How I Save Money to Travel

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I’m often asked how I can afford to travel when I don’t actually have a hugely paid job. The key is that I decided to make travel a priority so I have a few simple strategies that help me save money to travel and plan those exciting future trips.

Don’t worry, I’m not going to suggest things like stop drinking coffee and eat packet noodles every day for a month.

The fact is that saving money to travel is more about changing your mindset and attitude to money. Once you make some simple changes you’ll find that you save more and save easier.

Initial Savings

The first thing I did was to open a savings account to keep my travel funds separate from all of my other money.

I then wrote down all of my finances. I simply noted this down on a piece of paper. At the top I wrote down my monthly salary and I listed all of my monthly outgoings.

I’ll be honest, for me this is quite simple. I still live with my parents so my rent is lower than it would be if I lived alone and I don’t pay utility bills.

Don’t forget to write everything down (travel expenses, gym membership, magazine subscriptions etc) that goes out of your account each month.

I then wrote down roughly how much I spend on food on a daily/weekly basis. This then gave me a rough estimate of how much I spend each month. I then added this amount to my list of expenses. If your outgoings are more than your incomings then you really need to rethink your finances and probably need to speak to a professional advisor before thinking about trying to save money to travel and see the world.

If however you do have money left over then note down anywhere between 10% and 50% of this amount (make sure you don’t leave yourself short, although I would suggest that it should be a minimum of £50.

Finally, I then arranged for a direct debit so that this amount automatically transfers from my Current Account to my Savings Account. I arranged for this to go the day after I get paid so I don’t actually try to spend it.

Start Budgeting

As a chronic spender I struggle to stick to a budget. Online shopping, contactless cards and mobile payments means that spending money is easier than ever, which in turn means that trying to save money to travel can be more difficult.

I then went back to the figure I wrote down for my weekly food spend and set this as my budget. My method for saving over the course of a week is simple: each Monday I head to the cashpoint, take out enough money for the week… then at the end of the week I count up how much is left in my purse and put this into a piggy bank in my bedroom. This process gets repeated each week.

On a quarterly basis (every 3 months) I count up how much is in the piggybank.

If I already have a trip planned and require foreign currency I take that money and buy the currency required. If I don’t have a trip planned I just pay that amount into my Savings Account.

Buying foreign currency in batches periodically means that you don’t get caught out by extortionate exchange rates. It will also save you having to carry large amounts of cash.

Extra Tips

Buy a reusable water bottle and a keep cup for your coffee. Not only will you be doing your bit for the environment but you’ll also find it saves the pennies. Make your coffee before you leave the house and you’ll be less likely to buy it on your morning commute.
Buy snacks such as crisps and chocolate in bulk, they are much cheaper when bought in multipacks than individually multiple times a day.
Batch cook food once or twice a week, divide into portions and freeze. It will save you time and money when you remember that you have something than can be reheated in the microwave than having to go shopping on your way home from work.
Take another look at your monthly outgoings and check what is essential. If that magazine subscription provides you with a much needed break and time to relax then keep it. If that gym membership hasn’t been used in six months then cancel it and then revaluate your finances.
We may have only just had Christmas, but if you have a birthday coming up then instead of letting friends and family buy you things you won’t use, ask for money. Tell them that you’re planning a trip and want to put the money to that – do something special on that trip and, take photos and send them a postcard showing them how you spent their gift.
Sell some stuff – I’m not saying you have to get rid of all of your belongings, just have a small clear out a couple of times a year. If you have a notice board at work then list a few items and add that to your savings.
If you’ve been to Europe don’t bother changing those Euros back to Sterling. The likelihood is that you’ll want them again in the future so it’s pointless losing out on those reverse exchange rates. Keep them to one side and save them for your next trip.

How do you save money to travel and see the world?

Let me know in the comments.