Traveling is a luxury that most people would like to experience. Traveling pushes your boundaries, allows you to try new things, builds self-confidence, increases mental well-being, and overall makes you a better person. However, with travel come pretty hefty expenses. Financial planning for long-term travel is a necessity for anyone thinking about going away for a while. You need money to travel and preparing your finances ahead of time ensures that you can get on the road sooner, and with a peace of mind.
Stay in Now to Save for Nights out Later
Saving is key when preparing financially for a big world trip. It’s important to start saving as early as possible in order to have enough money to pay for the expenses of your travel. Ask yourself, would you rather go out now to the same restaurant you’ve been eating at for years, or experience new food at a new location? The best way to do this is by cooking your own dinners at home. Buy in bulk and make dinners for the week. This can save you up to $100 a month. You can also brown bag your lunch every day instead of eating out. If you have an occasion where you need to eat out, one way to cut costs is to order water instead of soda or alcohol. You can also avoid ordering appetizers and dessert, and just stick to a main course. By sacrificing now, you will be able to enjoy being out while on your trip and not have to worry about counting pennies in order to have some fun.
Start Increasing Your Income
This is the time to sacrifice now in order to enjoy your world trip. Taking a second and third job is a great way to increase your income. There are so many different options to choose from such as:
- Dog walking
- Creating a blog
- Starting an online business
You can still be able to work your nine to five job but can also work evenings or weekends to get that extra cash. There are even jobs that do not require you to leave your home such as freelancing or working from your computer. Freelance work allows you to be in the comfort of your own home while still getting paid for your time. Starting an online business does not require a big cash investment and you would be able to work around your schedule. Generating extra income along with minimizing expenses is the foundation of saving up for your big trip.
Sell Your Possessions and Get Rid of Expenses
Another way to create more income is to sell your possessions that you no longer need or are no longer of use to you. Selling your home is an obvious way to get a lot of money at one time. You can also rent out your apartment or rent out a room to increase monthly savings. Cable is a huge monthly expense that is not really needed. In the age of Hulu and legal streaming, there is no reason for you to spend over $100 per month. Instead, start watching shows online for free. Title loans are another great way to get some extra cash. A title loan is a type of secured loan where people can use their car or motorcycle as collateral to get cash. This is a convenient and quick way to get cash fast for people who own their own vehicles. Another option would be to just sell your car in general. Who needs cars nowadays with all of the types of transportation offered, such as Uber? Cars are crazy expensive between insurance, repairs, payments, and filling up your gas tank. Instead, learn to love public transportation and save a ton of money. If not having a car is unrealistic to you, another option would be to sell your car and buy a much cheaper used one. Buying a used, older car will allow you to pocket the money from your more expensive vehicle and put that towards your trip.
Create a Budget
Creating a budget is key in order to know what your trip expenses will be and how much is needed to be saved. Below are the steps needed to create a budget:
1.)The first step would be to open up a savings account. This will allow you to put all of your saved money into one place and have it grow a little bit more.
2.)Next step is to list your expenses both non-travel and travel. For instance, non-travel expenses would be, car insurance, health insurance, student loans, and rent.
3.)You need to know the total of your expenses, and be sure that the income you’re bringing in will allow you to cover these expenses with extra money for savings.
If you can stick to your budgeting closely, you will find that your income will cover your expenses and you are one step closer to saving enough for your world traveling.
Preparing financially for a big world trip may take some sacrificing, but can easily be done with enough dedication and commitment. Don’t allow your financial situation to stop you from your dreams. Why travel? Because you can!