January 30, 2021

How Much Money Should I Save to Travel?

How Much Money Should I Save to Travel?

Holidays, road trips, extended vacations to Europe and beyond… how can you finance your travel and budget for a trip? And what is the most sure-fire way to save up for the experience on the horizon? There are no travel financing short cuts for building a personal stash, nor are there secrets for cutting corners to fund a trip. Fortunately saving money to travel is easy when you apply patience, common sense and self-restraint, and design a travel budget that still allows you to enjoy your destination. In this short guide we offer a series of tips and nuggets of wisdom that you can make use of right now. 

You do not have to be rich to travel. The first thing that you should develop is a habit to save. That can be hard for you at first, but as you take control of your expenses and take on financial responsibility, you will develop money management skills which you can apply to travel financing. You need to get hold of your spending habit and focus on financial planning instead. You might fail at the start, but you can convert your failure into learning opportunities. Here are some tips that you should follow to fund a trip, increase your savings and invest in your traveling:

7 Important Tips to Fund Your Trip

1. Managing Your Expenses

The first thing that you can start right away is to take responsibility for your spending. Currently, you may face problems saving for traveling expenses because you spend more than you save. You need to master the skill of money management. This takes time and a lot of effort, but you can stick to your long-term commitments once you master financial planning. Building a habit requires time, and that is okay. But you should know that only you could do this for yourself; no one else can help you.

2. Solve Your Spending Problem

If you are unaware of how you will spend your money, make a note of your expenses instantly. Without knowing where your money is going, you cannot cut off your expenses to fund your travel around the world. The last thing you want is to fall into debt. Make a list of the items you purchase, such as your water bottles, eating at a restaurant, groceries, snacks, and other items. You should record every little expense you make this month. Now, your financial situation is in a notebook, providing an opportunity for analysis. This way, you can keep in mind your current situation and where you want to be. When you have your target expense and saving, you can develop a budgeting habit.

3. Learn the Art of Budgeting

learn the art of budgeting to save for travel

You need to consider that the more you have planned about your budget for a trip, the more you are in control. For instance, you need to know how expensive it is to travel to the location you want to visit. Some cities across the world charge a higher price for food expenses and accommodation. However, other smaller cities are very reasonable. Learn to budget fast or it will cost you. 

The first thing you need to do when budgeting your trip, is to plan your daily expenses. For instance, the rent you will pay, the cost of your breakfast, lunch, and dinner, etc. Some expenses are flexible, such as commuting, shopping, phone bills, etc. You can spend these from your remaining budget. Keep limited cash with you for the day when you leave your hotel so that you don’t run out of money. Control over your expenses will give you peace of mind and confidence. 

Now you need to define your needs and wants by making a list of each. You need to be honest with you and list down the items that you cannot live without. Next, list down secondary items (wants) and calculate both the list. You have to depend on your needs and avoid every other item that you do not need right now. That can be hard for you at the start, but it is an effective way to sponsor your trips.

4. Adopt Money Saving Habits

Many people spend a lot of money eating from restaurants. However, cooking your food can save you thousands of dollars. If you do not know how to cook, you can read recipes. Sure, it will be difficult at first if you don’t know how to cook, but eventually, you’ll get the hang of it.

Furthermore, you can also cut down on your traveling expenses and accommodation. If you take a taxi or Uber to work, try taking the bus or walking. That will save you additional dollars daily. For your accommodation, you can live in a home with less rent in cheaper areas. You can even share your home with roommates to divide the expense. Living with your parents is another solution. 

5. Sell Items You No Longer Require

We all have items in our homes that we no longer use but keep along with us, such as sports equipment, furniture, etc. You can sell those and make some extra money. Moreover, you can also cancel service subscriptions that you no longer use. For instance, if you are not using your Netflix subscription, you are wasting your money there.

6. Various Different Ways to Save Money

find different ways to save money

You might think that all the above changes might not be effective enough, and you cannot collect enough budget, but there is more to it. You need to focus on changing your lifestyle, which will make a huge difference on a larger scale. For instance, if you often go out with your friends to clubs and host parties, try staying home for a change and reducing the number of people you invite. You can contribute that money to traveling. Here is some other stuff that you need to quit to save money:

  • Buy low-cost groceries and cook food at home.
  • Buy the cheapest items.
  • Get the cheapest mobile plan and cut your landline if you have a connection.
  • The Internet has everything you want on TV, so why are you paying extra for your cable?

7. Earn While You Travel

Start spending your spare time earning money from home. Imagine traveling with the money that you earned from the same trip. You have nothing to lose that way. You can earn money in numerous ways while you are on a trip. Here are some examples of the jobs that you can pursue:

  • Travel Vlogging
  • Freelancing content writing
  • Web development
  • Affiliate marketing
  • Graphic designing
  • Language translator

Conclusion

Saving money by changing your lifestyle is way too challenging and a hard step to take all at once. However, you will have different thoughts when you fulfill your dream to travel around the world. You might face various obstacles throughout your trip and while planning, but you need to stay calm and overcome problems with confidence. You can even change your strategies and planning throughout the trip as far as these new techniques are effective.

Contact Credit Counsellors Australia today to chat with our team about debt credit or financial concerns, or visit our website to find financial tools to help you get back on track with

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