Eat at neighborhood cafes like the locals do.

Remember toiletries and first-aid items

It's a hassle, and it's expensive, to pick up sunscreen, make-up and other toiletries once you're on vacation. And you especially don't want to have to hit the hotel gift shop last-minute if you've forgotten something; that's where prices are most inflated. So make a check-list of all your personal items, medicines, band-aids and ointments that you don't want to forget to pack before you leave home.

Eat like a local

If you're not on an escorted tour or staying at an all-inclusive resort (where meals are included in the price of your vacation) try to eat like the locals do. In Europe, pack a picnic lunch of a baguette, cheese and ham. In the Caribbean, eat fresh fruit from roadside markets. Find neighborhood restaurants or pack lunches made from items picked up from local grocery stores, and you'll save a bundle of money that you can then spend at a more upscale restaurant once or twice during your vacation.

Keep snacks, drinks and mini-meals in your room

If you have a small refrigerator in your hotel room, store milk and juice there for cereal breakfasts. Same goes for sandwich fixings for lunch, beer for happy hour, and fruit for late-night snacks. If you have an in-room coffee maker, you should be able to heat water warm enough to mix up instant oatmeal in the morning.

Don't use the phone in your hotel room

Buy a local phone card or purchase an international calling card before you leave home.

Bargain for souvenirs

In places like Asia, Mexico and the Caribbean don't be afraid to bargain if you're shopping at an open-air market. Bargaining for items it typically expected. Just don't come down too low if you've found an item you really want to bring home!