How To Save Money For A Big Trip
The most common question I get to date is “How do you afford to travel so much?”. The secret to any travels is being smart with your money – that starts even before you go on your trip.
There are 3 things you have to do before you look into ways of saving money for your big trip.
1. Take a look at your monthly expenses
Write down all the expenses you have. If you are not sure, note down ALL your spending’s over a period of one month and categorize them. This way you’ll see where all the money is going to.
2. Calculate how much money you need for your trip
Important is that you calculate generously. It’s better to have some money left at the end of the trip than stressing yourself over your costs and budgets. This can ruin your travel expierence.
These are the costs you need to consider:
- Transportation (flights, bus, boat, train, rental car & fuel)
- Visa costs (if any)
- Vaccination cost (if any)
- Internet and mobile cost
- Daily budget for activities, food, short distance travel, souvenirs, shopping (basically anything that does not fall into one of the other categories)
- Travel and Health Insurance (don’t go for the cheapest option, trust me it will give you some peace of mind while being on the road)
- Any continuing fixed cost in your country of residence (rent, loan, insurances)
- If you give up your job for travelling, put some allowance for 2-3 months after your trip (you might not be able to find a job straight after you come back)
- ATM and credit card fees
3. Set up a budget plan
Split the total cost (the budget you need) into months that you have left until the trip. This way you will know how much you need to save every month.
Based on your monthly salary, you will quickly know if this is realistic or if you have to postpone your trip for a couple of months.
Next, set yourself a monthly budget for all your current expenses. Best is to break it down into categories (groceries, shopping, entertainment etc.).
Have a separate savings account specifically for your trip. Shift your savings into that account by the end of each month and don’t touch it!
Here are 8 ways to set achievable goals for yourself…and save money to travel the world!
Review Your Current Expenses
Look at your current fixed plans. Can you change to a more attractive credit card or mobile plan?
Do you really need to watch that movie in the cinema? Or can you wait until it’s on TV or Netflix?
What if you cancelled your gym membership and exercised outside?
Can you change your light bulbs? Energy-efficient light bulbs will cut down on your utility bills.
Can you cut down alcohol consumption or quit smoking?
What else could you live without? Consider what you wouldn’t be using while you travel and start to cut those things out of your daily costs now.
Sell Your Stuff
Instead of keeping it in storage (which costs money), I decided to just get rid of everything. Ebay is a good platform to sell your stuff. You can also think of going to a flea market for a day and sell all your things (or at least most of them) at once.
Change Your Eating Habits
Switch the meals out for a trip to the supermarket. Prepare your meals / lunches and take snacks with you. Cut down on the fast food and meals out and save money along with calories.
Stop Buying New Stuff
Always Use Cash
If your weekly entertainment budget is $100, then withdraw $100 cash every week and only use cash for your entertainment purchases. No Cards. That way you will physically see your hard-earned money being spent.
Become A Discount Hunter
NOTE: Do NOT sign up for deals email service though! Anything that serves up an inbox full of temptation, should be avoided. While they offer amazing discounts, it’s hard to resist something that you absolutely do NOT need simply because it’s 50% off.
Be Your Own Spa