This site is part of an affiliate sales network and receives compensation for sending traffic to partner sites. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.
“Travel is one of the only things you can buy that makes you richer.”
– Anonymous
Allie and I have had the opportunity to travel to some amazing places over the years, and when we recount our adventures to friends, family, or coworkers, we are sometimes met with responses like “must be nice…” or “I wish I could afford to do that”.
The truth is, we aren’t independently wealthy and we’re also not taking lavishly expensive trips. We make travel a priority in our budget and know how to find good deals to stretch our dollar further. This post is meant to help dispel the myth that you need a horde of cash in order to afford travel, as well as provide a few tips on how to budget for your travel goals.
- Know your ‘why’
What is your travel goal? Do you want to take one international trip every year? Maybe you are in the bridal party of your best friend’s wedding? Take an epic Southwest Road Trip?
Whatever it is, it’s important that you know your “why”. Take out a pen and paper, or the notes app on your phone, and WRITE IT DOWN. Writing it down makes it real. Put it in a place you can see it or will review it often.
Knowing your “why” and having it in a place you can review later will help you remember what this is all about when the going gets tough.
Affording travel (for most) is about priorities, not about wealth and luxury. Therefore, at some point you are probably going to have to choose between saving for travel and…. doing something else. Knowing your why reminds you of your dream and helps you be accountable to your convictions.
- Do a little math
Just a little.
Now that you know your “why”, you are going to need to break out your calculator or excel for a few minutes.
Estimate trip costs
Take 20 minutes and do some googling about the place or places you’d like to go. Look at average accommodation and transportation costs. You can even google something like “how much does Florence cost per day”, just to get an idea.
Your goal here isn’t precision down to the penny, it’s just to build a rough target to save for.
Let’s say your trip is going to cost $2,500 and you’ve got 10 months to prepare. Now you can back your way into how much you’ve got to save per month, per week, etc.
Review your personal finances
Next, review your personal budget to take stock of where your money goes now and to see how feasible your trip aspirations are.
In the previous example, a $2,500 trip with 10 months to prepare would mean you need to set aside an average of $250 per month for the next 10 months.
Whether that seems daunting or like a piece of cake, the important thing here is to review your numbers and use real data to conduct a factual review of where your money goes. Then, depending on your situation, look at ways you could implement changes to hit your goal (or, if needed, make adjustments to your goal).
I track Allie and I’s budget through a template I built in excel, and I use personal capital to get a precise view of our actual spending.
Now that you know your numbers, consider this simple equation.
Income – expenses = discretionary income
Travel falls into what most would classify as discretionary income, meaning you don’t NEED it to survive (although sometimes I wonder if that’s true).
If you want to travel more, you need more money left over in the discretionary income pile. The two main ways to do that are to decrease expenses and/or increase income.
- Decrease expenses
Alright, I know it’s not sexy. Conventional wisdom might suggest you first focus on making more money, but in my opinion, choosing first to decrease your expenses will pay off in the long run.
Seeking to minimize expenses and develop frugal habits, in general, relates to mindset and decision making, whereas income can be a little more circumstantial.
What’s great about becoming frugal is that when you’ve learned to live with less, once you start making more money, you can save more.
Start Small
If you’re new to this, don’t be afraid. You don’t have to do anything drastic. Start small. Make coffee at home instead of going to Starbucks every morning. Cook at home instead of ordering out. Learn how to stay fit at home without an expensive gym membership. Admit you probably don’t need access to EVERY streaming service available and just stick with one or two. Then, put the difference you’ve saved toward travel. The idea here is to take small, incremental steps toward your goal by decreasing spending and saving the difference.
Feeling brave? Let’s move on.
Move the Needle with Housing and Transportation
In his book, “Set For Life”, Scott Trench argues the average American spends 33% of their monthly budget on housing and 17% on transportation costs. Combined, that’s 50%. Scott suggests that rather than focus on minimizing expenses in categories like food and clothing (which make up smaller shares overall), to do what you can to decrease spending in the larger, more expensive categories mentioned above.
Affording travel is a priority! How high of a priority is it for you? What are you willing to give up to afford to do it? Keep driving your not-so-new car? Live in a less expensive part of the country or part of town? This is a conversation Allie and I had early in our marriage. Fight the urge to keep up with the Joneses.
- Increase income
Let’s look at the other side of our equation. Income. This area can be a bit more fun.
How can you make more money?
Start a Side hustle
According to Fortune, nearly half of all Americans have some kind of side hustle. A side hustle is any work you take on in addition to your full-time job, usually freelance or contract work.
So what kind of side hustle could you start?
Think about what you’re good at.
Do you have an amazing voice? Look into doing freelance voiceover work. Great at marketing and social media? Reach out to some local businesses in your area and pitch them on helping with their social footprint.
Think about what you love.
Have a passion for animals? Offer dog walking or dog sitting services. Enjoy doing arts and crafts? Start an etsy store.
Since you’ll likely be doing this in the evenings or on weekends, think about things you both like and are good at, and what you could make a decent amount of money doing in a few hours here and there.
Sell stuff you no longer need
This is a very easy way to pocket some extra cash. Go through your closets, your garage, your attic, etc. and reach for those things you haven’t touched in years.
You know what I’m talking about. That collection of DVDs you haven’t watched. Those three (or thirty) shirts you haven’t worn. Your old bicycle that you never got rid of, even after you got the new one.
It’s never been easier to sell stuff through sites like Facebook marketplace, craigslist, or eBay.
Take a picture of some of those items you aren’t using anymore, and list them. It will take you about 30 seconds to list, maybe 5-10 minutes of messaging back and forth with interested parties, and however long it takes to meet up and get rid of the item. Allie and I have made probably $300 in the past 6 weeks alone just selling stuff we are no longer using.
Ask for a raise or promotion
About half of you reading this just got excited, and the other half just got nervous and sweaty.
Another great way to make more money is to ask for more. Yes, ask.
One of my life mantras is “you can’t get what you aren’t willing to ask for.”
I can’t tell you how many conversations I’ve had with people who are great at their jobs and believe they are underpaid, but have NEVER approached their boss to ask for a raise. It’s a topic that makes many people very uncomfortable.
You know your situation better than I do, so take my advice here with a grain of salt. But if you don’t ask, the answer is always “No”.
I’m not saying you will definitely get a raise. You may not deserve one. The company may not be in a position to pay more. Perhaps there is a standard cadence for cost-of-living increases or merit increases and the timing isn’t right. The point though, is to do some research, consider the timing, and thoughtfully approach your boss about the topic. Assuming you and your boss are on decent terms, the worst they can say is “No”.
Avoid Lifestyle Inflation
If you get that raise or start making a killing from your side hustle, keep living like you still earn what you were making before, and save the difference.
Too many people allow for “lifestyle inflation” and increase their spending in proportion with their income. Don’t give into the lifestyle inflation trap. Don’t try to keep up with the Joneses. You already learned how to live with less. Be content. Make more. Save the difference.
- Make it automatic
One of the best ways to save more is to make it automatic.
Hopefully, your paycheck goes to your bank account(s) automatically via direct deposit. I advise opening a separate bank account for travel savings, so that your travel funds can be set aside in their own account, and not commingled with other funds.
Know your travel savings target per paycheck, and set aside that amount of money each time you get paid.
You can do this manually, but it can also be automated easily with banks like Ally bank or Capital One 360 (I have used both) by setting up recurring transfers.
It is free to set up checking and savings accounts with either of these online banks. You could go as far as to open an account for each major expense or savings category (we have something like 15 accounts).
Once you’ve set up your recurring transfers, that amount of money transfers automatically to the account of your choosing whenever you get paid.
Allie and I implemented this method for all of our finances (paying tithes, paying debt, setting aside money for bills, saving, etc.) and I can say with confidence that it gave us clarity and helped put us on the same page about money. It also helped us reach our goals faster because it happened automatically.
Example: It’s time for us to renew our car insurance. I prefer to pay 6 months at a time versus monthly, which saves us about $150. Before implementing this system, I’d have to come up with a serious amount of cash. Now, I’m pulling that amount out of an account that I’ve been slowly setting aside funds for – automatically and without thinking about it. What used to be painful is now easy and exciting!
Give it a shot! Build a system today that your future self will thank you for.
- Stretch your savings with travel rewards + cheap flight deals.
Travel Rewards Cards
Most airlines and hotel chains offer loyalty programs and co-branded credit cards.
These cards earn rewards for your spending, redeemable with that airline or hotel chain.
For example, the Marriott Bonvoy Boundless® Credit Card lets you earn 6X points per $1 spent at Marriott properties and 2X points per $1 on other purchases. Spend $50 on dinner and earn 100 points towards a future Marriott stay. The card also gives you Elite status and one free night per year.
Other cards, like the Chase Sapphire Preferred® Card, offer points transferable to various airlines and hotels, plus many other perks.
Many cards also offer large sign-up bonuses for meeting spending requirements within a certain period.
Here are links to several great card options:
Cheap Flight Deals Save money by signing up for flight alert services like Faredrop. These services find and notify you of flight price drops. Allie and I have saved thousands through these deals. Be ready to act fast, as deals usually last only 24-48 hours. Use your rewards credit card for extra points!
***
I hope you’ve learned something that will help you save and plan for your upcoming trip!
Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post..