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Guilt-Free Travel Hacking: Finally Living Large On A Modest Budget

Updated: 01/13/2023 by Financial Samurai 79 Comments

Guilt-Free Travel Hacking
La Reserve Hotel

Travel hacking is one way to save money on travel. This post is part of a travel hack rarely discussed. It sets up the stage and provides some insights into more extravagant spending. We’ll also explore whether more luxurious living is really worth the price.

When I got to the 4th floor of my hotel there was Ryan Seacrest, hanging outside of my room with his dad. They were waiting for their wives and heading out for dinner. Choosing to be chill rather than starstruck, I just said, “How’s it going guys?” as I passed. They were staying on the same floor of our boutique hotel and responded with a friendly, “not too much.”

Ryan shot to fame as the host of American Idol and is one of the most successful media personalities on the planet with an estimated $300M fortune.

How was he able to create so much wealth by being just a reality show personality? By creating his own company, Ryan Seacrest Media and producing hit shows like “Keeping Up With The Kardashians.”

It’s A Small World After All – Travel Hack Your Way

It’s funny because here we were, staying at the same hotel, getting the same service, breathing the same air, but with such significantly different net worths.

His suite probably had a view of the Eiffel Tower and cost 3X as much, and I’m sure he paid for his parents’ suite as well. But for the most part, we lived exactly the same for three nights. Then, he had to leave, while we got to stay for a week.

I realized something interesting long ago. While it’s hard to live it up year round like a celebrity, it’s easier to live it up each year for 2 – 6 weeks. As a result, the older I get, the more I gravitate towards “making these trips count.” The gap in lifestyle between the really rich and the rest of us is narrowing.

A lot of extremely wealthy people are workaholics and don’t take much more than six weeks off a year because they can’t. Their success demands they work around the clock, which is quite frankly, a paradox of success. 

I’d much rather be a nobody with modest financial means and max freedom, than a CEO with thousands of shareholders or a celebrity who is always under media scrutiny. How about you?

La Reserve, Paris

I stayed at a boutique hotel called La Reserve in Paris, situated midway between the Champs-Elysées and the Faubourg Saint-Honoré. The hotel opened in 2015 after a careful remodel to recreate the Belle Époque style of the 19th century. There’re only 26 suites and 14 rooms, making the place feel more like a large residence than a hotel.

The hotel is unique because it caters to a clientele that values service and privacy. There are hidden doors that lead to private libraries, bathrooms and spas. Even the outside brunch area in front of the hotel is blocked by large hedges so guests can eat in private (see pic). That’s where I first saw Ryan and his family eating breakfast.

La Reserve, Paris - travel hacking
The front of La Reserve in Paris

We pulled up in our Uber in sweats, hoodies and backpacks on the first evening from Budapest. I’m sure they were surprised, but they didn’t show it.

Instead, they rapidly took our bags up to our room, handed us two glasses of Michel Reybier champagne and gave us an intimate tour of the hotel. 

According to the concierge, the entire staff was very happy to see us because we had a reservation for seven nights instead of the typical one-to-three nights.

After observing what the other guests wore, we self-conciously felt underdressed. It seemed as though every gentleman wore an Armani suit and every woman wore an ensemble of Louis Vuitton, Chanel and Manolo.

But hey, we are Americans and enjoy comfort over style. Besides, there’s only one Financial Samurai hoodie in the world and it’s a priceless collector’s item!

Unlike some startups that have the courage to spend more on business retreats each month than they make in operating profits each month, Financial Samurai Inc is cost conscious because we aren’t spending other people’s money. As a result, we budgeted $20,000 for all expenses for 15-days of travel for two people in Europe.

It costs a lot to get our Travel category off the ground, but we are determined to provide unique travel insights from a personal finance angle. We love to travel, and there’s nothing better than doing what you love for work.

Travel Hacking The Junior Suite Deluxe

La Reserve Hotel Nightly Rate In Paris

We stayed in the Junior Suite Deluxe on the 4th floor. As you can tell from the pricing menu, we’re close to the bottom of the list. There’s no way we could afford to stay in a more expensive room since I’m only a personal finance blogger.

Why pay 9000 € a night for the Presidential Suite when you can pay a more reasonable 1700 € a night for the Junior Suite Deluxe and gain access to the same amenities and service? Good value baby! It’s all about managing business expenses in order to not go out of business.

At ~$2,000 a night, the Junior Suite Deluxe cost 10x the average nightly hotel rate we paid in Prague, Vienna, and Budapest. But that’s why we were staying in such inexpensive places the first week were in Europe, to afford the second week. We realized Paris makes San Francisco feel like the Midwest in terms of cost, so we budgeted accordingly.

~$2,000 a night is completely beyond what our normal budget is for a business trip. But in order to write about what it’s like to live in a luxury hotel and listen to the sentiments of EU citizens before writing my Brexit post, you’ve got to actually stay in one for an extended period of time. Sacrifices must be made to write such in-depth posts.

So was it worth it? Let’s discuss some of the positives:

  • Every time we got back to our suite, it felt more like a home instead of a hotel due to the size (~500 sqft). Our master bedroom in SF, bathroom, and sanctuary is about ~550 sqft, so the size matched. The only difference is in SF we have a view of the ocean, and this suite has a view of the inner courtyard.
  • It wasn’t until the third day that we realized our fully stocked fridge was completely free except for the alcohol. I’m a huge natural fruit juice drinker and they had organic mango, pineapple, orange, and apple juices. They also had endless bottles of slightly flavored Evian water which was a real treat. They also gave us homemade chocolate marshmallows and artisan chocolates from the two-star Michelin restaurant, Le Gabriel downstairs. Yum! Who doesn’t love free treats?
  • Our suite was at the end of the hotel, so it was extremely private. The doors were four inches thick, and there was a vestibule to our door for extra peace and quiet. The quality of the craftsmanship was impeccable. As someone who has spent the past two years slowly remodeling his fixer in Golden Gate Heights, I appreciated all the details of the room down to the velvet wrapped TV.
  • Room service was superb. One evening at 9:30pm, we asked food services to deliver a meal at 11:30pm, and they were spot on time. The housekeepers always did an amazing job cleaning and made each night feel like the first.
  • The WiFi was excellent, unlike in Czech, Austria, and Hungary. As business travelers, fast and reliable wifi is extremely important. Wifi is the first thing I check after I arrive at a hotel since because of its high cost, I don’t use international roaming. I always want my readership here to feel like I’m giving maximum effort with consistently three posts a week even while I’m traveling.

And here are some misses:

  • We could hear some remodeling noises from the building next door at about 8:30am one morning. But we were already awake for our trip to Versailles, so it wasn’t a big deal.
  • The elevator at the other end of the hotel leading to the pool was out of order for two nights, which meant we had to take the elevator closest to us, which was fine. But then we had to walk across the fancy lobby/eating area in our bathrobes to get to the indoor pool. It was a bit embarrassing, but it was then that we saw another familiar face, Lukas Haas, who’s been in such movies as Inception and The Revenant, dining with his model girlfriend and another lady friend. It’s interesting how extremely thin some movie actors are when seen in person.
  • La reserve hotel poolAfter spending an hour in the indoor pool and another 30 minutes in a nifty starlit steam room, we traversed back through the eating area to find Lukas and friends still dining away. I noticed them looking at us as we walked by because I was staring straight at them. At first I couldn’t remember who he was, so I had to do a double take. He smiled and one of the women turned around to check out who we were. I smiled back, but declined to give an autograph or wave. That would just be too awkward in our bathrobes.

The Verdict

The experience was 3X nicer that our previous hotels, but cost 8-10X more. Therefore, from a financial perspective, it’s hard to justify the cost unless you have endless sums of money.

For special occasions, such as a honeymoon, a 10 year wedding anniversary, a big promotion, a 40th birthday party, or a gift to your parents, staying at a luxury hotel is absolutely worth it. Unforgettable experiences are priceless.

Here’s a video of our room for you to get a better idea of what $1,500 – $2,000 a night costs. Remember, Paris is one of the most expensive cities in the world, so there is tremendous price inflation.

This room would probably cost closer to $750 – $1,000 a night in San Francisco and $1,000 – $1,500 a night in Manhattan.

Living It Up On A Budget

The best way never to be homesick on vacation or on business is to simply own a vacation property everywhere you regularly go. However, it’s just economically silly to buy a pied-a-terre in so many different places. Thus, the next closest thing is renting a wonderful spot that feels like home.

If you’ve gotten to the end of this post wondering whether a frugal person like me who drives a Honda Fit has gone completely bonkers paying $14,000 for a week’s hotel stay, well done, and not to worry. My entire stay was free! Travel hacking to the rescue!

To feel comfortable spending so extravagantly, I’d have to be making well over a million bucks a year and be worth at least $20 million. Although, we have decided that having a net worth of $10 million is good enough to retire early.

Due to the complimentary week’s stay in Paris, we only ended up spending $9,000 on everything for our 15-day trip. Our budget was $20,000. The $11,000 in savings will be used to build the company’s cash reserves to prepare for harder times ahead. Travel hacking for the win!

Best Travel Hacking Tip

The best travel hacking tip is having rich friends! My friend is part of a holiday resorts club. He buys 60 nights a year of credit at various luxury properties around the world.

Given he had extra nights, he decided to give me and my wife a week to use. He wasn’t going to use it.

I truly believe part of getting ahead is having rich and connected friends. They will make your life easier. Even if you don’t have rich friends, travel hacking with credit cards and going during off hours is worth it.

The second best travel hacking tip is to be a travel blogger. As a travel blogger, you can legitimately deduct your travel expenses from your online travel blogging income.

Best Travel Rewards Credit Card

Looking for the best travel rewards credit card to enjoy more free travel? My favorite is the Capital One Venture Rewards card out of over one hundred I’ve reviewed so far. I’ve traveled to over 60 countries in my lifetime and always use travel rewards points to get free airfare.

There are a lot of benefits to having one of the best international travel credit cards.

Pay Off Your Debt Faster

If you don’t have enough cash, getting a personal loan from Credible is a good place to start.

Personal loan rates have come down significantly in comparison to the average credit card interest rate. Thus, if you have expensive credit card debt, consider consolidating your debt into a lower interest-rate personal loan.

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For further suggestions on saving money and growing wealth, check out my Top Financial Products page.

In addition, if you enjoyed this article and want to get more personal finance insights and tips, please sign up for the free Financial Samurai newsletter. You’ll get access to exclusive content only available to subscribers.

Update 2022. It’s funny re-reading this post today. I’m a stay at home dad now to a boy under 4 and a 2-year old daughter. As a result, my wife and I have decided not to travel internationally. At least not until he is at least 5 years old. Here’s the best time to travel internationally with kids.

Kids under 5 years old don’t remember much, so we think it would be a waste to go so far. Instead, we’ll travel to Sonoma, Tahoe, and then Hawaii. When we start to travel again, we will most certain do more travel hacking!

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Filed Under: Travel

Author Bio: I started Financial Samurai in 2009 to help people achieve financial freedom sooner. Financial Samurai is now one of the largest independently run personal finance sites with about one million visitors a month.

I spent 13 years working at Goldman Sachs and Credit Suisse (RIP). In 1999, I earned my BA from William & Mary and in 2006, I received my MBA from UC Berkeley.

In 2012, I left banking after negotiating a severance package worth over five years of living expenses. Today, I enjoy being a stay-at-home dad to two young children, playing tennis, and writing.

Current Recommendations:

1) Check out Fundrise, my favorite real estate investing platform. I’ve personally invested $810,000 in private real estate to take advantage of lower valuations and higher rental yields in the Sunbelt. Roughly $160,000 of my annual passive income comes from real estate. And passive income is the key to being free. With mortgage rates down dramatically post the regional bank runs, real estate is now much more attractive.

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Comments

  1. The Slowmads says

    November 19, 2019 at 10:03 pm

    I love the idea of this luxury travel. We’re currently slow traveling the world with our children. The youngest is 1 currently. You never know what life will throw at you so why wait? You’ll get to keep those memories even if the kids don’t.

    Reply
  2. Laura says

    December 24, 2018 at 1:35 pm

    I disagree that children under 5 don’t remember their travel adventures. My three boys are 7.5, 5 and almost 4 and we visit Italy for 2-3 weeks every other year. The older ones vividly remember chasing pigeons in the Campo of Siena and climbing olive trees at our rental apartment outside Radda in Chianti in 2016 (they were 5.5 and 3 at the time) and they all talk about exploring a rainy Verona, chestnut battles with Papa in various playgrounds, watching the Giro di Lombardia at a rifugio above Lake Como, exploring the forests and Alpenzoo in Innsbruck and other adventures from our trip this year. (Full disclosure: I grew up overseas from ages 2-14 and remember all sorts of adventures all over the globe and am completely biased in favor of as much travel as possible for your entire lifetime.)

    On a more practical note, the earlier you get them used to exploring their world and the different people and cultures that share it, the more open-minded and inquisitive they seem to be. It’s also a great family adventure! They become more adaptable & resilient as they deal with things that aren’t the same as home. And it can be done frugally with advance planning — our 22 day Italy trip (airfare, apartments, rental station wagon, food, souvenirs, city sightseeing passes, daily gelato) for our family of 5 was under $7,500 total.

    Reply
    • Financial Samurai says

      December 24, 2018 at 9:55 pm

      It’s easy to remember things when you are between 3-5 if you are only 7-8. But unfortunately, those memories fade as you get older.

      Glad you are enjoying your travels!

      Reply
  3. Rick says

    July 30, 2016 at 6:40 pm

    Holy crap. I thought $150/night was bad!

    Reply
  4. Bill S. says

    July 24, 2016 at 6:15 pm

    Wow ! Now I feel much better. The most I have ever spent on a trip was last year when I went to Boston to run the Boston Marathon. Round trip air fare on Jet Blue with upgraded roomier seats for the wife and I from LAX, 1 night at the LAX Marriott, 5 nights at the Boston Hilton, food, marathon jackets, shirts etc. and transportation totaled $6000.
    That comes out to about $230 a mile for the marathon :) But if I ever qualify again, I would do it again in a heartbeat at twice the price.

    Reply
  5. Matt says

    July 23, 2016 at 10:09 am

    I stayed in a $1200 per night over water bungalow at the Intercontinental Thalasso Resort in Bora Bora for my honeymoon. It was absolutely worth it. The property and accommodations were absolutely first class. The best part was it was free at 40k IHG hotel points per night.

    Reply
    • Financial Samurai says

      July 23, 2016 at 10:59 am

      Well done! How many nights did you stay and how long did it take you to accumulate all those points?

      Reply
  6. KS says

    July 23, 2016 at 9:51 am

    My favorite use of points has been the Intercontinental Marseille Hotel Dieu with IHG points.

    Guess: You did consulting for the hotel.

    Reply
    • Financial Samurai says

      July 24, 2016 at 8:23 am

      That is an excellent, rational guest. Alas, you are wrong. Post coming up!

      Reply
  7. Jill says

    July 23, 2016 at 8:31 am

    Did you…

    1. Negotiate a better (7-night) rate, then 2. Write off all of your travel expenses as legitimate business expenses, thus reducing your total spend by approx 35% (or your tax rate) of your 20k budget?

    Genius.

    The best part is that (as you mentioned in a previous post), for someone who’d like to start a blog or a business that might necessarily include travel as a legitimate expense, the IRS gives you a couple of years to get your business off the ground before you have to show profit.

    Your post helped clarify my husband and my approach to investing in out of state multifamily properties. While we are not Samurai and our budget is modest, according to our accountant, expenses we incur while looking for new properties are deductible. Discount travel! Hooray! It makes me wonder how this lesson could be applied in other areas of our lives.

    Thanks for the great reads

    Reply
    • Financial Samurai says

      July 23, 2016 at 9:01 am

      Hi Jill,

      Good guess. For the first week of our trip, what you mention is the right strategy and I go into more detail in this post: The Best Way To Travel For Free And Reduce Your Taxable Income. My profitable non-travel business is currently subsidizing my travel business expansion plans, so I’m still making an overall profit and paying plenty of taxes unfortunately. But one day, I have a belief that if I stick with travel writing long enough, I can create a business line that could generate a significant and recurring revenue stream. Every business takes capital risk. But since I love travel, this is a risk I’m willing to take.

      Now that I’ve written part II coming up, I’m actually surprised nobody has figured it out. Once people read the post, they’ll realize how simple the answer really is I think!

      Enjoy your house hunting travels… preferably in glorious places!

      Best,

      Sam

      Reply
  8. David Michael says

    July 23, 2016 at 7:57 am

    Sam,
    I suggest you use your travel hacking skills for creating adventures rather than bathing in luxury. Try trekking in Nepal to Everest Base Camp for a month, Hiking Kilimanjaro and Mt. Kenya, living for a month with a tribe in the Highlands of Papua New Guinea, bicycle across the USA from Oregon to Maine self contained by yourself, or volunteer in the refugee camps of Jordan.

    I had an adventure tour company for 20 years with free flights and hotel, wherever and whenever. I spent an occasional night in the best and most expensive hotels. Luxury, yes full of luxury in stuff and things. Personally, I found most people in first class too stuffy and full of themselves to be much fun or down to earth. Even on Italian cruise ships I would seek the second class because that’s where all the fun and action was. I am not impressed with obsessive wealth.

    As a minimum, with all of your money and time, venture into the Grand Canyon on foot and hike from the North to the South Rim. That’s luxury! We all have different ideas of luxury, but for me, super expensive hotels and the constant quest for more wealth is a wasted enterprise. Our wealth in the USA is in our public lands of the American West. They are a treasure that no hotel can match. And…you can camp for a few dollars a night. Now…that’s luxury!

    Reply
    • Financial Samurai says

      July 23, 2016 at 9:32 am

      David,

      Agreed. Spending several days in Angkor Wat, Cambodia last year and hiking all those trails in 105 degree heat was amazing! I should write about that trip, as it was one of the best. The only post where I mentioned the Angor Wat trip was in this derivative topic, Living In An Expensive City Can Make You More Empathetic, Richer, And Happier.

      You’ve given me some ideas of writing about my time in India, Zambia (2 years), and China (6 months) for future posts. For balance, I like to personally go on more rugged adventures one year and more luxurious adventures the next year. It keeps things fun and interesting. The juxtaposition helps me appreciate each type. I entitled this post “FINALLY living large” b/c I never do when traveling, so this was a fun experience to record.

      In the meantime, I think you’ll enjoy:

      What Is Capitalism? To Understand Let’s First Explore Communist China

      A View From The Edge Of The World: The DMZ, North Korea

      Any specific adventures you think I should take? I do have my M1 motorcycle license and am still relatively fit to do multi-day hikes. How about the 3 day Inca trail hike to Machu Picchu? I went there as a kid, and want to go back. Or maybe the Galapagos Islands and do some scuba? Just concerned about the zika virus.

      Thx!

      Sam

      Reply
      • Jeff says

        July 24, 2016 at 9:53 am

        I hiked Machu Picchu a few years ago with my now wife. It was fantastic. A few things to know:

        1. There are many Inca trails (that is, trails used by the Inca to get to and from Machu Picchu). There is one “official” Inca Trail, but it has a number of restrictions, such a maximum number of people allowed on the trail per day, no horses/mules (which means you need to pay somebody to carry your stuff).

        2. The “Inca Trail” books up WAY in advance (9+ months). However, there are a number of other awesome trails, such as the Salkantay Trail (the one we did). They tend to be a bit tougher, but they have different restrictions (mules are allowed).

        3. Get to Cusco (where pretty much all the hikes start) a few days early to get acclimated to the climate. My wife had MAJOR altitude sickness the first night (where we camped at 15,000+ feet). The chances of getting altitude sickness is reduced for each day you’re at altitude.

        Also, if you really want to do the Grand Canyon like a bad-ass, do rim-to-rim in one day. It’s a great challenge and you don’t have to deal with trying to get a campsite in the Grand Canyon (which books up 6+ months in advance).

        Reply
        • Financial Samurai says

          July 24, 2016 at 10:12 am

          Great tips! Thank you! The Grand Canyon is a good idea. I’ll look into that. Maybe I’ll go next month after my deck is done!

          Reply
  9. Cash Flow Celt says

    July 22, 2016 at 9:56 pm

    Alright…I’ll be honest. I’m jealous. Looking forward to Part Two, like many others.

    Best I’ve been in was a suite at the Swissotel in Chicago. My guess is it was around $650 a night (since their regular rooms go for around $450), but I can’t be sure. It was paid for by the groom in a wedding I attended (it’s my girlfriend’s uncle). He’s a reputable attorney, marrying another reputable attorney, so they had a few bags of cash laying around to throw at it.

    Also, as far as Seacrest is concerned, if he truly is valued at $300 Million, he chooses to be that busy. He could easily scale back to just hosting American Idol and allowing his production companies and other subsidiaries to run themselves with a General Manager. If he’s driven, I get it; but I don’t give him sympathy for his schedule.

    Reply
  10. rjab23 says

    July 22, 2016 at 7:48 pm

    Let me guess because you were able to write it off saving over 50%? :)

    Reply
    • Financial Samurai says

      July 24, 2016 at 8:22 am

      Nah, b/c free means saving 100%!

      Reply
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