- Money for the Next Generation

How to save money for travel

By October 14, 2020

How to save money for travel

We all want to see the world. It’s a vast place full of diverse cultures and opportunities. From the beautiful Swiss Alps to the majestic Pyramids in Egypt, anyone with the means can explore.

However, travelling requires money and before you know it, what you have saved can go fast. But, if you have a plan and start saving today, you can absolutely make that trip a reality.

It does require a bit of discipline though, but we know you have what it takes.

Determine where you want to go

Where is it that you want to travel to? Is it the Sahara Desert or Miami Beach?

Once you decide exactly where it is you would like to travel to, do some research and start making a budget.

Things to consider:

  • Accommodation
  • Travel
  • Food
  • Spending Money

Having an idea of how much each of the above will cost will give you a great idea of how much you need to save.

Start saving

Now that you have a budget detailing your expenses, it’s time to start saving. There is no perfect time or way to save. It’s a mixture of cutting costs and increasing your savings and this can be accomplished in a few ways.

  • Automate your savings

    By automatically having a portion of your paycheck enter a savings or investing account each week or month reduces the mental load it takes to manually save. It’s all about making things easier for yourself. Allow the savings process to naturally happen.

  • Analyze your current expenses

    Many of us are not aware of exactly how much we are paying for certain things. Monthly subscriptions, however small, can add up without us realizing. Take a look at everything you are paying for at the moment and honestly evaluate. Are there cheaper alternatives?

  • Cut back

    Being frugal for a while is easier said than done but if you determine what it is you value most; you’ll be just fine. Ask yourself, is my monthly streaming service worth more than a trip to Bali? You can watch TV anytime, but you can’t always go to Bali so determining what it is you value most will allow to start saving money without it greatly impacting your life.

It is all about making it easier on yourself. You have a plan to travel and you know you must save. By automating your savings, analyzing your expenses and cutting back on unnecessary items, you will make that trip a reality.

Let’s take an example.

You want to travel to Hawaii from San Francisco for a week with your best friend. Flights cost around $400, accommodation at a nice hotel is about $1,000. Food will cost about $350 and let’s say you plan on spending $500. In total, this comes to $2,250 each.

Now, let’s say you’re working part-time, perhaps as a college student, making $10 an hour (net) at a local restaurant working 20 hours a week. That’s $200 a week or $800 a month.

Say you spend $400 a month on expenses ranging from Netflix subscriptions to gym memberships to coffee. Well, that’s $400 saved without being frugal. Assuming we don’t change a thing, it will take around six months to save up. Not too bad, right?

Right but let’s go one bit further and see if we can save some money on unnecessary items.

Instead of spending $5 a day in coffee, buy a $10 bag of coffee saving you $25 a week or $100 a month. Take a look at any monthly subscriptions and ask yourself if you really need them. You decide to cancel two monthly subscriptions, saving you $25 a month. Ok, great, we’re up to $125 more saved. Now, you take it a step further and reduce the urge to buy that shirt or football online because you can see yourself looking better in a Hawaii-themed shirt instead. Let’s say you reduce $75 a month in this case, bringing our new savings to $600 a month, a $200 difference.

Now, it will take less than 4 months to save for that trip you always dreamed of.

We now hope you realize it's possible to not just travel, but to accomplish anything in life once you approach it correctly. Take a step back, make a plan and stick to it by making it easy to stay disciplined!

You can create a Loved saving account Here


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