Searching for advice on how to Save Money to Travel the World? Who doesn’t? The following are the same strategies I utilized and continue to use to enable me to tour the globe as often as I do. And these are the same strategies that helped me save thousands of dollars during travels to Rome, London, Budapest, and other destinations throughout the globe. Let’s get started so you may open your own vacation savings account…
Here is How to Save Money to Travel the World;
1. Determine your savings target.
Before you can consider Save Money to Travel the World, you must first determine how much you need to save.
Consider the following:
- What are your plans?
- How long are you planning to stay?
- What do you intend to do when you arrive?
- How much will lodging cost?
- How much does it cost to go there, around, and back?
- Is it possible to earn money while you’re there?
All of this may seem daunting at first, but I prefer to start by calculating transportation and lodging expenses, then calculating an average for how much I’ll spend each day (mostly on food), and then factoring in activities and what I want to do.
It should give you a good indication of the initial and daily expenses, and from there you can figure out how long you can or want to go for and how much you need to save each month to reach your savings target.
Having a goal can make managing your finances ten times simpler. Speaking of which…
2. Keep track of your spending
Now that you know how much money you need to save each month, you need to start tracking where your money is going and making some budgets to assist you to reach your goal…
You may do this in one of two ways to Save Money to Travel the World:
Build a spreadsheet that includes your fixed costs (rent, vehicle loan, etc.) and your monthly budget, and update it whenever you make a purchase. Employ an automatic finance tool that tells you precisely where your money is going so you can keep track of it.
I tried using a spreadsheet at first, but I soon gave up since I couldn’t bear the thought of constantly updating it. Instead, I used Emma, an automatic finance program, and haven’t looked back since.
The software is free to use and enables you to create budgets for areas such as food, shopping, bills, transportation, and many more. It will then notify you if you are on the verge of exceeding your budget, and it will be up to you to take action.
What’s the greatest part? It’s totally automatic from your bank, so you don’t have to go in and manually update it every time you purchase groceries, for example. Now that you’ve established your goals and budgets, it’s time to start saving…
3. Establish a savings account
If you have trouble sticking to your budget (and trust me, I know how tempting it is to overspend and tell yourself you need that brand-new vehicle – personal error), it’s worthwhile to create a savings account with your bank.
As soon as you are paid, deposit whatever amount you want to save into the savings account and swear not to touch it. If you have any cash left over at the end of the month, include it in your next transfer and continue the process the following month to Save Money to Travel the World.
You may even be able to create a savings account that pays interest on deposits (typically with a 12-month commitment), which means even more money for your trips.
4. Determine your requirements and desires.
Now that you’ve established your goal, budget, and fresh new savings account, it’s time to identify areas where you can Save Money to Travel the World. The easiest method to accomplish this is to look at where you’ve spent your money in the previous three months and figure out which costs were necessary and which were mere wants.
Don’t be too hard on yourself.
Did you really need a new t-shirt? Or did you just desire it? Did you need that coffee in the morning on Monday? Or did you just want it because you couldn’t be bothered to cook it at home? It’s most likely the latter…
After you’ve determined which costs were just ‘wants,’ begin to take action to reduce them in the future by using the same needs and wants strategy EVERY time you make a purchase if you want to Save Money to Travel the World. What about a new phone? Nah. Instead, take a trip to Canada.
5. Eliminate monthly subscriptions.
Remember what I said before about eliminating the “wants”? Here’s how you can get started… How much money do you spend each month on subscriptions that you don’t use? Do you have a gym membership? Remove it totally or reduce its importance. Netflix? What is Disney Plus? What is Amazon Prime? Hulu? Kill everyone. Do you have a TV Package membership? Not any longer. Food subscriptions on a monthly basis? Nope. Subscriptions for personal care products? Delete
The £8.99 / $12.99 a month for Netflix’s standard membership may not seem to be much on a monthly basis, but it adds up to a stunning £108 / $156 per year, which is enough to cover a couple of nights in a nice hotel in most parts of South America. Instead, cancel your monthly memberships and Save Money to Travel the World.
6. Avoid dining out.
I eat breakfast at home, prepare my own lunches and dinners, drink water, and only eat out or order takeout once a month or less, which helps me to save hundreds of dollars. If you dine out often, I recommend opening your banking app to check how much you’ve spent on food in the last several months. What you see will most likely not please you. Do yourself a favor and forego the pricey meal in favor of making it yourself. Oh, and don’t only use this advice while you’re Save Money to Travel the World; use it when you’re really traveling the world to extend your stay.
7. Avoid upgrades.
There is either societal pressure or an inward need to ‘need’ the latest and greatest. And, to be honest, I’m one of those people who ‘needs’ the newest technology. When my phone contract expires, I’m going directly to the phone shop to upgrade to the newest iPhone. But I shouldn’t, and neither should you. If you have more willpower than me, attempt to resist upgrading your gear:
Phones, cameras, and televisions are examples of technology.
Backpacks and suitcases are examples of travel accouterments.
Keep it till it dies, and you’ll feel better about yourself – believe me on this, as I write on my brand-new MacBook.
8. Participate in more free activities
Quit paying to watch the newest Marvel movie and start doing more free things in your neighborhood.
Explore free museums in your area.
Look for local festivals and festivities.
Participate in a sports team.
The following are some spots within an hour’s drive of where I live that I had no clue existed until I began exploring and doing more free activities to Save Money to Travel the World. You’re likely to have some fantastic spots right on your doorstep that you haven’t yet had the opportunity to see.
9. Get money by selling your items.
Do not become a hoarder. Go around your home and sell whatever you no longer need. You may be shocked by how much money you can earn. For example, I once sold a damaged MacBook from 2012 for £350, which helped pay for more than half of a 10-night vacation to Rome.
Keep an eye out for old books, phones, wires, clothing, and treasures such as Pokemon cards (seriously, if you collected Pokemon cards, take a look online to see how much they sell for because you might be sitting on a small fortune).
It’s also therapeutic to sift through your old belongings and sell them to Save Money to Travel the World, so there’s that!
10. Wear simple clothing
We’ve gotten concerned with how we appear and how we dress for some reason, but can you really see the difference between a $400 plain black t-shirt and a $10 one? Very likely not.
Every time you consider purchasing a designer t-shirt, consider if you can get it cheaper elsewhere to Save Money to Travel the World. Better still, ask yourself whether you really need it. If you don’t, return the t-shirt and go to New Zealand instead.
11. Eliminate bad behaviors
Snapshot from the NHS calculator website demonstrating how much money you can save by stopping smoking.
Smoker? Drinker? Gambler? It’s time to call it quits. I realize it’s much easier said than done, but it’s harming more than just your capacity to save money for vacation; it’s also affecting your health. Use these calculators to discover how much money you can save if you need some more motivation:
Calculate your savings from smoking (UK calculator or US calculator)
Calculator for saving money on drinks
Calculator for gambling savings
If you’re having trouble quitting your addiction, seek out someone who can help you quit for good.
12. Get your buddies inside, not outside.
If you’re a weekend partier who spends much too much money on wine and double vodka cokes every Friday and Saturday, why not invite your buddies to your place instead? The identical bottle of wine that costs £25 / $30 at the bar is likely to cost £8 / $10 in your local grocer. Send the following savings calculator to your friends so they can see how much money they can save and travel around the globe with you.
13. Motivate yourself to reach your savings target.
Last but not least, you must get motivated to reach your savings objective to Save Money to Travel the World. Make it a daily habit to remind yourself why you’re budgeting and why you can’t afford that pricey t-shirt. Post a photo of your destination on your wall. Inform your friends and family about it (you are more likely to act if you inform others).
Also read: 7 Money-Saving Tips to Help Keep Your Finances on Track