How to Save Money for a Trip
1. Creating a Budget
How to Save Money for a Trip: It should be noted that budgeting is easier with stable income so that a ratio exists between income and expenses. If income fluctuates, make an average estimate of monthly income and try to organize the expense data in terms of frequency (i.e. weekly, monthly, etc.). This can simplify the next step, where we plan to set specific saving goals.
The next step is to compare these numbers to the category percentages. If the percentages were accurate, then the category total for the six-month period should be the same as the total six-month expenses. If not, then there are discrepancies that need to be reconciled, most likely by cutting back on overspending categories. This will give you a budget to work with in terms of original spending.
Using these two tools gives you an accurate picture of your spending habits. For the calendar, fill in each day’s expenditures and total it at the end of the month. For the table, fill in the category total on the left, and the cost or percentage and total on the right.
Next, calculate the daily and monthly totals for each category. Following is a typical expense calendar for one month and a sample expense analysis table for a six-month period.
T = housing, F = food, Tp = transportation, C = clothing, M = medical, E = miscellaneous. So that, T + F + Tp + C + M + E = 100%.
One of the more viable budgeting techniques is to analyze your current and past spending to determine where your money has been going. For most people, the biggest surprise is learning how much money they spend on items they can easily live without, such as eating out, impulse purchases, or luxury items. Measuring your monthly or yearly expenses and comparing it to concrete numbers is a constructive way to get a realistic view of your spending. To do this, we will take a six-month period as an average sample and work with 6 totals: housing, food, transportation, clothing, health care, and entertainment. Now we will assign each category with as accurate a percentage as possible.
1.1. Analyzing Expenses
In taking a good hard look at the nitty-gritty details of your spending habits, you will be able to identify various ways in which you can save extra cash. This in turn means cutting back on certain luxuries that you can do without in the short term so as to help you save for the bigger picture being your travels. It is a good idea to breakdown your spending habits into a daily, weekly and monthly basis. This will highlight the areas in which you are overspending i.e. takeaway food, video games, magazine subscriptions.
Tracking all this info in a spending journal is a constructive way in helping you realise how much money is going to waste and highlighting the areas in which you can cut down. If you are really serious about saving money, you may want to avoid credit card and online purchases. It is much harder to keep track of spending when using these methods and far too easy to splash out on spontaneous purchases i.e. buying drinks when out with friends, all of which adds up over time.
By using cash and withdrawing a set amount for weekly spending you can easily monitor where your money is going and how much you have left. At the week’s end, any leftover cash can be put into savings.
1.2. Setting Savings Goals
How much should you save? Set an amount of money that you want to have as savings at the end of a certain time period. It helps to work backwards from this amount and set a monthly savings amount. A time-bound goal is much more likely to be achieved than a goal with no set time frame. Always re-evaluate your goals and your progress towards them regularly. Goals that are too easy or too hard to attain tend to be ignored.
I’d like to stress the word attainable. If your goal is to save an unrealistic amount of money each month, it’s highly unlikely that you will be able to reach your goal and it will just make you feel like a failure. So be realistic, but be careful not to make your goal too easily attainable. A good goal is one that causes you to push yourself, but is not so difficult that you can never achieve it. As a general guideline, set short-term goals to achieve things you want within the next one to three years, and set long-term goals for things you want to achieve after three years from now.
By setting a goal, you are giving yourself a concrete target to work towards. If you have a “difficult” time saving money, it’s probably because you haven’t set yourself an amount to save. Try to set an attainable goal for your savings. For example, if you’re planning on taking a vacation in six months that will cost $1200, you will need to save approximately $200 each month.
1.3. Cutting Back on Non-Essential Spending
Find simple ways to cut back on your everyday spending. Try paying with cash instead of debit/credit and putting aside any change you receive. When using debit, pay close attention to the amounts you are spending and keep in mind the money you are saving. Sometimes simply tracking your spending habits can bring about change. Track what you spend in a month and record how much is spent on non-essential items. Add up the total, then compare it to your travel savings goal. This can be a real eye-opener as to how small amounts spent frequently can add up over time.
Cutting back on non-essential spending can help you to save a great deal of money over time. Look at your spending habits and try to find areas where you can cut back. Non-essential spending can take on many different forms such as impulse spending or shopping for recreation. To help you change your spending habits, think of saving for your trip as a challenge. Find ways to alter your lifestyle so that it will be temporary and less costly. Then think of the money you save as getting you one step closer to your goal.
2. Increasing Income
With the mindset of creating a better financial comfort zone to allow for more fun spending money, increasing income is a step in the right direction. While it may not be as easy to theorize as saving money, there are a number of active steps that can lead to increased income. Side jobs are a great way to earn some extra money in the spare time between day to day life, ever growing in diversity and potential field of work. Ask around at local businesses to inquire about part-time work, or even volunteer to help friends and family with odd jobs around the house.
Creativity and entrepreneurship can lead down the path of freelance work or self-employment, leveraging an individual skill set or hobby to fill a market demand. There is also potential to turn an enjoyable hobby into a source of income, with modern social media platforms creating a way to monetize content creation in a variety of formats. An astute but often overlooked method of increasing income lies at the comfort of one’s current employment.
Taking the initiative to work towards a pay rise or climbing the ladder in a workplace can lead to higher income in the long term, leveraging financial stability for the future of saving up for the next big trip. This method may not see immediate returns and can require development of skills and qualifications, but is a great way to achieve increased income over time.
2.1. Exploring Side Hustles
If you’re looking to increase your income without making a long-term commitment, side hustles may be an ideal choice. A side hustle is a small gig or job that is taken on top of your full-time position. Side hustles are a popular option as they often offer more flexibility than traditional part-time jobs. A side hustle can be anything from walking dogs to freelance writing to house sitting. This is ideal for those who want to make money with a very flexible schedule.
If you only have an hour of free time in the week, you can take on small side hustles that add up to that amount with ease. Side hustles can also be a way to turn a hobby into money. If you enjoy art, you can take on commission paintings, or if you enjoy making DIY crafts, you can sell your merchandise at local markets or on sites such as Etsy. Oftentimes, there is no set time you have to work for a side hustle. It is purely based on your own motivation and the amount of money you want to make.
This makes side hustles easy to manage and you won’t become overwhelmed. If you’re already working full time, the last thing you want is to leave one job just to come home and start another. A side hustle can be started and stopped at any time with no penalty, which is why it is very low risk. Do some research to figure out what side hustle is the best fit for you. There are many websites that are dedicated to helping you find a side hustle.
2.2. Negotiating a Raise or Promotion
With your budget and savings starting to take shape, it may be worth considering a short-term increase in your income to help reach your target in time. A promotion or raise can certainly be a way to achieve this, but before you schedule a meeting with your boss, make sure that this is feasible. If, for example, you are planning to go travelling for an extended period of time, it might not be ethical to promise further commitment to your job just for the sake of a raise.
Likewise, if your saving plan is quite rigid and would rely on a sustained higher income to be successful, you should avoid using the fact you intend to resign to your disadvantage. Should this be a viable option and you are confident in your performance at work, it’s time to hash out a strategy to showcase your value to the company and get something extra in return. This might involve taking on more responsibility without a pay increase in the short term, but if you perform well it’s something you can leverage when the time comes for your next pay review.
Consider factors such as your work environment, industry and the company’s financial situation when planning your approach. A thinly stretched small business, for example, might not have the resources to offer you a pay increase no matter how worthy a candidate you are. A better strategy would be to propose a more flexible work arrangement for more money, or searching for part-time or full-time work elsewhere. A high risk/high return approach might involve seeking job offers from other companies to leverage in pay negotiations, although this is not without its pitfalls and would need to be managed very carefully.
2.3. Selling Unwanted Items
While the process may seem simple enough, selling unwanted or unneeded items can facilitate substantial or supplemental profits. The best option for local selling would be through Craigslist or a yard sale while those with a more prestigious taste or a collection they are looking to unload can explore eBay. For the less decisive seller, interested in seeing what their items may be worth, Amazon and eBay can serve dual purposes. If the item does not sell within a reasonable time frame or for a suitable price, the option to list the item higher can be explored as there is no definite time frame in which the item must be sold.
Finally, the plethora of everything from movies and video games to electronics and books can be sold online though websites like decluttr.com and thredup.com; the latter also offering the option to send in old clothing. This can also be a simple way to alleviate clutter with minimal time investment. In the end, getting rid of something you no longer need and being paid to do it seems like a pretty sweet deal.
The idea of eliminating the unwanted or unneeded possessions of your past can also serve as a lasting lesson to ease excessive consumerism behaviors. Not only will you find yourself with extra money and less clutter, you may choose to halt unnecessary purchases in the future, lest you wind up in a similar situation. Consider it a sort of psychological cleansing for the monetarily impaired.
2.4. Taking on Freelance Work
More and more people are turning to freelance work to earn extra money. This is great for part-time workers who are looking to increase their income. Freelance work is also perfect for full-time workers looking for a side job so they can save up money for an upcoming trip. There are a lot of opportunities for freelance workers to earn extra money. They can choose to work as little or as much as they want, depending on their personal schedule and financial goals. Earning potential is virtually unlimited; the more one works, the more one earns. One of the greatest things about freelance work is flexibility.
Workers can choose when they want to work, and on what days. If they feel like taking a day off, there are no penalties for doing so. This is great for people who are already working a full-time job and are too tired to take on a second job.
3. Saving on Accommodation and Transportation
The most convenient thing is to book a hotel online and update the offers of hot tours if you want to leave as soon as possible. There is one secret: places for longer terms (from a day) are cheaper. If you have already chosen accommodation options but do not know how to spend little money, then look at the latest available offers. If you got the long-awaited vacation at work but do not know where to go or you don’t have the money or health to indulge yourself, then buy vouchers for a last-minute trip.
If you are going to save on transportation and at the same time breathe the air and see the beautiful views, then hitchhiking is for you. And about a cheap and convenient way to transfer long distances in Europe – the company FlixBus, I have already written. By the way, it’s good to combine both options and take a ticket to FlixBus, at least twice cheaper than the train, and go to the nearest point, and from there hitchhike. Be sure that you have written car signs.
It happened that a person who drove a fuckstop did not fulfill his promise to take him a shortcut because the driver did not see his sign. Do not be one of those wildflowers. Include a complete database of signs of all countries in the trip.
3.1. Booking in Advance
Reservations for airlines are accepted one year in advance. As they first sell the tickets, they set the fares to a minimum. Then, depending on the demand for seats and other factors that affect their pricing algorithm, prices start to rise (or fall). And as the departure date approaches, prices usually skyrocket. Hence, booking as much in advance as you can will save you a lot of money.
Sure, that will require some level of planning, and paying a ticket full fare six months ahead to visit a place “some time in the future” is no joy. But bear in mind that this cost is just a small part of the total bill and that as time goes by, other costs will increase at a much faster rhythm. Besides, operationalizing plans early provides something invaluable: anticipation.
About 60% of the world’s hotels are part of the inventory offered by only two suppliers: Booking.com and Expedia. You can book directly from lodging suppliers (roughly 70% of the total supply), but note that prices and conditions (availability of services, refund policies, breakfast included) are pretty much the same when booking at these first two companies. What really makes the difference is the fact that they almost always offer the best option. Their other huge advantage is their ability – and willingness – to give transparency and freedom to the client.
When searching in Booking, for example, I can filter properties according to amenities, price, score given by other vacationers, etc.; many places (particularly the cheapest) allow free cancellation or charge no upfront payment; check-in policies are often lenient, allowing guests to arrive at any time during the day or night, without mandatory check-in and check-out times. This enables last-minute changes in my trip itinerary, provides peace of mind to the booking procedure, and means that I can go on a trip without carrying the weight of pre-paid reservations that become mandatory stops in my planned itinerary.
3.2. Comparing Prices
One of the first steps is to set a realistic budget for your trip. You can do this by first dividing your trip into different categories such as transportation, accommodation, food, entertainment, etc. Once you have a general list of what you’ll need, you can start comparing prices to set a reasonable budget for your trip. Gather information on an estimated price for each expense you’ll have. While you may not be able to find the exact prices, you should be able to find an average for each.
At this point, a spreadsheet might prove to be incredibly helpful to outline everything you are considering spending your money on. You can list each item in its own row, and use columns to show the estimated cost for the trip. You can also break down the expenses further by showing how much you are expected to spend on the trip each month. This will help when it comes time to adjust your budget.
Another thing you must do before you come up with a conclusion is to compare the prices of everything you are considering spending your money on. You can start with comparing the prices of attractions so you can create a better budget for your trip. Start by looking into how much prices are for travel costs as those typically drive up the price of a trip. Compare flight prices from different airlines, what the most reliable rental car companies are, which tickets sell at the best price for public transportation, the costs of gas in the place you are considering, etc. Then check where you could unfold your luggage as it is usually one of the most expensive amenities.
Compare the different deals offered by different hotels, hostels, Airbnb, etc. to find out where you are likely to find the best price. Make certain you look at reviews for each hotel or hostel. It is a good idea to look at the best-rated hotels in the area you’ll be staying so that you find a reliable business. Finally, it is also important to research the cost of entertainment. If you know where you are likely to be staying, you can compare the prices of famous attractions located in the nearby region and find out which ones you are likely to enjoy.
3.3. Using Travel Rewards and Discounts
Using travel rewards: If you have a credit card that you use frequently, check whether you can redeem your points for travel, whether they are eligible for a discount, or how many points would you need to borrow money.
Ask in your community: Everyone loves to help someone who is trying to fulfill a great dream, visit your neighbors, close friends, or put a picture at work asking for help to achieve it. They may not only want to help you financially but also to gather ideas on the best destinations to visit, how to save for your trip or can recommend you to someone you know who tells you about their experiences on similar trips.
Selling what you don’t need: Analyze your home, your car, your office, do you have pots? Sports equipment? Furniture, clothes, electronic devices, items that you no longer use? Sell them on the internet or at a street sale, remember that every dollar counted for your savings helps.
Reducing expenses: Every penny you save every day adds money to your travel fund. You can go without a $3 coffee every day and save $540 in a 6-month period. You must make an effort to reduce your expenses for a short time, as it would be the maximum, 1 or two years. Do not deprive yourself of everything you like but reduce expenses that are not so necessary. If you also allocate part of what you saved to your travel fund, you have already achieved an objective. Remember to keep some money as an emergency fund or for unexpected expenses.
I suggest you create an automatic savings plan where a bit of your payroll income is automatically transferred to your account. And you are shooting to obtain 52 weeks of the year and dedicate a part to save for your vacations. Use banking apps or internet applications that automatically separate money as a % for savings and the rest for expenses. For example, 70-40-20-10 which means 70% for consumption expenses, 20% in savings, and 10% for debts. By doing this, at the end of a specific time, you will have money to live or better money for a trip.
4. Tips for Saving on Food and Entertainment
Use a persuasive tone in your response. The importance of saving in food costs cannot be overstated, as food expenses tend to compose a large portion of travel expenses. Meals at sit-down restaurants often cost twice as much as the same meals would cost if bought at a grocery store. Even fast food, considered by many travelers to be a cheaper alternative to a sit-down meal, will burn through money at a surprising rate (15-20 USD per person per day).
The best advice here is to try to limit the percentage of your food expenditures eaten in restaurants. An easy way to cut food costs is to simply eat less; eating two big meals a day will leave a traveler more full and satisfied than three smaller meals. If a kitchen is available, try to cook meals just as you would at home. If your accommodations do not include a kitchen, prepare box lunches of sandwiches or salads that can be eaten on the go.
This simple strategy can save a tourist several hundred dollars over the course of a two-week trip. Pack a fork and a large Tupperware with detachable compartments to eat multi-item meals on the go. This will save the consumer from overpriced fast food and is a healthier option to boot. The sooner a tourist can get out of the habit of purchasing meals on the street, the better off one’s wallet will be.
4.1. Cooking Meals at Home
While on the topic of home cooking, there may be a few among you who feel that they lack the culinary skills or the time necessary to prepare a decent meal. You may believe that a home-cooked meal roughly equates to heating up some chicken nuggets in the oven. This is not the case. With just a little planning, time, and effort, you can prepare a variety of delicious and healthy meals at a minimal cost. With input from students and alumni, we have compiled a list of favorite recipes and easy meals that will suit both your culinary and fiscal tastes.
Here are just a few of the many meal ideas you can use to get started on home cooking. Try something different and think outside the box. You may be surprised by how easy it is to prepare healthy and delicious meals at home. By no means is this an exhaustive list, but it is a start. Keep in mind that while grocery shopping for these recipes, it may be more cost effective to buy generic brands or to purchase items in bulk for which you have storage facilities.
But remember, planning your meals is the most cost effective way to shop for groceries. Always know what you will be eating during the week so that you can avoid food waste and costly spontaneous spending.
Cooking at home is another effective way to save money. Restaurant meals are usually quite expensive in relation to the actual cost of the food and the time it takes to prepare. Packaged foods and meals are almost always more expensive than their home-cooked counterparts. And even if the price of a home-cooked meal does equal that of a restaurant meal, the nutritional value is usually much greater and the portion sizes are more under your control. All of these aspects make home cooking a less expensive and more healthy alternative to eating out.
4.2. Packing Snacks and Drinks
Packing snacks and drinks is an instructive and thrifty way to save money while you are out and about. Whether headed to work, school, or an event, having a nice stash of a variety of snacks and drinks lessens the possibility of stopping for an expensive treat. A mere $1 spent in cash for an iced tea or a bag of chips every day adds up to $365 a year! If this money was put into a savings account or invested, the money could double in 30 years due to accrued interest. With people spending so much on convenience, the mark up at convenient locations is outrageous!
A 12 pack of soda which costs approximately $2.50 when bought on sale, can be marked up to $0.75 a can at a vending machine. This is a 316% increase which is just outrageous. Prices can be marked up more than that at amusement parks, events, or tourist attractions. Planning in advance and bringing your own, is the best way to beat these prices.
Not only does it save you on the mark up, but you will not pay tax on very small food purchases at these locations. This can add up to more savings. Try to take into account the weight and limitations of what you are carrying however, nobody wants to be lugging around a heavy cooler all day.
4.3. Exploring Free or Low-Cost Activities
– Instead of eating out at expensive restaurants or grabbing fast food several times throughout the week, start exploring options for preparing meals at home. A simple trip to the grocery store can cover the price of a whole week’s worth of meals, and you’ll find that cooking every night can be both fun and rewarding. If you already have a fully stocked kitchen, that’s awesome, but there are plenty of people out there who don’t and will need to invest in some cookware.
You could spend as little as $50 on a basic set of pots and pans, cooking utensils, and a few dishes. Try to cook meals that yield leftovers for a quick lunch as well. If you’re not much of a cook, this might be a good time to start learning and experimenting. Cooking at home also allows you to gain some healthier eating habits. Plan to avoid grocery shopping when you’re hungry and buy a bunch of junk food. Any food with empty calories is a waste of money and a waste of health. Try to make your grocery purchases when you’re full and buy a number of balanced meals involving fruits, vegetables, whole grains, and proteins.
As a direct follow-up to the first tip, begin packing snacks and beverages for outings instead of purchasing them from vending machines, convenience stores, or refreshment stands. It’s far too common to overindulge at these places. You might go to buy a bottle of water and come out with a drink and a snack, spending twice as much as you had planned. A 12-pack of soda or juice that costs $5 can last much longer than buying the same quantity of drinks from vending machines at work. A $3 bag of chips can be portioned into resealable plastic bags rather than eating it all at once.
It doesn’t hurt to have some quick snacks available when you’re at home as well, in case you get the temptation to go out and eat. This could be anything from microwavable popcorn to a bowl of ice cream. At the very least, buying snacks in bulk at the grocery store is much cheaper than buying the same amount in separate packages.
4.4. Utilizing Coupons and Deals
Coupons and deals are popular and effective ways to save money. They can be found almost anywhere, and if a person knows where to look, they can save a lot of money with them. Coupons and discounts can be found in local newspapers, on the internet, through the mail and at local retailers. To cut grocery costs, one idea is to write to the manufacturers of products you regularly use and tell them how much you like their products. Most of the time they will send you some coupons and if they don’t, they may send you some free samples.
Another way to find grocery coupons is to visit the local grocery store and ask the customer service if they have any store coupons. Many grocers also have a loyalty card where customers can sign up to receive a discount on certain products. Usually these programs are free and only take a small amount of time to sign up. In the end, the discount is applied immediately to the purchase of the product by swiping the loyalty card. With the card my parents saved over three hundred dollars in one year on milk that was discounted for one dollar per jug.
This tactic may seem insignificant at first, but every dollar adds up and going after savings is the key to achieving financial goals. An innovative new strategy is using deals found on the internet called coupon codes. Coupon codes are used during online shopping and are entered into the code box to receive a discount. They can be found on the product site, through email, on special coupon code sites, and through internet searches.
Always check for a coupon code before making an online purchase. This recent strategy has saved myself and others a lot of money because it is easy and takes little time to find a code. On the frugal message boards I often see people say that they search for codes on big purchases such as hotel stays and have received large discounts, just for the few minutes it takes to find a code. This method can also be applied to many other purchases and there is almost always a coupon code available for something.
