While much of the globe is currently on hold with travel restrictions being imposed following the coronavirus pandemic there has been no better time for us to make some personal finance changes so we can get back to globetrotting!
Are you planning a dream getaway, package holiday, a solo trip or a budget trip and are stuck on ways to save for your epic journey?
In this guide, you’ll find our simple and most effective tips to save for money and embark on your latest travel adventure.
By making small changes today, before you know it you’ll be on your next flight out on a dream holiday.
Before we get started there are a few things you must consider before you begin saving money for travel.
How much are you looking to save and what is your travel budget?
Do you have any outstanding debts?
Are you currently sticking to a budget?
Do you have any ways to make some extra money?
Paying off debt
Paying off any loans or credit cards are one of the first steps you can take to make your travel goals. By freeing yourself of debts gives you more control over your money. While it can be a long journey to be completely debt-free, once you reach that goal it will give you peace of mind.
One option for borrowers is to transfer your credit card debt to a 0% balance transfer credit card where you will not be charged any interest. For example, if you owe £2,000 on your card you’ll only have to pay off the balance only. It’s important to note that some providers charge a fee on balance transfers.
If you have debt on more than one credit card it is worth paying off the most expensive card first. If, for example, you owe £1,000 on a card charging 15% interest and another £1,000 on one charging 30% concentrate on the card charging 30% and pay as much as you can. But make sure you continue to pay the minimum amounts on both credit cards because any missed payments can negatively impact your credit score.
We would also recommend that you set up a direct debit payment for all your credit cards so that you never miss a payment.
READ MORE: New York City Travel Guide
Set a travel savings goal
Before you begin stashing away cash for your dream destination, it is important to set yourself a savings goal. Think about your budget and how much you will need for the trip and how much money you need to save.
Have a look at your finances by creating a spreadsheet where you can clearly see how much you earn each month and the amount you spend. Or you can download a free monthly budget app onto your phone which can track your spending habits. There are also various online calculators that can help you plan a budget.
Are there any areas where you can cut back spending or subscriptions you can cancel like your current gym membership?
Once you have decided how much you need to save set up a limited access savings account and automate payments into your holiday fund each month. This way you can commit to saving for your dream trip and by using a limited savings account you’ll be less tempted to dip into your travel fund.
Let’s imagine that your budget for your trip is £1,000 and you want to save up for your dream getaway in the next four, six or 12 months. Over the next four months you’ll need to save £250, over six months roughly around £167 and in 12 months £83.
By setting realistic money saving goals you will get closer to reaching your target.
Sell your stuff
It’s amazing the amount of things we accumulate over the years that we no longer use but hold on to for whatever reason. Unless it holds sentimental value to you just get rid of it!
There are numerous websites online where you can sell unwanted clothes, furniture or sports equipment online – pretty much anything! With sites like Ebay to Amazon and Depop there are easy ways to sell your old items and make some extra cash along the way.
If you have creative talents you could even turn your handcrafted unique pieces into cash by selling on Etsy. It’s a great way to turn your hobby into something profitable and have some extra funds to add to your travel account.
Start a side hustle
Being in lockdown has given many of us a lot of time on our hands to start being a bit more creative. Maybe you wanted to start a blog or write a book but there are many different opportunities to earn extra money if you have a full-time job.
Find a side hustle that could be working from home or a second job as an Uber or Amazon driver or you could set up an online business. It doesn’t have to be something that makes you loads of money. Just something to help boost your income.
Do some research and find something which matches your talents or skill set. By doing this it will be easier for you to reach your goals and make some extra money.
Watch your savings grow
It is not an easy task but with determination and discipline you can reach your travel savings goal in no time. Check your account every couple of months to see how you’re doing.
Set yourself small targets and treat yourself as you hit each milestone.
When you reach your goal for this year’s holiday, set a new higher target for next year – maybe you could increase the number of destinations that you visit and more holidays.
Do you have any other tips to help others save for travel. Let us know in the comments!
Shelley & Michelle xx