Discovering new places in the United States or abroad is a dream for many people.
But in addition to the monthly expenses, the costs of a trip are not always affordable, which is why the question arises: how do you save money to travel?
Even if you're thinking of a simpler trip, the truth is that you won't just be spending money on plane tickets. There are accommodation costs, food and, of course, you still have to have some money left over to enjoy yourself during the trip.
And that's not counting the fact that, if you're traveling internationally, you'll probably have some extra documentation costs. And when it comes to a family vacation, the costs can multiply!
All this can be very discouraging. But calm down! This doesn't mean that your dream is impossible. Yes, it is possible to take the trip of your dreams without breaking the family budget.
All you have to do is organize your financial life, plan well, and, above all, create strategies to make your money grow. We're talking about investments.
In this article, you'll discover how to save money to travel with financial planning and how to make effective investments.
Read on to get even closer to your dream.
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Table of Contents
Are you traveling? Find out why you need to plan
As we've already said, when we think of the cost of a trip, we often think of the plane ticket. However, a little planning can reveal many other costs. For example
- Documentation;
- Baggage fees;
- Accommodation costs
- Food costs
- Transportation and telephone costs in the city visited.
Not forgetting, of course, that to truly enjoy your vacation, you will certainly have other expenses. For example
- Entrance fees to tourist attractions or guided tours;
- Local shopping;
- Restaurants of interest.
We also recommend taking out travel insurance. This way, you'll be prepared for any unforeseen circumstances and can relax.
Sound like a lot? Unfortunately, it is. However, you don't have to give up your dream of seeing the world just because of that. With planning and some smart investments, you can save money much more quickly.
We're going to tell you everything you need to know about how to save money to travel effectively and quickly. Check out our tips:
How to save money to travel – 12 important tips
Want to know how to save money for traveling? It might be simpler than you think!
1. Organize your financial life
First of all, it's extremely important to plan your finances. And this doesn't just apply to those who are saving money to travel.
This is an important step in the life of anyone who wants to achieve their goals and make their dreams come true!
We suggest that you start by taking stock of how much you earn and how much you spend – and where you spend it. You can use a spreadsheet, for example.
This way, it's easier to identify if you're spending too much on things you don't need. Or, worse still, if you spend all or more than you earn in a month.
Family financial planning is also an excellent way to start your children's financial education!
2. Calculate how much you can save each month
Now that you know what the financial situation is like at home, it's easier to determine how much you can set aside each month to travel.
At this point, you can find yourself in two situations:
- You can set aside a considerable amount each month for travel
- There are no gaps in your budget
If your situation falls into the second case, there's no need to despair. Read on and you'll find lots of tips on how to solve this problem.
3. Find ways to save
If, while organizing the family finances, you realize that you can't set aside the amount needed for the trip, it's time to cut back on expenses.
The first step is to identify in your financial planning all the superfluous expenses, i.e. those that could be avoided with simple alternatives.
Here are some common examples of expenses that can be saved:
- Post-paid telephone plans are not always necessary and can easily get out of hand
- Home-cooked food is not only tastier and healthier, it's also cheaper
- Small expenses can be very significant – watch out for small, unnecessary purchases
- Is the gym too expensive? You can keep fit with outdoor runs
- Beware of buying on credit in installments: the interest can blow a hole in your budget
4. Set goals and deadlines
Financial goals are essential for anyone thinking about how to save money to travel. Defining the estimated cost of your dream trip is just the first step.
Start with a simple goal, such as saving 5% of your salary every month. Also set medium-term goals, such as having enough to invest in an investment fund in 5 months.
Your long-term goal will be to get the money for your trip.
With defined goals, it's easier to track your progress and stay motivated.
5. Buy your tickets at the right time
Airline ticket prices tend to fluctuate – a lot. The difference can be enormous, depending on the day you plan to travel, the website where you book, and the time of purchase.
So be aware. Tickets bought in advance are usually much cheaper.
Also, be sure to keep track of prices on different specialized websites and apps.
6. Stay focused on your goal
Always keep in mind that you're saving money to make a dream come true. This makes it easier to think about whether you need that new blouse.
And this doesn't just apply to expensive purchases or outings. It's common to put aside small expenses, like a snack at the bakery – after all, it's only US$3, isn't it? Well, at the end of the month, that's US$100 more in your bills if you make a habit of having coffee there every working day.
7. Keep a close eye on your progress
Saving money is much harder if you don't know how you're progressing. Keep a close eye on your results. This helps you stay motivated and also allows you to identify how you can improve.
8. Consider traveling in the off-season
Depending on the season you choose for certain destinations, the prices of everything can triple!
In most cases, the experience doesn't change much in the low season. So plan your trip very well so that you don't spend more money than necessary.
9. Pay attention to the exchange rate
For those who have chosen an international destination, it is very important to pay attention to the exchange rate. After all, depending on the exchange rate and market trends, it can be advantageous to buy currency in advance.
10. Use discount or points apps
Numerous apps and advantage programs offer travel-related rewards. For example, in most credit card points programs, you can exchange your points for miles.
These apps are also a great way to save money on everyday purchases. This way, you'll have more money left over for your trip.
11. Look for ways to generate extra income
If you've done all your financial planning and can't find any more opportunities to reduce your spending, don't give up! There are several ways to generate extra income and use that money to travel.
Here are a few solutions:
- Sell items you no longer use online;
- Rent out a room in your house;
- Work as a freelancer in your spare time;
- Setting up an online store;
- Give private lessons in skills you have mastered, such as English, Excel, etc.
12. Multiplying the money set aside for travel through investments
The easiest way to make the money you've saved multiply and pay off is to learn how to invest.
After all, it's not always possible to cut back on spending. And not everyone has the time to add extra activities to their week to earn more money.
It's very simple: instead of putting your travel money in savings (where it will yield practically nothing), invest it in a much more profitable option.
Many options are just as safe as savings.
Make your money go further by investing
But how do you save money to travel by investing? What are the best options for this? Is it safe?
It's very common to have these doubts, especially if you're a new investor. But don't worry: we'll help you every step of the way – and it's very simple.
Consider the following investments when saving money to travel:
- Fixed income fund
- Multimarket fund
- Debentures
- LCI/LCA
- CRA/CRI
- Shares
It's important to choose an investment based on your investor profile.
Special attention needs to be paid to the liquidity of the investment when the aim is to save money to travel. The most suitable investments are those with good liquidity, i.e. those that don't take long to reach your account after you've asked for them.
So if you find a good offer on airline tickets, for example, you can redeem it in time.
And how to save money while traveling?
Now you know how to save money while traveling without blowing your budget! But there are also lots of things you can do to make your trip cheaper!
Check out our tips:
- Always keep the exchange rate in mind, so you don't lose count of how much you've spent;
- Search for free attractions and excursions;
- Use the six-block rule: don't shop in establishments that are less than 6 blocks from a famous tourist attraction. Especially restaurants;
- Replace traditional hotels with hostels, guesthouses, or even apps like CouchSurfing;
- Make a travel itinerary so you can estimate how much you will spend during the period;
- Beware of “tourist costs”. Many establishments take advantage of the language barrier to charge more;
- Get to know the local public transport system. It's much cheaper than renting a car or taking a cab to get around;
- Find out about local telephone options. It can be cheaper to buy a prepaid plan locally than to pay your phone bills.
Conclusion
Ready to save up and embark on your dream vacation?
Saving money to travel can be easier than you think when you replace savings with smart investments.
In this article, you learn more about how to organize your finances and get the trip of your dreams. And the best part: making your money work for you.
Do you have questions or suggestions? You can leave them in the comments!
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