How to save money for travel (it’s easier than you think)

I am naturally a saver, rather than a spender, so ‘How to save money for travel’ might come easier to me than others.  My day job as an Accountant helps, my days are spent working on budgets, forecasting, and spend analysis.  

So follow my tips below as I show you ‘How to save money for travelling’, and it’s really not that hard.   You just need to be smart, creative, and disciplined.

People often ask how I can afford to go travelling or go on holiday so often.  I’m by no means rich, but I am financially savvy and I prioritise travel above most other purchases.

It all starts with a plan, so to get started you need to understand the following:

1. What are you currently spending your money on?
2. What is your target savings per month?
3. Make a plan and stick to it.

What are you currently spending your money on?

Review your last 3 months bank and credit card statements to understand what you are currently spending your money on.  Break this down into categories such as household bills, groceries, ‘luxury items’, travel etc. 

Compare this with your income and see how much you have left over.  Any surplus is your minimum target.  But, if you want to get serious about savings, you want to do more than that.

What is your target savings per month?

Always give yourself a monthly target, or weekly, if you get paid weekly.  This will be based on what your end goal is.

Decide where in the world you want to go, such as South America, Asia, or Australia for example.  Also think about ideally how long you want to travel for. 

You then need to research the average costs for that region.  To help you with that, I’ve created a great tool free to use (coming soon).  You can choose the region you want to visit, the length of time, and it will provide a good estimate of the cost of your trip.

If you have something to work towards, it makes the discipline easier. How much you want to save will depend on your own circumstances.

Make a plan and stick to it.

Before you finalise your plan, read through all of the suggestions below, and this will likely increase your target, or help you to save more faster. 

I always find it helps to use a separate savings account, and transfer the targeted savings there as soon as I get paid.  That helps you see what you’ve got left for the month to spend.  Track you savings and expenditure each month using a basic excel table, or pen and paper if you prefer, it’s critical you track both though.

To really save, you need to make sacrifices

For 5 years I drove around in a ten year old Nissan that cost me £1,600.  Did I care, hell no.  It lasted me 5 years, I sold it for £200, so it cost me £23 a month.  I know people who spend £250 on a hire purchase car.  You wonder how I can travel, that’s one way.

I would much prefer to have a years’ worth of travelling memories and stories to a new car. This car took us from the UK all the way to Italy for 3 weeks, we had the best time.

How to save money for travel – Earn extra Income

What better way to jump start you savings, than by earning more money in the first place.  Most of us can do at least one of these suggestions, and this can give you an immediate boost.

1. Do you have a spare room you could rent out?  I’ve done this a couple of times as I’m used to house sharing, and you may even make a new lifelong friend.  In the UK, you can earn up to £7,500 per year from renting out a spare room in your home, and best of all, it’s tax free.
2. If you don’t want someone living with you full time, how about temporarily letting a spare room out whenever you feel like it.  Airbnb is perfect for this, and depending on where you live, it can be quite lucrative. Follow the link Airbnb link to receive discounts when you first sign up and use the service
3. Have a good declutter and clear out of all your old junk you no longer use or need.  People like to buy and collect things over time, but do we really need all this stuff?  Look through your cupboards and drawers and see what you can get rid of.  I regularly sell stuff on Facebook market place, or Gumtree in the UK.  In New Zealand I used TradeMe.  You might be surprised how much all your old stuff is worth.  The other benefit to this is, when you travel overseas, you will have less stuff to store somewhere.
4. If you own your house, lucky you, don’t sell it!  I never understand when I hear people selling their house to go travelling.  A house is an asset.  If you’re going overseas for any length of time, speak to a local agent about renting it out.  This may even give you additional funding for your trip if it more than covers your bills.
5. Depending on your situation, can you go back home to live with your parents for 6 months?  Imagine how much you will save with no rent for 6 months!  It’s also great to spend time with your family before you go away on a big trip.
6. Can you move to a cheaper part of town?  This takes a bit more effort, but if you can save serious money doing this, and still enables you to see your friends and family, and travel to work, why not?
7. Can you get a second job?  Depending what you do, could you work occasionally at weekends or evenings?  I know someone who worked full time Monday to Friday and started flipping burgers at the weekend as they were serious about saving for their trip.  If you’re working, it stops you spending too.

How to save money for travel – Cut your debt & earn points

Before you start saving, you need to cut any debts such as credit cards, or car loans.  The interest you pay on these will be higher than any interest you earn on your savings, so start to pay these off first.  

If you have many debts, speak to a financial advisor to see if you can consolidate your debt, and get a better rate of interest. The only ‘good debt’ is a mortgage on a house, as you have an asset that will likely increase in price over time.

Search for a credit card that offers air miles or something similar.  These schemes are a lot better in the USA.  In the UK they’re not great, but these things are constantly changing.  

I currently use a Virgin Atlantic Credit Card and earn points that I can use for cheaper flights or upgrades.  I buy everything using my credit card, and make sure I pay it off in full each month to avoid any interest or late penalty charges.

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How to save money for travel – Reduce your outgoings

Look at your spending habits.  Review your last few months bank and credit card statements.  Are you spending a fortune on nights out, or on you daily fix of Starbucks?  

If you want to get serious, think about putting a monthly limit on these kind of ‘luxury’ expenses.  Don’t cut it out completely as you’ll end up being miserable! Everything in moderation I say. 

Reduce your monthly outgoings:

1. Review your utility bills.  When was the last time you checked you’re still getting a good deal?  There is a lot of comparison sites these days that make switching an easy 10 minute task.  You should check annually to see if you can get a better deal.
2. Look at your grocery shopping costs.  Where do you shop?  I always do the weekly shop at Aldi or Lidl.  They are much cheaper than other supermarkets, and I can get everything I need.  Also, ignore the brands.  The own brand stuff is usually just as good, made in the same factory, but half the price. You can easily save £100 a month by being a more conscious shopper. 
3. Check out local fruit and veg markets.  I always go to my local market, where I can buy fruit and veg at about half the price of supermarkets on some items.
4. Have nights in, rather than nights out.  Invite your friends over, share a bottle of wine, which will be cheaper than just one glass in a bar.  Cook pizza, rather than order take out.  I often buy frozen pizzas, then add my own extra toppings, such as olives, or oregano.  It turns a cheap pizza into an deluxe tasty one for very little cost. 
5. Do you drive?  Owning a car is so expensive these days.  Tax, Insurance, parking, congestion charges, fuel.  It all adds up to thousands a year.  If you can get rid of the car for even 6 months before your trip, you’ll save hundreds, maybe thousands of pounds.  If you can’t do without your car, think if you can change it.  Look at the fuel consumption.  Look at the tax, a lot of cars have zero tax rates, whereas others you have to pay £500+ a year.
6. Gym memberships.  Do you still have that gym membership you signed up for in January, and now you never use it?  I’m not a gym fan, I have to be honest.  I have weights at home that I use, and prefer to go for walks and runs in the fresh air.  Since COVID-19, I think it’s proven we can all survive without the gym, there’s so much free online material to inspire you if you need it.
7. TV.  Do you really need Amazon Prime, Sky Sports, Netflix?  All of these can really add up, so make sure you’re using what you pay for, and if not, cancel it.  This is easily £50 a month, £600 a year.
8. Mobile phones. Prices are really competitive these days, in the UK at least.  If you haven’t upgraded for a while, check out the latest deals.  Be careful not to sign up for a long term contract though if you’ll be overseas in 6 months’ time.
9. Do you buy your lunches every day at work?  I know people that do, and think wow, you must be rich!  Unfortunately they’re not, they’re just too lazy to prepare something themselves.  If you want to buy a lunch each day, plus a coffee, that’s £10 a day, £50 a week, £200 a month.  Just on lunches!  It only takes a little preparation to make a sandwich the night before, or cook extra dinner and take it with you the next day.
10. Quit smoking!  Serious smokers spend a small fortune on their habits.  Seek help to quit if you need to.  As well as being good for your wallet, more importantly, it will be great for your health!

How to save money for travel – Conclusion

I hope you have found some useful tips in here.  Whatever your earnings are, by following these tips you will be better off financially, and enable yourself to make the trips you want to.  For additional money saving tips whilst actually travelling read my article Top Travel Tips, this may show how affordable travelling can be if you really want to do it.

Remember, always have you end goal in mind, and start planning all the trips you want to do

Once you’ve made your savings, and decided where you want to go, check out my article – What To Pack For Long Term Travel – A Beginners Guide

Once you’re ready to go, get some inspiration from my destination guides, are you planning for an epic year long trip, or just a long weekend. Check out the latest travel destination reviews

Once you are ready to go please check out my latest blog destinations for additional inspiration and insight: