Monday, June 30, 2014

Travel Tips: How To Save Money For Travel

Many people say that they'd like travel the world but they often come with tons of excuses not to. Lack of money is one of such excuses so here are a few tips on how you can save money for travel:

1) Set your dream. Put a picture on your wall or a map with pins and strings, make it visual. This will constantly remind you about your goal and help you save money.
2) Create a savings plan which will consist of 5 steps:

  • Assessment - compare your trip plan to the reality of your financial situation. Get a general idea of your trip's overall cost, compile a spreadsheet that lists your income vs. your expenses to see how everything stacks up.
  • Setting goals - have your savings plan comprise several goals, some short-term and some long. List your goals in a specific round numbers and don't be shy to aim high but not so high it kills your enthusiasm.
  • Creating a plan - with details how you'll accomplish your goals. For example, removing unnecessary expenses, setting a strict spending budget or adding additional income to meet your goals.
  • Implementation - put your plan in motion and maintain it.
  • Monitoring and reassessment - as time passes, your plan will evolve as your spending habits change. Take a look at your progress every month and scrutinize the budget for possible adjustments.
3) Asses you expenditures. Make a spreadsheet, place it where you can find it, and list out every one of your daily/monthly expenditures. Organize them into two columns" "Needs" and "Wants". Slowly eliminate all the "wants" from you list of purchases.
4) Start a dedicated travel fund. Create a new account with your bank called "Bon Voyage" and feed it monthly, weekly?, daily! Make it easy to transfer money over from another account and every time you go online to check your balance, transfer some money. Make it fun. Make it a habit. Make it natural. Make it painless. Enjoy its growth!
5) Cut back on your lunch.
6) Cut back on coffee.
7) Eat out less.
8) Reduce or eliminate your car usage.
9) Kill the cable TV.
10) Reduce your utilities bill.
11) Quit smoking.
12) Cancel your gym membership.
13) Reduce/remove your spa treatments.
14) Get fewer haircuts.
15) Borrow your reading material.
16) Stay in at night. Going out to bars and clubs will force your account balance to go down really fast. Keep your travel goals in mind and invite your friend over for, well..., movies, game night, knitting parties, cooking, etc.!
17) Sell some stuff.
18) Earn some extra income.
19) Keep your distance from people who aren't saving for a trip. Watching your friends going out every night, buying expensive electronics, expensive cocktails and new shoes will destroy all your hard-fought motivation. They know you love them, and they'll understand and probably respect you more for saying no.

Remember,  you're going traveling! That's one of the best goals a person can have!

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