The issue most people face when it comes to travelling is lack of funds. Well, there are numerous things you can do to prevent this problem from constantly arising from house sitting to volunteering. However, a simple but effective technique to save money both leading up to and while travelling is to set a strict budget. That morning coffee you so frequently buy, do you really need it? And what about that new top you have your eye on? People in the Western world, particularly the UK and America are reckless when it comes to spending. Always wanting the most up to date version of everything and feeling unfulfilled if unable to make new purchases so this post will explain how to follow a strict budget in order to save money while travelling.
Make a budget
Write down your budget
First, start with thinking about what is the bare minimum you believe you can spend on each of the categories below per month.
- Rent
- Phone
- Grocery shopping/essentials
- Fun
- Presents
- Transport
- Miscellaneuos
- Insurance
- Utilities
- Internet
2. Compare budget to income
Secondly, add each section up and compare the total amount with how much money you earn. If it is more than you are earning then it’s time to make some drastic cuts but nothing is impossible! Things like Spotify, tv packages, takeaways and alcohol are not completely necessary in life so perhaps for a few months you could have less luxuries in order to meet your budget.
Once you have perfected your budget so that you are seeing some savings then keep this in mind when making any purchases. Also, bear in mind that miscellaneuos spending may not be needed every month so this can either be saved or go towards other categories.
3. Transfer your money
Savings – Whatever amount you believe you are realistically able to save then have this transferred into a savings account the day after you are paid. In case your paycheque is late, do not transfer on your payday to prevent overdraft fees.
Spendings – I recommend using the Revolut app. It has helpful saving things like rounding up your ‘change’. For example, imagine you buy your morning coffee for £2.70, that then gets rounded up to £3.00 and £0.30 is automatically added into your Savings Vault. This will help to increase your savings! Likewise, with your savings account, transfer your ‘budget’ money over to Revolut the day after receiving your paycheque. Revolut shows very clearly what each purchase is. I find it to be a very useful app for keeping track of my spending in comparison with a typical banking app.
4. Stick to your budget to save money for travelling
So now that you have your budget, it is time to stick to it! This is easier said than done for many people, especially if substantial cuts have had to be made. One way to keep focused and motivated is to simply think about the travels you have planned. Would you rather have those morning coffees now or save the money for a meal out in Bali. You could even make a travel vision board filled with photos of your dream travel destinations.
Grocery shopping/essentials
A great and healthy way to save money is to make all your own meals. Forget about all those dinners out, takeaways and ready meals and instead get in the kitchen and start cooking! On average, a UK homemade meal for one person costs around £1 – £2 and can cost even less, especially if you don’t constantly buy branded items. Let’s say you have a takeaway or go out for dinner at least once a week, buy a few premade meals each week and grab lunch out when working 5 times a week. This would add up to a cost of around £40 minimum. Swap these to homemade meals and you could be making a weekly saving of around £30. This would add up to £120 saved each month and £1440 per year!
For tips watch programmes like Eat well for less and Jamie Oliver’s money-saving meals. Also, reducing meat will not only benefit the planet but can benefit your savings too.
Fun and presents
I think of the fun category as including most non-essential things such as theme parks, spa treatments, ‘non-essential’ new clothes etc. As these are not actually needed, this is where you can easily make cutbacks. Also, you can choose alternatives such as using charity shops more often which also brings no harm to the planet and attend activities with free entry.
A major thing that costs a huge expense in the UK is going out. Go out less – this will majorly help to save money for travelling! The amount people spend on drinks can rapidly build up. So if you cut down on anything, make it the amount you drink on a night out – this will certainly help save those pennies. Let’s say you spend only £20 each week on drinks out, if you cut this down by half then you will save £520 a year!
As for presents, the same can be applied – choose cheaper alternatives but also only buy for those who you really feel you should. Don’t go buying presents for every family member and friend under the sun.
Transport
Transport can be tricky because many people need their car. However, if you don’t then perhaps think about selling it and using public transport instead or catch lifts with others. Cycling and walking will help your savings too as well as your health. If a car is needed, then simply cut down on its usage. Money on gas soon adds up!
Utilities
Like most points in this post, this may seem obvious but it is not always something people think about. Turn down your heating and use it less often. Wear warmer clothing instead. Get a hot water bottle for at night. Also, turn off any appliances that are not being used. Stop leaving TVs on standby. These little things will help to save money on your utility bill.
Even if you are looking for ways to save money on a tight budget, making little changes here and there will definitely make a difference to your travel fund. Let me know how you get on! I’d love to hear whether budgeting has successfully helped you to save money for travelling!
