How to save money for travel is a question which many people ponder on. There are many ways to save money for travel. Small changes in our life or the way we live can help us to save a lot of money to travel. In this blogpost, we will discuss how to save money for travel.
After hearing that I have traveled to 26 countries, 5 Wonders of the World, 3 Continents and 23 states in India , people often ask me :
How can they save money for travel?
Well, this will automatically fall in place when you have the intent to travel. Once you plan that you want to travel and you have finalized where to travel the next step is to find out the approximate cost of traveling.
Just follow the below 20 tips on How to Save money for travel and you have enough money to go to your dream destination.
Just follow the below 20 tips on How to Save money for travel and you have enough money to go to your dream destination.
How to Save Money for Travel
I know many people who want to go to a particular place and try to save money to get the experience however due to certain constraints they are never able to save the money and end up going nowhere.
So how do I save money for travel?
NO, You don't have to downgrade your lifestyle to save money.
You can enjoy life and still save a huge amount for travelling. The following are my few personal tips
Make a Savings Goal
Now since you have planned where you want to travel, find out the approximate cost to travel to this country. This will help you to understand how much you have to save. My suggestion add another 10-15% markup to the cost of the travel. If you have found the cost to travel to a place as $100 then save at least $115 for your travel.
Having a savings goal and saving money for travel is extremely important. Savings goal for traveling works as a starting point to save money for travel.
Set a Daily Budget to Save Money for Travel
You have planned how much money you need to save for travel now convert the total savings into daily savings that you need to do.
First write all your important expenses that you do on a monthly basis. These expenses are important expenses which you can't do without ( List A )
Then jot down all Non-Essential expenses. These are expenses like dining out , drinking beer , movie tickets, clothes etc. ( List B ).
Now from List A & List B mark the items in RED & BLUE Colours. RED colour are the items which you can live without. These help in reducing the total expenditure and save money for travel. BLUE colour items are where you can reduce cost partially. Now add these two costs and you know what are the things you need to stop doing or partially do to save money for travel.
Every day we spent many dollars unknowingly on things which are not necessary and if not done will not change anything in our life. When I jotted down my expenses I found that on average I am spending $5-10 unnecessarily which will not hamper my life if I cut down. That's almost $150-300 a month and $3600 annually.
Now you understood how to save money for travel.
Open a savings account in a bank exclusively for travel expenditure and saving money for travel. Whatever money you will be saving transfer the amount in the savings account which you have made for traveling purposes. Saving money in this account will help you keep the money aside for travel. Also, the money which you will keep in this savings account will increase due to accrued interest. At the end of the year when you will check this bank account you will find you have saved enough amount to travel to your destination. Also, the best part of this account is that if you don't want to travel then you can use this fund for any emergencies or exigencies.
Use a expenditure tracker app and login every amount that you are spending. Knowingly or unknowingly you might end spending unnecessarily which you could have saved for travel. Once you start using these kind of spending tracker app you will find that you are spending lots of money on unnecessary things which you could save. This amount adds to your saving money for travel.
Savings Account for Travel
Open a savings account in a bank exclusively for travel expenditure and saving money for travel. Whatever money you will be saving transfer the amount in the savings account which you have made for traveling purposes. Saving money in this account will help you keep the money aside for travel. Also, the money which you will keep in this savings account will increase due to accrued interest. At the end of the year when you will check this bank account you will find you have saved enough amount to travel to your destination. Also, the best part of this account is that if you don't want to travel then you can use this fund for any emergencies or exigencies.
Track Spending to Save money for Travel
Use a expenditure tracker app and login every amount that you are spending. Knowingly or unknowingly you might end spending unnecessarily which you could have saved for travel. Once you start using these kind of spending tracker app you will find that you are spending lots of money on unnecessary things which you could save. This amount adds to your saving money for travel.
Pay Credit Card Dues
It might sound a little surprising that why I am suggesting you to pay all credit card dues? The interest you have to pay for credit cards for late payments add up to a huge amount. Take out last 3 months credit card bills and add the late payment fees and the interest you have paid. It will add up to a huge amount. If you would have planned properly then very well this could have added to the total amount you are saving money for travel.
Also another thumb to follow to save money for travel , if you can't afford don't buy it as it will increase the chances of credit card use and defaulting the payment leading to a dent in savings for your travel.
Get a Travel Rewards Credit Card
There are many credit cards which are offered by banks which help you to travel cheaper. You can get an airline credit card or travel portal credit card. Using these credit cards for daily shopping will help you to get additional points. With these additional points, you can easily save money for travel as you can use these points for flight bookings.
I have used these Travel Credit Cards and have myself got heavy discounts on flight tickets by redeeming the points which have helped me to save money for travel. However, before getting any credit card to suggest do a thorough analysis of all available credit cards which are offered by the banks. These credit cards will for sure help you to save money for travel.
Part-Time Income Source
Every person has some hobbies like painting, photography, blogging, cooking, etc. To save money for travel and in fact to add additional source of income-you should start thinking about monetizing your hobby. For example if you love cooking you can do cooking or baking workshops. You can make food and start selling in small boxes from your house. This will generate additional income and which will add up to the total savings for your travel. Don't think that you have to earn a huge amount to save money for travel, even a few dollars will help you to reach your goal.
If you don't have a hobby then you can teach online. This will generate additional income and help you to save money for travel.
Reduce your Internet Bill
Internet bills adds up to the cost unknowingly. You might be having WiFi at home and also a high data usage plan for your mobile. If you check the usage of either one of them you will see that you are using 70-80% of the data usage at max. Check with your operator and downgrade the plan that you are subscribed to which will reduce your internet bill. This will help you to save money for your travel for sure. Also if possible take a minimum data usage plan for your mobile and shift the Internet usage on your home wifi. This will come out to be extremely cheap in the longer run.
Bring the Party to You and Save Money for Your Travel
Saving money for travel doesn’t mean that you have to live a life of a saint. Everybody have guilty pleasures and its not wrong. Instead of going out with your friends call them over to your house for partying. Buy a few bottles of liquor or beer and throw a house party. Decide on a theme for your party to make it more fun.Your friends will appreciate and enjoy it. This is extremely budget friendly and will help you to save money for your dream travel.
Sell Your Car and Save some Money
Now don't kill me for giving you advice to sell your car. Selling your car helps in two ways. One it will give you a huge headstart in terms getting a huge sum of money for travel. You will curtail down on additional expenses which eats away into the savings for your travel. If you sell your car you will tend to take more of public transport which will help you a lot to save for your travel. Also you can go walking to nearby places which will not only to see your own neighbourhood but also help you to burn your calories. So if you are convinced then sell your car and save money for travel.
Do Free Things
Every person needs entertainment to survive. To save money for travel don't forget to entertain yourself or else you will be so busy saving money that you will ultimately become frustrated and might not go to your destination. Every city has lots of free events which take place start from music concerts, exhibitions, etc. Head to these free events and save money for your dream destination where you always wanted to travel.
Get Rid of Cable
Give up your television connection and rather spend on your Netflix subscription. Anyways television programs are filled with advertisements and you can't watch whatever you wish to watch. Use Hulu, Netflix instead of your cable connection. While traveling if you use a VPN then with services like Hulu you can watch your shows while traveling.
Start Cooking at Home
Instead of eating out or ordering food at home , start cooking at home. You will save lots of money which you have either spent on restaurant food. Also by the time you travel to your dream destination, you will become almost a chef who can make various dishes. While traveling and staying in a Hostel or couch surfing you can cook something for your fellow travelers.
Sell Your Unused Things and Get Some Additional Money
Every person has a few unused stuff that can be sold. If you look in your house you will find gadgets which you have probably used once, a few showpieces which you don't display or maybe some old stuff like which can have vintage value. Hold a garage sale which will not only be fun for you but also add money to the savings for your travel.
Last Important Tip to Save Money for Your Travel
Whenever you are reaching for your wallet to spend, just for a second think, which will give you more pleasure saving the same amount for traveling or spending. If you think you can save the money for traveling then put the amount in some other pocket and at the end of the day/month deposit the amount in the bank. Following this process I saved around $50 every month. I was happy that I was saving for the travel I intend to do also at the same time I was enjoying my life by spending on things which gave me more pleasure.
So what are you waiting to plan your next vacation now?
Let me know if the tips have helped you to travel and experience life. Cheers!!!
Liked the way of saving money for tours. It will help a lot. Thanks for sharing.
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