How YOU Can Afford to Travel: Part 2

Don’t let a lack of funds keep you grounded. There is a big world to see out there, and with a little financial know-how you CAN afford to accomplish your travel dreams.

Do you desire to spend a month backpacking through Europe?

Or could you use a romantic weekend getaway with your significant other?

Maybe a family vacation to Disney World is something you want to make happen for your crew.

No matter how simple or grand your travel plans are, you can make them financially feasible with some careful planning and a realistic timeline.

In this 3 part series I’m offering simple (although not always easy) steps to making travel affordable:

Part 1: Make More Money
Part 2: Save More Money
Part 3: Seek Out Travel Deals

I hope you already tried some of my suggestions for how to make more money and that your travel funds have seen an extra boost.  If not, go back and check out Part 1!

Now in Part 2, I’m offering practical advice for how you can save more money to ensure a steady pipeline into your travel budget.

** Get a jump start on saving for travel with my Vacation Savings Tracker! This handy tool is available on Etsy as a digital download.**

Define Your Travel Plans and Budget

This is a bit of a repeat from Part 1…and that should tell you how important it is!

Knowing exactly what kind of trip you want to take will help you set an appropriate budget and figure out how much money you need to save. Deciding when you want to fly off, hit the road, or set sail will determine how aggressive your saving needs to be.

With a specific vacation in mind it should be a little easier to commit to some sacrifices when it comes to spending. Imagine you have your sights set on taking your first cruise. When contemplating an expenditure you can ask yourself if the expense is worth it…or if the cruise is more important to you.

Establish a Travel Account

At this point you can envision the trip you want to take, have an idea of how much it will cost, and know how long you have to save up.

As you go about building up your travel fund, it’s important to stash your vacation cash in a designated spot. This will help ensure the funds do not get spent on other items or are easily squandered on forgettable purchases.

Ideally, you would have a separate savings account just for travel. Check with your current bank to see what kind of accounts they offer, and make sure you know how they work. Ask about hidden fees and understand how this account connects to your existing accounts.

If your bank doesn’t offer a good option, shop around. You may find a financial institution that is offering a bonus to open an account, and you can score an early boost to your travel fund. Just be sure to read the fine print, and understand the requirements to earn the bonus and any minimum balances required.

While I don’t recommend it, I know some people who bypass the bank and keep their vacation cash in the freezer! I know that sounds a bit crazy, but if there is a fire in your house, your money won’t go up in smoke. And while this cash is easily accessible, you’ll be less likely to make a rash spending decision as you will have to wait for the cash to thaw out first!

Out of Sight Out of Mind

Whether you choose to store your travel funds at an FDIC insured bank or in your Frigidaire, commit to regular automatic deposits.  This is one of the best ways to grow your travel fund quickly.

Determine how much money you can allocate to travel each month after meeting your fixed expenses. Be realistic. If you set the amount too high, chances are you will start dipping into your travel funds for non-travel necessities. And that pretty much defeats the whole purpose.

Even a small amount, set aside each month, will help grow your travel account.

And the sooner you start this important habit, the sooner you will be financially ready to see the world!

Be sure to set up a system to have those funds moved directly into your travel account. Most banks offer an easy way to set up automatic transfers, similar to setting up automatic bill payments.

The best part of this strategy…that money is out of sight and out of mind. Now your monthly payment into your travel account is just like a fixed expense. And with some careful budgeting, you can learn to live within your remaining discretionary funds.

Add Up Your Loose Change

Those nickels and dimes really do add up!

Keep a change jar in a prominent spot, and label it with your travel destination. Then empty your pockets each day and watch those coins accumulate.

I don’t advise taking huge bags of coins on an overseas adventure, so periodically you will want to cash in your coins…and add this to your travel account.

Steer clear of the coin counting machines found in discount stores as they will likely eat up nearly 10% of your savings. Instead ask your bank for paper coin wrappers and roll them yourself while watching TV. Better yet, get your kids in on the coin rolling fun!

If you prefer not to deal with cash, there are even apps that round up your expenses and sock away that change into a designated account. Why not direct all that spare change right into your travel fund!

I haven’t tried it yet, but I’ve heard good things about Qapital. In addition to saving the rounded up amount from purchases, Qapital allows you to set rules to manage and save money in whatever ways work best for you.

Decide When and Where to Cut Back

Saving money sometimes equates to spending less. That doesn’t have to mean never going out to eat or skipping celebrations. But it might mean trimming your budget or cutting back in certain areas…with the goal of funding your travel dreams.

You don’t have to live like a pauper to pay for your vacations. But if you can find some simple ways to cut back, your travel fund will grow faster.

• Downsize your Venti cappuccino.
• Take the kids to the playground instead of the movies.
• Opt for girls night in rather than an expensive night out at the bars.
• Enjoy a meal out with your significant other, but skip the pricey cocktails and head home to share a bottle of wine.
• See a budget friendly matinee rather than the full price prime time movie.
• Call the cable company and negotiate a better rate, or cancel cable all together and stick with Netflix.

Make these decisions with a joyful attitude knowing that each sacrifice is getting you closer and closer to your desired vacation.

If you really want to see your travel account grow, take the money you would have spent on these treats and add it to your travel fund instead!

Stay Tuned

By now you have found ways to make some extra money and are becoming a money-saving guru. You are well on your way to your next epic excursion!

** Use my Vacation Savings Tracker to really jumpstart your travel savings. This handy tool is available in my Etsy shop as a digital download.**

Next up, Traveling Tanya will share tips for how to get the best travel deals and stretch your vacation dollars, without sacrificing your travel vision.

Wherever the road takes you, make it a joyous journey,
Traveling Tanya

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