Ready to hit the road? Use these practical tips and tricks to help build up your travel fund! Learn how you can save money, prioritize your spending, and start planning the vacation of your dreams.
Travel is one of those things that people dream of doing. It’s an opportunity to see and experience different sights and cultures, not to mention a break from everyday life. But for many people, the thought of traveling anywhere can seem out of reach due to the cost. So, why not plan and start building a travel fund that will allow you to reach your goals over time? Here are five ways you can make that happen and save enough money for your dream trip:
What’s Your Financial Goal? How Much Do You Need to Save?
Before you can start building your travel fund, you’ll need to set a goal. If you have a particular trip in mind, then it should be relatively easy to get a quote and let that act as your goal. If you’re just saving for the sake of traveling at some point, then choose an amount that is likely to cover the kind of destinations you’re interested in.
Open Up a Savings Account and Start Saving
One of the simplest ways to start building your travel fund is to open a savings account at your bank. Ensure it allows for simple deposits and transfers so you can put as much money in as you can.
Automate Your Savings
Ideally, you’ll set up a schedule where you can automatically deposit money weekly, biweekly, or whatever your chosen duration is. Arrange to transfer money on the same day you get paid, so it is effort-free on your part.
Don’t worry if you’re only able to save small amounts at a time, as it will build up and eventually you can hit your goal.
Take On Extra Hours at Work
Depending on where you work, you may be able to take on extra hours or projects to make more money. Because this is supplemental income that isn’t earmarked to pay bills, you can then deposit all of it into your savings account. Lots of people take on a side hustle these days, and there are plenty of opportunities if you are willing to work some extra hours.
Doing online work is great if you can’t leave home or typically have some downtime during your main job. Things like article writing and data entry can be done from anywhere, and you don’t need any special experience.
Other opportunities to earn extra money include pet sitting, selling crafts online, and becoming an Uber driver. You could even rent out a spare room for some extra cash!
If you don’t have the potential to work extra hours at your job, you may want to think about a part-time gig. Working two jobs doesn’t need to be a permanent venture; it is a means to an end. Once you reach your financial goal, you can quit the second job.
Where Can You Cut Costs in Your Budget?
Cutting back on discretionary spending is the best way to save, but finding enough extra money to put away in savings monthly isn’t always easy. Why not create a budget for yourself and examine what areas you could cut? Even if it’s just a small cut, it will still add up and be worth it, helping you reach your travel fund goal faster.
Some of the most common areas where you can save money include:
- Streaming services
- Cable provider
- Cellphone provider plan
- Dining out
- Transportation costs
It may require you to get a little creative, but remind yourself of your travel goal and how worthwhile the cuts will be. They can help you reach your financial goals much faster, which means you’ll be able to travel much sooner.
Consider How Investments Can Help You Reach Your Financial Goals.
Then there are investments you can make that can make it possible for you to reach your financial goals faster. There are plenty of routes you can take, such as CDs (Certificates of Deposit). These are often described as a relatively safe style of fixed-income investment. You can use this tool to calculate the return of a CD, so you know exactly what it would add to your travel fund.
Make Use of Cashback Apps and Websites
Take advantage of cashback apps and websites: Utilize cashback apps or websites when making everyday purchases. These platforms offer rebates or cashback on eligible purchases, allowing you to accumulate savings over time. Transfer your cashback earnings directly into your travel fund—every little helps!
Leverage Travel Rewards Credit Cards
Consider applying for a travel rewards credit card that offers sign-up bonuses, points, or miles for travel-related expenses. If you use the card responsibly and pay off the balance in full each month to avoid interest charges, it won’t cost you anything, and you can accumulate the rewards and redeem them for discounted or free travel expenses. Doesn’t that sound like a no-brainer?
Plan a More Affordable Trip
If your travel fund is taking too long to grow, consider downgrading your original plan and doing something a bit more budget-friendly instead. Plan budget-friendly day trips or weekend getaways that allow you to experience new places without breaking the bank. This can help satisfy your wanderlust while you continue saving for bigger trips.
It’s easy to tell yourself that your travel dreams are just that—dreams. Thanks to these tips, you can turn that dream into a reality, hit your financial goal, and go ahead and book your holiday. And if you stay consistent with your efforts, you could be traveling sooner than you imagined.