How to save money for your dream holiday
Have you ever thought about how you’re going to save enough for that dream vacation of yours? We’ve all been there, believe us. We understand how tough it is to save money for travelling, especially with the cost of living growing year after year and unexpected costs popping up everywhere. Whether it’s a costly inspection for your car or a kitchen leak, these things cost money… and it all adds up! Sometimes it’s just a bad habit, like spending your entire salary on clothing or takeout, but other times it’s simply a lack of knowledge on how to save effectively.
Do you ever have the feeling that you are paid and then your money suddenly vanishes? Yes, us, too! If we don’t keep track of where our money goes, it might seem to vanish without a trace. But it’s not all doom and gloom. There are several cost-effective techniques to save money that you may take advantage of. Saving for travel might be intimidating if you don’t know where to begin, but don’t worry – we’ve put together the definitive guide to help you save for your next vacation down below.
1. MAKE A BUDGET OF ALL EXPENSES AND EARNINGS
Making a spreadsheet is the simplest way to keep track of your money. Divide the spreadsheet into categories like bills, food shopping, eating out/takeaways, hobbies, and other spending. This will help you see where your money is going and where you may reduce it. If you spend $50 a month on takeaways, this is a simple thing to cut back on, and portion of that $50 can go directly into your travel account. If you’re lucky, certain mobile banking applications will incorporate this feature, making things even easier!
Of course, we’re not suggesting that you eliminate everything. Everyone needs something to look forward to, especially in these difficult times. If you have a hobby that you like and that you use to unwind, don’t give it up entirely. Simply consider how much you are spending on this hobby and set a spending limit for yourself.
2. PAY OFF HIGH INTEREST DEBT
Paying off high interest debt is one of the most important aspects of becoming financially independent and is important whether planning a holiday or not. Interest works for banks and credit cards and takes more of your hard earned money each month it is still owed by you.
Bill reminders and Online Bill Pay might help you stay on top of your debt. Simply plan out how much you want to pay and when you want to pay it. You can also receive payment reminders and eBills from payees that support electronic billing.
When paying off debt, consider the snowball method. Starting with the smallest debt, paying it off, and then rolling that same payment towards the next smallest balance as you work your way up to the greatest balance is how this works. As each amount is paid off, this strategy might help you gain momentum.
3. SET UP AUTOMATIC SAVINGS TRANSFERS
Having a savings account devoted to your trip is one of the best things you can do when it comes to saving for travel. As a result, when you are paid each month, you can put some of your money aside and not touch it. If you’ve made the budget spreadsheet we discussed before, you can figure out how much you spend on food and expenses and then set aside some money for yourself.
Working out a baseline amount that you want in your bank account at any given moment is an excellent approach to achieve this. As soon as you acquire any extra money, put it in your savings account.
4. REDUCE YOUR SHOPPING
This is a common spending habit for many people, and it’s the best thing to give up if you’re saving for a trip. Clothes aren’t cheap in general, especially those costly designer pants you’ve had your eye on (yeah, we’re calling you out!). The question you must ask yourself is if you truly need them. Or would you rather spend it on a plane ticket?
If you enjoy shopping for clothing and getting a good price, we have some good news for you! Simply wait and buy some outfits throughout your trip. If you are considering a vacation to Southeast Asia or India, you may get some great deals at the local markets.
If you need to buy clothes before your vacation, why not visit a local charity shop? Buying your clothes second hand is not only cheaper, but it is also much better for the environment.
Reusing clothes is beneficial for the environment since it reduces landfill space and saves large quantities of energy required in manufacturing the products. You can save money while simultaneously doing good for our lovely planet by shopping secondhand and giving clothing a second life.
5. CUT OUT THE FAST FOOD
This is a major one for us because we love eating! We enjoy dining out, and who doesn’t enjoy a nice takeaway? It’s the ideal way to unwind after a long day at work. You don’t have to cook, there aren’t many dishes to wash, and you can eat it while watching TV. Of course, dining out has been impossible during the recent lockdowns, which has resulted in even more takeout than normal! Now is the time to consider reducing your takeout expenditure and making them more of a treat in order to save money.
This appears to be a simple one, but it is all too easy to slip out of the habit if you don’t keep to it! If you do your bulk shopping on the weekend, you may plan and prepare all of your meals for the following week. Not only will this save you time throughout the week, but it will also mean that you won’t have to go to the grocery during the week because you have all of your meals prepared, and you’ll stop snacking!
Another point we’ll add to this list since it’s crucial: never go shopping hungry. We’ve all been there: you’re hungry and decide to go to the grocery. Once there, you see everything since your eyes are bigger than your stomach, and you wind up spending a fortune. This is a really simple adjustment that we strongly suggest.
6. STOP SPENDING MONEY ON ALCOHOL
To begin with, it’s not just about the money you pay to buy drinks. The money that crosses the bar or ends up in the cash register is certainly a large part of it – alcoholic beverages continue to be more expensive than most soft drink choices – but it’s not the full story. A night out without alcohol can help you save more than simply the cost of a few beers or a bottle of wine.
Other, incidental expenditures are incurred by drinkers in order to sustain their drinking habits. The Uber journey home because you’ve ‘become involved’ and missed the final train or are unable to drive. Because it’s too late to cook, you pick up a takeaway on the way home.
7. GET A PART TIME JOB
A part-time job can help you save money in two ways. You may either generate extra money through side jobs or reduce your spending by cutting out on stuff you don’t need. You may be able to save even more money by combining the two ways. If you pick up a job where you are working once a week every Friday night, not only are you earning more money but also you won’t be spending money on the Friday night you typically do. Just one shift a week for a year could pay for your entire trip! Also, if you are working at a grocery store or for a company that has an employee discount, it could cut your expenses as well.
Saving money with a part-time job is absolutely doable, but it does need effort and commitment. You may be able to start building your savings sooner than you expect if you find methods to reduce your expenses and make extra money through odd jobs and other means.
8. EXTRA MONEY GOES TO THE TRAVEL FUND
Things like tax returns, gifts, refunds, credits or anything you can sell should go directly to your travel fund. This is a great way to boost your travel account that we talked about earlier.
An unexpected tax return can be a great surprise where you get $500 or $1000 back from the government that you have been paying from your normal payroll deductions throughout the year. Act like you never received any of this money and use it to boost your savings.
9. ASK FOR HELP FROM FRIENDS AND FAMILY
If there is a holiday and you have a birthday coming up, you can remind your friends and family that you plan to go travelling in the near future and you would appreciate your gift being something related to that.
Friends and family can give you things like backpacks, cameras, microfiber towels or of course, money towards your trip. You can check out our blog post here that talks about gift ideas for travellers that you can ask for before your holiday.
10. SHOP AROUND FOR TRAVEL DEALS
There are so many ways to save money on your vacation if you know your travel hacks! If you don’t want to go hiking on a shoestring but still want to save money, why not consider an organized trip? They are often less expensive because you will be travelling in a group and most of your expenses will be pre-planned. You’ll pay a one-time fee that will cover the majority of your activities, several of your meals, and all of your accommodation! On our group trips, we also give out a budget guide ahead of time so that you can estimate all of your extra expenditures and prepare ahead.
(FYI – we currently have an enormous 15% off all our group trips, just use the code 15JAN22 at checkout. It won’t last for long, so get in quick!)
Now that you’re on the right path to have money saved for your dream holiday, which country will you be heading to first? You can check out all of our tours here. In the case of you already having money saved, don’t forget our Sri Lanka tour launched earlier this week and we still have space available in February and March! Why wait if you can travel now!?
If you want to check out these amazing UNESCO sites why not do it on one of our tours? We take care of all the planning for you, including an English speaking guide and your accommodation. So, if you’re feeling inspired for your next adventure, check out all of our tours here.