20 Tips On How To Save Money To Travel Around The World
The hardest part about an around the world trip is figuring out the money. It's a huge mountain to climb, but it's not impossible. The following are 20 tips on how to save money for your upcoming around the world trip.
These are all suggestions, so dear reader, feel free to follow them or not, as you wish, but keep in mind that your life will be amazing while you prepare yourself for this big adventure around the world at only the thought of it.
I‘m advising you so because I myself have started this year with planning my own around the world trip. Even so, I have to let you know that by now I already know this is not easy and I need to save up and make sacrifices in order to be able to afford every place I want to go. The earlier you start doing this, the better! This way, the very moment you decide it’s time to make your dream come true, you are ready and packed.
Then very first thing: you need to figure out how much you actually need to save. How much will it cost you to go around the world?
Just remember, whatever your around-the-world travel budget is, it’s best to have a plan in place!
Create a savings plan.
Tip: A good savings plan will have 5 steps:
1. Compare your trip plan to the reality of your financial situation.
Is it feasible or are you dreaming too big? Make hard decisions. Be honest. Once you’ve got a general idea of your trip’s overall cost, compile a spreadsheet that lists your income vs. your expenses to see how everything stacks up.
2. Setting goals – Your savings plan should comprise several goals, some achievable on a short-term and some on a long-term.
List your goals in specific numbers and don’t be shy to shoot high. But not so high that it could kill your enthusiasm (also, remember people have traveled around the world on nothing!).
3. Creating a plan – This savings plan details will show how you’ll accomplish your goals.
This could be done by removing unnecessary expenses (see below!), setting a strict spending budget, or adding additional income to meet your goals.
4. Implementation – Put your plan in motion and maintain it.
As time passes by, your plan will evolve as your spending habits change. Take a look at your progress every month and scrutinize the budget for possible adjustments.
5. Commit to your dream
The first of my tips for saving money (for travel) is to remind yourself every day why you are doing this. We all have different reasons that lay behind our decision: a thirst for the unknown, a thirst for knowledge, a rebellion, etc. Just put a picture on your wall, or a map with pins and strings to mark your dream around the world trip route, for constant re-validation. Saving money is a slog, but anyone can do it if they set their mind to it.
Reduce your expenditures.
Simplify your life.
Sell some stuff.
Earn some extra income.
Get into habits of frugality (save without shame!).
Assess your expenditures.
Make a spreadsheet and list out every one of your daily/monthly expenditures. Organize them into two columns: “Needs” and “Wants“. Slowly eliminate all the “wants” from the things you regularly purchase.
Start a dedicated travel fund
Create a new account with your bank called “I’m Outta Here” and feed it monthly, weekly, or daily. Make it easy to transfer money over from another account and every time you go online to check your balance, transfer some money, even if it’s just 5 EUR. Make it fun. Make it a habit. Make it natural. Make it painless. Revel in its growth! I saved a lot, by daily adding 10EUR with a direct debit from my current account to the savings account, and I never noticed it! Until I saw the pile of money in my savings account and then I start booking flight tickets.
Spend less on lunch
It may be as simple as not getting a 1.40 EUR drink (tap water is highly underrated as a beverage!). Thing is you have to make a purpose on spending less than 8 EUR on your lunch. Those savings will add up. Let’s say you eat outdoors five times a week. Just trimming your lunch cost from 12EUR to 8EUR saves you 1008EUR a year! For even more savings, pack a lunch if you’re able.
Cut back on fancy coffee drinks
Eliminating coffee from your life just might be impossible especially since coffee shops are an essential place for many people to socialize, study, and work at, but that doesn’t mean you have to spend a fortune on caffeine! Think drip coffee instead of that ultra-mocha grand with extra espresso shots. Paying 2EUR instead of 5EUR every day could save you 1,095EUR a year!
Eat out less often
Restaurants put more holes in a saving plan than a woodpecker on amphetamines. Plus, learning how to cook for yourself is ridiculously gratifying. The Food Network and Recipes.com have a nearly limitless repository of delicious recipes to start you off. Simple unprocessed foods like rice, beans, chicken, pasta, potatoes, and vegetables are healthy and cheap. Or take some cooking classes if you have time! It will be fun, but not cheap per say!
Reduce or eliminate your car usage
Uber is a great option for daily car sharing if you need to go long distances. Biking and walking more will definitely help with your cutting costs, and also, you might not need that gym subscription anymore. Also, try to shop as close to home as you can, so you will definitely not need a car, and if that is not possible, try shopping your groceries online. If you really need a car, in Europe mostly, there is this new concept, GreenWheels, where you can pick up a car from a certain place and pay to rent it for a few hours (minimum 2 hours) or a few days. Cool idea to check it out (also environmentally friendly as some cars are electric!) Every little bit helps!
Kill the cable TV dead
You’ll be surprised how fast your savings add up when you ditch cable TV. Several friends of mine pay up to 50-60 EUR a month for their cable. That’s insane, it adds up to at least 720 EUR a year. That could fund an entire trip to lots of places in the world! Besides, there are plenty of free and cheap ways to get your entertainment. Netflix is 10EUR a month. Books are cheaper than movies and library subscription is even cheaper. Consider alternatives! I haven’t had a TV subscription from 2011, that’s almost 8 years.
Reduce your utility bills
I know this is extreme, but to be completely honest, I tested and it works. I decreased my energy bill form 46EUR to 21EUR per month. , which is a pretty good 300EUR per year to spend on travels. Put a sweatshirt on and keep the heat low. Open the windows to catch a breeze instead of using the air conditioner. Turn off the lights when you leave a room. Shorten your showers. Some areas of the country have more moderate temperatures than others, but even a few bucks a month pile up in your travel savings account. If you can trim 15% off by being more efficient, doing fewer loads of laundry, and conserving energy, you could add around 225EUR to your savings, annually.
Cancel your gym membership
Instead of that gym membership, an exercise in the great outdoors, run in the fresh air. Swallow your pride and use those strange public fitness things in the park. The world is a cardio machine. Watch the calories burned outside turn into greenbacks in your bank account! There are so many free YouTube channels you can also try out. I know I am not fit, so this is not a great advice, but I do workout constantly.
Skip the spa
Luxury feels so good, but spas are a serious expense. Massages, peels, and mani-pedis will cost you your hard-earned cash, and they certainly won’t help you get on the road any sooner. Skip out on the short-term luxury of self-pampering and save more for the life-changing luxury of long-term travel. Remember the work Skip rather than Give-up, which means, still use from time to time some pampering for relaxation, we don’t want to be stressed around the world, right?
Get fewer haircuts
Please don’t laugh and I know, this is a bit extreme, but if you get a haircut or a cut and colored once every two months as opposed to once every month, you’ll save 50% and probably still look just fine. Considering the cost of hair care, over the course of a year this could really add up. Of course, stick to a simple style that a friend can trim for you for free, and you’ve got 100% savings. Same for ladies that colored the hair…and Yes, I know, I am not listening to myself, but as I said at the beginning of this post, these are all options on how to save money, you don’t have to do it all, if you don’t feel like giving up on something you really like just don’t do it! We don’t want this to get you frustrated.
Borrow your reading material
Use your library. Use Paperback Book Swap. Or just borrow books from friends. If you’ve already sprung for an e-reader (useful for your trip as well) there are plenty of places online to download eBooks for free. Here are the sites with the most comprehensive catalogs:
These sites amount to more books than you (and everyone you know) could read in your lifetime. So buckle up!
Do Free Things
Learn to code – hello Codecademy!
Volunteer for a local charity.
Play sports: you know, cycling, tennis, basketball, soccer, etc. Find recreational teams in your area.
Stay in at night. Going out to bars and clubs will force your account balance to go down faster than a good bottle of wine …with only a headache to show for it in the morning. Keep your travel goals in mind and invite your friends over for drinks. That 8EUR bottle of wine would’ve cost you 25EUR at the bar!
Bonus tip for saving money: keep your distance from financially irresponsible people!
Watching your friends go out every night, buying expensive electronics, pricey cocktails, and new boots will destroy all your hard-won motivation. So just don’t. In the same time don’t let this dogged determination to save for vacation turn you into your friend group’s party pooper: you can save for travel, and still let loose every once in a while.
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As I already mentioned a few times, these are all tips if you want to travel. You don’t have to do it all, I know for sure I am not, but if there is something you can cut from your life, please do it, your future self will thank you for all the memories you have created while traveling the world.
Do you guys save money for your dream to travel? How is it going? What did you have to give up on? How long did it take until you decided so? Do you miss it?
Do you have any other ideas on how to save money? Write them down in a comment below.