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BUSINESS Wednesday 10 OctOber 2018
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How to see the world in your 20s without racking up debt

By CLAIRE TSOSIE others and sleeping in bunk
Associated Press beds rather than on queen-
It's a dilemma many size mattresses. But they're
20-somethings face: You a good way to meet other
badly want to travel the travelers and can be star-
world. But if your bank ac- tlingly cheap.
count could talk, it would "A nice co-working hostel
say, "Are you kidding?" in Chiang Mai in Thailand
When you're just starting is like $10 a day," says Aoki,
out, even a weeklong va- who says she spends most
cation might seem like a of her time in Thailand. "I've
one-way ticket to credit been to two, and they're re-
card debt — especially ally clean and pretty com-
if you have a modest in- fortable, and they include
come or lack access to breakfast and a working of-
paid time off. But with the fice." If you're willing to sac-
right moves, you can bud- rifice some privacy, staying
get for travel without going at one might make it easier
into the red. to pay your credit card bill
START SAVING in full when you return from
For Krista Aoki, the key to your trip.
avoiding debt while travel- USE CREDIT CARD REWARDS
ing is simple: Save. When Leah Gervais was 24,
Before a big trip, "I try to In this Dec. 31, 2013, file photo, a paddleboarder looks our over the Pacific Ocean as the sun sets she traveled in Southeast
always start with a big off of Waikiki Beach, in Honolulu. Asia for four months without
cushion. I always save up Associated Press going into debt, in part by
beforehand, and I try to using credit card rewards
save up more than I need spends less on other items, spending less in certain ar- — flights, transportation, to pay for her flights.
to," says Aoki, 26, an on- such as clothes. She also eas now and setting aside lodging, food — you might "It's not that I had a lot of
line business manager who hasn't owned a car in 2½ money consistently, you be able to squeeze in more savings ready to go," says
does consulting and virtual years and often relies on might have enough to cov- exploring for a smaller Gervais, now 26, founder
assistant services for other public transportation. er a small getaway in a few price. of lifestyle website Urban
online businesses. She es- You might not be able to months. Instead of booking hotels, 20 Something. "What I did
timates it takes her about pay for a vacation in full DECIDE WHERE TO MINIMIZE for example, you might opt have was a lot of frequent
three months to save up for right this second. But that COSTS to stay at hostels, which flyer miles." She got the
a big trip. She now travels doesn't mean you need to The best vacation isn't nec- are more like college dorm miles in college by earning
full time and is currently in choose between taking on essarily the most expensive rooms. Often, staying in sign-up bonuses on airline
Kealakekua, Hawaii. credit card debt or being vacation. By aggressively a hostel means sharing a credit cards; she didn't car-
To save for travel , she a hardcore homebody. By reducing your basic costs room and bathroom with ry balances on them. q

IMF downgrades outlook for world

economy to 3.7 pct. Growth

By PAUL WISEMAN the IMF and its sister lend- for growth in the Chinese
Associated Press ing organization, the World economy unchanged at
WASHINGTON (AP) — The Bank. 6.6 percent this year. Citing
International Monetary The IMF expects the U.S. the impact of U.S. taxes on
Fund is downgrading its economy to grow 2.9 per- Chinese imports, however,
outlook for the world econ- cent this year, the fast- the IMF shaved the out-
omy, citing rising interest est pace since 2005 and look for China next year to
rates and growing tensions unchanged from the July 6.2 percent, which would
over trade. forecast. be the country's slowest In this May 8, 2018 file photo, a man walks by a money ex-
The IMF said Monday that But it predicts that U.S. growth since 1990. change house in downtown Buenos Aires, Argentina.
the global economy will growth will slow to 2.5 per- The United States and Associated Press
grow 3.7 percent this year, cent next year as the effect China — the world's two
the same as in 2017 but of recent tax cuts wears off biggest economies — are
down from the 3.9 percent and as President Donald sparring over Beijing's ag-
it was forecasting for 2018 Trump's trade war with Chi- gressive effort to challenge
in July. It slashed its outlook na takes a toll. American technological
for the 19 countries that The Federal Reserve, the dominance.
use the euro currency and U.S. central bank, has Washington charges that
for Central and Eastern Eu- raised short-term U.S. rates China uses predatory tac-
rope, Latin America, the three times this year as the tics, including outright cy-
Middle East and Sub-Saha- American economy gains bertheft and forcing for-
ran Africa. strength more than nine eign companies to hand of
The report comes on the years after the end of the trade secrets in exchange
eve of the Oct. 12-14 meet- Great Recession. for access to the Chinese
ings in Bali, Indonesia, of The fund kept its forecast market.q