7 Easy Tips: How to Save Money For a Trip

For many, the desire to see the world and visit far-away places is incredibly alluring. In a recent survey, millennials in particular have indicated that traveling the world is more important to them than buying a home or a car.

While traveling can be expensive, especially if you’re taking time away from your career to do it, there are ways to plan and finance your excursions that will allow you to experience all that the world has to offer, without going into debt to do it. Here are seven ways to save money for travel:

1. Know Where You’re Going

How to save on travelPart of any good travel plan is having a plan. Where you choose to go (and when) can impact everything from how much you need to budget, to the availability of rooms.

For example, cities like Tokyo can be incredibly expensive. Instead, consider traveling to more affordable locations like Thailand and taking shorter trips to hit the locations you wish to visit.

2. Create a Budget

Once you have a location in mind, start developing a budget. This budget should take into account every aspect of your trip from airfare to souvenirs. If you find your budget is becoming too big, look for ways to trim expenses to bring down your expenses. The more you understand how much you will need to spend, they more effectively you can save for your trip.

3. Start Saving Now

Don’t wait to start saving for your vacation. Get started today. Start by creating a separate savings account that is just for your travel plan. Look for a low or no-fee savings account with the highest possible interest rate.

Once you’ve determined how much you need to put aside each month, set it aside by setting up an automatic deposit or transfer. You’ll be less tempted to use the money if it’s not in your checking account, and you’ll quickly see your travel fund grow.

4. Maximize Your Rewards

Not all rewards programs are created equal. Knowing which travel reward programs are best suited to your destination can help you to get the most from your travel reward points.

Knowing which airlines or hotels service the area you’d like to visit will help you select the programs that will do you the most good. Remember, accumulating points can take time, so start planning ahead today.

5. Borrowing for Your Trip

If you’re concerned that you won’t be able to save enough money to meet your travel budget, another option may be travel loans. Keep in mind that all loans come with interest and specific repayment terms, so make sure you can pay back your loan when you get back.

One critical mistake to avoid is using your credit cards exclusively to cover the cost of your travels. While you may need to use your credit card for some expenses, going into debt and paying double-digit interest is a recipe for financial disaster.

6. Travel Creatively

How to save on a tripWhen you’re making your travel plans, don’t restrict yourself to hotels and package tours. Instead, find creative ways to explore your dream location without spending a fortune. For example:

  • If you don’t mind sharing a room, there are many international hostels that are clean and affordable.
  • If you have some flexibility in your schedule, try flying standby.
  • Live like a local. Shop and cook for yourself instead of eating out.
  • Look for homes and apartments for rent through services like Airbnb.
  • Find someone on Homeexchange.com who is willing to trade homes with you.

Remember, when all is said and done, travel is about what you experience, not what you spend.

7. Travel While You Work

One of the benefits of the modern era is that it is possible to go anywhere in the world and still earn a living. A growing number of world travelers are now part of the community of “digital nomads.” These are writers, designers, coders and even executives and business owners who have figured out how to travel the world and earn a living at the same time. We’ll go into the details of how to become a digital nomad in a future article, but by mixing work and play, you can experience everything the world has to offer and pay for it at the same time.

Looking for more ideas on how to save money for your dream trip? Come talk with us today! We can help you with high-interest savings accounts and other ideas on how to save for the future.