Tuesday, 28 January 2020

9 Ways To Save Money For Travel

Travel doesn't have to be expensive but flights and the ability to do all the things that you want to do while you're away do require some money. And I am all about a good deal, but spending your entire trip staying in a hostel, eating in a hostel, drinking in the hostel, sounds like a waste of what could've been an epic adventure. 

That's why I make a conscious effort to save for a trip so that I don't have to be pinching every single penny while I'm away. Today I'm excited to share these tips with you so that the savings you make today can lead to an epic adventure tomorrow. 

Let's Get Started

1. Set A Very Clear Goal.

Saving is not always fun, but knowing what you're saving for can be very motivating. If you want to go to Italy, put Italy as the background on your computer screen, put it on your vision board, make it the background on your phone. This way, the next time that you're out at the bar, and your friend says: "Come on! It's just one drink," you can look at your phone and realize that that $10 glass of wine is going to be so much better at a vineyard in Tuscany for €1. 

2. Track Your Expenses

Know what your starting point is and how you're progressing towards your saving goals. I use a free app called Toshi that allows me to input everything I'm spending and everything that I'm earning, and then it puts it into nifty little graphs for you that shows you if you're spending all of your money on food or entertainment really just where it is going. And I know that tracking doesn't necessarily mean you're going to save more, but it's like those food tracking apps, MyfitnessPal or Lose it where you input everything that you're eating, and then when you realize that that stale office doughnut is actually half your calories for the day, you may decide to pass it.

3. Create An Adventure Fund

Also known as a tax-free savings account. Why has your money just sitting in a checking account, when you could instead have it in a tax-free savings account where it's going to be passively earning you money? To get started with this, go around your house, collect all of your spare changes, dump it into one of those machines at the grocery store where they will turn it into bills for you, and then go put this to start off your adventure fund. 

Or just take all your spare change and bring it into the bank. They won't like you, but you will be surprised at how that money actually adds up. 

4. Automate Transfer Into This Adventure Fund.

I do it by 10% of my income on a bi-weekly basis, where it automatically transfers, so I don't even need to think about it, and the money starts adding up. 

5. Start Saving Now!

Also, compound interest is a beautiful thing, so if you start saving now, $5 today down the road is going to be $10. and you don't even end up missing it if it's not in your account ready for you to spend it. 

6. Avoid Sales.

This may sound like a stupid tip if you're trying to save money. if there's something that you're been meaning to buy for a long time, yes, go for the sale. But, what I'm talking about is avoiding impulse-buying just because it's a good deal. I can't tell you how many times I've gone to a store, seen a T-shirt that's regular $100 on sale for $10 so I'll buy it and it's still in the cupboard a year later with the tags on it. 

Don't buy anything unless you absolutely need it and don't buy anything unless you absolutely love it and know you're going to use it or wear it. Another good thing to ask yourself before you buy anything is how many hours would you need to work to make back this money. 

6. Know Your Tendencies.

It's a great insight into knowing why even though we know we should do something we don't necessarily do it. There are four different types:
  • Obligers
  • Questioners
  • Upholders
  • Rebels.
The majority of us are obligers, which means we're externally motivated. Obligers are fantastic at sticking to habits when they are held accountable by others but not necessarily when they're holding themselves accountable. That means if you know you want to start working out, and you set yourself a goal where you will wake up at 6 a.m. and do a whole workout, you're probably not going to do it. But, if you had a friend that you were meeting at 6 a.m. to go for a run with, you will actually show up because you don't want to let that person down. The same midset goes for money. Have someone else that's holding you accountable or doing the challenge with you, and you're likely to achieve this goal.

7. Get An Accountability Partner.

Tell someone. You know what? Tell everyone. It's going to make it so much easier for you if the people in your life know that you have a specific goal that you're saving for. So then, when you're skipping out on expensive activities or, say you're at the movie theater and you pull out your own bag of M&M's and your can of Coke, you're not going to feel so awkward doing it. 

8. Recruit Friends

Get someone on board in the challenge to save money with you. It's more fun this way because you can host your one movie nights in and have a cocktail party, or even challenge each other to see who can have the cheapest grocery bill that week. It's just more fun and motivating to do things that involve a little bit of sacrifice with other people. 

9. Look Online

If you don't have someone in your life that's willing to go on it with you, look online. There are plenty of Facebook groups and forums and Reddit groups of other people that are trying to save money as well. You can then share the wins, the losses, and strategies that you're using with others.

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