Last Updated on February 29, 2024 by snaphappytravel
Have a trip coming up soon? Is your financial state not as healthy as you want it to be?
We’ve all been there. The call to adventure is hard to resist, and your every being is telling you to get a move on and go.
That said, reality can often be our sad wake-up call. A quick glance at your savings account, and you barely see enough to cover your daily expenses, more so a trip overseas.
But don’t be disheartened. There are savings strategies you can apply before going on that trip.
It’ll require quite a bit of effort on your part, but if traveling is the goal, then we’d wager it’ll be worth it.
Without further ado, here are some savings strategies you can apply for your upcoming holiday.
1. Set Up a Travel Savings Account
Saving money to travel in 2024 is hard work, but with the right strategies, it can be made simpler.
If you find yourself compulsively taking money out of your savings account for menial purchases, then one way to exercise better discipline is setting up a separate travel savings account.
This account can help you separate travel-related expenses from your other life expenses, making it easier to manage your finances overall.
Furthermore, putting your money in a savings account also exposes you to better interest rates.
If you have sizable savings and if your travel date is still far off, this can be a good way to earn a little extra each month—all while keeping your money safe in a financial institution.
That said, be sure to shop around for the best deals for your travel fund. Some may have better interest rates and better minimum deposits, so choose what’s best for you.
2. Make Your Trip Budget-Friendly
It’s important to be realistic about your capacity to pay for your trip.
While many of us fantasize of the idea of living in 5-star resorts and eating fancy Michelin-star restaurants every night, that’s simply not feasible for 99% of the population.
As such, try to form an itinerary based on a predetermined budget. Don’t go overboard with your expenses, but don’t make the experience challenging for yourself either. Strike a balance!
For instance, if you’re saving up for a house or a car, or if your capital is at a low point, don’t blow out half of your savings on the trip.
Go on that trip, but fly economy, stay in hostels, and visit free attractions.
It’s more than possible to experience adventure and comfort without necessarily spending a lot. You just have to plan it in advance.
3. Cut Unnecessary Expenses Leading to Travel
Let’s face it: it’s easy to be tempted to buy stuff we don’t necessarily need.
From bags to clothing, there are many mini purchases that we justify as rewards for ourselves, but are ultimately just distractions from that one big goal you’d like to achieve. Like travel.
As such, if you have a holiday on the horizon, be proactive in adjusting your spending habits.
Instead of eating out at restaurants, cook at home. Instead of buying iced coffee from a cafe every morning, make it at home. Don’t buy new clothes for zero reason and just continue to use your old ones.
By adopting these thrifty pre-travel practices, you can weather the eventual storm that is your travel expenses. Or you can use that money you otherwise spent on more activities in your travels.
4. Mind Your Debt and Other Obligations
Travel is a once-in-a-lifetime experience, but it’s important to remain grounded in your financial reality.
If you are taking out a loan for travel purposes, be sure that you can pay it off on time.
Incurring additional debt from traveling can be a major financial setback. If left unchecked, it can strain your ability to pay off your other debts, leaving you more stressed post-travel.
As such, be sure that your travel won’t interfere with your debt obligations.
If the travel date is still far off, try to pay off the principal of the debt quickly to lower your total expenses. But at the very least, ensure you’re paying it on time.
5. Put Money in a High-Interest Savings Account
Another way you can save up for your upcoming holiday is by putting a store of funds in a high-yield savings account.
This account type is known for its better interest yield, typically 2 to 3% more than traditional bank account yields.
Also known as high-interest savings accounts, this account type is an ideal choice for growing your capital without committing it to a long-term fund like a time deposit.
This makes it perfect for traveling—you can enjoy improved interest earnings while still getting to withdraw your money easily.
If you want to get a full and accurate glimpse of your savings and their projection over time, Westpac’s savings calculator is one tool that can help you calculate how much you should ideally be earning per age.
6. Automate Your Savings
Did you know that you can automatically sort and put your income in different accounts?
Not a lot of people know about this, but most banks allow you to automate your savings through your bank’s app or website. Browse through your bank’s website or contact an agent to see if you can access this feature.
This can be incredibly useful for disciplining yourself from compulsively taking out money from your savings account for other wants.
Furthermore, you can easily prepare and track your travel funds here as they’re separated from your main savings account.
7. Use Rewards Programs to Redeem Points and Miles
If used frequently enough, any traveler can get travel perks from their airline of choice or credit card provider.
This is assuming you’re using a miles and rewards-accumulating credit card, like Citi PremierMiles. If you don’t have one, look for local banks offering them and see whether you’re eligible to apply for one.
Using this card can be a great way to save your money on accommodations, lounge access,airline tickets, and a plethora of travel-related expenses. It can also help you save money for other expenses in general, like groceries.
These points and miles can expire after a few years, so it’s best that you know its expiry date so you can use them up and fully take advantage of it.
Thanks for Reading!
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