How to Save Money for Travel: 7 Step Guide
You don’t need to be rich to venture to the far corners of the world, as long as you set aside cash and have an arrangement set up. Making it a habit to save up in your day-to-day life can also be beneficial for you.
There are some secrets to traveling, like buying cheap flight tickets, traveling off-season, and so on. But the main idea is how you make your money last.
The ideal way to approach is to be realistic and to plan. This can get boring, but it is the only way.
There will be times when you might do crazy spending, but also, there will be days where you can stay back home and cook to save up for the extra spending days. This is called budget planning. There are numerous free applications that you could use; personally, I use YNAB. And if you are a student, you get a one-year free subscription. This is very important because, on almost every trip, there are unforeseen expenses that make you pay more than what you had expected.
Here you will find my practical 7 ideas that help you to save a lot of money.
1. Make a list of your expenses and spending
Taking account of all the little things you spend on can be a tough but necessary thing to do. Consider different things like what things are you buying regularly? How much are you paying for transportation? How can you save money on your goods?
I use YNAB to track all my expenses and savings, and you can even just write down all the stuff on your phone or maybe a diary.
Towards the end, consistently check the amount you’ve spent versus the amount you’d prefer to save. The idea behind is to have a realistic picture and then make a decision where you can save.
2. Research your destination
This is your pre-search time. Do you want to go away for a weekend in Las Vegas? Do you want to take a trip to Florida? Once you know where you want to go, you can picture better how much you will need to save for the trip.
There is so much information online that you can research anything. So if you search how much your trip of 7 days may cost in Mexico, there will be an answer for you. Of course, things do not always go perfectly as planned. But it would at least give you a picture of how much you would end up spending, rather than realizing later in your trip that you have to use your credit because you have used all of your saved-up cash.
3. What To Spend On
Every person is a bit different in terms of desire for spending. For instance, when I want to travel I would like to spend less on accommodations, maybe stay in a hostel or use public transport or even walk. But I will not compensate for roaming the city, trying different cuisines.
If you plan to eat all your meals at the accommodation, you are staying at, and you will save and have a small budget for your food. Then maybe you would be interested in spending time visiting historical sites etc.
Be realistic about your activities and budget.
4. Create Your Budget List
Make a spending plan for what you think your travel will cost. Record all of the things you need to do, where you need to do them, and the amount they will cost. Record your food, transportation, flights, convenience, liquor, exercises, and whatever else you think will be pertinent.
There may be many expenses you would not be able to think of right away. Thus you can have a miscellaneous account for those. Or you can always search on Google.
5. Set A Goal
Everyone thinks of going on a holiday one day. But if you plan on saving for this dream holiday of yours, you need to set a goal for it. After you have your holiday date, mark it on your calendar, and work towards saving money divided into months or weeks or even days as you like.
As you go through the days, mark your achievement of savings, it will make you feel a sense of accomplishment, which will drive you towards your goal more.
6. Economic Reality
You have your ideal budget, and you know how much you can save within your allocated time. You need to take care of any difference in the money. For instance, I know the trip to Las Vegas I am planning will cost me $5000, but I will save only $4000 in two months. Then I need to decide here, either I cut down more of my expenses to meet my trip cost, or I sacrifice something from my trip.
Of course, this situation can be the opposite: after two months, you end up saving more, you may not need to worry.
7. Keep A Track
At last, you are on your trip after all the planning, and you still need to keep track of your spending. Some people plan everything and still spend more because they lose track of their spending during their vacation.
If you want smooth travel, this step is as important to all the preplanning you did. You can use YNAB as I do, or you can use any other free app or even just write it somewhere.
Bonus Tips
There are also other ways you can save up for travel which are also in trend.
1. Deals and Newsletters
Subscribe to different newsletters regarding traveling. Many companies will send you discounts or coupons that you could redeem while booking your travel accommodations or tickets.
2. Work Where You Go
For backpackers, working in a hostel is a good idea, this gives them a free place to stay and mix with different cultures. Or many places in Asia have jobs as online English teachers, which will also pay good money.
3. Airport Parking
If you are traveling and want to park your car, it is always best to do off-site airport parking. It is cheaper, and you end up saving a lot of money. While traveling over the weekend from San Francisco, I had used Parkobility.
