How to Save Money So You Can Travel the World

If you’re wondering how to save money for travel, you’re not alone. Many people dream of exploring the world but feel held back by financial constraints. The good news? Traveling doesn’t have to be reserved for the wealthy. With a few smart strategies, you can build a travel fund and make your adventures a reality.

When Hannah and I decided to leave the UK to travel full-time, it was a case of saving as much money as we could and making it last as long as possible. As we progressed on our journey we learned many hacks and tools for making our funds go further – read How to Travel the World on an Accommodation Budget.

Here are some of the financial moves we made to save money for travel before we even booked our first flight out.


Set a Clear Savings Goal

calculator

To save money for travel, the first thing is determining how much you’ll need. Getting an exact figure is impossible! But it’s easy to do thorough research on the places you want to visit and how much it costs to get and live there.

Numbeo is great for getting a rough idea of day-to-day expenses for cities and countries around the world. Skyscanner and Booking.com can help with pricing flights, hotels, and transfers. Be honest, realistic, and over-estimate what you think things will cost to allow for a healthy budget.

Research Costs: Look into average expenses for flights, accommodation, food, and activities in your desired destinations.
Set a Target: Whether it’s $50,000 for a year-long trip or $1,000 for a week-long getaway, knowing your goal keeps you motivated.
Track Your Progress: Use a simple spreadsheet to monitor your savings growth. Set monthly targets and review your schedule regularly. Pat yourself on the back when you hit your savings goals and review things when you struggle to bank enough cash.


Create a Dedicated Travel Fund

piggy bank

Keeping your travel savings separate from your everyday finances helps avoid temptation. It’s quick and easy to set up an online bank account or savings pot within an account you currently have.

Consider locking your savings money away in an interest-paying account that requires notice to take money out or has withdrawal fees. This way you are very unlikely to use it and can earn interest on the money in the account.

Open a Travel Savings Account: Save money for travel by choosing an account with no fees and a good interest rate to grow your money. Occasionally certain banks offer travel miles or points instead of cash interest, often providing a better rate for anyone intending to travel extensively.
Automate Savings: Set up automatic transfers from your paycheck to your travel fund. Even $50 a week can add up quickly. My online bank, Monzo, has a feature that rounds up my day-to-day expenses and puts the difference in a savings pot. This keeps my accounts organized and the savings rack up!
Use a Savings Jar: For a more visual method, collect loose change or small bills in a jar labeled “Travel.” An old-school piggy bank that you have to smash open to get the cash is a great idea to stop you from snatching change from your travel fund. Again, small weekly contributions can add up.


Cut Back on Non-Essential Expenses

monthly budget report

Saving money for travel often means making sacrifices in your daily life, but the rewards are worth it. Take an honest look at your financial situation and your monthly outgoings, wield the axe, and chop expenses wherever you can.

Even before we traveled full-time, Hannah and I would take a yearly review of our outgoings to see where we could save. By changing phone networks, gas companies, and cable/internet providers you can save thousands of dollars a year. Changing my data plan once saved me over $600/year!

Reduce Dining Out: Cook meals at home and save the difference for your travel fund. Go a step further and review whether you are shopping at the most affordable grocery store. Can you chop and change for different parts of your shop? Keep an eye on sales, discounts, and coupon offers.
Cancel Unused Subscriptions: Audit your streaming services and apps to find unnecessary expenses. Can you split a membership with a friend or family member? If deductions are being made from your bank account for things you don’t use, cancel them immediately!
Shop Smarter: Stick to a budget for groceries and buy only what you need. Review every bill and ask yourself “Can I get this cheaper elsewhere?”.


Earn Extra Income

tutor

If cutting back isn’t enough, consider ways to increase your income to reach your travel goals faster. I love a good side hustle and there are plenty of them out there. From legitimate jobs like driving for Uber to learning how to do matched betting, you can seriously boost your travel funds.

Take on a Side Hustle: Freelance writing, pet sitting, matched betting, or driving for rideshare services can provide extra cash.
Sell Unused Items: Declutter your home and sell clothes, electronics, or furniture you no longer need. Sites like eBay and Vinted are awesome for making cash on the clutter and unused stuff just sitting around at home.
Monetize Your Skills: Offer lessons, tutoring, or handmade crafts to friends and neighbors. If you’ve got a skill that you think people may need check out Fiver – it’s a great site for connecting people who need everything from translation services and graphic design to songwriting and website development.


Choose Budget-Friendly Travel Options

Stunning Montenegro, a fantastic and unique affordable destination

Travel doesn’t have to drain your bank account. With the right approach, you can stretch your savings further. Check out my 5 Unique Affordable Destinations That Won’t Break the Bank.

For long-term global explorers, consider alternating between expensive countries and more affordable ones. For example, the USA, one of my favorite places to visit, is not a cheap country to live in, but Costa Rica, Mexico, and much of South America are much more affordable and great for balancing the books.

Opt for Off-Peak Travel: Flights and accommodations are often cheaper during less popular seasons. The same goes for accommodation too so check when the country you are visiting has public and school holidays to avoid paying a premium.
Stay in Affordable Accommodations: Consider hostels, house sitting, or budget-friendly Airbnb options. Click here to learn everything you need to know about house sitting.
Embrace Public Transport: Buses and trains are more cost-effective than taxis or rental cars. Booking around 3 months in advance is generally the sweet spot price-wise. Securing transport at the last minute rarely, if ever, makes financial sense.


Leverage Travel Rewards and Discounts

Take advantage of programs and deals designed to help travelers save money. I mentioned earlier about savings accounts that pay interest in travel miles or points and several credit cards can also earn you cashback or travel rewards to help your savings pot.

If you play the credit card system in the right way, and by this I mean, paying it off right away to avoid adding unnecessary interest to your spending, you can utilize the accounts to work in your favor. It’s simple to do and the rewards can be quite significant. Just always pay off your bill right away!

Sign Up for Travel Credit Cards: Use cards that offer points or miles for everyday purchases, then redeem them for flights, hotels, or car hire.
Join Loyalty Programs: Airlines and hotel chains often reward repeat customers with discounts and perks. Booking.com has one of the best loyalty programs known as Genius. You’ll achieve Level 3 status after 15 completed stays and then receive free perks, upgrades, and up to 20% discount.
Use Deal-Finding Websites: Platforms like Google Flights and Skyscanner can help you snag bargains. Compare flights to see if you could save money by slightly altering your travel plans. Sometimes adjusting your travel times by an hour or two can make a big difference in cost.


Get Creative

Trusted Housesitters Advert

Sometimes, saving money for travel means thinking outside the box. During the recent cost of living crisis in the UK I know several people who rented or sublet their homes and took on house sitting placements full-time.

House sittings cost as little as $129/year and there are no household bills to pay. Trusted Housesitters currently has over 9000 homes accepting applicants globally, you won’t believe some of the amazing properties. Click here to learn all about Trusted Housesitters.

House Sit or Pet Sit: Could you feasibly rent out your property and house sit full time? Save money by not paying any household bills and bank extra travel funds from rental income. If you plan to leave your home for a significant period of traveling why not start early and earn and save a lot of money?
Consider Taking in a Roommate: If you’ve got a spare room consider letting it out to a friend, colleague, or via a legitimate rental service. A roommate can help considerably with the rent or mortgage and the monthly household bills.
Airbnb Your Spare Room: A great way to save money for travel is to Airbnb your spare room, or even your entire home. If you have the option to stay at a friend’s or parent’s house (or house sit) while people pay to stay in your home you could bank some serious travel cash.


Stay Motivated

documents on a wall

Saving money for travel takes time and commitment. Keep your goal front and center with these tips:

Visualize Your Trip: Create a Pinterest board and follow Instagram profiles about travel or destinations you want to visit. Physically put a map on the wall and highlight destinations you want to go to.
Reward Yourself for Milestones: Hit a savings target? Treat yourself to something small and travel-related, like a guidebook. Or once you have enough funds make a big purchase and book a flight.
Have Regular Planning Sessions: Dedicate regular spells of your free time to planning parts of your trip. This could be as simple as researching an area you like the look of, figuring out the logistics of how to get there, or reviewing your budget progress.
Talk to Others: Don’t keep it a secret, talk to friends, colleagues, and family members about your travel-saving goals. This way they will understand if you are making changes to your daily life and can offer support and guidance to keep you on track.


Keep an Eye on the Big Picture

globe

Finally, remember that every dollar saved is a step closer to your dream trip. Adjust your lifestyle now so you can enjoy the adventure later, you won’t regret it. Here are a few final tips to help get you towards your travel saving goal;

Embrace Minimalism: Focus on experiences rather than material possessions to align your spending with your travel goals. Do you use it? Do you need it? Can you sell it or do without it? All valuable questions to ask yourself about your possessions and day-to-day activities.
Practice Gratitude: Appreciate the journey of saving and planning as much as the trip itself. It’s not easy to accumulate a significant savings pot, so pat yourself on the back as the funds start to increase.
Be Flexible: Adjust your travel plans if needed to match your savings progress. Don’t panic if things don’t go to plan or you suffer setbacks along the way. Regroup, restrategize, and go again.


Conclusion

woman with wine and a map
Hannah enjoying 2 of her favorite things, a glass of red wine and a map!

Saving money for travel is a challenge, but it’s also incredibly rewarding. By following these steps and staying committed, you’ll turn your travel dreams into reality.

The sooner you start, the sooner you’ll find yourself exploring the world. Good Luck!


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