Saving Up for Your Dream Trip
Welcome back! I apologize for the long break between posts. My list of excuses includes the holidays, going full time at my job, and playing Candy Crush until everything starts to look like candy. But I'm back on track now with a new post on saving money for your next trip.
As you may know, a little less than a year ago I quit my job, took a month off, and then took a part time job to pay the bills. I hardly had any money to throw around, let alone save up for a trip overseas. Luckily, I already had some savings and most of the expenses for my trip to Greece last summer were already paid for. However, had I kept saving (or not saving) at the rate I was going, I could forget about going on another trip this summer. Nevertheless, traveling is important to me and I won't let a little thing like "having no money" stop me from doing what I want. The purpose of this post today is to help anyone else with a penchant for traveling to save up money for that dream trip, no matter how long it takes.
First of all, for anyone like me with a spending problem, you'll have to admit you have a problem. Saving is easy for those who pay their bills and put any leftover money away, but unspent money burns holes in my pockets so saving can be a challenge. I have been given plenty of advice over the years, and I have actually found some of it to work. With any luck, others can take the advice that has been given to me and I can learn to practice what I preach.
Let's start with some easy steps:
1. Post photos of your dream destination so you are constantly reminded of your goal. Hang them up in your room, put them on your mirror, on the fridge, make it the background of your phone, anywhere you look every day. Put a wallet sized photo in front of your credit card so you are reminded every time you pull it out, it may stop you from making yet another pointless purchase.
2. When you get the urge to shop online, Google image your top destinations instead. Get wrapped up in an article about a city or scroll through dozens of images. You don't need another pair of shoes, you need that trip to Thailand you've been dreaming about.
3. If you MUST spend money because you have an addiction to shopping (guilty), buy something for your trip. Pick up a guidebook, TSA lock, backpack, etc. If you can justify that it's for your trip, that's good enough for me.
4. Hoard your change. Designate a piggy bank, jar, box, whatever, and put it somewhere you pass every day. Throw all of your extra change in it and watch as it adds up. Last year when I emptied out my coin jar I had enough to pay for a gel manicure before my trip, that's $30 plus tip I didn't have to take out of my spending money.
5. Tell others about your plans. I've read that telling your friends and family about your goals makes you hold yourself accountable to them because you don't want to let others down. Encourage your friends to call you out when you're wasting money and remind you that you have bigger plans. But don't get mad at them when they actually do.
Okay, a little more challenging:
1. Stop making impulsive purchases. At my new job, I spend all day on retail web sites looking for the lowest prices on clothes, TVs, laptops, etc. I thought this would be a terrible idea for me because I would be dropping money left and right whenever I saw something I wanted. Surprisingly, this hasn't been the case. If I do see something I like and think I may want to buy, I'll open it up in a new tab and minimize it for the rest of the day. Usually, after I've had all day to think about it, I decide I don't actually need it and my money stays safely in my bank account. Next time you see something you like, give yourself some time to think about it. With any luck you'll have changed your mind, or the item will have sold out. Either way it's a win-win for your savings.
2. Go out less. Everyone knows it's cheaper to cook at home, but even if you're not a culinary chef, the Internet is full of recipes for cheap and easy food that is delicious too. Restaurants and bars jack up their prices to cover their own costs and you usually have to add a tip, so do yourself a favor and whip up something at home to pad your wallet.
3. Team up with a travel buddy. This is similar to teaming up with someone to lose weight or train for a marathon, it's easier when you're going through it together. You'll also have someone to hang out with when you're saving by not going out to eat, drink, dance or whatever you're into that costs money.
4. Have a budget. Figure out how much of your paycheck has to go to bills, food, gas and anything else you absolutely need. Re-evaluate whatever you are spending the rest on. Rather than buying coffee and a donut every morning, you can wake up a few minutes earlier to brew your own cup and make your own breakfast. I understand leftover money is a luxury not all are lucky enough to have, but even the smallest amount put away each week or month will add up.
5. Set goals. Know when you want to leave, how much money you will need, how much you can put away and how long it will take you to save up. If you are not reaching your monthly savings goal, you may need to take more serious steps:
Now let's get serious:
1. Have two banks. Put your savings account and checking account into two different banks. It will take longer and be more complicated for you to take that money out, so you will be less tempted to spend it.
2. Apply for a credit card with travel rewards for miles you can use toward your flight.
3. Spend a little at a time for your trip. If you have a year before your trip, take half the year to pay for the trip and the other half to pay for the ticket. Putting out one lump sum is harder than spending a little at a time. This is where goals are important however, the hotel room you have booked in Germany isn't any good if you don't have a plane ticket to get there.
4. Work more. Pick up extra shifts, stay late, or even take on another job. Unfortunately, in order to make money most of us need to do actual work, but all of it will pay off when you finally reach your destination. If following your dreams were easy, everyone would do it.
5. Sell your stuff. If you physically can't take anymore work, there are plenty of people who will pay cold, hard cash for the junk you don't need anymore. Have a yard sale, sell your things on Craigslist (safely), or look up web sites looking for what you have to sell. You can sell CDs, furniture, jewelry, whatever is taking up space that can make you money. Word of caution, don't sell anything that's not yours or that you may regret selling in the future. Usually, you can't get it back. Additionally, if you have a talent for painting, photography, jewelry-making, or any other marketable craft, sell your wares at a craft fair or online to make some extra cash. Every little bit helps.
5. And finally, don't be dismayed if something comes along that needs those savings you worked so hard to get. Cars break down, home improvements need to be made, and medical bills can add insult to injury. Don't give up your dreams because you have to start all over again. Having goals and dreams are fulfilling parts of life, no matter how long it takes you to complete them.
My trip to London, Paris and Amsterdam in 2012 was the first trip I paid for entirely by myself. It was my first vacation from my first real job and knowing that I had worked hard to earn it made the trip that much more satisfying. I hope you get to experience that feeling of accomplishment when you finally touch down on your dream vacation.
Remember, these tips can be applied to anything you need to save up for. For me, traveling comes first. But if you've got your sights set on a new car, house, HDTV or Keanu Reeves' complete filmography on 3D Blu-ray (I won't pretend to know what you're into), then you can repurpose these tips to reach your goal.
Fun Fact: Today's fun fact has little to do with traveling but is interesting nonetheless. I recently learned that the amount of American dollars currently in circulation in the world equals about $1.24 trillion. However, the amount of "money" in American dollars existing in bank accounts around the world equals about $2.5 trillion. That means that if tomorrow every American went to the bank and asked for all of their money in cash, half of us who were too lazy to get there earlier wouldn't get any. That figure doesn't even count money market funds, savings accounts and Certificates of Deposits, which equals another $10.5 trillion. Let that sink in. Rather than try to make a point about the money that doesn't even exist that we base our economy on, I will leave you with this: there is money out there, you have to figure out a way to get your hands on it.
Thank you for reading and good luck saving up for your dream trip!
-Sam
As you may know, a little less than a year ago I quit my job, took a month off, and then took a part time job to pay the bills. I hardly had any money to throw around, let alone save up for a trip overseas. Luckily, I already had some savings and most of the expenses for my trip to Greece last summer were already paid for. However, had I kept saving (or not saving) at the rate I was going, I could forget about going on another trip this summer. Nevertheless, traveling is important to me and I won't let a little thing like "having no money" stop me from doing what I want. The purpose of this post today is to help anyone else with a penchant for traveling to save up money for that dream trip, no matter how long it takes.
First of all, for anyone like me with a spending problem, you'll have to admit you have a problem. Saving is easy for those who pay their bills and put any leftover money away, but unspent money burns holes in my pockets so saving can be a challenge. I have been given plenty of advice over the years, and I have actually found some of it to work. With any luck, others can take the advice that has been given to me and I can learn to practice what I preach.
Let's start with some easy steps:
1. Post photos of your dream destination so you are constantly reminded of your goal. Hang them up in your room, put them on your mirror, on the fridge, make it the background of your phone, anywhere you look every day. Put a wallet sized photo in front of your credit card so you are reminded every time you pull it out, it may stop you from making yet another pointless purchase.
2. When you get the urge to shop online, Google image your top destinations instead. Get wrapped up in an article about a city or scroll through dozens of images. You don't need another pair of shoes, you need that trip to Thailand you've been dreaming about.
3. If you MUST spend money because you have an addiction to shopping (guilty), buy something for your trip. Pick up a guidebook, TSA lock, backpack, etc. If you can justify that it's for your trip, that's good enough for me.
4. Hoard your change. Designate a piggy bank, jar, box, whatever, and put it somewhere you pass every day. Throw all of your extra change in it and watch as it adds up. Last year when I emptied out my coin jar I had enough to pay for a gel manicure before my trip, that's $30 plus tip I didn't have to take out of my spending money.
5. Tell others about your plans. I've read that telling your friends and family about your goals makes you hold yourself accountable to them because you don't want to let others down. Encourage your friends to call you out when you're wasting money and remind you that you have bigger plans. But don't get mad at them when they actually do.
Okay, a little more challenging:
1. Stop making impulsive purchases. At my new job, I spend all day on retail web sites looking for the lowest prices on clothes, TVs, laptops, etc. I thought this would be a terrible idea for me because I would be dropping money left and right whenever I saw something I wanted. Surprisingly, this hasn't been the case. If I do see something I like and think I may want to buy, I'll open it up in a new tab and minimize it for the rest of the day. Usually, after I've had all day to think about it, I decide I don't actually need it and my money stays safely in my bank account. Next time you see something you like, give yourself some time to think about it. With any luck you'll have changed your mind, or the item will have sold out. Either way it's a win-win for your savings.
2. Go out less. Everyone knows it's cheaper to cook at home, but even if you're not a culinary chef, the Internet is full of recipes for cheap and easy food that is delicious too. Restaurants and bars jack up their prices to cover their own costs and you usually have to add a tip, so do yourself a favor and whip up something at home to pad your wallet.
3. Team up with a travel buddy. This is similar to teaming up with someone to lose weight or train for a marathon, it's easier when you're going through it together. You'll also have someone to hang out with when you're saving by not going out to eat, drink, dance or whatever you're into that costs money.
4. Have a budget. Figure out how much of your paycheck has to go to bills, food, gas and anything else you absolutely need. Re-evaluate whatever you are spending the rest on. Rather than buying coffee and a donut every morning, you can wake up a few minutes earlier to brew your own cup and make your own breakfast. I understand leftover money is a luxury not all are lucky enough to have, but even the smallest amount put away each week or month will add up.
5. Set goals. Know when you want to leave, how much money you will need, how much you can put away and how long it will take you to save up. If you are not reaching your monthly savings goal, you may need to take more serious steps:
Now let's get serious:
1. Have two banks. Put your savings account and checking account into two different banks. It will take longer and be more complicated for you to take that money out, so you will be less tempted to spend it.
2. Apply for a credit card with travel rewards for miles you can use toward your flight.
3. Spend a little at a time for your trip. If you have a year before your trip, take half the year to pay for the trip and the other half to pay for the ticket. Putting out one lump sum is harder than spending a little at a time. This is where goals are important however, the hotel room you have booked in Germany isn't any good if you don't have a plane ticket to get there.
4. Work more. Pick up extra shifts, stay late, or even take on another job. Unfortunately, in order to make money most of us need to do actual work, but all of it will pay off when you finally reach your destination. If following your dreams were easy, everyone would do it.
5. Sell your stuff. If you physically can't take anymore work, there are plenty of people who will pay cold, hard cash for the junk you don't need anymore. Have a yard sale, sell your things on Craigslist (safely), or look up web sites looking for what you have to sell. You can sell CDs, furniture, jewelry, whatever is taking up space that can make you money. Word of caution, don't sell anything that's not yours or that you may regret selling in the future. Usually, you can't get it back. Additionally, if you have a talent for painting, photography, jewelry-making, or any other marketable craft, sell your wares at a craft fair or online to make some extra cash. Every little bit helps.
5. And finally, don't be dismayed if something comes along that needs those savings you worked so hard to get. Cars break down, home improvements need to be made, and medical bills can add insult to injury. Don't give up your dreams because you have to start all over again. Having goals and dreams are fulfilling parts of life, no matter how long it takes you to complete them.
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| Seen here: Victory |
Remember, these tips can be applied to anything you need to save up for. For me, traveling comes first. But if you've got your sights set on a new car, house, HDTV or Keanu Reeves' complete filmography on 3D Blu-ray (I won't pretend to know what you're into), then you can repurpose these tips to reach your goal.
Fun Fact: Today's fun fact has little to do with traveling but is interesting nonetheless. I recently learned that the amount of American dollars currently in circulation in the world equals about $1.24 trillion. However, the amount of "money" in American dollars existing in bank accounts around the world equals about $2.5 trillion. That means that if tomorrow every American went to the bank and asked for all of their money in cash, half of us who were too lazy to get there earlier wouldn't get any. That figure doesn't even count money market funds, savings accounts and Certificates of Deposits, which equals another $10.5 trillion. Let that sink in. Rather than try to make a point about the money that doesn't even exist that we base our economy on, I will leave you with this: there is money out there, you have to figure out a way to get your hands on it.
Thank you for reading and good luck saving up for your dream trip!
-Sam
Admiring the time and effort you put into your blog and detailed information you offer!.. Medium Sudoku
ReplyDeleteThis post is amazing! I got to bookmark this so I can read it for my next big travel adventure!
ReplyDelete