Budgeting in general is tough. There are regular expenses like food and rent, then bigger commitments like paying off college loans or saving for house and/or retirement. But don’t worry, you can keep on doing those things while saving for your dream trip!
The basic idea of saving is easy: spend less, make more, or do both in tandem. Right. But how do I actually do that in practice. Well, let’s get started.
Know Your Goal
Guesstimate upfront how much you’ll spend on your trip. Get specific. Factor in things like flights, car rentals, hotels, airport transfers, train tickets, meals, attraction admissions, etc. Know how much you need to meet your goal. I always like to add a little padding to my budget, so I am not stressing about how much I am spending while on vacation. Once you have made it to your destination, it’s time to relax and enjoy! The hardest part of traveling is being disciplined before your trip. If your savings isn’t near your “dream trip” estimate, consider a couple of cheaper long weekend trips until you can splash out for the one. Practice makes perfect, this applies to traveling as well!
Download Wanderful Traveler’s Vacation Estimator Sheet
Tip: I know it’s not fun to add another line item to your sheet, but always factor in at least $500-$1,000 for unexpected events such as medical emergencies or missing a flight and having to purchase another one… It happens to the best of us (read: me)! As a personal finance tip, it’s helpful (if possible) to have enough savings to cover your bills for 3 months in case of accident/misfortune. Having my emergency fund as a safety net when traveling always gives me peace of mind when things go wrong on a trip.
Revert to Your College Days
No, don’t eat mac ‘n’ cheese for breakfast, lunch and dinner (unless you want to!), but get back to the basics. Do you subscribe to a service such as cable TV or gym membership that you no longer use? Are there things you could live without, like having a cleaner, or expensive hairdresser? Can you reduce your phone plan costs? Do you really need the newest phone or laptop? Can you do without those new pair of jeans or that cute top. And if you are super serious about traveling the world for a year, is it worth downgrading your apartment or furniture. This could easily save you hundreds to thousands of dollars/euros/pounds/ per year. Traveling around South America for 3 months with nothing but a carry-on suitcase, further proved this point to me.
Go to places on days that are offering free admission (like Bank of America’s monthly free museum days!), and look for other free things to do for entertainment. Go hiking. Chill at the beach. Have a picnic with friends. Find out what local food, wine and art festivals are on. Get creative, there are definitely plenty of things to do that don’t cost much money.
Be a Master Chef
Not only will you eat healthier, save tons of cash, but your cooking skills will improve… a skill every person should master! Invite friends over for a homecooked meal and share a couple glasses of wine instead of paying the high mark-up of restaurants and bars. I am also a big fan of using a slow cooker. You can use cheaper cuts of meat, and after a few hours, the meat is falling off the bone. Yum!
Some ways to cut back without going cold turkey is to go out during happy hour, two-for-one Tuesday’s, early bird dining, or buying discounted coupons (like $25 certificates for $10) at Restaurant.com. Alternatively, I have been known to eat at home and then meet up with friends for a drink or dessert afterwards.
Go on a Selling Rampage
Minimize, minimize, minimize! Once you have traveled, you understand that life is more about experiences and memories, not stuff. Especially when your stuff can boost your savings dramatically.
Do I really need 5 black shirts, 10 pairs of jeans and 20 pairs of shoes? No. It’s a long process, but selling items you are no longer using is strangely satisfying and will help you declutter your life, plus it will help fund your vacation! You can list your items on the usuals Ebay, Craigslist, Amazon, but also check out Facebook garage sale groups, and mobile platforms like Mercari or Poshmark.
| I like Mercari the most and I have made $887 in a year from selling clothes! It is a free phone app that lets you sell your items quick and easy. You can sell almost anything on there: women’s, men’s, kid’s clothing, electronics, and more. Mercari takes a 10% selling fee (opposed to Poshmark’s 20% or $2.95 flat fee under $15).
Use code ANXSSD and get $2 just for signing up |
And to a HUGE point…
Stop Buying
The next time you want to buy something, ask yourself if you really need it. Most likely the answer is no. A good rule of thumb is to put a 48-hour rule on any item you want to buy. If after 48 hours, you still think you absolutely need it, then get it.
Make Your Credit Card Work for You
Do research and sign up for a credit card that gives you cash back or accumulates airline miles for all of your regular expenses throughout the year. Keep your eye out for cards that offer bonus points for signing up. My boyfriend signed up for a Chase card and got enough points for return flights to Europe! Best would be to sign up for a travel credit card that does not charge foreign transaction fees so you can use the card carefree abroad. Now you have free flights and you’re earning points on your travel expenses; you’re basically making money on your trip 😉 Also, avoid paying monthly bank fees, many banks and credit unions offer free checking and savings accounts.
Pick Up a Side Job
You may need to work a little harder now, but you’re sacrificing now for fun later.
On the weekends, I did ticket sales for a club in Los Angeles (on top of my full-time career job). I would make a couple hundred dollars a month just by sacrificing my Friday nights, which frankly, I would have spent watching Netflix. Best part was that I still kept my Saturday’s and Sunday’s open to socialize with friends and spend time with family.
Consider flexible part time jobs such as tutoring, babysitting, waiting tables, bartending, or being an Uber driver. You could also consider short-term seasonal work opportunities such as gift wrapping during Christmas. Check out sites like Craigslist, Freelancer, the classifieds and even let your friends and family know you are available for hire.
So there you have it. I follow the above rules rigorously and combine it with my knack for scoring cheap flight deals, to fund my own travels. I try to travel internationally 3 times a year and now that I am living in Europe, I am visiting a new country each month! This truly is my obsession!
Good luck and happy travels, fellow wanderfuls!
