, your monthly baseline will differ depending on your choices regarding RV type and insurance provider. It’s also important to remember this is just the baseline. 

You will incur additional costs, too. Let’s look at those next…

2. What Are The Additional Costs Of RV Life?

Now we’ll discuss all the additional costs you can expect after your RV-related expenses. Here’s a list of all the other things you need to factor in if you decide to live an RV lifestyle:

• Campsite Fees
• RV Repairs and Maintenance
• Medical Insurance
• Miscellaneous

Let’s take a deeper look into each factor!

3. Camping Fees

After purchasing your RV, you need to find somewhere to park it. Generally, camping fees are the most considerable additional cost of RV living.

The average cost to park at an RV campsite is $25 to $60 per night. However, luxury sites can cost up to $100. 

Therefore, the cost for RV site rental for a month is approximately $500 to $1,200.

You can cut the costs, though! For example, investing in a portable generator will allow you to camp without a hookup. Alternatively, camping with friends can minimize costs.

This is what our RVer had to say about this:

“I’ve helped cousins with home renovations from San Diego to Tennessee in exchange for a free place to camp. Sometimes, they even offered a roomy shower or a night in a non-RV bed!”

Your fuel expenses will vary. Your costs might range from almost nothing to thousands . The most significant factors to consider are how much you travel and gas prices in different locations.

Regarding gas, your best bet is to use GasBuddy to find affordable prices. You can also keep fuel expenses low if you keep your RV in one location.

Our expert RVer told us:

“I’d recommend overestimating how much you might spend on a road trip. When I plan long trips, I always round up to the nearest dollar when estimating fuel costs, primarily because they fluctuate so much from state to state.”

Our expert RV owner sets a monthly budget of $300 to $400 for food and drink . However, your situation might be very different. 

If you travel with a partner or children, you can expect your food budget to be bigger. On the other hand, if you travel alone, you might spend less. Of course, you need to consider your unique diet and eating habits.

You can also expect to spend more if you shop in smaller farmer’s markets and local stores instead of large-chain supermarkets.

6. Utilities

Potential utility costs for RVs include propane, internet, phone expenses, and full hookups at RV parks. It’s also worth noting that some RV parks may or may not include electricity.

Some RV parks charge for electricity based on how much you use, which is usually added after the rental fees. As expected, costs can vary massively. 

When we asked our anonymous RV owner how much he spends on utilities, he said:

“Adding everything up, I spend between $150 and $200 on utilities each month. Most of that is my phone plan and propane, as I tend to utilize free Internet at campsites or coffee shops as much as possible.”

7. Recreation

Of course, you need to budget for fun activities as well. Your budget will depend on what you like to do. For example, one person might budget for outdoor activities such as kayaking and boating, while others might spend their money on tours and museum visits.

Our RVer usually allocates $150 to $300 a month for recreation . Depending on where they travel, this might change, but they also budget for more than they hope to spend, so there are no surprises. 

8. RV Repairs and Maintenance

On average, RVers spend $100 to $200 monthly on general RV repairs and maintenance . 

Having an emergency budget is also important in case something unexpected goes wrong. Take these words as a warning:

“Within the first six months of towing my single-axle trailer, I had both tires blowout on the interstate. Luckily, the blowouts didn’t cause any additional structural damage, and replacement tires for my small camper aren’t expensive. But it was still a cost I didn’t expect when leaving Texas in mid-July.”

9. Medical Insurance

If you work for a company that provides insurance, you don’t need to factor medical insurance into your budget. However, if you aren’t so lucky, you’ll have to find a suitable plan for your needs and requirements.

Unfortunately, we can’t offer a specific budget for health insurance because it differs so much from individual to individual. However, you could read our Health Insurance Guide For Full-Time RVers for advice.

10. Miscellaneous

Adding more to your budget for unexpected costs is always a good idea. Adding approximately 10% to your expenses should be enough for any unforeseeable needs.

When we talk about unforeseeable needs, we refer to things like extra tools you need, souvenirs you want to buy, and additional camping supplies you might need to purchase.

11. What’s The Total Cost Of RV Life?

So, now we’ve been through all the additional costs, what is the total cost to live in an RV? Drum roll, please…

After additional expenses, the total monthly cost of living in an RV is approximately $1,600 to $4,000.

It may surprise some that the cost of RV living can be similar to leasing an apartment in some US cities. However, RV life does offer more flexibility for keeping your budget down.

Let’s also not forget how much freedom comes with RV life. You can move around the country whenever you like, and you’re never tied down to a lease agreement.

12. Our Top 3 RV Budgeting Tips

To help you keep track of your budget while living in an RV, we’ve compiled a simple list of our 3 best tips. Here they are:

• Stick to your monthly budget . It sounds pretty simple, but many people don’t do this. Laying out everything so you know exactly how much you’ll spend helps you keep within your budget. It also lets you calculate how much you have to put towards other expenses. It also gives you a target to stay under, which can help encourage you to spend less.
• Track your other expenses . There’s nothing worse than going to pay your taxes and realizing you haven’t saved enough throughout the year. Luckily, you can use this Google Sheet to track all your monthly costs so you know exactly where and when to cut back. 
• Stay away from takeout food . As delicious as takeout food is, it’s an absolute budget killer. Avoiding takeout food on a road trip can sometimes be difficult, but RVs have a kitchen for a reason. Cooking your own food is an easy way to keep food expenses down.

13. How Do You Make Money Living Out Of An RV?

Did you know you can live and work out of an RV? You can, and there are more possibilities than you can imagine!

Thanks to remote working opportunities, RV life is now possible for millions of Americans. There are thousands of companies offering remote working roles, and there are countless freelance and self-employed opportunities to make the most of.

Here are some of the best jobs you can do if you want to work remotely and follow an RV lifestyle:

• Freelance writer
• Photography
• Campground host
• Virtual Assistant
• Travel Nursing

So, what do you think? Is the RV lifestyle perfect for you? Or are you going to stick with stationary life? The decision is all yours!

8 Must-See Cheap Truck Campers for Thrifty Explorers

For those interested in getting into truck camping on a budget, starting your search with the best cheap truck campers is natural. I started my truck camping journey by installing a camper shell on a Tacoma and sleeping in the bed, but I couldn’t help but feel a little envy every time I passed a true truck camper on the road. 

• Read More: 8 Must-See Truck Campers for Thrifty Explorers

13 Gorgeous Luxury Campervans for Glamorous Travel

Are you looking to add some luxury to your outdoor adventures? We’ve rounded up the best luxury campervans we could find. There’s no reason to go off-roading without one of these beauties.

• Read More: 13 Luxury Campervans for Elevated Van Life Adventures

7 Hardy 4×4 Motorhomes To Get You Off-Grid

Part of the appeal of having an RV is to get away from modern life. However, while standard RVs allow you to explore the road less traveled, what if you want to get off the road entirely? 

In those instances, you need a rig that can handle more than just the pavement. A 4×4 motorhome ensures you can easily reach new places, even if they’re wild and untamed.

• Read More: 7 Hardy 4×4 Motorhomes To Get You Off-Grid

More Articles From The Wayward Home

• Best RV For Full-Time Living: How To Pick Your Perfect Rig
• 19 Space-Saving RV Storage Ideas for your Camper Kitchen

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Many personal loan borrowers rely on loans for everyday expenses as cost of living grows

Household debt is up as certain states face unaffordable cost of living.

The third most common use of personal loans is for everyday expenses.  ( iStock )

The personal loan market is growing, in part due to the high cost of living. About 14.5% of borrowers use personal loans for everyday expenses, a MarketWatch Guides survey found.

The two more common reasons consumers use personal loans are debt consolidation and home improvements. Nearly 21.2% of personal loans are used to consolidate debt and 20.1% are used to make home improvements. Borrowers are dealing with increasing prices in every industry, from food to building materials to housing costs. To deal with the rising costs, these borrowers turn to personal loans.

"Families have already cut back on nonessentials, and there isn’t much left to take out of their budgets," EJ Antoni, an economist with the public policy nonprofit Heritage Foundation said. "What little growth there is in consumer spending is being fueled by debt – and that’s unsustainable."

The loans being taken out aren’t small — 35% of borrowers surveyed reported that their loans were between $10,000 and $50,000. Just 29% of borrowers have loans that are less than $2,499.

When it comes to personal loan shopping, Credible can do the heavy lifting for you . With the click of a button, you can view multiple lenders, rates, and terms in one spot.

CREDIT CARD BALANCES SURGE PAST TRILLION DOLLAR MARK AS AMERICANS STRUGGLE TO BUILD SAVINGS

Household debt is up in all categories

At the end of last year, most consumer debts rose substantially. The Q4 household debt report released by the Federal Reserve Bank of New York found that mortgage debt rose by $112 billion while home equity lines of credit increased by $11 billion. 

Credit card balances now stand at $1.13 trillion after increasing by $50 billion in Q4. Auto loan balances also increased into the trillions to $1.61 trillion.

"There are some consumers in the less-than-prime segments that have been accumulating debt at an accelerated pace, likely due to the rise in the cost of everyday items," Experian’s Director of U.S. Economics Joseph Mayans said . "That may continue to cause strain in 2024, especially as the post-pandemic jobs boom that drove red-hot wage gains and easy job hopping for many lower-income workers comes to an end."

The only debt measured in the survey that didn’t increase all that much was student loan debt. They increased by $2 billion and now stand at $1.6 trillion.

If you need help paying down your debt, a personal loan can consolidate your debts into one payment with lower interest. If you want to get a sense of what debt consolidation loan options are available to you, visit Credible to compare rates and lenders .

HIGH DEBT IS CAUSING MORE CONSUMERS TO LIVE PAYCHECK-TO-PAYCHECK

The cost of living is growing more challenging for many families

Certain states are facing a cost of living crisis, with many residents spending most of their income just on housing and utilities.

Half the residents of New York City lack the income to meet the basic cost of living, according to a United Way of New York report . In 2021, just 36% of households struggled to deal with the cost of living. Of those struggling, 79% of families spent more than 30% of their income on housing alone. The report also found that 30% of households in NYC received food assistance.

Californians also deal with high living costs compared to low incomes. A report from California’s Legislative Analyst’s Office (LAO) researched the effects of minimum wage on different sized households. A single parent with three kids will live right around the poverty level with a full-time job, but for a single parent with four kids, the minimum wage is below the poverty level.

Housing in California is particularly difficult to afford. Minimum-wage earning single parents with one child often can’t afford housing in all but three counties in California, the LAO report found. Even families with two minimum-wage workers pay more than half of their income in eight of California’s most popular coastal counties.

If you need a loan, personal loans with low interest rates are strong options. Use an online marketplace like Credible to make sure you’re getting the best personal loan rate and lender for your needs.

MANY CONSUMERS CARRYING A CREDIT BALANCE KNOW IT'S A BAD IDEA: SURVEY

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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When it comes to government planes and political trips, who pays for a president’s campaign travel?

President Joe Biden boards Air Force One, March 11, 2024, at Andrews Air Force Base, Md. (Luis M. Alvarez/AP)

WASHINGTON — It’s no simple matter to move the commander in chief from point A to B, and it’s even more complicated when the president is seeking a second term.

President Joe Biden recently spent three days in Pennsylvania, a pivotal state in the 2024 campaign, and he plans to be in Virginia and Florida this coming week. The Democratic incumbent is seeking an edge over Republican Donald Trump as he ramps up his travels around the country.

Here’s a look at how much it costs and who pays the bill during the campaign season.

How much does it cost?

It’s not cheap to fly the president’s fleet.

The White House uses Sikorsky helicopters known as Marine One when the president is aboard, as well as custom Boeing 747s that are immediately recognizable as the iconic humpback Air Force One. (Sometimes the president uses a more modest modified 757 if his destination is nearby or if a runway isn’t long enough to accommodate the bigger plane.)

Marine One costs between $16,700 and almost $20,000 per hour to operate, according to Pentagon data for the 2022 budget year. Air Force One is even more expensive: roughly $200,000 per hour.

But those figures only scratch the surface of the real cost. There also are military cargo planes that travel ahead of the president to make sure his armored limousines are in place, not to mention the enormous security apparatus that follows the president everywhere.

New aircraft are in the works because the current versions are decades old. Sikorsky is producing 23 updated helicopters to serve as Marine One. Boeing is building two new Air Force One planes, and they are scheduled to be finished by 2028. According to the Pentagon, the planes will come with all enhancements, including “a mission communication system,” a “self-defense system” and even “autonomous baggage loading.”

When the president flies for political purposes, the campaign is supposed to pay the bill. But during an election year, the line between governing and campaigning can be fuzzy.

For example, Biden held an official event Wednesday in Pittsburgh, where he announced his proposal for higher tariffs on steel imported from China. The event, however, was a not-so-subtle opportunity for the president to rub shoulders with union members who are critical to his reelection, and he jabbed at Trump in his remarks. (At one point Biden joked that the former president was “busy right now,” a reference to the hush money trial that recently got underway in New York.)

It’s up to the White House counsel’s office to figure out what percentage of the president’s travels are campaign related. That determines how much the federal government should be reimbursed by the Biden campaign. Sometimes the calculations aren’t straightforward, such as when the White House adds an official event to an otherwise political trip.

Norm Eisen, a White House ethics lawyer under President Barack Obama, said both Republicans and Democrats have usually hewed closely to regulations.

“We had a set of rules on how to do the allocations,” he said. “They’re intricate, and we stuck to them.”

No matter what, taxpayers end up on the hook for most of the cost. Campaigns do not pay for all the Secret Service agents and the rest of the security apparatus. In fact, they usually only cover the cost of Air Force One passengers who are flying for explicitly political purposes — sort of like buying a ticket on a particularly exclusive private jet.

How much has Biden paid?

Biden’s campaign and his joint fundraising committee have been stockpiling travel cash in an escrow account maintained by the Democratic National Committee. From January 2023 until the end of last month, they deposited nearly $6.5 million.

Some of that money goes to general campaign logistics, such as staff expenses and advance work. The account is also used to reimburse the federal government for official aircraft used to transport the president, the first lady, the vice president and the second gentleman when they travel for the reelection effort.

So far, not much money has found its way back to the U.S. Treasury. As of the latest data available, just $300,000 has been provided.

It’s safe to assume that Biden’s campaign will end up forking over much more than that once the campaign is over. Trump’s team reimbursed the federal government nearly $4.7 million for travel expenses during the 2020 race.

But Biden probably won’t have trouble covering his bills. His campaign and the DNC had more than $192 million in cash on hand at the end of March.

AP White House Correspondent Zeke Miller contributed to this report.

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