Last Updated on March 23, 2019 by WFD
Travelling is fun. Travelling is exciting and makes you a happier person. It’s important to travel this planet to see the beauty this world has to offer. Many are those who wish to travel the world – possibly to their dream destinations – to relax, experience different cultures, build meaningful relationships, or appreciate nature.
To do so, money is required; and this has been the blockade to several people. However, with discipline and determination, you can effectively save enough money for that dream vacation you’ve always yearned for. We show you how to achieve this below.
Practical Ways to Start Saving Money for That Dream Vacation
1. Create A Comprehensive Budget
Whether or not you earn a fixed regular payment, creating a comprehensive budget is the very first step to take. Prepare a spreadsheet that lists your monthly income against your expenditures. It could be your daily or monthly expenses. This allows you to track the exact things you spend your money on. In order to get a fair insight of your actual spending, it’s recommended you run this budget for at least three months; not forgetting to categorize the expenditures into “Needs” and “Wants.”
2. Evaluate Your Expenses & Stop Purchasing Things That Aren’t A Necessity
It’s now time to sit yourself down and evaluate all the things you spend money on – be it rent, utility bills, food, clubbing, alcohol, transportation, or clothes. Put all necessities under “Needs.” Any other thing left should be categorized under “Wants.” Before buying anything, ask yourself these questions.
- I) Do I REALLY need this?
- II) Is my life dependent on it?
Asking and answering these vital questions allow you to critically examine your purchases – making sure you spend money prudently on things you need for survival only.
3. Sell Items You No Longer Use
Are your clothes crying out loud for space in your wardrobe? If yes, consider selling some of the clothes you no longer use. There are some outfits that you’ve not worn for the past one year. There’s no doubt that you need not them again; sell them.
This encompasses abandoned mobile phones, unused bags, old televisions, shoes you no longer wear, and any gadget or item that only occupies space in your room. Selling them is a way of generating extra income for your dream trip.
4. Commute Less With Cabs, But More With Public Transport
If you live in an urban area, there are several means you could get to work or catch up with something in town. You can drive (if you own a car), take a taxi, ride on a motorbike, catch an Uber or Taxify, use public transport, or jump on a train.
All the aforementioned transportation means come with some level of cost—mostly determined by the traffic situation in town. Let’s all admit it, amongst all the transportation means listed above, public transport is the best deal if you want to save extra cash. It will be in your best interest to forgo comfort for some period of time; and jump on public transports in order to achieve that dream of wanting to take a trip to your cherished destination.
5. Cut Down on Your Outings With Friends
This will be a bit difficult if you’re the party kind of person or enjoy social gatherings. Spending time with buddies at the bar after work or during weekends isn’t a bad thing. However, you agree that money is always involved in such outings; and this will drain your account balance faster than Usain Bolt. The food, drinks, meat, pizza, and burger are all not free. In order to save yourself from incurring unnecessary costs, why not cut down on such outings. Prepare your own meals at home and save that money that would have gone down the drain should you have eaten at a restaurant with friends.
6. Open A ‘Goal’ Savings Account Dedicated to Your Travel
It’s time to head to the bank and open a savings account towards your travel goal. Make it a habit to consistently (daily, weekly, or monthly) feed the account, no matter how little it is. If you are a salaried worker, set aside a certain percentage of your monthly pay for that.
Assuming you save $100 every month, you’ll smile to an amount of $1,200 within 12 months (this is minus the money you saved by cutting down on outings, selling unused items, and ditching taxi for public transport). This amount can fund your in-country trip or can purchase your flight ticket depending on where you are heading to.
To resist the urge of embezzling the fund, NEVER link the account to any online store. This is a ‘goal’ account dedicated solely to your travel so make sure you don’t touch it until it’s enough to fund your dream trip.
7. Set Up A Reward System For Yourself
I like to be rewarded and you also like to be rewarded. In fact, everybody likes to be rewarded for achieving something great. That’s why you need to set up a reward system for yourself whenever you are able to achieve any of the goals you set for yourself.
For example, it is your goal to cut down on outings with friends in order to save more to for your dream vacation. You might crave to go and eat with friends at a restaurant but you resist this urge. For doing that, you’re able to save $50 by not eating outside. You can therefore reward yourself $5 – $10 for overcoming that desire. So now, you’ve been able to set aside $55 – $60. Wow! Isn’t that wonderful and fun?
8. Part Ways With Cable TV
Do you know the amount you pay for cable TV alone for a year can fund a trip? Let’s see how. Imagine your cable TV cost $70/month. That’s to say you pay $840 every year just for watching TV. Interesting but sadly, your work schedule might not even allow you watch up to 3 hours of TV a day. So why throw money away like that when you can save it for your dream vacation?
9. Cancel All Subscription Services
The gym, Netflix, Deezer, Hulu, Amazon Prime etc. are all taking a toll on your savings. Why pay hefty amount for gym membership when you can exercise at home? It’s only wise to set aside that money for your travel. The $10 you pay for Netflix every month is gradually eating into your savings without you noticing. You’ll see your travel fund grow when you eventually say goodbye to them all.
10. Buy Foodstuffs in Bulk
All foodstuffs you buy must be bought in bulk. The more you buy, the lesser the price—it’s as simple as that.
11. Stop Upgrading Unnecessarily
Honestly speaking, you don’t need the latest of everything in town. Is it not a total waste of money to buy the latest phone or gadget when you already own one that can perform the same task? Learn to make use of what you have instead of upgrading all the time. That money can go into your travel fund.
12. Say Goodbye to Expensive Name Brands And Embrace Generic Products
Generic products are equally good as their name brand counterparts. Name brands sell their names because they are popular in the market. You should know that popularity doesn’t equate to quality. So instead of buying name brand clothes, shoes, electronics, soaps etc. at very expensive prices, stick to generic products. You’ll be amazed with how much money you’ll save towards your dream vacation.
Now, the onus is on you to put these tips into practice in order to make that dream of yours come true. Even though it might not be easy, you’ll be elated you made rigorous efforts to be parsimonious in order to make your dreams of travelling to your desired destination become a reality. Best of luck to you!
How insightful has this article been to you with regards to saving money for your dream vacation? Kindly let us know by way of commenting. Not forgetting to share as well.