Travelling, especially for leisure can be perceived to be an expensive activity. However, this is not always the case as we have researched some tips from seasoned travellers on how to save money for travelling.
1. First things first, make travelling a saving goal
Saving up enough money for travel can be seen as a sacrifice. However, with the right mindset, you will be able to do it.
Make your holiday savings goal SMART i.e.
S (specific) – Think about where you are hoping to travel to and how much it costs to get there. From there, think about how much money you need to keep aside to achieve the target amount.
M (measurable) – Determine how you will measure how much money you have saved by keeping a record. You can easily see this when you open a savings account.
A (attainable) – be reasonable with how much you will be able to save within a timeframe. For instance, you can’t make £5,000 in one month but £250 is achievable. Also, think about how you will save money to achieve your goal.
R (realistic) – Think about whether you will really be able to save the amount of money in the period of time that you have kept aside. What will you do differently (and be realistic about it)? For instance, is it realistic for you to walk to work rather than take public transport or your car?
T (timely) – Know when you want to travel so that you can set your holiday savings goal with the travel dates in mind.
To achieve your savings goal, why not open a Hertsavers Holiday Savings Account? You can save as much as you want and whenever you wish. When you are ready, you can take all your money out to pay for that dream holiday.
To set up your Holiday Savings Account, contact us via email at firstname.lastname@example.org.
2. Track your spending
While it seems daunting to check your bank balance, tracking expenses is an important part of learning where you can cut back, or even eliminate your spending.
In the process of saving towards your travel, write down everything that you are spending on. How much are you spending on food every week? How much are you spending on entertainment such as socialising, cable, events tickets, music, books etc?
3. Budget, budget, budget!
When travelling, there are two budgets that you need to keep – the first one is the budget for your trip while the second is your day-to-day life.
By working out how much your trip is going to cost you, you can make a travel budget so that you have an idea of how much you will be spending per day.
In your travel budget, think about the following:
- How long are you travelling for? A week? A month? Back-packing for six months? This will help you consider how much you need in your bank account before setting off on your travels.
- Accommodation – if you choose wisely, you can save on accommodation. For instance, consider staying in a hostel rather than a five-star hotel if you are on a tight budget.
- Flights (if travelling abroad) – look out for flight deals; book ahead of time; if buying flights online, open an incognito window when researching flights as flight websites tend to hike up the prices each time you visit their websites.
- Food – avoid eating out if you can and make food at home. If you have to eat out, check for online deals before choosing where to eat.
- Shopping – make a list and stick to it. Only buy what you really need and avoid impulse buying.
4. Cut down on unnecessary spending or expenses
- Do you really need Netflix, Apple TV, NOW TV and Amazon Prime all at the same time? Choose one that suits your needs and cancel the subscription for the rest.
- Do you need a daily fix of shop-bought coffee every day? Make your own coffee at home and make a shop-bought coffee a treat once in a while.
- Cooking – save £5 to £15 per meal by preparing your own food at home. This way you will save over £500 a month just by cooking at home.
This way you will be able to save money for your travel adventures.
5. Consider making some extra money
Perhaps you can find a “side-hustle” that you can work part-time such as a waiter, supermarket cashier, photographer, virtual assistant etc.
If you enjoy making crafts, consider making and selling them online on websites such as Etsy.
Do you speak more than three languages? Maybe look for jobs online as a translator or an online English tutor.
When you travelling, here are some quick money-saving tips to help you stick to your budget:
1. Plan to travel off-peak
This can drastically reduce your travel expenses. From flights to accommodation, you can make great savings just by travelling when there is no holiday season or during the school term.
2. Travel to cheap destinations
Some destinations are wonderful but can be quite expensive to travel to due to their popularity. Some of these include the USA, Australia, East Africa and Northern Europe.
Look for cheaper destinations where you can get a similar experience such as going on a ski trip to Bulgaria rather than France.
Also, do some research into destinations where your home currency goes further. Backpacker favourites like Mexico, Thailand and Vietnam offer a good exchange rate and the option to feel more relaxed when you’re there.
3. Look for free activities
With a little research, you may discover some free things to do in the area such as free walking tours, community events; discounted admission to popular places after a certain time of day or even just taking advantage of your accommodation’s free amenities.
- Shop at farmer’s markets and local stores. Farmer’s markets often lower the price of their food towards the end of the day. Also, shopping at local stores allows you to taste the local cuisine without having to pay the price of a restaurant.
- Eat locally – rather than eating near a popular tourist site, eat further away on one of the side streets, for example, for cheaper meals.
- If you are doing half-board where breakfast is included, eat a lot or have a late breakfast to keep you filled up for longer such that you need a light snack later.
- Going with kids? Carry snacks and water during outings. It can get quite expensive to buy snacks on the go and spend money on bottled water. Therefore, think ahead and either take your own snacks from home and buy a case of water if needed. If it’s not possible to do that, go to a local supermarket and buy enough that will keep you going for the rest of the trip. Only get treats which can only be found locally in that area.
5. Get travel insurance
Even though it may seem like an unnecessary expense, it’s important to buy a policy for those ‘just in case’ scenarios as you may never know when you might need it. Look out for policies that give you medical coverage abroad, missed flight, lost baggage and theft.
6. Get a local sim card
If you are travelling abroad, you can get hit by roaming charges which can be quite expensive. Therefore, get yourself a local sim card so that you can have a working phone abroad where you can stay connected and in case of emergencies.
7. Manage your finances on the road
Withdrawing money abroad can be quite costly as money changers and airport exchange booths usually charge a high fee and find a way to rip you off.
Therefore opt for a travel money card where you can load the right currency and a set budget. You can also use a prepaid travel card such as Revolut and Wise.
If you prefer to use cash, withdraw a larger sum in the local currency where you are travelling to. Keep an eye on fluctuating exchange rates before you travel and order your currency in advance to get the best deal.
8. Travelling around
If you are planning on going from one place to another while at your destination, consider hiring a car.
If driving is not an option, then try and book accommodation which is near a transport link such as a train station or bus stop that can help you get around.
Remember to follow through with your holiday savings goal and stick to your budget.
Hold yourself accountable or get someone who can keep you accountable so that you can stick with your goals.
Remember the formula for saving money, ‘Live below your means, and save the rest’.
All the best in achieving your travel dreams.
If you have any money-saving travel tips, do let us know and we will add them here.