Desperate to travel but not sure if you can afford it? Saving for travel may be easier than you think. And you don’t need to give up everything you love either.
Believe it or not, travel isn’t just for people who earn excellent money or trust fund babies.
Here are a few ways you can save money for travel this year:
Take ownership of your finances
Most of us didn’t learn much about financial planning while we were at school. In fact, the majority of people don’t even master the basics until they’ve made a few mistakes as adults.
Saving up for travel demands sacrifice, and it can be tough. That’s why so many people find it difficult. It’s all about your mindset though, and the ability to think about the bigger picture.
Track your spending
Are you the type of person who is constantly afraid to check their bank balance? No wonder you’re worried about affording to travel. This weekend, grab a bottle of your favorite wine, a notebook, and some chocolate, and go through all of your bank accounts and credit cards. Until you know exactly what you’re working with, you won’t be able to see where you can eliminate or cut back your spending.
Track everything. Use an app or simply a notebook and a pen. Write down what you spend on groceries, snacks, bottled water, eating out, entertainment, ebooks, sports tickets, music, and more. You may be surprised at just how much you’ve been spending.
Now that you know where your money is going, it’s much easier to budget. You’ll be making two budgets. One will be for your next trip, and the second will be for your day-to-day living.
For your trip, it’s a good idea to start with low-cost destinations like Central America or Southeast Asia. If you’re planning to travel long-term, budget for $50 a day, and determine how long you’d like to travel for. If you’re planning a blow-out vacation, find a great cruise deal or an all-inclusive resort so you can get the most bang for your buck.
Figure out how much you’ll need to save to make this happen, how long you have to save, and how you can make this saving work with your budget.
Make smart cuts
Saving doesn’t have to be a terrible time. You can still have a great life and socialise with friends while saving for your trip. Skip the expensive meals out and clubbing though, and switch to intimate dinners at home, game nights, drinks.