It happens to us all. When the travel bug bites, the feeling goes deep and we can’t shake it until travel plans are set in motion. Wanderlust. Whether it’s summer vacation or you’re just in a rut and need a change, travelling is a fun, exciting, character-building adventure!
But how do we afford to pay for the holiday?
With bills and loans to pay every month, it’s no wonder why it’s tempting to just charge your trip on your credit card or dip into savings. But put down that plastic: there is another way! Some simple planning will save you enough to be on that plane, train or bus in no time.
Make saving automatic.
Budgets are often a tough sell. While it’s important to know your income and expenses, budgets tend to drain your valuable time and energy, and often aren’t realistic. The key, instead, is to make your saving automatic! New York Times bestselling author David Bach has written about finance habits for years and says the best strategy is to make your saving “automatic.” In this case, that means setting up a separate account specifically for your travel dreams in addition to your everyday chequing or savings account.
Once you get paid, a portion of your paycheque will be transferred directly from your everyday account to your travel account without you having to do anything! Most banks offer three options for setting up a new account:
- Visit your bank’s local branch and speak to the teller
- Call your bank’s telephone support
- Set up a new account through online banking
Set it, then forget it.
Making your saving automatic is a great first step because it easily creates a place for you to put your savings while getting the satisfaction of seeing the amount in your account grow with every paycheque. Plus, there are even more ways to add to the foundation you’ve just established with total ease!
Get an accountability-buddy.
Travelling with a friend? Work together to find creative ways to cut costs leading up to your trip. You know each other and your habits. Look at your routines to see if there is anywhere either of you are mindlessly spending (hello Starbucks) and divert that cash to your dream trip account.
Support each other in your efforts to save by Snapchatting your homemade meals. Avoid the temptation of the office Starbucks run and sip your home-brewed coffee together in fun mugs. Text your travel buddy when you’re thinking about making an unnecessary purchase – they’ll help you determine whether it’s a “want” or a “need.” Add the extra cash you free up into your dream trip account as soon as possible so you don’t spend it elsewhere.
Are you competitive? Set a weekly or monthly savings goal and see who can meet or surpass it the most often. The winner gets bragging rights and buys the first round at the first stop on that German pub crawl you’re both so excited to experience.
The added benefit of saving up with your travel buddy is that it adds to the experience – you’ll strengthen your bond long before you start to pack your suitcases.
Reward yourself!
Saving really doesn’t have to be about deprivation. Download a fun app like Tip Yourself and stash some extra cash for your trip every time you achieve a small victory, like cleaning your room or crushing that intense fitness class at the gym. It can get addicting!
Invest in an item that, in the short term, is an expensive little luxury but will save you more money in the long run. Do you have a smoothie addiction? Buy yourself an awesome blender or juicer and make them inexpensively at home. Love live music? Buy an instrument and teach yourself to play by watching YouTube tutorials.
While these are just a few examples of small changes that will save you money, you may also discover a new passion that could impact where you go and what you do on your holiday! These little self-investments can even flow into other areas of your life and improve your overall wellbeing.
Above all, remember…
Splurge when you make it to your dream destination. Holidays are not the time for being stingy. You’ve worked hard to make and save the money you’ve designated for your trip. Buy yourself a fabulous souvenir that will always remind you of your amazing holiday. Do that one extra activity that other travellers would skip. Why not? It’s your time. Enjoy every moment.
Now that’s what I call living rich.
