How to save money for travel: A comprehensive guide

How to save money for travel: A comprehensive guide

So you’ve got your eyes on the prize – the big trip! You want to take some time off and you’re ready and raring to go! All you need now is money and LOTS of it…

Sadly, travelling costs money. But I can assure you it’s worth it! In this post, I am going to explore the many ways in which you can save money for travel. Just follow these steps and you’ll be well on your way to your next big adventure in no time!

So let’s get saving!

Planning

How much will your trip cost?

Before you can begin saving, you need to figure out roughly how much money you will need for your trip.

This will depend on your destination, how long you want to go for, and your lifestyle preferences. For example, a luxury round-the-world trip across six continents will cost significantly more than a one-week holiday to Spain. (Thanks for that insight Matt, no shit…)

Ask yourself what you are willing to compromise on and what you are not.

Are you willing to work while you are abroad? Do you want to get private transport everywhere or are you happy to walk for miles? (Sorry I’m British, I use miles instead of kilometres!)

The best way to estimate your overall travel cost is by taking on your research. Preferably talking to a family member or friend with experience in what you’re considering, having done a similar trip. Alternatively, you can search within the blogosphere and research what others have done. There are plenty of budget guides for every destination around the world (just try to make sure they are up to date).

Set a target

Once you have worked out a ballpark figure for how much your trip will cost, I would recommend adding a little bit more to that. Perhaps around 10% extra.

I’m a firm believer in making sure that you are well-prepared. I would much rather save a little bit extra when I’m at home to gain some financial stability than to be unable to do something I desperately want to do while I’m travelling!

Compare this enlarged figure to how much you currently have set aside for the trip. Calculate how far away from that you are and BAM – you’ve worked out your target figure for how much more money you need to save.

Create a plan (including smaller goals)

Now you know the endpoint to make your next big adventure a reality. Much like any other substantial project in your life, you should create a plan and break it down into smaller, more doable chunks.

Create a timeline with smaller goals that you want to achieve.

For example, “Reduce weekly shop costs by £5 per week this month” could be one of several small goals to help you save £50 in a month.

Doing this makes your goals seem more achievable and keeps you motivated!

Relate your plan to a budget

Work out how much you need to spend each day in order to reach your savings targets. Then stick to it!

Monitor progress

Use a phone app to monitor how you are doing.

Reward your successes (without blowing all your hard-earned cash!) and take note of where you are struggling to reach your targets.

Remember to adjust your goals if you initially set them too low or unrealistically high.

I find the Money Manager Expense & Budget app by Realbyte particularly useful to track my income and expenditures. If you are looking for a simpler app to set targets and monitor your progress, My Piggy Bank Tracker by Boros Apps is a simple app to do so.

(These are my genuine recommendations and not affiliate links of any sort. As I update this post, these apps may change as I find new and better alternatives.)

Motivation

Savings don’t just appear overnight. They require commitment, which requires consistent effort and discipline.

To stay motivated, make sure you regularly remind yourself why you are saving!

Stick an inspiring picture on your wall or change your desktop or phone background to your dream destination. Every day you will be reminded of what you are working towards.

Set reminders on your phone at your weak moments.

For example, if you know you’re easily tempted to buy a morning coffee on your commute to work, set a reminder for just before that moment to NOT BUY ONE!

Before you start saving

Create a separate travel bank account

Create a separate bank account purely for your travel fund so you are not tempted to touch it. If you exceed your goal then you’ve got more money for your trip (which is never a bad thing)!

Also, if you keep a savings account specifically for travel savings then if you don’t spend all of your money on a trip, it will remain in the account and give you a head-start towards your next adventure!

Set up a standing order

To ensure that you stick to your saving goals, each week or each month you should have a set amount of money going from your main account to your travel savings account.

Preferably, this should be transferred as soon as possible after payday so that you don’t have the opportunity to spend it!

It all adds up! If you have £100 a month going into your travel savings account, that will be £1200 by the end of the year. Whilst £150 a month will equate to £1800 by the end of the year! If you are doing particularly well, you can always top up this standing order with additional saving payments!

Choose a high-interest-rate account

Select a bank account with a decent interest rate. Whatever savings you have in there, a few extra pennies added on top with minimal effort will be much appreciated!

Tell your family and friends

Once you publicise that you are saving, not only will you hold yourself more accountable but they may also help you out!

If it’s your birthday coming up, instead of receiving a shirt that is 10 sizes too big (thanks uncle…), they may be a bit more generous and contribute to your travel fund. But hey, you still might get that dodgy shirt so don’t hold me to that!!!

Reducing outgoings

There are a million and one ways to cut your costs but I have included some of the key ones which have helped me save money for travel for years.

Just remember, it’s a combination of the big things as well as the little things that will help you reach your goals! Every little helps!

Cancel your subscriptions

Netflix, Xbox/Playstation, Spotify, Adobe, Amazon Prime, gardening magazines… Whatever you may have an ongoing subscription to, that is a never-ending cost! And it’s easy to cut out!

If you’re not going to use it while you’re away, then you might as well get used to not having it. Finish up that series you’re watching and then get out of there!

If you need alternatives, swap Netflix for recorded programmes on TV or use free catchup services like BBC iPlayer. Swap playing online on FIFA or Call of Duty for offline modes. Listen to music on YouTube or use the radio instead of using Spotify. It won’t be the same, but in some cases, you may end up wondering why you ever needed them in the first place!

Limit takeaways and eating out

Yes, eating out is great and saves a lot of hassle in the kitchen. But can you really justify spending £12 on a pizza that you could’ve got for £2 in the supermarket?

I like to remind myself that I’m probably going to be eating out a lot while I’m travelling. Therefore, one takeaway not eaten at home could buy me several meals while I’m away!

Stay at home

Whenever you leave your home the costs start racking up. Petrol costs, public transport costs, that meal deal you grab on the go – the list goes on!

Let’s be honest it’s just cheaper if you just never leave the house and become a recluse! Please don’t actually do that.

It might sound difficult to say no to friends when it’s time for the big night out. But imagine how guilty you feel normally when you wake up hungover having spent too much on alcohol. How are you going to feel knowing that that money could’ve bought you a week’s accommodation somewhere in Southeast Asia?

(Please note, it is healthy to leave the house and I recommend it! My point is to just remember the costs you incur regularly and consider these before you start going out!)

Ditch the car

Cars are notoriously expensive. If you can get around by walking and cycling, this will save you stacks of cash and keep you healthy!

With all that extra exercise, that gives you another excuse to pack in the gym membership and save even more money!

Cancel your gym membership

I’m not by any means saying stop exercising! But cancelling your gym membership and switching to home workouts will save you a lot of money.

Stop Shopping

Well duh!

This may sound obvious, but some people still need reminding!

The more money you spend on one thing, the less money you will have going towards your travels. Just think about that when you’re buying yet another pair of trainers!

Stop Dating

Dating can get pretty expensive! Going out “somewhere nice” and trying to impress someone can really rack up those costs.

If you’re going on a particularly long trip, there isn’t much need to be searching for love just before you leave the country anyway!

Change living arrangements

Is it possible to move back in with your parents for a few months before a big trip to avoid rent? Or could you move to a property where the rent is cheaper?

Either way, altering your living arrangements can be one of the most rewarding methods of saving for your travels.

I understand that it may not be possible for some people, however, the potential savings are too big to be missed off this list!

Switch supermarkets

Changing to a cheaper alternative will bring you savings every week!

In England, supermarkets like Lidl or Aldi offer pretty much the same food for a cheaper price than the likes of Sainsbury’s or Waitrose.

I have experimented with this to see if I could taste the difference between vegetables from different supermarkets, and no I couldn’t!

Only buy “on offer”

Why pay full price for food when you can always buy it on offer?

If there is something that you buy regularly and it is on offer, buy a few and take advantage of the reduced cost.

I’m not saying do the old: buy all of the supermarket’s stocks of toilet roll scenario… We know that’s just not a good idea!

Buy a few and freeze/store it until you’re gradually running low again and hope that the rotation of offers comes round again.

For example, it saves you money in the long run if you buy 3 pizzas on offer, and freeze two for a later date rather than buying 1 each time you need them when they’re not always on offer.

However, one important distinction is you should not get sucked into buying things just because they are on offer! Buy only things that you will require and would’ve bought anyway.

Buy off-brand

Once again, this comes down to compromise and figuring out your limits and what you are willing to do.

Some brand foods are just better. I for the life of me can’t stand alternatives to my cereal. However, there are plenty of other things that the non-branded stuff is just as good, if not better!

The same goes for clothing. Depending on the purpose of the item you are looking for, you probably don’t need the best brands around!

Sometimes the biggest “flex” is having saved enough money to do the things you want to do in life (like travel the world) rather than having the newest Gucci shoes. (Oops, I said it!)

Buy second-hand

If you do need to buy something, look in charity shops or on eBay for second-hand alternatives.

Not only is this better for the environment, but it usually works out cheaper.

Get fewer haircuts

Cutting out trips to the hairdressers and letting your hair grow that extra bit longer (or getting a DIY cut) can save you a fortune the longer you leave it!

During the lockdown, since barbers were closed I had the opportunity to let my hair grow out a lot longer. Surprisingly, I grew very fond of it after a while! I had also never seen myself with longer hair either – turns out my hair goes curly!

Similarly, when saving for travel you should try to ditch your nail appointments, spa days and other similar things.

Re-assess your regular outgoings

Consider your phone contracts – can you get a better deal elsewhere? You’d be surprised that in the few months that you’ve had your phone contract, how many better offers can appear!

If you do decide that you need some of your subscriptions, do you need the premium one or can you survive with the regular subscription?

Is your morning coffee an essential? If you cut out that £2 coffee every working day, you will save £10 a week. That’s £30 a month or £360 a year!

Reduce bills

This should probably go without saying, but remember to turn your lights off, try to use less water and turn off your heating.

Spending less time in the shower, wearing warm jumpers, doing cold washes, hang-drying your clothes, and being efficient with machine loads are all helpful things to be doing in day-to-day life.

All of these things will save energy, reduce your carbon emissions as well as help you cut costs.

Reward credit cards

There are lots of cards that allow you to earn cashback or rewards just while doing your normal everyday spending. Use these to your advantage!

The best that I have heard about is the Amex card which is one of the top free credit cards that offers rewards.

Also, consider getting cards that have bonuses or points in particular stores that you spend money in. If you are going to spend that money anyway, it is worth considering.

Switch to free hobbies (or at least cheaper)

Stopping everything you do is the best way to save, but that’s not living at all!

Obviously, you still want to keep busy and there are plenty of free activities – walking, running, cycling, photography.

But if these activities aren’t for you then remember: to save more than before you don’t have to stop everything you were doing beforehand, you just have to spend less!

If you are a night owl and love going to bars to drink socially, keep the social life, but just avoid spending money in expensive places and have a drink at home with friends.

Have no shame! Commit to your dream! Wherever you can cut costs, do it. Don’t remove everything in your life that makes you happy but you get what I mean.

Increasing Income

Sell things you don’t need

People on the internet will buy anything nowadays!

If it’s clothes that you don’t wear because they’re too small or you don’t like them. Sell them on Depop.

If it’s anything from random collectables to books, to old furniture, then eBay is still great for selling.

If it’s old tech, then Music Magpie is meant to be good.

Other sites you should consider are Amazon Marketplace and Facebook Marketplace.

Get a second source of income

Side hustles are an ideal supplement to your main income. They can be flexible and allow you to top up your savings in accordance with however much work you put in!

Some of your options include:

• Getting a second job/part-time job (bars, restaurants, lifeguarding, delivery driving)
• Babysitting
• Dog walking
• Washing cars
• Window cleaning
• Tutoring
• Selling a product of yours (artwork, clothing, photography)
• Online income (transcription, online reviews/surveys, blogging, selling stock photos, teaching)

Work overtime

If searching for a completely new source of income is out of the question, your current employer may provide opportunities for overtime. It’s worth enquiring about.

Get a swear jar or some other kind of jar for collections

Want to combine saving for travel with kicking a habit?

Try putting a contribution into a jar every time you swear, or every time you catch yourself doing something you shouldn’t. It’s a win-win! Either you kick the habit, or you save money for your travels!

Be Positive

Yes, sometimes saving big can seem daunting! But you’ve got this!

Take every day as it comes and follow these steps to achieve your travelling dreams!

AND REMEMBER!

Once you have reached your goal, try to avoid blowing all your hard-saved cash on a big blowout!

Unless of course, you factored that into your initial goal. If so, by all means, go crazy!

How to Save Money for Travel: Summary

How to save money for travel: create a plan, spend less, and earn more. Thank you for coming to my TED talk…

At the end of the day, saving for travel comes down to your priorities and your willpower.

Do you prioritise travel over everything else? And can you remain consistently aware that you are saving for travel?

Saving can be difficult, but you’ll be thankful for all that extra cash while you’re away. And you’ll be thankful you didn’t buy that extra drink at the bar the morning after!

(Apologies if I have turned you into an incredibly stingy person. That was not the aim! Just because you’re saving for travel doesn’t mean you can’t treat your family to a meal now and then! It just means instead of taking them somewhere expensive, you might want to cook them something homemade!)

Before you go

Thank you for reading my guide on how to save money for travel. If guides, itineraries and travel content like this interest you, head over to my blog page to find out more.

If you are new to Matt’s Next Steps, check out the About Me page to find out a bit more about who I am, my travel adventures, and why I wanted to become a travel writer.

Please comment below and let me know your thoughts and experiences, or if there is anything else you want information on.

Happy saving!