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If you want to travel the world, you need to save money. There are not a lot of people in the world who are lucky enough to travel without needing to save money. Most of the travellers are seriously committed to saving money to travel. I’m going to tell you how to start a travel savings account so you can do the same!
There is one thing that’s going to help you a lot in saving money and that is cutting out on certain expenses. The small expenses usually add up to being the most expensive ones. I have written an entire blogpost about it so I won’t go into detail. However, I definitely recommend reading about things to stop buying to save money for travel and combine those tips with what you’re going to learn in this blogpost. The combination is key!
How To Start A Travel Savings Account
We want to create a motivating savings account to make sure you’re always excited to save the money! We don’t want to feel “ugh” if we’re going to save money.
Step 1 Start a dedicated savings account
Create a savings account for only travel related expenses. Many saving accounts have the option to create smaller saving accounts within the bigger account. This segmentation within your savings account is key into keeping a clear view over your money.
It’s always a long process to save a good amount of money. A very important factor is to not be tempted by short term gains and having this segmented saving goal makes sure you’re not spending that money!
Step 2 Create a weekly budget
Firstly, we need to create a weekly budget for your daily and weekly expenses. Calculate how much you have left to spend after all your bills.
After this, see how much you have to spend on groceries and other important errands during the week. You’ll have an amount of money left for this like clothes, eating out and more fun stuff. This is where you need to set a budget for yourself. Leave some space to do fun things with friends and family so you don’t feel like plundering your savings account.
Step 3 Decide where and when you want to travel
The two important factors in deciding how much you need to save are your destination, how long you’ll be gone for and when you’re leaving.
This is when you’re going to decide how much money you need to save. Shorter trips are less expensive. Obviously, shorter stays in accommodations save you money compared to longer trips. However, longer trips have the advantage that staying longer in one accommodation usually gives you a discount.
Your vacation is more expensive during the school holidays compared to the off season. So if you’re stuck with the school holidays, you need to save more money! Your departure date is another important factor, in general – departures within 6 weeks are less expensive. It totally depends on the destination though.
Step 4 Automate your savings
This is what I have done for years. When you automate your savings, you don’t really have to think about it and you can’t forget to save money. Set a date during each month and your money will automatically be transferred to your savings account. Decide your weekly budget first and re-calculate it to your monthly amount of money. So easy. I’ve decided to save a percentage of my income. I’m a freelancer so my monthly income is different each time. A percentage makes it a lot easier for me to decide how much money I’m going to save. Even the smallest number makes a difference.
Step 5 Add more money as you go
Whenever you create a weekly budget, there are weeks when you’re left with more money than you thought. This happens to me when I have less groceries in one week or when I make more money. I really try to set aside the extra amount of money instead of spending it. It definitely helps to reach my goals faster.
There are a ton of options to make more money beside your regular job:
- Start a travel blog and monetize it like I did
- Start freelance jobs in your field of expertise: writing, designing, finance. The list is endless!
- Sell your old stuff.
Step 6 Keep track of your savings
If you automate your monthly saving goal and add the extra money you’re making, I promise you you’re going to reach your saving goal fast. However, it’s smart to keep a good track of your saving. See how much you still need to save, see if you’re able to save more money and if you can do the things you like. You want to find the sweet spot.
Saving is supposed to be fun and there are tons of trackers online. I have a yearly planner with monthly finances which is perfect for me. Other people might prefer an app or want to create a bullet journal to help keep track of the savings. Try some things and see what works for you! I’m personally not a fan of bullet journals because it takes me too much time, I love my pre-made financial planner in my 2021 planner!
Step 7 Reward yourself
We need to reward ourselves once in a while! It is so much fun to save money to travel the world. It’s one of the best gifts to ever give to yourself. Create small milestones in your saving goal, so you’re celebrating reaching the €5K mark for example. Go for drinks with your friends, buy a nice travel book based on your destination and really just reward yourself! Buy all of this from your weekly budget and not from your savings.
Step 8 Inspire, dream and motivate yourself
Honestly, I have moments when I’m ready to plunder my savings account and buy all the stuff I’ve ever wanted. That’s not going to help, obviously. Keep on inspiring yourself and keep your dreams alive. Visualize where you want to go, how it’s going to be and what it feels like when you finally have your toes in the crystal clear ocean or when you watch the epic sunrise over the mountain.
Motivation and inspiration are two key words when it comes down to the willingness of working towards a goal. These two factors make sure you’ll stay on track. If you find something that motivates and inspires you every single day, you’ve found your match.
Pinterest is the perfect platform to save your travel inspiration and even Instagram is perfect to save your ideas. I have multiple folders in my saved photos for different destination – so I know exactly where I want to go! A mood board is another great way to visualize your dreams and goals.
You’re going to crush your savings goal and make that dream trip happen. Where would you love to travel next?