Have you got a dream trip in mind but are wondering how on earth you will be able to save up the money for it? We’ve been there! Saving is a necessary evil when it comes to travel, but it doesn’t have to be hard. We’ve compiled a list of our top money saving tips that we’ve used to help us pay for countless trips below!
Create a (SMART) savings goal
First things first, you’ll need a concrete savings goal. This allows you to have something tangible to work towards, and allows you to track your progress.
We recommend following the SMART principle when setting your goals. SMART stands for specific, measurable, attainable, relevant and time-based. This principle allows you to set goals that are actually achievable so you won’t get discouraged.
Here’s an example:
Say you want to save money for a trip to Europe.
An okay goal would be: To save enough money to travel to Europe.
A SMART goal would be: To save $10,000 in the next six months for a one month holiday in Europe.
The first goal is vague and doesn’t give you anything concrete to track. The second goal is specific, and well informed.
In order to set yourself a SMART goal you will need to do bit of research first.
How long do you want to travel for? When do you want to go? How much money will you need? Remember to account for flights, accommodation, food, transport, travel insurance etc. Make sure to include a bit of buffer money so that you can enjoy your trip without stressing about money.
Once you are clear on the exact costs and your timeline you can break down how much you need to save into manageable chunks.
Say you want to save $10,000 in six months, then you need will need to save roughly $830 a fortnight. Now have a look at your income and budget and see if this is manageable. If not then consider giving yourself more time to save or see if you can cut down the costs of your trip.
When it comes to saving you will unfortunately have to prioritise a little. We’re not saying you have to give up everything you love, but it is important to be wary of what you are spending your money on. Consider limiting dining out, take public transport instead of Ubers, and resist buying new clothes. These costs can add up quickly, and the short term pain of cutting out some things will be worth the extra boost to your travel savings.
Put things into perspective
When you’re saving money for travel it helps to have an idea of how much things cost in the countries you’re planning on visiting. For example, if you know that a hostel room will cost you $20 a night, then you can think about your purchases in term of how many nights of accomodation it will buy you.
Is that expensive meal out worth a few nights of accomodation? Sometimes the answer will be yes, in which case enjoy that meal! Other times it will make you rethink your purchase, and you can put those savings towards your travels.
Keep track of your savings progress
Keeping track of your progress and small wins is so important. Open up a separate savings account dedicated to your travel savings. This allows you to easily monitor your progress, and removes the temptation to spend the money on something else. Celebrate when you reach savings milestones to help keep your motivation high.
Earn some extra cash
If you want to quickly boost your savings, consider different ways to earn a little extra money. You could work extra shifts or overtime, tutor, sell unwanted items on Facebook, picks up jobs on airtasker etc. This extra work doesn’t have to be forever, and can give a quick boost to your savings.
We know everyone’s situations are different, but with a little planning and hard work it’s definitely possible to achieve those savings goals!