Want to travel the world, but you are not sure about how to build up your savings? I will show you how to save money for travel and build a traveling saving plan without depriving yourself! You don’t need o to be rich to explore the world!
Do you want to travel the world?
But you are unsure about how to save enough money for your adventures…
Saving for your vacation doesn’t have to be hard.
I’ll show you how little changes you can make will help you to build up enough savings for the vacation of your dreams.
I was only 20 years old when Dan and I went on our first vacation in Paris. It was so romantic! We were both still at university, and we managed to save enough by earning extra money and taking some extra jobs.
So yes! I know what I am talking about!
In this article, I will go over the steps you can take to save money to travel the world, including ways to make it easy for you to start and help you reach your goals even faster.
How to Save Money For Travel
Having your destination and travel dates in mind is great but knowing how to save money for your trip is the most important step.
You have to start thinking of this vacation in baby steps – here’s how to do it.
1. Open a savings account for your travel fund
We’ve all been there. We start saving in our regular bank account, only to spend that money on a night out with friends or on that jumper we really like.
If you are serious about saving for travel, you need to set up a savings account. Opening the account is a symbol of your commitment to saving.
When your vacation comes around, you’ll have the money you need to do everything you want while also having enough for emergencies.
This is one of the easiest ways to reach your travel destination ASAP.
TIP: If you don’t know which savings account to pick, this one is by far my favorite. It gives you 20 times more than Bank of America’s base interest rate
2. Set a goal
Every great vacation starts with research. Decide where you want to go, what you will do, and how much all of those things may cost.
These numbers will give you an even better idea of how much you’ll need to save.
Your goal needs to be concrete enough to provide action. It should be reachable, but just out of your comfort zone, so you have to push a little to get to it.
This goal should cover:
- Your destination
- Your list of activities
- A date to leave by
- A target sum of money to set aside
How much money do you want – or need – to make?
3. Set a deadline
Picking a specific and relevant timeframe will encourage you to take saving actions. This will give you the push you need while also helping you to maintain a happy balance with your everyday life.
4. Track Your Spending
How can you start saving if you don’t know where your money goes every month?
Everything financial goal I reached in my life it’s been much easier to achieve since I started to track my expenses.
So, where should you start?
Download at least 3 months of your latest bank statements. Most banks these days will allow you to download .csv files that are easily importable in spreadsheets templates or budgeting apps.
Having at least 3 months will set you off on the right track to estimate how much you spend on average in a year.
And don’t forget anything!
Look for how much you spend on groceries, eating out, gas, entertainment, utility bills, coffee, etc.
You might be surprised by how little things add up.
Once you know exactly where your money goes, you can move on to the next step.
TIP: If you need more help, check out this in-depth article in which I share how tracking expenses can change your life.
5. Set a budget
Another essential part of any travel savings plan is your daily budget. A budget is a great tool that can be personalized to fit your needs. And when it comes to travel, budgeting can be the most effective way to get to your savings goal quickly.
Budgeting will include a variety of costs, including:
- Utility bills
- Rent and mortgages
- Car payments and insurance
- Student loans
- Streaming service bills
- Groceries
- Entertainment costs (movies, dinners, trips)
- Gas
- And any other monthly payments
Consider writing down everything in a spreadsheet or notebook to clearly understand your monthly budget.
Or, download a budgeting app.
TIP: If you need more help with budgeting, find out how to set your own intentional budget here.
6. Reduce any unnecessary spending
I am not here to tell you to stop buying lattes or avocado toast.
But to start saving money, you need to consider what’s really important for you.
Something’s got to give.
Consider all the money you spend throughout the year.
You want to buy Chipotle for lunch every day. Assume that you work 20 days a month, and the meal costs you $15 (A lowball estimate for Chipotle). That’s $300 a month on lunches alone!
You can spend 20 minutes at home preparing your meals for a fraction of the cost.
Making your own lunch could save you $300 a month or $3600 a year.
Figure out what you want to intentionally put your money towards, and then cut out the rest as much as you can.
TIP: Check out this list of 35 Best Apps to Save Money on things you already do.
7. Make More Money
I am a big believer in not wasting money. You really need to decide what’s important for you, spend money on what you love, and save on everything else.
But a great way to put money towards your traveling budget is by making more. Finding a side hustle is easier than you think.
Some of the more popular ideas include:
- Selling clothes online
- Selling crafts online
- Filling out surveys
- Blogging
- Pet sitting
- Driving for rideshare companies
- Delivering food
- Renting space on Airbnb
Starting a side hustle doesn’t have to be complex, and it certainly doesn’t have to take all of your free time.
Earning a couple of hundred dollars a month selling things online can take a few hours on the weekend, but it will help you to reach your goal.
The sooner you start, the sooner you’ll find other ways to supplement income.
Opportunities are always knocking for those who are looking AND taking action.
Ready for the holiday of your dreams?
This is your money, your life, and your dreams.
Stay focused but remember to have fun. You’re not shorting yourself today to save for tomorrow. You’re disciplining yourself for the experience of a lifetime.
Go out and experience the world.
Now it’s the best time to explore!
Saurabh says
This article showed me how simple it would be to reach my objective after reading it.
Thanks!
Sara @ Gathering Dreams says
You got this!
Noah says
Extremely interesting read for budget travellers, thank you so much for taking the time to share this!
Sara @ Gathering Dreams says
Thank you, Noah 🙂
Tuppenny says
I love your cute travel savings plan! When I create a savings goal, having a deadline and a target amount are key for me. Without those I am likely to not achieve my plans. I also create a separate savings account so I can see my savings mount up – it inspires me to save more.
Sara @ Gathering Dreams says
Thank you Tuppenny 🙂
Glad you like the travel savings plan! I agree that setting a goal is key!
gursimrat thind says
Hey Sara, your post gave me so many ideas to save for travel. I am planning to go to my home country next January to be with my family. I will start working on some of these things. At present I am saving few dollars every month. But I need to accelerate my travel savings.Thanks for all these tips.
Sara @ Gathering Dreams says
Hey Gursimrat Thind,
Glad you found this post useful! 🙂
Romani says
This post really made me see how easy I could achieve my goal. Sponsor myself and get my life going. Time to put a plan into action.
Thanks!
Sara @ Gathering Dreams says
Hey Romani!
Yes, everything is possible if you put your mind to it 🙂