How to Save Money for Travel When You Get the Bug
When you want to save money for travel, you need to know how much you actually need to save. How much will it cost you to go on your dream trip? Everyone can save money for travel, no matter what economic status you are. If it's something that is really important to you, and travel can enrich your life in a number of ways, then it’s possible to save for it.
How Much Should You Spend On Travel?
How much you spend on travel will depend greatly on your goals. Depending on your vacation, you may not incur some of the popular expenses. For example, if you stay with friends, you won’t have any lodging costs. Vacation costs have risen in the past decade.
Transport
Transportation is the biggest part of a vacation budget and the average family spends about 44% of their travel funds getting to and around the destination. Airline fees are the biggest fees. One way to reduce airline fees is to use frequent flyer miles.
Housing
The second biggest cost is lodging. The average hotel costs $90.92 a night but renting a room in someone else’s home with other services or renting a home can be less than a hotel, depending on the city.
Meals
Americans spend an average of $33 per day on food when on vacation in the country. Most of that is spent on restaurants. On international trips, people spend a bit more on average.
If you are asking yourself ‘how do I save today?’, there are a number of things you can start to do to make your travel dreams a reality. It helps to learn how to save money fast.
Create a Savings Plan
In order to save money for travel, you need to create a savings plan. The right savings plan will have five steps.
Assessment
Compare your trip to the reality of the financial situation. Is it feasible or is your dream too big? You need to be honest. Even if you do have big dreams, you need to know your current financial situation so you know how much you need to save to make your dream trip a reality. Once you have a general idea of the overall costs of your trips, compile a spreadsheet that lists your expenses and income and how things stack up.
Set Goals
Your savings plan should be a part of several goals, including short-term and long-term goals. List goals in specific numbers and don’t be too afraid to shoot high. You want to shoot high so you can go on your dream trip but not so high that it will kill your enthusiasm for a big trip.
Create the Plan
The plan needs to help you accomplish your goals. You need to set a strict spending budget and add some additional income to meet your goals.
Implementation
Put the plan in motion and maintain it.
Monitoring and Reassessment
As time passes, you need to take a look at your plan as spending habits change. Take a look at your spending each month and look at the budget or any possible adjustments.
Keep Your Traveling Money Separate
When you have a plan to save money for travel, you need to keep your savings in a separate account so you can avoid spending it whenever possible. If you see so much in your bank account, it feels great and makes you think that you can buy that dress or something else. Investigate opening a savings account with your bank or an online high-interest account so you can get some interest on top of what you are already saving.
Making sure you can still keep track of your saved money can help you stay motivated. Set up an automatic transfer for every time you get paid or to just put in money from your second income.
You may even forget that you have a separate savings account for travel and by the time you do, you may have more money than you think.
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Cut Out Convenience
One way to stay on budget is to cut out conveniences. The little purchases add up. These conveniences can be things like a coffee pick-me-up in the middle of the day, a packet of chips as a snack, or the newspaper on your commute. Go through your bank account and look for places where you are just spending a couple of dollars.
These choices are usually a convenience and it can add up. Cut out these types of purchases by stocking up on the stuff you normally impulse buy:
Carry a reusable mug to make your own coffee, look for free TV shows, and have snacks in your desk.
Learn how to cook so you can eat out less often.
Track your spending so you know where these little conveniences are coming from so you can stay on top of them.
One convenience and vice you need to give up is to stop smoking. Not only is this habit bad for your health but it can also cost a lot of money. If you smoke a pack a day at $6 per pack, that is about $2,190 a year. If you aren’t able to quit cold turkey then you should try to reduce consumption until you are able to let it go completely. Your wallet and your health will thank you.
Understand the difference between your needs and wants. Wants will not help you when you are trying to save.
Reduce Bills
Figure out ways to reduce your monthly bills. You may not need cable and can ditch it. There are plenty of free and cheap ways to get entertainment. If you are looking to reduce your utility bills, you can put on a sweatshirt or an extra blanket and keep the heat on low. Open the windows to catch a breeze instead of turning on the air conditioner. Turn off lights when you leave a room and take shorter showers.
If there are services you need and can’t go without, try to negotiate your bills for lower rates.
When it comes to your phone, avoid signing a contract and buy a phone you are able to afford without a payment plan. While it may seem convenient to just pay $20 a month every month, it’s not worth it. In the end, you might be paying more with late fees and interest. Smaller phone companies, such as Boost Mobile or Virgin Mobile, are just as reliable and you don’t have to sign a contract. The phone plans and costs are less.
Car Usage
It can be almost impossible to live without a car except in the largest cities. The easiest way to reduce your car usage is to sell it but that isn’t likely feasible unless you are going to leave on a long-term trip or live in an area with extensive public transportation. Lyft and Uber can be good options if you need to go a long distance. Even if you can’t live without a car, you can walk more and shop close to home if you can since every little bit helps.
Reduce Housing Costs
Housing takes up a big chunk of your budget so in order to save money for travel, it helps to save on housing costs. Move to a cheaper place or, if you can’t move, rent out a room or get roommates. If you are young, you can always move back home if your parents allow it. This means you also get home-cooked food on a regular basis so there is no need to eat out.
Staying Motivated For Your Travel
When you are trying to save money for travel, you need to stay motivated. Keep your goal in mind.
Print out pictures of your dream destination and tape it to your wall.
Make your dream destination the background image on your computer or phone.
You can even Photoshop yourself into a picture of the destination to make it even feel more real.
This way, if you are ordering food delivery from your bed or scrolling through sites for online shopping, seeing pictures of the place you want to go can make you question whether or your not purchase is really worth breaking away at the budget
Part of staying motivated when saving money for travel is making it a priority. If you aren’t fully committed to making your travel dreams happen then you won’t stay motivated and you won’t save enough money. The time is now to make your dreams non-negotiable.
Develop Habits That Save You Money
There are plenty of different things that can save you money but you need to change your behavior and make different habits. How about getting up earlier and walking or riding your bike to work instead of taking the bus or your car?
Think about other daily expenses you can replace with other money-saving habits.
For example, if you cook your meals instead of buying them prepared then you can save thousands of dollars for travel. Not only is this a skill that can help you save money but it can be fun too.
Sell Unnecessary Things
If there is something you own that you don’t use and you can’t travel with then it is not worth hanging onto it. For example, you can sell your car and use different transportation instead. Not only do you get an instant bunch of cash but you also can save money by canceling your auto insurance and you wouldn’t need to buy gas. Everybody’s unnecessary things will be different but you can benefit from selling.
Make Some Extra Money On the Side
Money doesn’t grow on trees but there are opportunities to earn extra money, even while working a full-time job.
Part-Time and Online Jobs
You can find a side hustle that you can work part-time, such as being a bartender or cashier. You can also build up an online business doing something you love, such as photography or writing. It doesn’t need to be the best job, just something that can help you boost your income. Do some research and figure out which of your skills will match some part-time positions.
Re-Negotiate Your Current Job
You can also review your current employment in order to get some extra money. If you aren’t earning enough from your current job then you can ask for a raise if you feel like you truly deserve it. In order to prove you need to get a raise, you need to prove that you are an asset to the company.
If you aren’t able to get a raise, you may be able to re-negotiate. Ask if you are able to work from home a few days a week so that you are able to spend the time you would spend commuting on a side job. If those aren’t options, you can also look for another job that pays more. Start searching in your spare time so you can find something that pays you better. Remember that you aren’t a slave to your job.
Find Free Things For Entertainment
Look for things that are for free in your area if you want to get out of the house. Almost every town or city has some free things going on and all you have to do is search for them. If you want to go out with friends, bring the party to you. Saving money doesn’t mean you just have to sit at home alone while friends are out having fun. Bring the party to you by hosting a movie night or game night. You can still save money and buy some liquor and be your own bartender for the night. It's much more budget-friendly than going bar hopping.
How To Save Money On Travel
Not only can you save money for travel but you can also help your budget by saving money on travel expenses when you go on vacation:
Look for Free Activities
If you do some research then you will find out that there could be plenty of free activities in the area that you are visiting. Look at community calendars or a self-guided walking tour. There may even be discounted admission to museums during a certain time of day.
Book a Hotel with a Kitchen Area
While you may not want to cook on vacation, just making breakfast in the room can be a big difference. Room service can be pricey, as is eating out, so save on breakfast and lunch so you can splurge on dinner.
A fridge or microwave can be helpful for any leftovers you have.
Bring snacks while you are out, especially bottled water, because doing so can help you save a lot of money.
Shop at local stores for snacks and waters while you are out instead of spending a lot of money in the hotel's convenience shop.
While it’s best to have a kitchen, you don’t need to book the best room. You will likely just be sleeping there so you may not need a good view or a lot of extra space.
Pay Attention to Location
Before you book where you are staying, be mindful of the location. Transportation can add up fast so you may want to stay in a central location. It’s best to be somewhere where you can walk. If you are going to a city, will you be near a bus stop or subway station? Rental services, such as Airbnb, can be convenient and help you save money but you may not be in the best location, especially if you are in a more suburban area.
Be Flexible When Flying
If you aren’t on a tight schedule, you should be flexible with the time and day you fly and your seat selection. Check the dates for your trip to see if the price will go down if you change the dates a bit.
Go in the Off-Season
You may find cheaper hotel rooms and plane tickets if you go in the off-season. You may also find that there is more availability. You won’t have to deal with larger crowds and the events and attractions could also be less expensive. When going in the off-season, make sure places are actually open since some places may close down when it’s not the peak season. Even when not in the off-season, don’t eat in areas that are close to popular tourist destinations. In some cities, walking just a few blocks can cut prices at restaurants.
To Sum up,
It’s possible to save money for travel, as long as you have a plan. Just like with saving for anything, you need to create a budget and find the motivation to stick with it. You will need to cut out conveniences and cut down on other big expenses, such as your home or your car. Once you save money for travel it also helps to know some tips and tricks on how to save money on your travel. By saving money on your travel, you won’t have to save as much when it comes to your travel expenses. Every little bit helps.