10 Reasons Why Living In Maui Is Cheaper Than You Think

by Kyle Ellison on

If you’ve ever vacationed on the island of Maui, surely you think I jest.

As someone who has lived on Maui for 23 years, I deal with tourists on a daily basis who all have the same view of the Hawaiian Island:

“This place is absolutely incredible, but there’s simply no way I could ever live here … it’s just too expensive. How do you afford it?”

Having had this conversation a few times before, my default answer is always twofold: There are a lot of costs associated with living on the Mainland, which simply don’t exist here, and you learn to give up a lot of things, which you think you need.

Before I launch into explaining why living in Maui is cheaper than you think, I want to make a disclaimer which is vital to the integrity of this article:

*This list is a generalization, which covers the majority of the middle-class, working population of Maui. Obviously there are going to be outliers, but as a whole, this list typifies the daily existence of most island residents.*

So, without further adieu, here are ten reasons why living in Maui is cheaper than you might think.1. Sure, gas is expensive, but you don’t drive that far

As of this writing a gallon of unleaded fuel on the island of Maui is going for $4.19/gallon. It’s a nice departure from the $4.95 we were seeing earlier this summer, but it’s still well above the national average of $3.48.

So yes, gas is expensive, but here’s the equalizer: you don’t drive very far when you live in Maui. In fact, the average amount of miles you put on a car here hovers around only 10,000 miles/year. I recently spent time in California with a man who had already put 215,000 miles on his 2007 Chevy Suburban. That’s 40,000 miles/year! So the gas may be expensive, but when you only fill up twice per month it takes some of the sting away.

Driving fewer miles also means fewer oil changes, fewer maintenance expenses, and fewer repairs.

That being said, I know a large number of people who don’t even own a car. In towns like Lahaina or Kihei, many people simply bike to work or ride a moped.

2. Owning property is insanely expensive, but rents are still reasonable

Ahh … “the price of living in paradise.” That’s what we always hear when it comes to Maui County home prices. Yes, owning a home on Maui is expensive – very expensive. It’s one of the biggest problems facing island residents today.

Expensive, however, is a relative term, so I decided to run some statistics to break the problem down for you.

According to this recently published article from the Maui News, the median single-family home price on Maui for the first five months of 2012 was $435,000. Compare this to the national average of $158,000 for the same time period, and yes, the cost seems pretty darn high.

Compounding the problem is that there is a fundamental gap between Maui wages and Maui home prices, which renders home ownership a fantasy for many island residents.

For the most part, there are only three categories of people who are currently able to own a home on Maui: those who have had family land for generations, those who have made their money elsewhere and then moved to the island, or those middle-class individuals who squirrel away money for a decade in hopes of seeking out something they’re moderately happy with.

Let’s just use the basic numbers provided to illustrate the issue.

Take the median home price of $435,000 and divide it by the median household income of $64,000 as reported by the last census. We get a ratio of 6.79 years of work to pay for a home (this, of course, doesn’t count interest, property taxes, or homeowner dues, thereby making the ratio much higher).

Compare this to the national average over the same time period and divide the $158,000 median home price by the $52,000 median household income, and you are left with a much more reasonable ratio of 3.03.

I’m no stock trader or economist, but that seems like a bit of a skewed picture to me.

Bottom line, many Maui residents can’t afford to own a home. So what’s the answer to living here?

DON’T OWN A HOME!

Yep, the majority of people who live on Maui rent, and most likely will do so for the rest of their time living here. The good news is that when compared to major US urban centers, however, the cost of renting on Maui is quite reasonable.

How reasonable? Here are some average rates:

A bedroom in a four-bedroom house across the street from the beach, $500-$800/mo
One-bedroom apartment or ohana (detached cottage), $900-1400/mo
Three-bedroom house, $1500-$2300/mo

Sure, this still seems expensive compared to many national averages, but when compared to cities such as New York, Chicago, DC, or San Francisco, these numbers are pretty much par for the course.

3. You don’t have to pay for health insurance

Ok, this isn’t entirely true, but for many employees here this is actually the case. In accordance with the Hawaii Prepaid Healthcare Act, which was enacted in 1974, Hawaii employers are required to provide health benefits for all employees who work over 20 hours/week for four consecutive weeks.

Granted, this doesn’t apply to benefits for spouses, families, or independent contractors, but a high percentage of Maui’s residents have health care coverage provided through their employer.

Then again, not many people in Maui may care about what their copay or premiums are. In a recent survey performed by Gallup, results indicated that Hawaii led the nation in overall health as well as physical and mental well-being. Surveyors contribute this to a combination of healthy behavior, positive eating and exercise habits, and lower smoking rates, a fact which correlates perfectly with reason number four …

4. No need for a gym membership

Granted, there are still gyms in Maui for those looking to move around some heavy weight or be professionally instructed in a Pilates class, but for someone trying to trim the budget the ability to stay healthy in a place like Maui can cost virtually nothing.
The fact that Maui is warm year round leads to an increased amount of outdoor activity where the gym is replaced by the general outdoors.

Who needs a treadmill when you can run on the beach? Who needs a pool membership when the ocean is ten minutes away? Island residents can surf, paddle, hike, bike, or swim their way to being fit and happy, all with minimal impact on the pocket book.

5. Minimal entertainment expense

Similar to the previous reason, when compared to major metropolitan areas, Maui has an incredibly minimal entertainment expense. Again, the beach is free, hiking is free, and if you’re going to go surf it can be as easy as a one-off fee of $500 for two used boards and you’re set for two years. The same can be said for stand-up paddling, windsurfing, canoeing, fishing, or whatever it is that makes you happy.

When it comes to nightlife, you’re much more likely in Maui to find people down at the local beach park wearing board shorts and enjoying a 12-pack of Heineken at 4 p.m. than wearing expensive clothes in a nightclub drinking $12 cocktails. Sure there are bars, but they’re either full of tourists on vacation drinking overpriced tropical drinks or locals hunting down the $3 drink specials.

You want to meet someone? Skip the bar and go to the beach.

6. Deflated sense of consumerism

In Maui the concept of “keeping up with the Jones'” doesn’t really exist. A trait, which isn’t really attributable to any single reason, the closest one would probably be, well, no one really cares. Material apathy, if you will.

While this is largely a subjective opinion, for the most part there doesn’t exist the same level of a consumer culture, which can oftentimes grip the retail economy of the mainland. While this doesn’t bode well for shop owners (that’s what all the tourists are for), this frugality keeps a lot of money in the bank accounts and board short pockets of resident Maui locals.

7. Ways around high food costs

Another one I hear all the time is that the cost of food in Maui is just so darn expensive. How do we afford to eat?

Well, for one, when you live on Maui you don’t eat out every night in the same way you might when on vacation. During vacation you’re supposed to splurge; go out and get a nice piece of fish and a good bottle of wine. Go eat at that restaurant right on the beach with the amazing view of the sunset. Treat yourself.

Here’s a little thing about those same restaurants where you’re eating on your Maui vacation, however. When you live here, you’ll probably only end up eating there if it’s a birthday, an anniversary, or you’re REALLY trying to impress someone.

You can get a 1/3-pound slab of fish in an oceanfront restaurant in Lahaina and pay $29, or, you can walk one block away to the Foodland supermarket across the street and get it for $6.49 with a bowl of white rice. When you eat at an oceanfront restaurant on Maui, you aren’t paying for the food – you’re paying for the location, the ambiance and the view.

Also, seeing as the hospitality industry is one of the largest industries on the island, all the hard-working men and women in the service industry oftentimes live off of the food, which is provided by their activity company, hotel, restaurant or whatever the source may be.

Finally, if you live on Maui and don’t want to pay for the high cost of food, work on providing your own. Mango, banana, avocado, and citrus trees spring up from the yards of many Maui properties, and the fertile fields of Upcountry put out fresh vegetables, which end up in myriad local farmer’s markets.

8. No parking fees or private beach passes

Sure, there are parking lots all over Lahaina, which charge you a fee to park there, but guess what? Those lots are only for tourists who are used to paying for parking back home, and subsequently they don’t question doing it here.

Having driven a vehicle on Maui for 13 years I can honestly say that I have never paid for parking once. Ever. There are no meters on the roads, no overpriced garages, and no struggle as to where to put your car. Sure, you might have to walk three blocks, but there is always a free parking spot to be found either on the street or in a public parking lot, thereby rendering paying for parking an expensive non-necessity.

Also, under Hawaii law, all shoreline is public property and can be enjoyed by the general public. There are no such things as “beach tags” or members-only beaches. You don’t have to belong to a pool, a country club, or any other sort of organization, which carries an annual fee.

Everyone in Maui belongs to the same organization. It’s called the community, and it’s free.

9. Minimal heating and air conditioning costs

As someone who has also lived in Lake Tahoe, Alaska, Los Angeles, and Florida, this is a cost, which I know can add up. While a few places on the island have air conditioning units installed, oftentimes simply opening up the window and letting the trade winds cool the place down will suffice just fine.

On the flip side, even though the Upcountry areas can get cold at night in the winter (38-52 degrees), it’s never cold enough to freeze any pipes or warrant having a heater. Plus, down at sea level, a cold winter night is when it drops into the upper 50’s. For the most part, the “winter chill” in Maui isn’t anything a sweater, a warm blanket, a fireplace, and a cup of hot chocolate can’t fix.

10. No winter expenses

Again, this is an expense which can really add up. Think about how many expenses are associated with winter. Snow removal, snow tires, snow chains, and most importantly, winter clothing. When you live in Maui, there is no need for winter coats or gloves or thermal underwear or socks. It’s a pretty minimalist wardrobe, which is comfortable, airy and easy on the pocketbook.

–

In sum, the quick answer as to why it’s cheaper to live on Maui than you would think is that there are essentially two worlds existing on the same island: the tourist world and the resident world. Tourists don’t see much of the residents’ way of living when they stay in a resort, eat out every night for a week, and fill their days with exciting activities. Likewise, residents aren’t subjected to many of the tourist expenses by living at home, eating food from the grocery store, spending most of their days at work, and filling their free time with cheap and healthy activities.

Granted, island living certainly isn’t for everyone, but those who have ever been curious can rest assured that the sticker shock of living in paradise isn’t as harsh as you might have made it out to be.

The Traveler’s Guide To Credit Cards

by Jessica Festa on

When planning a trip, the most confusing aspect is often trying to figure out what type of currency to bring along and how to navigate your credit cards. With help from Anisha Sekar, VP of Credit and Debit Products at NerdWallet, as well as my own travel experience, I’ve put together this guide to help you travel more efficiently with credit cards.

Know Before You Go

There are a few things you should take care of before heading off on your trip. First and foremost, no matter what credit or debit card you bring along, you must call the card company to let them know you will be traveling. If you don’t, the card will most likely become locked and you will have to call to have it reactivated, a process that can be a hassle when using international phone lines. It’s also good to call to see what spending and withdrawal restrictions are on the card, as well as if there are any incentives like travel insurance, no transaction fees or coverage on rental cars. For example, with Visa, travelers can save money on basics like rental cars, as well as receive perks from the Visa Signature offerings, including the Luxury Hotel Collection and the Visa Signature Global Concierge.

Moreover, making photocopies of all your important documents, including your credit cards, is important. When I travel, I always bring a copy hidden somewhere in my luggage, away from my valuables, as well as leave a copy at home with my family just in case.Questions To Ask Yourself Before Choosing A Credit Card

Everyone has their own unique travel style, meaning while one card may be right for one person, it may not be as practical for someone else. Before deciding on a card, ask yourself:

  • Where am I traveling to? For example, if you often travel abroad, a card without foreign transaction fees is a must. However, if you’re more likely to do a domestic road trip, you’ll probably be more concerned with what types of car rental insurance a card offers.
  • What brands am I loyal to when I travel? If you tend to stay in hostels and use different airlines every time you travel, a branded card probably isn’t a wise choice. However, if you’re a loyal Starwood or Delta customer, signing up for one of their company cards can have a lot of benefits.
  • Can I travel hack? If you don’t mind putting in the time to do research, cards that pay out in airline miles or rewards points can offer serious benefits.
  • Is the annual fee worth it? While many people automatically reject all credit cards charging annual fees, it’s a better idea to do a bit of research and math before making the final decision. Advises Sekar, “Do a quick back-of-the-napkin calculation weighing a higher rewards rate and benefits against an annual fee, and let the numbers speak for themselves.”

Foreign Transaction Fees

When trying to choose a travel credit card, this is probably the most important factor to look into. Many cards will charge you 1% to 3% every time you use the card. While this may not sound like a lot, it adds up very quickly, many times ending up to be more than the card’s annual fee. In my opinion, if you travel abroad regularly, it’s a good idea to find a card that doesn’t impose a transaction fee, like Capital One and Discover. Some good ones to look into include:

  • Capital One Venture Rewards Card– This is the credit card I use for travel and highly recommend. Along with being able to use it abroad incessantly without ever being charged a fee, some of the perks include two miles for every $1 spent, 2% back on all purchases, 10,000 bonus miles when spending $1,000 in the first three months of signup and no annual fee on your first year. Moreover, every single time I have called them, I have received exceptional customer service. They overnighted me a new card when mine was stolen, taken off charges for returns that never went through and have always been extremely helpful.
  • Chase Sapphire Preferred Card– While I’ve never used this card myself, I’ve heard excellent things about it from those who have. Some perks include a $500 signup bonus, 40,000 Ultimate Rewards Points if you spend $3,000 in first three months of signup, no annual fee the first year and two points per $1 spent on most travel-related expenses. You’ll also receive one additional point per $1 spent and 20% off when you book travel through Ultimate Rewards.
  • BankAmericard Privileges with Travel Rewards– This travel card comes with many perks, and no foreign transaction fee. You’ll earn double points on each purchase, there’s no annual fee for the first year, and if you qualify you may have the fee waived in subsequent years. Additionally, points never expire and you’ll have access to 24-hour travel and emergency assistance as well as a concierge service.

EMV Compatibility

For those using a magnetic stripe card for travel, be aware that some places may not accept them.

“Around the world, credit cards are using embedded smartchips, called EMV chips, for verification rather than the traditional magnetic strips,” explains Sekar. “Though standard in other countries, EMV technology has yet to be adopted domestically.”

There are many cards that use the EMV technology, such as the BankAmericard Privileges with Travel Rewards card mentioned above, Chase Hyatt Visa Signature and all Citi MasterCards by request.

It is worth to note that even when cashiers say they cannot accept your magnetic stripe card, they probably can.

“Your magnetic-stripe card does work,” assures Ava Kelly, Head of Global Affluent and Cross Border Initiatives at Visa Inc. “When traveling internationally, if you encounter a business that says it cannot accept your card, just ask them to try again. Tell them to look for the slot for swiping a card, and follow the prompts on their payment terminal.”

Personally, I think this is worth taking into consideration. However, I think it’s more important to make sure you use Visa when traveling abroad. When other travelers have their credit cards declined, it is usually because they are carrying an American Express or Discover Card – unless they’re in China, that is, where Discover is the preferred method of payment.

Auto Rental Coverage

For travelers looking to rent a car, you should look to your credit card to help you with insurance. Often times, the policies offered to you by car rental agencies are already included in your credit card.

“All credit card networks provide some form of rental car insurance, though not all specific cards offer the benefit,” explains Sekar.

The questions you should look into include:

  • What is covered? For example, while Discover’s policy is limited to collisions and upsets, American Express Platinum covers theft, collision and other events.
  • How long do you have to make a claim? For instance, MasterCard holders get 60 days. On the other hand, American Express gives their clients 48 hours.
  • What will the company pay for? If you look into Visa, you’ll see they cover administrative and towing costs. However, Discover will not pay for “loss of use.”

Overall, Visa offers the best car rental insurance benefits of the four major networks. First of all, each of their cards includes rental car insurance for physical damage, theft, loss of use, towing and administrative costs. MasterCard is also pretty good, although its not offered on all cards. Remember, it doesn’t cover loss of use or theft of an unlocked vehicle like Visa does. American Express offers one perk that some may be interested in, the ability to add extra coverage for a small fee. Discover is hands down the worst card when it comes to auto rental coverage, and only a few of their cards even offer it.

Additionally, many prestigious cards also other types of travel coverage, such as lost baggage, travel delays, trip cancellation, accidental death and dismemberment, which is worth looking into.

Should You Consider A Branded Airline Or Hotel Card?

This will depend on how you travel. For example, if you regularly check bags, you may want to find an airline card that waives baggage fees. Just make sure to look at what the annual fee is, and calculate if you will end up spending more or less. If the annual fee is $50 and you usually spend $150 a year checking bags, it may be worth it to get the card. Moreover, hotel cards can often make your stay a lot nicer if you regularly book a particular hotel brand.

“Hotel credit cards can sometimes come with automatic elite status, which brings perks like late checkout, free newspapers, accelerated rewards earning and other goodies,” says Sekar. “Sometimes, these hotel cards will even have no annual fee, providing you with perks for free.”

Personally, I’m a fan of the American Express Starwood Preferred Guest Card. Although there is an annual fee, it is waived during your first year. Additionally, you’ll get 10,000 Starpoints after your first purchase, and 15,000 additional Starpoints when spending $5,000 in six months. Points can be redeemed for free stays in over 1,000 hotels in over 100 countries or free flights. And, they give you many chances to earn double points and sometimes even five points per dollar.

Do I Have To Pay An Annual Fee?

The truth is, even though many credit card companies charge an annual fee, you can often get out of paying it. Just simply pick up the phone and ask. It helps if you have a good relationship with the credit card company and are timely with paying the bills. Furthermore, because many companies are now relying heavily on social media, consider tweeting a polite comment about your displeasure with the annual fee, including the company in the tweet using the “@” symbol and the credit card company’s Twitter handle. Other fees you can try to get lowered or waived include the balance transfer fee, late fee, foreign transaction fee, interest rate and over the limit fee.

[Image via 401(K)2012]

Adventure Travel Company Kumuka Worldwide Goes Out Of Business, Leaves Customers To Fend For Themselves

by Kraig Becker on

For nearly 30 years, adventure travel company Kumuka Worldwide had been seen as a tour operator that provided affordable and high quality itineraries to practically every corner of the globe. The company’s extensive catalog included more than 600 tours to such far away places as Africa, Antarctica, Australia and more. But that all changed recently when Kumuka announced that it was going out of business, leaving many customers scrambling to make alternate travel plans while also trying to find a way to get their money back.

About two weeks ago, U.K. based Kumuka posted a message on its website announcing that the company was suspending trading and going into voluntary liquidation. They informed customers that if they booked on a trip that was departing prior to July 22, their tours were safe and would go off without a hitch. But those that had booked travel after that date were simply told to “re-book with another operator.”

Of course, booking with another company is much easier if you have the funds but it seems Kumuka’s customers will need plenty of patience if they hope to get their money back. Kumuka recommends that travelers in Australia, New Zealand, and Canada contact the Travel Compensation Fund to begin the process of getting their cash back. U.K. customers are told that their money is protected by that country’s Civil Aviation Authority while Americans are advised to make a claim with their credit card company or to contact their travel agent.

Kumuka’s competitors were quick to offer aid to the company’s abandoned clients. Tucan Travel extended their loyalty discount program to Kumuka customers while Intrepid Travel and Dragoman are offering special deals too. That’s small consolation, however, for those who saved for months in order to take a trip and now must wait to receive compensation before they can book again.

As someone who loves to travel, and plans his trips weeks and months in advance, I can’t imagine how crushed I would feel if I were one of these customers. Imagine looking forward to getting away to a dream destination only to have the rug pulled out from under you just before you go. Seems like the very definition of disappointment to me.

Show Off Your Budget Travel Chops In CheapOair’s Traveler Of The Year Contest

by Jessica Marati on

Have you mastered the art of the last minute hotel deal? Are you a connoisseur of global street foods? Do your friends constantly ask how you manage to travel, even though you’re perpetually broke?

If you answered, “yes” to these questions, then (1) you’re probably like many Gadlingers and (2) CheapOair has a contest that might interest you. Launched last week, the Traveler of the Year competition will pit two seasoned travelers against each other, to see who can maximize a limited budget during two separate trips to China and India.

In the selection phase of the contest, applicants are asked to submit a three- to five-minute video showing off their creativity, travel experience and screen presence. Ten semi-finalists will be chosen, and voters will then narrow down the selection to two through an online social media campaign.

The two finalists will then be armed with $7500 and sent on a 30-day trip, one to China and one to India. While there, they will document their adventures through video, photo, blog posts and social media. The grand prize winner, selected at the end of the adventure, will earn budget travel bragging rights, along with a $5000 voucher for future CheapOair travel air.

The deadline for the selection phase of the contest is August 19. Register through CheapOair.com.

How To Get Drunk In The Czech Republic

by David Farley on
I was blind drunk in a town most non-locals can’t pronounce. I’m blaming the waitress for this. Pronounced “Slav-oh-neetzay,” this town of 2,500 is too small to occupy the visitor for more than a day, which is one of the reasons I was spending the afternoon in a pub.

A few minutes earlier I had checked into a Spartan hotel on the town’s main, triangular-shaped square, where the friendly receptionist almost gasped when I told here where I was from. “New York?!” she said, covering her mouth, reacting as if I said I’d gone on a walk, got lost, and ended up here a couple miles from the Czech-Austrian border.

Which was sort of true. I had just finished a 15-mile walk where I strolled by a plus-sized monastery in the middle of nowhere, around crumbling medieval Landstejn castle, through a field dotted with World War II-era bunkers. I was hiking around the southern part of the Czech Republic, following a series of trails that goes from Prague to Vienna. And what I really wanted at this moment was a beer. I got several of them, thanks to my waitress.

I sat myself down in a pub and within seconds the toothy middle-aged waitress whisked by and plopped a frothy pint of beer in front of me, its head of foam so thick it seemed more like a caricature of a beer than an actual one.

And then, about 15 minutes later, as my beer was three-quarters finished (I’m a fast drinker), there she was again. “Here you go,” she said, setting down another pint next to my nearly empty glass. I took a few swigs of beer and tried jotting something down in my notebook. I was already starting to feel a little tipsy. Then, a few minutes later, boom! Another pint landed in front of me, and she was gone. A soccer match was on the TV. No one seemed to care about it except for a Grizzly Adams-looking guy. I considered trying to talk to him, but thought better of it when I saw someone ask if the empty chair at his table was free and he responded with a growl.

These kinds of pubs – where an almost-empty pint glass is an invitation to have another – were once de rigeur in the Czech Republic. They’ve slowly faded into history now, a relic of the Communist days when you could sit in a pub all day and not worry about losing your job. If you look hard enough, though, there are still some around. U Zlateho Tygra and U Hrocha in Prague are two where you still might find this kind of service in Prague.

Or come to Slavonice. Tourism here was nonexistent during the communist era. It was simply too close to the border for the ruling government’s comfort. Over two decades after the fall of the Berlin Wall, tourists are still not really coming, which is a shame because this town is a gem. Founded in the 12th century, Slavonice began to flourish during the 15th and 16th centuries, as it was on the main trade route between Prague and Vienna, hence the many remarkable Renaissance houses that line the gorgeous triangle-shaped square. But damage from the Thirty Years War, the return of the plague in 1680, and a change in the trade route caused the city’s rapid decline. By the 20th century, its unfortunate location next to the border kept the communists from building in the town as well. No one was allowed to move this close to the border – unless, of course, you were a proven tried and true party-liner. That’s why today, little exists outside of the square. There are a couple streets past the town’s thick late-medieval walls. Then the town just stops. There’s no sprawl of dreary communist-era concrete block apartment buildings, no modern grid-like tract homes.

Today, part of the town’s population is made up of artists who fled the big city – that would be Prague – for a quieter refuge. There are a few art galleries sprinkled around town and a hip hotel, Besidka, where every room was designed by a different artist.

I didn’t get to see any of those art galleries. Because 90 minutes and several beers later, I needed a nap. The waitress appeared in front of me again with a freshly poured pint in her hand. “Okay, last one,” I said in slurred Czech. She laughed. So did a few other people sitting around me, knowing that the waitress just put me to bed for the night. I stumbled up to the hotel room and fell into bed.