Whether en route for business or pleasure, many of us spend a good deal of time on the road. First, it's helpful to start saving for travel long before you even set foot on an airplane or cruise ship. That means regularly setting aside a portion of your income in a separate account, such as a money market account or money market mutual fund. The amount you should save depends on how expensive your travel might be. Even if you can't save all that you anticipate you'll need, earmarking a portion of the expense will lower the amount you end up owing down the road.
Many folks turn to their credit cards to pay for travel.
If you're going overseas, credit cards often offer the best exchange rates, not to mention buyer protection plans and protection against fraud. But be cognizant of the interest rate you'll be paying. However, if the rate is a bit higher than that, consider getting a card with a teaser rate to pay for your trip. But bear in mind the low rate doesn't last forever, so be prepared to pay off your bill as aggressively as possible. The next step in cost-effective travel is finding the cheapest way to get there, the best accommodations for your travel dollar and other similar costs.