Tips for saving for travel and traveling within budget

Saving For Travel and Traveling Within Your Budget

By Jenn Neilson

Although for the last year and a half, most of us haven’t gone far from home, for travel lovers like myself, travel is never far from our minds. While right now might not be a great time to explore Europe or relax on the beaches down south, it is a great time to save for your next trip!

Here are some tips to save for travel in advance, and how to travel within your budget when we do finally get to explore the world again!

Saving for Travel 101

Have a dedicated travel savings account

This one is key. You need to have a place to put your money that is separate from your everyday spending. Most banks have free savings accounts where you can earn a little interest while you save for your trip. When it’s time to travel you can transfer the money to your spending account or credit card, or take some out in cash.

Build it into your budget

If you do a monthly budget, building a line for travel right into your budget is the easiest way to save for travel. If you don’t budget, now is a great time to start. It doesn’t have to be complicated or restrictive.

Automatic savings

Automation is your best friend! If you get paid on a regular schedule, setting up automatic transfers to your dedicated travel savings account on the day you get paid will guarantee you stick to your goal of saving for travel before you spend any money. Save money even when you don’t have a trip planned, then the money will be ready for you when you are ready to book!

Priorities

At Will Save For Travel I’m all about value-based spending; spending money on things that bring value to your life (without going into debt). If you value your daily latte, I’m never going to tell you to cut it, but if you are just grabbing coffee out of habit, or spending money on a cable package you never watch, consider cutting out those expenses in order to save money to travel.

Extra money goes into trip fund

Tax return? Birthday money? Selling stuff on Facebook Marketplace? All of that extra or found money can go right into your travel fund!

Figure out costs

If you’re planning a trip, knowing how much you need to save is key. A weekend trip is very different from a two-week trip. Do research on your chosen destination to get a rough estimate. Flights or gas, hotels, car rentals, and attractions will likely take up most of your budget.

If you want to take a trip by a certain date, divide the cost of the trip by how many months or paydays until you leave or until you have to make your final payment. That is how much you’ll need to save each month/payday.

If you want to take the trip sometime in the future, divide the cost of the trip by the amount you can afford to save to see how long it will take you to save up.

Jenn Neilson is a personal finance and travel blogger at Will Save For Travel, which focuses on planning travel, and budgeting for the life you want.

Traveling within Budget

There are ways to continue to save while travelling. Here are some things to keep in mind to help you stay within your budget—you don’t have break the bank just to getaway.

Forgotten travel costs

Now you’ve probably remembered all the major costs, but there are so many expenses that are easy to forget to budget for. Expenses like travel insurance, parking, luggage fees, snacks, or tips. These small costs can really add up! Make sure to save some extra for them.

Watch for hidden fees

Hidden fees can be a huge expense. Be on the lookout for cleaning fees on Airbnb, departure tax, or resort fees. Sometimes they can be avoided, but sometimes you’ll just have to budget for them.

Driving versus flying

Depending on where you live and where you are traveling to, you might have the choice between driving and flying. It’s worth doing your research to see which would be cheaper, or within your budget. As a self-employed person, I usually spend the extra money to fly because it doesn’t make sense to take the extra days off to drive!

Book a place with a kitchen

When looking for a place to stay, finding a place with a kitchen can help keep food costs down. Even if you just make breakfasts, it will definitely help keep you within your budget.

Look for free activities

Everywhere you go, there will be free activities! Getting out in nature is usually free (sometimes you’ll have to pay a park entrance fee), but also things like free museum nights, hiking, free walking tours or just exploring and people watching can be so much fun and either low cost or free.

Save money even when you don’t have a trip planned, then the money will be ready for you when you are ready to book!

Final Thoughts

I promise you’ll enjoy your trip even more when you know it's paid for and you're not worried about the credit card bill when you get home! Budgeting doesn’t have to feel restrictive, you can budget for whatever you want to do or buy.

Where will you plan to go next?

Jenn Neilson is a personal finance and travel blogger at Will Save For Travel, which focuses on planning travel, and budgeting for the life you want with some home renovations thrown in! She is also the co-host of the Travel Mug Podcast, where they chat about travel tips, guides and even some travel fails for destinations in Nova Scotia and around the world! Recently Jenn achieved her dream of working location-independent by becoming a virtual assistant. She moved back to her hometown and along with her husband they bought a 1850s home to fix up. While travel is her all time favourite thing, she also loves the beach, baking, and spending way too much time on Pinterest looking at home decor. Lately you can find her reading on her covered porch, or exploring Nova Scotia to get her travel fix!

Follow Jenn on Instagram @willsavefortravel, and listen to the Travel Mug Podcast wherever you get your podcasts!