"Traveling isn't about having money, it's about having priorities."
When trying to save for a trip, you may want to change your mindset and evaluate where you're spending most of your money. There are a lot of apps to help you budget and track your money. A lot of people say they don't travel because of the cost. But I'm willing to bet that they don't track they're spending or realize how quickly little things can add up.
It isn't about having money; it's about having priorities. Maybe you need to make your coffee at home instead of getting a $5 latte on the way to work. Perhaps you should pack your lunch more often. Maybe it's as simple as selling some of your unused clothes or having a garage sale. Now is the time to be creative! Knowing where you spend your money will help you evaluate ways to save.
1) TRACK YOUR SPENDING FOR AN ENTIRE MONTH
2) KNOW YOUR HABITS
Spend a couple of minutes analyzing your numbers. It may be easiest to look through your credit card or bank statements. What little things do you spend money on that quickly add up? Ask yourself how you can avoid spending this money? Be creative. Once you know your numbers, you can create a better game plan on how to save more efficiently.
I'm a freelancer, which means I keep all my receipts to go through at the end of the year. Embarrassingly, a couple of years ago, I realized at tax time that I was getting a coffee too often at Dunkin Donuts. Although I had a coffee machine at home, I would pick one up before or after I got off the subway since it was right there. After seeing how much I was spending I knew I needed to make a change because that $3 daily was adding up.
3) WAYS TO SAVE:
Skip the $5 latte. If you pick up a coffee every day on your way to work that's $100 a month or $1,200 for the year. Switch to a regular brew or make your own and take it with you to work.
Learn to cook. There are a hundred reasons why you should cook. For starters, it is expensive to eat out. On top of tipping, you have no idea what is in your food. Get your groceries for the week and make yourself a menu so you can quickly determine what you have. To make things easier, prep a couple of simple meals at a time and learn to love leftovers.
Stick to your grocery list. Also, never go grocery shopping when you're hungry. When I was in college (and tiny), I would go stuff a donut in my mouth before shopping. This took away any cravings and kept me from spending money on unnecessary things. Although silly and unhealthy, the two hundred and fifty calories I ate kept me from buying a million calories of treats.
Pack your lunch to take to work. Avoid the $10 lunch and the $3 midday snack. You're more likely to make healthier choices while putting some money in your travel fund.
Stop drinking alcohol. It's crazy how much drinking will run the bill up. Even if you settle for having a drink before you go out that's still a better option. Skip the beer at the local pub and save so you can drink on the sandy beaches watching the sun go down.
Stop smoking. I don't even know how people still smoke. We know it's not healthy, and it's crazy expensive.
Have a garage sale. All it takes is one long trip away from your home to make you realize that you have a lot of unnecessary stuff lying around the house. Free yourself from those things. I know I'd rather have experiences than a bunch of stuff sitting around collecting dust. Don't have time or patience to plan a garage sale? Try Craigslist instead.
Sell some of your old clothing. Don't hold off on selling things you think you will someday wear. Sell them while they are still trendy or in style.
Research credit card options. There are so many useful travel perks out there now for frequent travelers. Look into ThePointsGuy.com.
Get rid of the cable. Add up how much you spend on cable per year. I bet it's outrageous! There are many ways to watch your favorite show or movies without having a $100 monthly cable bill. Get the basic package, Netflix, HBO GO, or Hulu, and if that's not enough try, SLING TV for $20.
Get a roommate. Maybe you have an extra room you aren't using and have a friend looking for a place. It doesn't have to be a permanent solution, but six months subletting the space could help you quickly bank money. If you are trying to save for an extended stay, consider moving in with friends or family for a couple of months to save quickly. Instead of paying rent, offer to cut the grass or clean the house.
Invite your friends over instead of going out. Make a meal family-style, and chances are they will bring a bottle of wine or something to drink. See if they are interested in making the meal next time.
Try to avoid spending a lot of money to entertain your child. You know if you get the $40 cool toy, they would have just as much fun with the giant cardboard box or some silly putty. ;-)
Negotiate with your credit card company. If you pay regularly and pay a lot of interest, see if they are willing to adjust the interest rate. Also, consider doing a balance transfer to another credit card altogether. This could save you a lot of money, and often they will waive the balance transfer fee.
Drink lots of water. Not only will it keep you healthier but having a glass before your meal will keep you fuller longer and keep you from ordering or eating more.
Give the gift of labor. Instead of putting your parents anniversary gift on a credit card because you can't afford it, offer to clean their house, paint the shed, or mow the grass each time you are home. Be creative.
Buy staple goods in bulk. Have a toddler? Watch for sales on diapers and stalk up - toilet paper, laundry detergent, trash bags, etc.
Reduce, reuse, and recycle. Come on get it together.
Consolidate your student loans and get on the automatic payment plan. It may help you save a percentage on your interest rate, and it will keep you from having to call each month, it will also prevent you from missing a payment.
4) SET YOUR TRAVEL BUDGET//
Once you know where you'd like to travel, it's time to start thinking about your budget. Research how much things cost where you’d like to visit and remember to factor in the currency exchange if it applies.
Make a Spreadsheet and begin to estimate how much for:
Transportation - airfare (insurance/fees), buses, cabs, trains, etc.
Accommodations - hostels, Airbnb, B&B's, Hotels, Camping, etc.
Meals - breakfast, lunch, dinner, snacks & drinks
Activities - tours, museums, rentals, etc.
Souvenirs - if on a tight budget, this is something you may be able to skip.
Miscellaneous
Do you have any helpful tips to help save and budget for travel? Have you had to discipline yourself to save? Please comment below!
xx ASH
