I’m often asked, “how is it that I can travel so often?” The simple answer is, I budget for it. I save for it. I don’t waste money. I spend it thoughtfully. In today’s post (part 2 of a 5-part series), I’m sharing 9 habits I practice dutifully to help you save money to travel more:
1. Create a Household Budget
Before you store that tray table and put your seat back into it’s full, upright, and locked position, you need to have enough money to get that plane ticket in the first place. Find out more on how to create a household budget here. You can’t travel if you don’t know how much you need to save.
2. Create a Travel Bank Account
Temptation is too great if your money for travel is sitting in the same bank account as your money for groceries, gasoline and Friday night booze. You can’t have a realistic picture of what you truly have available for travel if those dollars are mixed in with everything else. So go to your bank’s homepage right now and open a savings account. It should take you less than 10 minutes. Fund that account and don’t touch it until you need it.
3. Arrange for Direct Deposit into Your New Travel Bank Account
It’s absolutely true that you can’t spend money you don’t have. If your hard-earned cash leaves your sight before you spend it, you’ll be amazed at how much you can accrue. Set aside as much as you can afford (see tip#1). $25/week will net you $1,300 at the end of the year – enough for an all inclusive 7-day cruise. Double that and you’re spending a week in Europe this summer. Wow! That dream vacation is actually closer than you may think.
4. Pack a Lunch
Skip the trips to the cafeteria by bringing your lunch at work and you’ll pocket $35/week (assuming your lunch costs $7.00 on average). After 50 weeks of that you’ll net $1,750. Add that amount to what you’ve saved in tip #3 and you’re in Australia for 1 week (2 weeks if you know how to manage your money when you travel).
5. Play Barisa-Tender at Home
Those trips to the local coffee shop and neighborhood bar add up quickly. A weekly $5 drink (and you know you’re drinking more than that) pockets you $260. That’s enough to buy plenty of souvenirs to remember your trip. And if you’re a daily drinker, that’s $1,825. That’s more than enough to take a second week-long trip or several smaller trips in the same year!
6. Host Game Night
Don’t be a hermit, but throwing down cash on dining out, movie theaters, clubs and other entertainment offerings adds up every week. I love board games. But don’t judge just yet. There are many games for adults that are way cool, and break the stereotypes of being : lame, silly, cheesy, childish, etc. I’ll share my favorites later this week. If you’re able to save $50/month by staying in and playing games, you’ll be able to afford a round-trip, domestic plane ticket with baggage!
7. Be a Fashion Faux-Pas
I’ll never be accused of being a fashionista. I wear my clothes out, buy from the sale rack and avoid the top-tier labels. You won’t see me wearing the latest in trends, but you will see me in Asia, Europe or Africa this year! Avoiding the need to buy new clothes every season will save you $300 easily. Imagine all the wine in France you could buy with that!
8. Downsize
Look at your current expenditures and determine if there are areas where you can shave a few pennies here and there. Those pennies add up! Is satellite radio necessary? Do you need 500 cable channels, or will 200 do? Can you access your local news online instead of in-print? A small sacrifice in these expenses will yield a large reward in extending your trip abroad by a few days more.
9. Make Smart, Business Decisions
I drive a 2011 Hyundai Elantra
Business executives are familiar with the expression, “it’s nothing personal, it’s just business”. They make decisions on what will save money, limit expenses and get the job done. Do you really need a new car with all those features? Can you compromise on the size of that new television set? Can you negotiate your apartment rent? Ask yourself, “where else could I spend the money I’d be saving?” Chances are, that money could go towards a moderate-priced hotel downtown.
Following steps 1-9 judiciously has allowed me to see and do some of the most incredible experience of my life like: witnessing Victoria Falls up close and personal, diving with Great White Sharks, attending Mardi Gras in New Orleans, Backpacking through Europe and exploring Australia for a full 3 weeks.
I make less than you probably think, but it’s because I am careful about where I spend my money and save every penny that has allowed me to achieve all that. So what are you waiting for? Start saving!
What money-saving tips and habits do you have to help you travel more? Share by commenting.
I’ll see you out there…!
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I agree with some of your tips, except for the fact that I still buy new clothes, I just don’t drive a car at all.
Robert Schrader recently posted something special..Why Hostels in Australia (Mostly) Suck
Everyone of us has their own vice, right? Hahaha
GREAT tips! I loved how well you quantified all the savings, Ben. I’ve seen plenty of these money-saving articles, but none did the breakdown as well as you did! Bookmarked and Liked on SU to look at it often–must keep reminding myself that a weekly Starbucks coffee SHOULDN’T be a treat!
Maria Alexandra @latinAbroad recently posted something special..Martinique drinks and food: Caribbean Cultural Tidbits (photos)
I appreciate the social media love and thanks for commenting! But when you put the dollars and cents with the spending behaviors, you can really surprise yourself how quickly it adds up. I’m easily putting away 3 grand every year to travel from watching my spending.
Thanks for sharing these tips, Ben! Definitely there’s a need to change your lifestyle if you want to make travelling work for you. I’ve been packing my lunch and I haven’t bought a new shirt for 9 months now. It’s cheaper to get those beer shirts abroad at 2 usd each.
Ed recently posted something special..Podcast Interview with Ron of FlipTravels.com
I totally did the separate bank account thing. It also helps that, as a Filipino citizen, I needed to apply for a Schengen visa and show bank statements from the last three months. Since looking at my “normal,” payroll bank account would be a disaster, I decided to open a separate bank account that kept growing. As a result, I had enough cash, got my visa, and now have enough money in the coffers for the actual trip.
Thanks Ren. I’ve never had to show bank statements for a Visa. Good thing you had the separate account. If my money is out of sight, it’s out of mind. How was your trip?
I especially love pack a lunch. Great savings tip.
How about hosting pot luck dinners? The guests bring the food while you provide your place, utensils, dishware, clean up. Perhaps even a travel theme.
Charles McCool recently posted something special..Travel Math – It Does Not Add Up
Thanks Charles. Pot luck dinners are another excellent idea – as long as I don’t have to clean!
Great advice! So true that the little things add up. Especially when it comes to clothes, going out on the weekends, and food! It’s so easy to cut back just a bit without even feeling a pinch.
You can shave a lot of money on little things here and there. You won’t miss out on that cash, but it will add up for sure!
Another tip to help cut down on your spending is to think about what else your money could buy.
Not buying a $5 coffee gives you just under VND100,000 in Vietnam, which would buy 20 coffees, six beers or a half hour massage in Ho Chi Minh City.
eat-laugh-love-anon recently posted something special..Run Roti Run
Putting it in the perspective of the destination is also worthwhile. I have a bunch of money I received for Christmas and I’ve been calculating what that would buy in Oz! Thanks for the tip.
Yep, great advice.
I think the number 1 tip should be to put travel up the top on your priority. It always featured in our life.
Secondly, 2 can live save for travel better than an individual, because your standing costs are spread over two earners rather than 1.So next top tip is don’t ditch your partner, marry her! Oh, make sure she/he is not high maintenance!
Jim recently posted something special..My Christmas Present – A Special Place- Cille Choirill
Ah, placing Travel at the top of the priority list is part of my (still unpublished and in-the-queue) Travel Philosophy. And to your 2nd point – you are absolutely correct. Traveling together or in a group help spreads costs around. Fortunately my partner is not high maintenance (but may say I am). Thanks for sharing your advice.
Good tips Ben! It’s often the small things that add up to make a huge dent in money. Eliminating bags of chips, snacks, soda’s and drinks is a great way to reduce spending!
Migrationology recently posted something special..Travels of Migrationology in 2010
Little things make a difference when compounded together. And… eliminating chips and soda is also healthy too!
Great tips Ben. I would say that downsizing and strict budgeting are two of the easiest way to afford long / longer term travel. Not only that, it sets you apart from the millions of people who are not taking positive steps to get out from under crippling debt.
The NVR Guys recently posted something special..This Is a Blog That’s mostly About Being Happy
Debt=Bad! Budgeting an Downsizing are critical. The more people earn, the more people spend, that’s the worst mistake ever. The more you earn, the more you should save.
Love the tips Ben! I do almost every one of these already – it’s why I am budgettravelsac! I don’t get a budget travel reputation for nothing!
I have always been frugal so a lot of these come second nature to me. I have a budget I designed in a spreadsheet that blew away my co-worker who has been a CPA for nearly 25 years!
There’s only one of these I don’t do – #5. I can’t do it because I don’t drink coffee!! I’ve only had 2 cups in my entire life – and didn’t finish either one! I think I’ve spent $20 total at Starbucks my entire life – most of that was for bagels!
From one frugal/budget traveler to another, great tips!
Jeremy B recently posted something special..American and Delta Airlines pull airfares from popular online travel sites
Thanks Jeremy. I’d love to see your budget. I have one going live tomorrow, let me know what you think. I’m a budget guy at home, but on the road, I’m a splurger (if I can make up a word). I too don’t drink coffee, but I love a good hot chocolate or Tazo tea from Starbucks (the latter you can buy at the grocery store for a significant savings). Thanks for commenting.
Ben, I almost think I should do finance and budgeting stuff as much as I do travel! I love travel but I am a big nerd when it comes to this stuff. I will admit I am blessed but I do manage money well. Quite honestly, doing my budget every couple of days is about as exciting as writing about travel! I love to see how I can save money and cut corners here and there to have money left over!
I did do a very simple budget with some step-by-step tips on my blog. I have a much more complicated one that I use daily though.
Here’s the budget one. I did it back in August and get random hits on this every day.
http://budgettravelintentions.com/2010/08/04/budgeting-101-using-a-budget-spreadsheet/
Jeremy B recently posted something special..Travel Tuesday question of the week – what are your New Year’s resolutions for travel
Nerds UNITE! Managing wealth and travel are fun for me too! Thanks for sharing your post on budgeting. I just checked it out, great stuff.
Unfortunately, my blog doesn’t allow me to upload my Excel spreadsheet. Seriously, I got a fancy one! Spent some time working on updating it for December expenses last night!
Jeremy B recently posted something special..Travel Tuesday question of the week – what are your New Year’s resolutions for travel
I’ll be updating mine next week, after my yearly raise kicks in!
I absolutely LOVE this list! My favorite line has to be “You won’t see me wearing the latest in trends, but you will see me in Asia, Africa or Europe this year!” Great job!
Michael Figueiredo recently posted something special..Tuesday’s Travel Tip- Portable Luggage Scale
I supposed you might see me in Asia wearing the latest in “knock-off” brands…
Really good post. The separate bank account is a great idea.
Matt Hope recently posted something special..9 Interesting Facts About Belize
I have about 5 bank accounts Matt. I’ve always found it odd that businesses divide their money into separate line items, yet household only have one pot of money from which to draw everything out of. It doesn’t cost anything to have a few accounts, and you can visually see how much you have saved for whatever budget.
Great tips- it is hard to budget for travel, but if it’s important to you, it totally can be done and it’s surprising when you stop spending mindlessly how much money you can save. We love dining out- so we look up when places have 1/2 off deals or taco tuesdays for a buck and go then. It saves money and you don’t feel like you never go out.
Jade recently posted something special..Traveler’s Night In- Travel Predictions 2011
Jade, I’d have to disagree on it being hard to budget for travel. Tomorrow I’ll make it simple for everyone. But if you absolutely need to get out, finding local deals is critical in stretching your money.
Stay in and play, I like that one best. I am a fashionista, but I know how to mix and match and am inventive, so people think I have dozens of new outfits, but they are the same old, only put together in a different way.
inka recently posted something special..The best of South Florida Kitsch
Great suggestion inka. I generally just accessorize with a vest. Hahaha
Hosting a game night’s a good one. You don’t need to go out spending money on drink to be social. And it works with computer games just as well these days. Reckon my xbox has saved me thousands over the years. Good tips Ben.
Thanks Jools. Just got a Wii for Christmas, so I assume I’ll be spending many a night with that!
Great advice, and all those little things – lunches, coffees do add up. I love the idea of staying in and playing board games. It’s one of my favorite things to do with friends.
Laurel – Do you have a favorite board game? I’ll be sharing mine on Thursday.
Great advice Ben… we’re following most of these tips but could be implementing some of them a lot better (such as packing a lunch)! Unfortunately it’s a lot easier said than done!
Kieron recently posted something special..Travel Photography Roulette Round 6- Beaches
Like any skill, discipline and practice are key. It all starts with creating a budget – tomorrow’s topic. Why aren’t you packing that lunch? When you crunch the numbers and see how much your “wasting” on those meals, you’ll be amazed. Stick with it. You can do it!