How To Save Money for Travel

Last Updated: December 21, 2023

Whether it is because you plan a sabbatical or you wish to quit your job and pursue your dream of traveling full time, the most important step is to save up money. Traveling is very exciting, especially when you buy a one-way ticket. Planning for a journey into the unknown, however, can also be a bit unnerving if you’re not well prepared. Continue reading to find realistic ways to save money for travel.

HOW TO SAVE MONEY FOR TRAVEL

STEP 1 – IDENTIFY YOUR SAVINGS GOAL

If you’re looking at how to save money for travel, it probably means that you already have an idea of the destinations you want to travel to. Here’s a step that really helped me. I created an excel and noted down the countries I knew for sure I wanted to visit. Then I went to Numbeo to check the estimated cost of living in each country. I created columns next to each country based on the main expenses, such as accommodation, food, transportation, and daily expenses. Then I added to that the estimated cost for travel insurance. This will obviously be a rough estimate but it will give you an idea of the budget you’ll need and therefore, identify your savings goal.

STEP 2 – CALCULATE YOUR BASIC MONTHLY EXPENSES

By calculating your basic monthly expenses, you will have a more clear idea of how much money you’ll be able to put aside each month. Once you have a figure to aim for (say 600€ a month for example), it will be easier to reach your savings target every month. Calculate not just the basics but include everything you know for sure that you spend each month. These will be; rent, utilities, loan (if any), food, phone/internet, beauticians (in case you have monthly treatments, laser hair removal, etc.), outings (which should be kept to the minimum), and subscriptions.

STEP 3 – CUT NON ESSENTIAL EXPENSES

Things are about to get real now as this is one of the most difficult steps. Setting a goal is easy but when it comes to compromising certain things in our lives, we find it very difficult to do so. Part of the reason is that we’re so used to our lifestyle, we’re convinced that we need these things in order to be happy. The secret lies in finding the right balance by adjusting your lifestyle and finding more affordable alternatives that will help you cut your expenses. Here are a few ideas to help you save money.

GROCERIES

When I started saving up money for travel, I did a simple test. I summed up my one month grocery expenses and the total for 2 people was extravagant. Thankfully, I had saved up the receipts so I went through each one of them and I realized that I could do without many of the items I had bought. One very important step that helped me reduce the cost, was to plan my meals ahead and shop only the products I really needed. I then made sure to write down a shopping list before going to the supermarket and stick to the list. By changing my grocery habits, I avoided spending money on snacks, soft drinks and any other items that I didn’t really need. It also helped to eat healthier which is undoubtedly a huge bonus. It really is a win-win!

After the first month of applying these tips, I calculated my expenses and I had managed to save 80€. It may not seem like much but calculate that x12 months and I had saved up almost 960€.

TRANSPORTATION

This one is something that I couldn’t quite understand when I was doing my research on how to save money for travel. With the COVID-19 pandemic, however, I had to work from home for many months, which meant that I didn’t have to use my car twice a day. 2020 may have been a difficult year for all of us but I have to admit that it did make it easier for me to save money. I tried using my car rarely and instead, I walked to most of the places. Reducing transportation costs may not be as feasible for you as it was for me during 2020 but here are some things you could try.

Carpooling: If you have friends or colleagues who live near you, ask them if they’re willing to share the ride with you and split the gas money.
Bicycle: If the conditions allow it to cycle to work, then this is a very good way to lower transportation expenses and exercise at the same time.
Work from home: If the line of your job allows it, it may be worth asking your employer if it is possible to work from home. If you don’t ask, you’ll never know.

By using my car only when I really had to, I managed to reduce the gas expenses by 40€ a month. In a year, that accumulated to 480€.

ASSESS YOUR MEMBERSHIPS AND SUBSCRIPTIONS

If a gym is important for your health, either physical or mental, then do not compromise on that. However, if you don’t go as frequently as you intended to when you enrolled, then perhaps it’s best that you cancel your membership. Also, narrow down any subscriptions which you may not be using as much as you thought or simply you can replace them with something similar. For instance, if you’ve subscribed to both Netflix and Amazon Prime, see which one gives you more value and cancel the other one. Finally, if there are any paid apps that you’re using rarely or perhaps you can replace them with a free app, then get rid of them.

My gym membership was 360€ annually.

CANCEL YOUR CABLE TV

How often do you watch cable? When I asked myself that same question, the answer was perhaps 1 hour a day. Instead, I could get lost for hours watching my favorite tv shows on Netflix. This one was the easiest thing for me to cut off.

Cable TV cost me 15€ a month, a total of 180€ for a year. It may not sound like much but when saving up money for travel, every little helps.

LOWER YOUR OUTING EXPENSES & TAKE OUT FOOD

Contrary to the point above, cutting on my outing expenses was the most difficult for me to follow through. I have a bubbly personality and I love meeting with friends and socializing over a few drinks at my favorite cafes and restaurants. When I realized however how much money I was spending on these outings, I had to set my priorities straight and change that habit. I opted instead for inviting friends at home and going for walks outdoors.

On the rare occasions that I would miss going to a hip place, I’d be careful to not splurge but rather have a set budget to spend and I’d be sure to not exceed it. As for take-out food, it is best to opt-out not only for budgeting purposes but it is also very unhealthy. A simple take out including the minimum order charge and/or delivery charge costs roughly 15€. If you order twice a month for x12 months, it adds up to 360€.

From outings and takeaway, I managed to save 100€ a month, which added up to 1200€ in one year.

STEP 4 – CREATE A SAVINGS ACCOUNT

Now that you’ve set your travel savings plan and you have found ways to slash costs, it is time to open a savings account. Seeing the figure growing steadily in your account can be very satisfying but it can also be very tempting. By creating separate savings account you trick yourself into “forgetting” the sum that you have saved and not dig into it, in a moment of weakness.

STEP 5 – SELL ANYTHING YOU DON’T NEED

This could also be your first step, as it would allow you to jumpstart your savings process. However, from my personal experience, I found it more suitable to leave it to the end. The main reason being that most of the things I planned on selling were things that I was using up until I was ready to travel. If you decide to follow suit, a few weeks before your adventure starts, sell any items that you won’t longer need. This way, not only you will gain some extra cash but also, you will reduce storage costs (in case storage is something that you’ll need of course). Such items could be:

Clothes: Anything you won’t manage to sell, donate it to charity.
Electrical Appliances & Electronics: Heaters, dehumidifiers, furniture, anything that could bring you some extra cash, market it for sale. There are plenty of groups on Facebook where you can sell your items. Also, each country has its own online market store, for instance in Malta we have Maltapark. Try selling your items there instead of mammoth websites such as eBay or Etsy. By choosing a local website, you increase your chances of selling them faster, especially if someone from your vicinity is interested. TIP: be sure to take appealing pictures of your items. It will increase your chances of your item being seen by more people.
Car: It’s a no brainer that you won’t be needing your car for the period of time that you’ll be away. Selling it will boost your savings substantially, as well as reduce expenses such as insurance.

STEP 6 – SAVE MONEY AND TRAVEL

One last thing. It is important that you keep focused on your priority…TRAVEL. It takes a lot of determination to not lose your focus and life can be very unpredictable, forcing you sometimes to slow down or shift your priorities. If however, you are persistent and don’t allow external factors to change your state of mind, you will be rewarded at the end of it by the figure seen on your bank account and the freedom to make your dream trip become reality.

Now that I have shared with you my guide on the 6 quintessential steps you can take to save money for travel, it is time to start your plan!