How to Save For a Trip
Saving money for the trip is essential part of travel preparation. Anybody is equal to the task. While the main point to remember is to stay consistent and mind your aims when saving money. The time required for money accumulating is fully depends on willingness to travel. A great decision here is to open a bank account for travel expenses. Surely you can keep savings at home, but when doing this, you deprive yourself of deposit interest rate and be constantly tempted to spend money on daily expenses. For travel purpose, it’s much better to obtain a travel credit card.
Unfortunately, ordinary trip usually requires money to pay the bills (but surely you can minimize expenses). Saving money means reconsider your daily expenses, determine the ways of money leak. Make a note when purchase is made, do this every time during the month or two to get the idea where the money is vanishing. This way of financial management is well suited for everyday life. It shows well items on which you are used to spend money without even thinking about it. So, you decided to reduce spending. Great idea! The following items are best to start with: housing, transportation and food. In addition, it makes sense to consider the need of those small purchases that you make every day. Since these little things add up a decent amount at the end of the month.
Make a Personal Budget and Keep Track of Spending
This is the first thing to do if you have decided to start accumulating money for a journey. Create a spreadsheet or use application to make personal budget. You can use an ordinary notebook to record your income and expenses. Analyse your budget at the end of each week or month. This would help you define what are the biggest expenses and which of them could be reduced.
For example, when I started tracking my spending, I found out that I was visiting coffee shop three or four times a week, leaving there from $10-15 USD at a time that is, from $40-60 USD per week. In order to cut expenses and save more money for my trip I reduced visits to once a week. This useful habit helps you in tracking home budget and reconsidering spending, modifying them to achieve the desired goal.
Stop Impulsive Purchases And Unnecessary Spending
This item is one of the biggest budget absorber. All money you save would support your trip or while being on bank account allow you to accumulate faster. Only buy things and pay for services that you actually use on a regular basis. Try to change your purchasing habits, such as visiting movies less often. By paying from $12 to $19 USD for one ticket, depending on state, you can enjoy films and TV series on the Web for a month.
Stop your fitness club membership if you don’t visit it regularly. Perhaps you would find home exercises or outdoor jogging more attractive, while the money saved would add up significant amount for your trip. To avoid impulsive and unnecessary spending compose your shopping list when you go to the store and buy things and food according to it.
Reconsider your budget, get a clear idea of what you exactly spend your money on. Mind that unused things just claim an odd space in the closet.
Sell Your Stuff
So you stopped impulsive purchases as stated in the previous paragraph. But what should you do with the stuff already in your closet? Sell it!
Good conditioned stuff are very likely would give you some extra money. Take a look around, maybe that TV or blender that hasn’t been used for many years are worth being sold? Before my first trip, I sold lot of unused stuff and got around $250 USD. Get rid of unused stuff, you would be surprised with benefit. Don’t forget to put money on a deposit bank account to save more.
Give Up A Car
Cars are extremely expensive to own because of insurance, repairs, loan payments, and gasoline prices. If you live in a city, use public transportation, ride a bike or just walk. You can save a huge amount each month on gasoline by doing so. On average, from $150 to $300 USD. This means an average annual savings of $2700 USD.
Save Electricity, Water And Gas
Usually the fact of uncontrolled streaming water doesn’t bother us. While soaping dishes or brushing teeth mind turning the faucet off. Don’t forget to turn off the light when you leave the room as well. As it all add up at the end of the month. Depending on a region average household bill for water and sewerage is $587 USD per year.
Reduce Cigarettes And Coffee Consumption
Smoking harms not only your health, but also absorb your budget. If you smoke a single pack in 3-4 days (an average of $12 USD per pack), monthly savings would be around $96 USD, and it around $1200 USD per year. You would notice the saving effect in a month. As for coffee, reduce consumption as well. If you drink a cup of coffee once a day, you probably spend around $3.50 USD per cup, this is about $110 USD monthly, and about $1300 USD yearly.
Prefer Home Made Food
There is a huge amount of meals that you can cook for takeaway lunch. To avoid headaches with cooking for tomorrow just leave some food during supper and pack it into a plastic container. This would allow you to save around $6 USD per day, for a total monthly $186 USD, per year – around $2200 USD. But avoid snacking, it’s not only kills your stomach, but empties your wallet.
I understand that this tip isn’t suitable for everyone. Someone may not spend a penny on entertainment, meanwhile somebody else would spend half of monthly income for that purpose. It depends on a person.
To reduce expenses while partying with friends, abandon restaurants and coffee shops, consider visiting free places. To calculate an average cost at this point is a complicated task. Usually, an ordinary bar visit costs $30 USD. It would be around $60 USD when visiting twice a week. And $240 USD monthly. $2880 USD annual.
Repay Your Loan
It is no secret that if you ever were forced to take out a loan, try to repay it as soon as possible. The sooner, the better.
Stick To a Grocery List
When going to the shop, compile a list of necessary purchases, and strictly stick to it. Keep in mind that having a credit card in your pocket might coerce you to spend more money than you expected. It happens because we don’t see money physically and it results in odd expenses. A nice solution here is to have a certain amount of cash required for purchases. When you get a salary set aside some certain amount and try not to exceed this limit. Surely it may become a complicated task to calculate possible savings. But let’s do it with approximate prices. According to my friend’s experience average weekly amount spent on unnecessary purchases is around $15 USD. That is $60 USD per month and $720 USD per year.
However, saving for travel doesn’t always mean modest life. It’s essential to indulge yourself from time to time with a cup of coffee or partying with friends, go shopping. The point of saving is to make adjustment in daily expenses, and start keeping expense records. You can greatly increase your travel budget without attracting additional sources of income by sticking to these steps.