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If you’re interested in travel, you should be able to see the world no matter how high your income is. This post will walk you through how to save up for a trip. Just because we’re on a budget does not mean we don’t get to travel.
Learn to travel on budget and set yourself up for success! Everyone deserves to travel so I’m sharing all my tips to save money for travel.
If you want your own travel budget I have one in my free resource library! Click here to join! Alternatively if you don’t want the free version you can purchase it here.
Table of Contents
Step 1: Start a travel fund.
What is a travel fund?
A travel fund is a savings account specifically designated to fund your travels. You want to have a completely separate account and contribute to it monthly.
Anytime you go on a trip or do any type of travel, you can pay for it directly out of this account.
Note: by this I mean use a credit card then transfer money from this account to cover those charges. Don’t be using a debit card! (More on that later).
The important thing about this account is consistency.
Whether you are planning a trip or not, you want to keep contributing monthly to your travel fund. Don’t start saving when a trip is coming up. Start before.
If you wait to start saving money for travel until you already have a trip in mind, you will feel a lot more pressure to save, because you have a deadline. You won’t have as much time to reach your dollar amount goal.
For example, if you start planning a trip 3 months in advance and start saving money then; that means you only gave yourself 3 month to save. What about expenses that come up before the actual trip, like flights and accommodations?
You wouldn’t have anything saved up and those are the most expensive vacation expenses.
The point of establishing a travel fund is to create peace of mind and to help you realize traveling is a possibility, you can afford it.
Transfer money into your travel fund regularly regardless of if you have a trip coming up.
- Related: The 4 Savings Accounts Everyone Needs
- Related: How much do Trip to Hawaii Cost?
Step 2: Get the right mindset.
After step one, you might be thinking “that’s great but where am I getting the money to transfer into my travel fund?”
Saving money is all about prioritizing.
If you want to travel and are low on money, you’re going to have to think about what is important to you. You’re going to have to cut some other expenses to make sure you can afford to travel.
- Related: How to Change Your Money Mindset
Step 3: Make a budget and track your expenses.
I have an entire post with tips on how to budget but right now we want to focus on your expenses.
Break out ALL of your expenses by needs and wants. This means, sit down and figure out everything you are paying for. What items are necessities and what are luxuries?
Some examples of necessities are:
- Rent
- Utilities
- Health Insurance
- Car Insurance
- Groceries
Some examples of luxuries are:
- Apps / Subscriptions
- Eating Out / Coffee
- Entertainment
- Clothing
- Makeup
Find a complete list of 65+ budget categories here.
Now you should know everything you’re spending on regularly. There are only two ways to save more money..
1. Cut out some of your luxury expenses.
I’m not trying to tell you to not indulge in these expenses. I’m simply saying you need to prioritize your spending. Would you rather eat out everyday or save up that $50 – $100 a week for travel?
Figure out what is important to YOU.
2. Find slightly cheaper alternatives for your necessary expenses.
If your rent is fairly pricey can you find a cheaper place? Have you compared your car insurance rates to the competitors? Are you still shopping for everything at Whole Foods?
There are many ways to cut down your spending even on necessary purchases.
All of the extra money from this can then be used for travel! Transfer it into your travel fund!
Keep in mind this step is a slow process. Make small adjustments to your lifestyle overtime to not feel overwhelmed. Being overly ambitious is a major reason people can’t stick to their budget. So be realistic and set feasible goals.
Adjust your expectations based on the results of tracking your spending. What is working for you and what isn’t.
Step 4: Make a travel budget.
Now the fun part! When you’re actually planning a trip.
We laid down the groundwork with steps 1 through 3 however now we can think about what happens when we actually have a trip in mind.
A travel budget is different from your regular budget. You want to make a specific travel budget for each one of your vacations. This is where you will figure out how much you are willing to pay.
Let your budget decide your destination.
There will be plenty of time to travel to those more expensive travel destinations once you’ve built up your travel fund savings. For now, I’d recommend sticking to the cheaper travel places.
Make a travel budget so you know how much you can expect to pay on your upcoming trip. This way you can know how much money you will need to have saved up to do everything you want to.
Step 5: Learn how to travel cheaper.
There are so many cheap travel hacks out there! So many tips and tricks to travel on budget. So we have to learn them.
How to save money while planning a trip.
Saving money to travel more isn’t just about when you’re already on a vacation. You can start saving money even when you just started planning your trip.
Learn how to get cheap flights and hotels. If you learn how to find cheap hotels and flights you’re cutting down your biggest two travel expenses. Which means you won’t need as much money to travel.
I have an entire post talking about my budget travel tips specifically for before you’ve even left home.
- Related: How to find Cheap Lodging
- Related: How to Save Money While Planning a Trip
Don’t forget about credit cards!
I’m going to Greece later this year and got a FREE flight for me and my boyfriend. How? The Capital One Venture Card is how.
If you don’t already have a travel rewards credit card I would highly encourage you to find one. There are several different options depending on your travel needs and how often you plan on traveling.
I personally have the Capital One Venture Card, the Chase Sapphire Reserve and the Marriott Bonvoy Boundless card. If you sign up now, the Marriott Bonvoy card is offering THREE free nights as their reward!
Travel rewards cards can get you amazing perks, like my free flight! So don’t neglect doing some research if you don’t have one already!
How to save money when travelling.
In the same way that you can save money while planning a trip, you can also save money when travelling.
Again, I have an entire post dedicated to help you spend less while abroad.
Sure finding a cheap flight, right now, might be super exciting, but don’t forget to be mindful while abroad as well. Don’t forget all about your budget just because you’ve boarded a plane.
Step 6: Don’t stop saving once the vacation is over.
You’ve now had the best vacation (on budget) so you can go back to your normal spending habits!
FALSE
Even though you just returned from traveling, that doesn’t mean you should stop saving and contributing to your travel fund.
If you continue to save money to travel with, you are making your life WAY easier for the next time you want to travel. You’ll already have money ready and won’t have to worry about affording your trip.
Continuously saving and prioritizing travel will help you travel more, even if you’re broke or on a budget.
Final Thoughts
This is a step by step guide to help you travel more and learn how to save money for trips. The best way to save money for travel is by making it a priority and sticking with these tips.
Saving money takes time and effort. It won’t happen overnight. But if you prioritize travel, it will be possible to see the world no matter what budget you’re on.
If you want to snag my free travel budget, get access to my resource library! Alternatively, check out my new shop The Budget Empire and find a travel budget there!
Let’s all save money to travel and travel on budget!
Where is your next vacation?
Send me an email or write me a comment!
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Thanks for the tips, it was very informative!
love these tips! soon borders will happen so time to start saving again
Yes!! Fingers crossed its safe to travel again soon!