One of life's most worthwhile pleasures is being able to travel wherever you want. Unfortunately, sometimes our wallets can hold us back.
Regardless, it doesn't mean you have to withhold yourself of the pleasure of traveling. All you need to do is to learn how to be more budget conscious and financially literate when it comes to building your travel fund.
Being wiser about how you save up for your next vacation will help you enjoy your next trip to the fullest without worrying too much about whether you have enough funds to have fun and enjoy.
There are several ways you can be more financially conscious when it comes to how you save up for your next vacation. Although there are a lot of ways to save up money, make sure that you are disciplined enough to follow through. With that being said, here are several ways you can build your travel fund realistically. Check the tips below and apply them for yourself.
1. Have a Budget
Leaving your budget for your next trip open-ended is going to hurt you if you aren’t prepared enough. Dictating a budget allows you to narrow down the choices that you have when it comes to the places you go and the things that you do.
For example, you should set a budget for your airplane tickets. You can always cut down on airplane ticket costs by deciding to not check in any luggage with you.
Knowing the carry-on luggage dimensions required for your chosen airline will help you plan for this decision.
Having a budget will also allow you to go all out on your last day of the trip. If you find that you have managed to save a little extra during the trip, then you can spend a little more before the trip ends to reward yourself.
2. Setup a travel savings fund
Another way you can save before your next vacation is by setting up a separate travel savings fund other than your personal bank account.
Having a travel savings fund available will help you plan out whether or not you're able to afford to go on a trip anytime soon.
If your travel savings are combined with the rest of your finances, it can be confusing and you might think you have more than you have for travel.
A separate travel savings fund will give you a realistic account of how much money you’re working with. Plus you won't have to dig into your personal finances to fund your travel dream.
3. Set a savings goal
Setting a goal for yourself when it comes to savings will help you have a better image of what you are saving money for.
Planning out your savings plan for your travel will help you keep that goal in mind. One way to do that it by setting benchmarks for yourself where you get to reward yourself once you reach the benchmark. For instance, setting a savings goal so you can buy the best luggage brands.
Setting a savings goal will also help you figure out how much you want to devote to your travel funds every month. You can then account for how long it will take you to be able to reach your savings goal and then you can plan your travel accordingly.
4. Cut your expenses
Learning how to cut your expenses is not only going to benefit you in terms of having more money to devote to your travel fund. It will also help you in the long run because you won't have to spend a chunk of your money on expenses that you probably shouldn't be spending on anyway.
One of the ways you can cut your expenses is by figuring out what sort of bad financial habits you have developed over time and then work on them.
For example, maybe you find yourself easy prey for a lot of sales and discounts. If you're aware of this fact, you will be more conscious about your purchases during a sale. Before you purchase any of the items, try to figure out whether you need them.
Cutting out those bad financial habits is going to significantly improve your way of life and will help you become better at managing your money.
5. Earn extra money
If you want to build your travel fund, you might want to consider having an additional source of income that doesn't require too much work from you. You can then devote the money that you earn from this side income all towards your travel goals.
By finding an additional source of income for yourself, you won't have to strain your personal finances to be able to see or travel to new places.
6. Pay Off Debts
It's not wise for you to keep going on vacation when you have a lot of debt breathing down your neck. Aside from working on saving up for your next vacation, you should also remember to devote a chunk of money towards paying off your debts.
Building your travel fund requires quite a bit of skill and money management but it doesn't have to be that complicated. As long as you have the discipline to reach for your goals, then you should have an easier time saving up for your next vacation.
Kate Manning loves to write about personal finance and the world that circulates around it. She loves cheap Italian wine, sunshine, eating copious amounts of carbs, running, writing, and music.
Josh founded Money Buffalo in 2015 to help people get out of debt and make smart financial decisions. He is currently a full-time personal finance writer with work featured in Forbes Advisor, Fox Business, and Credible.