When money is tight, the annual holiday is often one of the first casualties. “How can I save money for travelling?” is a common question, and we have some answers for you.
You will need to be disciplined and it may take some effort. But if you stay focused on your goal, you can be rewarded with a well-earned break.
Let’s take a look at some simple ways to save money for travelling.
Use research to create a travel budget
Think about where you want to go and for how long. Then research every aspect of your trip and work out the costs.
Remember that the cost of travel doesn’t only include transport, accommodation and food. You may also need travel vaccinations, travel insurance, visas and/or tourist permits depending your destination. Also, think about any extracurricular activities that you want to participate in while you are away.
The objective is to end up with a travel budget that covers all aspects of your trip. But be realistic. It’s pointless including the cost of a first class return flight if you can’t afford it. Alternatively, don’t opt for the cheapest hotel in a potentially dangerous area in a bid to cut costs.
Once you’ve established your travel budget, add on 10% for contingencies and emergencies. Record and keep the breakdown of all costs. A realistic budget is beneficial because it transforms your dream of travel into a reality that can be achieved and it gives you a realistic goal.
Reduce your potential holiday expenditure
When asking yourself how you can save money for travelling, look at your travel budget breakdown and investigate ways to reduce costs.
Use comparison websites for cheaper deals on transport. Investigate whether you could reduce the price of accommodation by opting for a stay in a private property using an agency such as Airbnb. Consider choosing self-catering accommodation which will allow you to cook some of your own meals.
If you can be flexible, avoid travel during the peak season period from mid-June to August. Instead plan to travel during the off-peak season between November and March.
Choose a travel credit card with no foreign transaction fees or cash withdrawal fees. Check out our list of the best travel credit cards.
Plan ahead
Generally, when it comes to travel, spontaneity coupled with last-minute booking will be more expensive. Planning ahead is definitely the best approach to saving money when travelling.
Aim to reach your savings target at least two or three months prior to your trip. If this is not possible for the total amount, then do this for the airfare. This is because airlines allocate a specific number of cheap seats on every flight. They are very popular, so you need to book early.
Similarly, the most affordable and cleanest accommodation in the best areas will get booked first. So if you plan ahead, you will have the benefit of choice.
Look at your existing finances
One of the most cost-effective ways to save money for travelling is to look at your existing finances. Creating a household budget will give you an idea of how much you can save on your existing income.
Tracking your spending using a budgeting tool will give you valuable information about your current spending habits.
Be critical and think about where you can cut spending. When considering how you can save money for travelling, consider cutting back on nonessentials that you are currently spending your money on. This could include a gym membership, entertainment subscriptions and meals out at restaurants.
If you can free up some money every month, it might be worth opening a separate savings account to build up your travel fund via a monthly standing order. Check our list of the best savings accounts of 2020.
Increase your income
If you are unable to save money for travelling, then you might consider an additional income. There are a number of different ways you can do this.
Taking on a part-time job is the traditional route of travellers through the ages. This includes anything from bar or restaurant work to dog walking or house cleaning.
However, if you have internet access there are many other additional options available for earning extra money. These include freelance writing and/or paid online surveys.
If you are wondering how you can save money for travelling but don’t have time for a second job, then maybe the answer is in your home. You could have a sort through your stuff and consider selling things you don’t need or want on eBay.
Take Home
Research and planning are key, so do take your time. Saving money for travelling does take some effort but thinking about your end goal should be more than enough motivation.
What next?
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