Do you dream of travelling the world, but feel like you don’t have enough money to do it? Do you want to explore new places, cultures, and experiences, but worry about the cost of flights, accommodation, and activities? If so, you are not alone. Many people share the same desire to travel, but also the same challenge of how to save money for it.
Travel can be expensive, but it doesn’t have to be. With some planning, discipline, and creativity, you can save money for travel and make your dreams come true. In this article, we will show you how to save money for travel in a step-by-step guide that is easy to follow and realistic to achieve. We will also share some tips and tricks on how to reduce your travel expenses and stretch your budget further. By the end of this article, you will have a clear plan on how to save money for travel and how much money you can realistically save.
Step 1: Set a Travel Goal
The first step to saving money for travel is to set a travel goal. This means deciding where you want to go, when you want to go, and how long you want to stay. Having a clear travel goal will help you stay motivated and focused on your saving journey.
To set a travel goal, you need to do some research on your destination and the costs involved. You can use online tools such as Skyscanner, Booking.com, and TripAdvisor to find out the average prices of flights, accommodation, and activities in your chosen destination. You can also use blogs, forums, and social media to get tips and recommendations from other travellers who have been there before.
Once you have an idea of how much your trip will cost, you can set a realistic budget for it. A budget is a breakdown of how much money you need to spend on each category of your trip, such as transportation, accommodation, food, entertainment, etc. A budget will help you track your spending and avoid overspending on unnecessary things.
To create a budget for your trip, you can use online tools such as Budget Your Trip or Trail Wallet . These tools allow you to enter your destination, duration, and style of travel (e.g., backpacker, mid-range, luxury) and generate a sample budget based on average costs. You can then adjust the budget according to your preferences and needs.
For example, let’s say you want to go to Paris for a week in June 2023. According to Budget Your Trip, the average daily cost of travelling in Paris is £138 per person. This includes £40 for accommodation, £30 for food, £20 for transportation, £35 for entertainment, and £13 for other expenses. Based on this estimate, your total budget for a week in Paris would be £966 per person.
Of course, this is just an estimate and you can always find ways to save money on each category. For example, you can book cheaper flights by using comparison websites or travelling during off-peak seasons. You can also find cheaper accommodation by staying in hostels or using platforms such as Airbnb or Couchsurfing. You can also save money on food by cooking your own meals or eating at local markets or street stalls. You can also save money on entertainment by taking advantage of free or discounted attractions or activities.
The point is that you need to have a rough idea of how much money you need to save for your trip and how long it will take you to save it. This will help you set a realistic and achievable travel goal that will inspire you to save more.
Step 2: Track Your Income and Expenses
The second step to saving money for travel is to track your income and expenses. This means knowing how much money you earn and how much money you spend every month. Tracking your income and expenses will help you understand your financial situation and identify areas where you can save more.
To track your income and expenses, you need to record every transaction that happens in your bank account or wallet. You can use online tools such as Mint or YNAB to automatically sync your bank accounts and categorize your transactions. You can also use apps such as Spendee or Money Lover to manually enter your transactions and assign them to different categories.
Once you have recorded all your transactions for a month, you can analyze them and see where your money is going. You can use online tools such as Personal Capital or Money Dashboard to create charts and graphs that visualize your income and expenses by category. You can also use apps such as Clarity Money or Emma to get insights and suggestions on how to improve your financial habits and save more money.
By tracking your income and expenses, you will be able to see how much money you have left at the end of each month. This is your disposable income, which is the money that you can use for saving, investing, or spending on your wants. Ideally, you want to increase your disposable income as much as possible by increasing your income and/or decreasing your expenses.
Step 3: Increase Your Income
The third step to saving money for travel is to increase your income. This means finding ways to earn more money from your main source of income or from other sources of income. Increasing your income will help you save more money faster and reach your travel goal sooner.
To increase your income from your main source of income, you need to look for opportunities to advance your career and boost your salary. You can do this by improving your skills, taking on more responsibilities, asking for a raise, or looking for a better job. You can also look for ways to earn extra income from other sources, such as side hustles, freelance work, online surveys, selling stuff online, etc.
There are many ways to earn more money, but you need to find the ones that suit your skills, interests, and availability. You also need to make sure that the extra income is worth the time and effort that you put into it. You don’t want to burn yourself out or neglect other aspects of your life for the sake of earning a few extra pounds.
To increase your income, you can use online tools such as Glassdoor or PayScale to research the average salary and benefits for your job and industry. You can also use platforms such as Upwork or Fiverr to find freelance work or gigs that match your skills and experience. You can also use apps such as Swagbucks or InboxPounds to earn money by completing simple tasks online.
For example, let’s say you are a graphic designer who earns £2,000 per month from your full-time job. You want to increase your income by 10%, which means earning an extra £200 per month. You can do this by asking for a raise from your employer or finding a new job that pays more. You can also do this by taking on some freelance projects or gigs that pay £50 each. You would need to complete four projects or gigs per month to reach your goal.
By increasing your income, you will be able to save more money for travel without compromising your lifestyle or spending habits. However, increasing your income is not enough if you don’t manage it well. You also need to decrease your expenses and avoid wasting money on things that don’t add value to your life.
Step 4: Decrease Your Expenses
The fourth step to saving money for travel is to decrease your expenses. This means finding ways to spend less money on your needs and wants. Decreasing your expenses will help you save more money faster and reach your travel goal sooner.
To decrease your expenses, you need to review your budget and see where you can cut costs or save money. You can do this by reducing or eliminating unnecessary expenses, such as subscriptions, memberships, fees, etc. You can also do this by finding cheaper alternatives or deals for essential expenses, such as rent, utilities, food, etc.
There are many ways to decrease your expenses, but you need to find the ones that suit your lifestyle and preferences. You also need to make sure that the savings are worth the sacrifice or inconvenience that you may face. You don’t want to deprive yourself of happiness or comfort for the sake of saving a few pounds.
To decrease your expenses, you can use online tools such as BillBuddy or Look After My Bills to compare and switch energy suppliers and save money on your bills. You can also use platforms such as TopCashback or Quidco to earn cashback when you shop online or in-store. You can also use apps such as Too Good To Go or Olio to find cheap or free food that would otherwise go to waste.
For example, let’s say you spend £500 per month on rent, £100 per month on utilities, £300 per month on food, £100 per month on entertainment, and £100 per month on other expenses. Your total monthly expenses are £1,100. You want to decrease your expenses by 10%, which means saving £110 per month. You can do this by moving to a cheaper flat or sharing with a roommate and saving £50 per month on rent. You can also do this by switching to a cheaper energy supplier and saving £10 per month on utilities. You can also do this by cooking more at home and buying food in bulk and saving £30 per month on food You can also do this by limiting your outings and using vouchers or discounts and saving £10 per month on entertainment. You can also do this by cancelling unnecessary subscriptions or memberships and saving £10 per month on other expenses.
By decreasing your expenses, you will be able to save more money for travel without earning more money or increasing your income. However, decreasing your expenses is not enough if you don’t save it well. You also need to allocate your savings and invest them wisely.
Step 5: Allocate Your Savings
The fifth and final step to saving money for travel is to allocate your savings. This means deciding how much money you want to save for travel and how much money you want to save for other purposes. Allocating your savings will help you prioritize your goals and plan your finances accordingly.
To allocate your savings, you need to review your travel goal and your budget and see how much money you need to save for travel and how long it will take you to save it. You also need to review your other financial goals and see how much money you need to save for them and how long it will take you to save them. You can use online tools such as NerdWallet or Money Advice Service to calculate how much money you need to save for different goals and how long it will take you to save them.
Once you have an idea of how much money you need to save for each goal, you can decide how much money you want to allocate for each goal every month. You can use online tools such as Tiller Money or Goodbudget to create a savings plan and track your progress. You can also use apps such as Plum or Chip to automatically save money for your goals based on your income and spending patterns.
For example, let’s say you have a disposable income of £500 per month after paying all your expenses. You want to save £966 for your trip to Paris in June 2023, which means saving £40 per month for 24 months. You also want to save £5,000 for an emergency fund, which means saving £208 per month for 24 months. You also want to save £10,000 for a deposit on a house, which means saving £417 per month for 24 months.
To allocate your savings, you can decide to save £40 per month for travel, £208 per month for emergency fund, and £252 per month for house deposit. This adds up to £500 per month, which is your disposable income. You can then set up a separate savings account for each goal and transfer the corresponding amount every month. You can also use apps such as Plum or Chip to automatically save money for each goal based on your income and spending patterns.
By allocating your savings, you will be able to save money for travel and other goals without compromising your financial security or future plans. However, allocating your savings is not enough if you don’t grow it well. You also need to invest your savings and earn interest or returns on them.
Bonus Step: Invest Your Savings
A bonus step to saving money for travel is to invest your savings. This means putting your money into assets that generate income or appreciate in value over time. Investing your savings will help you grow your money faster and reach your travel goal sooner.
To invest your savings, you need to understand the basics of investing and the different types of investments available. You also need to understand the risks and rewards involved in each investment and the fees and taxes that may apply. You can use online tools such as Investopedia or MoneySavingExpert to learn more about investing and the different options available. You can also use platforms such as Wealthify or Nutmeg to get advice and guidance on how to invest your money based on your goals and risk appetite.
Once you have an idea of how to invest your money, you can decide how much money you want to invest and where you want to invest it. You can use online tools such as Vanguard or Hargreaves Lansdown to open an investment account and choose from a range of funds, stocks, bonds, etc. You can also use apps such as Freetrade or Trading 212 to buy and sell shares or ETFs with low fees and commissions.
For example, let’s say you have £500 in your travel savings account after saving for six months. You want to invest this money and earn some interest or returns on it until you reach your travel goal in June 2023. You can do this by opening an investment account with Wealthify or Nutmeg and choosing a portfolio that matches your risk appetite and time horizon. You can then transfer £500 from your travel savings account to your investment account and let it grow until June 2023.
By investing your savings, you will be able to save money for travel and other goals faster and easier. However, investing your savings is not without risk and you may lose some or all of your money if the market goes down or if you make bad investment decisions. You also need to be aware of the fees and taxes that may apply to your investments and how they may affect your returns. You should always do your own research and consult a professional before investing your money.
Conclusion
Saving money for travel is not impossible or difficult if you follow these five steps:
- Set a travel goal
- Track your income and expenses
- Increase your income
- Decrease your expenses
- Allocate your savings
You can also follow a bonus step and invest your savings to grow your money faster and reach your travel goal sooner.
By following these steps, you will be able to save money for travel and make your dreams come true. You will also be able to save money for other goals and improve your financial situation and well-being.
So, what are you waiting for? Start saving money for travel today and enjoy the benefits of travelling the world tomorrow!
Frequently Asked Questions
Here are some frequently asked questions and answers about saving money for travel.
Q1: How much money do I need to save for travel?
The amount of money you need to save for travel depends on your destination, duration, and style of travel. You can use online tools such as Budget Your Trip or Trail Wallet to estimate the average cost of travelling in different countries and regions. You can also use blogs, forums, and social media to get tips and recommendations from other travellers who have been there before.
Q2: How long does it take to save money for travel?
The time it takes to save money for travel depends on your income, expenses, and savings rate. You can use online tools such as NerdWallet or Money Advice Service to calculate how long it will take you to save money for different goals based on your income and expenses. You can also use apps such as Plum or Chip to automatically save money for your goals based on your income and spending patterns.
Q3: How can I save money on travel?
You can save money on travel by finding ways to reduce your travel expenses and stretch your budget further. You can do this by:
- Booking cheaper flights by using comparison websites or travelling during off-peak seasons
- Finding cheaper accommodation by staying in hostels or using platforms such as Airbnb or Couchsurfing
- Saving money on food by cooking your own meals or eating at local markets or street stalls
- Saving money on entertainment by taking advantage of free or discounted attractions or activities
- Saving money on transportation by using public transport, walking, cycling, or hitchhiking
You can also use online tools such as TopCashback or Quidco to earn cashback when you book flights, accommodation, or activities online. You can also use apps such as Revolut or TransferWise to avoid foreign exchange fees and get the best exchange rates when you spend abroad.
Q4: How can I make money while travelling?
You can make money while travelling by finding ways to earn income from your skills, hobbies, or passions. You can do this by:
- Working remotely for your employer or clients
- Freelancing or consulting for online platforms or businesses
- Teaching English or other languages online or offline
- Blogging or vlogging about your travel experiences
- Selling photos or videos of your travels online
- Creating digital products or courses related to travel
- Participating in paid surveys or studies online or offline
You can also use platforms such as Workaway or Worldpackers to find opportunities to work in exchange for free accommodation, food, or experiences. You can also use apps such as Roamler or Streetbees to earn money by completing simple tasks in different locations.
Q5: How can I travel more often?
You can travel more often by finding ways to fit travel into your lifestyle and schedule. You can do this by:
- Taking advantage of long weekends, holidays, or breaks
- Travelling locally or regionally instead of internationally
- Travelling slowly and staying longer in one place
- Travelling off-season or during low-demand periods
- Travelling with friends, family, or groups to share costs and experiences
- Travelling with a purpose or a mission such as volunteering, learning, or exploring
You can also use platforms such as TrustedHousesitters or Nomador to find opportunities to house-sit in different locations and save money on accommodation. You can also use apps such as Hopper or Skyscanner to find cheap flights and deals for your next trip.
We hope you enjoyed this article and found it useful. If you have any questions, comments, or feedback, please let us know in the comment section below. Happy saving and happy travelling!
