Are you daydreaming about the trip of a lifetime?
If there’s one thing guaranteed to bring you back to reality, it’s the cost of travel.
Big adventures do require more money, no question about it. At the same time, high prices do not have to stop you from going.
With smart saving and savvy spending, that “someday” getaway could be closer than you think.
1. Track Your Spending Habits
You can’t save for a trip unless you know how much you spend each month.
So, start tracking your expenses and every cent you spend.
We recommend creating a spreadsheet and categorizing expenses (bills, food, transport, etc.). This will show you exactly where your money goes.
From there, you can understand what you can realistically expect to save each week or month.
2. Set Your Savings Goal
Whether you’re booking an Eastern Caribbean cruise or a West African safari, you need to know how much money you must save.
Research the type of trip you want to take and preferred locations, and get a sense of the cost. Don’t forget to consider:
● Flight and transport
● Accommodation
● Visas
● Insurance
● Activities and entertainment
● Food and drink
● New clothes or travel accessories/equipment
Once you have your figure, round it up. For instance, if the cost is $6,590, round it up to $7,000.
This might sound large, but prices fluctuate, and you’ll be thankful to have some wiggle room in your budget for spontaneity or emergencies.
3. Create A Savings Plan
Because you’ve been tracking your expenses, you are already halfway toward a savings plan. However, you should also set a budget, look at where to scale back, and where money can be saved.
For instance:
● Limit restaurant or takeout meals to a few times per month
● Take a packed lunch and give up the daily coffee run
● Review subscriptions and determine if they’re necessary
● Ensure you pay off your credit card each month to avoid charges
Wherever you can save money, allocate that amount to the savings pot. Think of it like a game – the more ways you can find to save, the more you win for your trip!
4. Set Up A Dedicated Savings Account
This one is a must for a couple of reasons.
First, a dedicated account prevents your trip savings from being accidentally spent. Second, it allows you to view the progress towards your savings goal in real time, which is a real motivator.
Choose an account with a decent interest rate and low fees to maximize what you save.
Set up an automatic transfer from your regular account to your savings account so it builds on autopilot. And funnel additional funds to it whenever you can.
5. Get A Travel Credit Card
Travel credit cards are perfect for big trip planning. Typically, you accrue points as you spend, which can be swapped for air miles or hotel loyalty points.
Ultimately, these can result in big savings when it comes to booking your flights and accommodation.
Alternatively, use a credit card that offers cash back that can be transferred into your savings account.
Quick Hacks To Lower Costs
Savings don’t begin and end with what’s in your bank account. Get smart with your booking choices, too:
● Pick travel dates that are out of peak season
● Booking early or during sale periods often yields higher savings
● Compare package deals against booking everything separately
● Use a prepaid travel card to minimize currency conversion costs and ATM fees
● Traveling light is a great packing hack to save on extra luggage fees
● Research known (and expensive) tourist traps and make a note to avoid them
Final Thoughts
Traveling doesn’t require a bottomless bank account. All you need is a solid plan and the resolve to see it through.
Focus on the end goal, stay consistent, and every step will move you closer to takeoff.
