How to Profit From a Per Diem

April 22nd, 2008

I recently returned from a business trip that earned me two full days of overtime pay plus a per diem allowance of $54 per day (unfortunately, I only get 3/4 of that amount on travel days). Through smart spending and my already-reduced intake due to my diet, I was able to pocket half of that as pure profit. How exactly do you take what should be a full day’s amount of money for food and turn it into pocketable cash?

The trick is to eat smart. Unfortunately, you can’t not eat on a business trip, especially when you’re with customers. It will look out of place and will focus undue attention on you. And it’s really hard to concentrate when your stomach is rumbling like a thunderstorm across the plains. What you have to do is pick your meals well.

For breakfast, check if your hotel has a continental breakfast. Considering a purchased (non-fast food) breakfast could cost up to $10, the cereal, fruit, bagel, and juice your hotel provides can fill you up just as much (and maybe healthier) for free. If you think you may get hungry later, grab an extra apple and take it with you.

For lunch, eat just enough to satisfy your hunger. I was able to get a lunch that kept me on my diet and filled me up enough to make it to dinner for under $5. If you eat too much, you’ll almost certainly get drowsy as the afternoon wears on and it’s bad form to nod off during a presentation to or from a customer.

For dinner, eat normally but do not over-indulge. Dinner is why you were saving your money. Depending on your location and tip, dinner can easily cost $30. Don’t order anything too messy and keep the alcohol consumption to a minimum (and none if your customer or boss drinks none). All three nights, we went to a local microbrewery and restaurant. I always picked a modest entree and one beer, at most. My largest bill, including tip, was around $26. My boss, on the other hand, was spending nearly $60 after food and drinks - he spent more than his daily allotment on just one meal!

For the 4 days I was gone, I will receive a $189 reimbursement from my company. Through smart eating, I spent $92 - less than half of my per diem. That means, I walk away from this trip with $97 extra dollars lining my pocket. $97 means 1/3 of an extra car payment, most of a student loan payment, or about 1/4 of what I need to buy a new bike. That’s one heck of a snowflake! And I wasn’t even being over-the-top with frugality.

It’s not hard to find curious ways to make and keep a little extra money, but it does take some creativity and a little sacrifice. All you have to do is determine how much money you need to survive and pocket the rest!