Top 10 Travel Fund Saving Tips for 2020
If you’re anything like us, you likely keep a running list of places you just can’t wait to visit. Unfortunately, travel is expensive — from taking time off work to buying those pricey flights to eating out several times a day. Sadly, it’s not often that our travel dreams actually match our bank account.
However, your next big vacation might not be as far out of reach as you once thought! With a few simple, yet impactful, lifestyle adjustments, your wallet is about to get a lot fatter — making all of your travel dreams come true!
Check out our top 10 travel fund saving tips for 2020:
1. Pick a Goal
Imagine running a race and realizing there was never actually a finish line! It always helps to have a goal in sight and to know what you’re working towards. When saving for your next trip, it helps to have a vivid goal to pursue. Rather than saving until you reach a random number, pick your ideal destination (within reason), do some research, and save towards the dollar amount that will make that trip possible.
Pro tip: It might even help to save some photos of the location and make them your phone or computer background — talk about motivation!
Photo by Elizeu Dias on Unsplash
2. Make a Savings Plan
Once you pick your destination and savings goal, create a savings plan. Say you want to save $3,000 in six months. That means you need to save $500 a month. If you know you’re going to be getting a chunk of money (tax refund, birthday gift, bonus) you can factor that in as well. Your savings plan will help you decide how to budget moving forward.
3. Make a Budget and Stick To It
Do you ever look at your bank account and wonder where the heck all of your money went? You’re not alone. Without a budget, it’s easy to spend money on things outside of our means. Creating a budget that’s in line with your savings goal and plan is KEY to getting to a place where you can take your dream vacation!
We recommend downloading one of the many great apps out there to help you create a budget and track your spending! Once you create a budget, it’s absolutely essential that you stick to it!
4. Cut Unnecessary Spending
Maybe you’ve created your budget but you’re finding it hard to stick to it and actually see your travel savings fund increase. You likely need to make some lifestyle changes and cut unnecessary spending. While this may feel painful to begin with, it’s an important piece to reaching your travel savings goal.
It helps to view your spendings in two categories — necessary and unnecessary.
Necessary spending includes expenses you can’t live without like rent, groceries, gas, insurance, etc. While unnecessary spending includes items that are mostly just fun — expensive meals out, getting manicures, or buying pricey Starbucks drinks. In order to create a budget that will actually get you to your savings goal, you’ll need to start cutting out those unnecessary expenses. It could even look like simplifying your necessary spending categories by doing things like getting cheaper groceries (ever heard of rice and beans?!), taking public transportation, etc.
This will look different for everyone, depending on how much you need to save and how drastically you’re willing to change your lifestyle and habits.
Photo by Sharon McCutcheon on Unsplash
5. Save ‘Extra’ Money
That birthday check from Grandma, a tax refund, a bonus, or a $20 bill you found on the side of the road — all of these fall under the category of extra money, a.k.a. money you didn’t expect or budget for. Your first inkling might be to use this money on something fun (it was extra, afterall), but pause and take a second to return to your savings goal and the dream trip that’s behind it all. Instead of spending that money, quickly tuck it away and don’t think about it again. Oh, until you’re on vacation and grabbing a margarita at the beach!
6. Get a High-Interest Savings Account
Once you have some money for your travel fund, you’ll need somewhere to put it, and ideally that somewhere would be a savings account that will actually make money for you! When you put your savings into your checking account or a standard savings account, your money merely sits. But with banks like Ally or Simple, your money keeps up with inflation and grows bit by bit. The best part of having a separate savings account is that your travel savings fund stays away from your day-to-day spending, meaning it won’t get lost in the shuffle of your normal life and accidently spent.
7. Wait 24 Hours
Raise your hand if you’ve ever made an impulse purchase? Yep, everyone has and it’s the ultimate enemy of your travel savings fund! We suggest waiting 24 hours before any purchase outside of your necessary expenses. See a shirt you don’t need but absolutely love? Instead of buying it right then and there, wait 24 hours and if it’s in your budget and you’re still thinking about it, go ahead and treat yourself.
This tip may seem simple, but you’d be surprised by how much it will save you from those dreaded impulse buys.
Photo by Cam Morin on Unsplash
8. Make Saving Automatic
Saving money is a lot easier when you don’t have it in front of you to spend. That’s why it’s important to make saving automatic by setting up a recurring deposit schedule each month from your checking account to your savings account.
9. Save in Community
Everything is easier when you’re doing it with someone! If you can, invite your partner, friends, or family members to join you in saving, whether they’re saving for the same trip or not. Not only does it help you to have someone to keep you accountable, but it also ensures that you’re surrounded by people who are making smart decisions with their money.
Photo by Omar Lopez on Unsplash
10. Get Help Planning Your Trip
While it may seem counterintuitive to pay someone to plan your vacation while you’re trying to save, this actually might be one of the best ways to save for your next big trip. By having a professional track down the best flight, hotel, and excursion deals for you, you’ll save a ton of money when all is said and done.
Click here to see how a travel planner can help you snag the deals of a lifetime and plan the ideal trip within your budget!
Are you planning on putting these travel fund savings tips into action? Let us know by commenting on our social media and tagging us in your photos of you on your dream trip!
