Financial Blog

Travel plans or long term saving? Who says you can’t have both! 

Give yourself the freedom to achieve your travel goals without having to break the bank by following these tips.

Plan ahead, and do your research

Before you go, be familiar with the place where you’re going.  Read traveler reviews, consult with the locals, or ask anyone you know who traveled there before. Ask where the safest parts are and the parts to avoid if possible. Know who to call in case of emergencies get the contact information for the nearest embassy or consulate, police station, and other local emergency departments.

Don’t forget to look into how to get around locally. Check and compare which modes of transport deliver the best option to get the most out of every mile you travel.

Make copies of important documents

You never know when you might require a duplicate of your driver’s license, passport, or other identity document. Scan these files, save them online, and make multiple hard copies. In this manner, if you need to return home, you won’t have to waste time looking for the right paperwork.

Keep your family and friend updated

Whether you’re heading out for a quick trip or a month-long trip abroad, it’s usually a good idea to notify friends and relatives back home. Give a few friends or family member who can follow your locations a printout of your itinerary before you depart. To let your contacts know you’re where you should be, make sure to check in with them from time to time.

Be aware of your surroundings

Don’t let your guard down trying to snap that perfect picture for your social media, or when choosing which gift to bring home. 

Keep an eye on your personal belongings at all times and use good judgment when talking to strangers. A big part of the joy of traveling is the opportunities it brings to meet new people and learn about their cultures. But if someone near you is acting suspiciously, or if you feel uncomfortable, leave the area immediately.

Be aware that no matter how many precautions you take the unexpected can always happen, so it’s better to be prepared and be on the look out for any signs of danger. 

As much as possible, pack light

When you travel light, you have more freedom to explore. You can move through crowded areas more quickly, process baggage claim faster, make last-minute plans without worrying about what to do with your belongings, and spend less time tracking goods when you have less to carry about.

Save up with a savings account

Before you start saving, make sure you have a place where you can store what you save. The best thing you can do in this case is to open a savings account. A savings account allows you to keep your money secured while earning interest over time. 

What to do with your savings account: 

Automate your savings: Set up automatic transfers from your checking account to your personal account. This “pay yourself” first approach ensures that you will consistently grow your savings. Couple this with the 50-30-20 rule and before you know it you’ll be closer to your long term saving goals. 

Track your savings: When it comes to saving, awareness is key. Track and organize your daily expenses to see what you spend the most often on and cut back. Keeping a budgeting app on your phone can help though a simple excel spreadsheet is just as effective. 

Keep an eye out for freebies: Fun doesn’t have to be expensive. Keep an eye out for free museum days within your locale, explore nearby parks, or hose potlucks with close friends. There’s a world of free experiences waiting to be discovered. 

Channel your inner chef: Eating out and tasting the local cuisine is a great way to explore, but do remember that depending where you are, the costs can quickly add up. Try cooking meals and experiment with the local ingredients and create you own culinary adventure. Explore budget-friendly recipes – you might be surprised. 

Your credit card, you new travel buddy

Maximize your rewards: Utilize your credit card rewards to earn freebies or travel miles on everyday purchases. Just remember to pay your balance in full each month – credit card debt can devour your savings. 

Travel Perks: Many travel credit cards offer bonus advantages like exclusive airport lounge access to local airports and even abroad. Maximize these benefits to stretch your travel budget. 

Enjoy the extra level of protection: A huge benefit to traveling with credit cards is that doing so is more secure than traveling with cash. If you lose your wallet or get pickpocketed while abroad, you can report your credit card as stolen. Your account will be locked so nobody can use it, and your issuer may refund you for any purchases made by the thief. On the other hand, if you lose cash, you’re often simply out of luck. 

Be aware of foreign transaction fees: Be aware that using your credit card abroad can incur costs. Make sure to check your card’s terms and get a card with low FOREX fees.

Get the best of both worlds, get a bundled savings and credit cards account

Save and level up your travel: Use your savings account and build up your funds for flights, accommodation, and tours, and rely less on using your credit card. Be in control of your savings. 

Strategize your credit card use: Check your card’s exclusive perks and maximize your spending based on that. Some cards feature up to triple rewards for online purchases, clothing and dining, while others offer up to 1% cashback for all purchases. 

Remember:

• Discipline is Key: Sticking to your budget and managing credit card use are crucial. Don’t let impulse purchases derail your savings goals.

• Plan Your Trip Wisely: Research off-peak travel seasons, explore budget-friendly destinations, and consider alternative accommodation options like hostels or Airbnbs.

• Create a Budget: If you have spending limits in mind before you set out, you’ll be more willing to pass up spontaneous temptations like expensive drinks. However, a budget is useless if you choose to ignore it; it’s important to keep track of your spending during the trip and make sure you don’t spend more than you intended to.

By combining smart savings habits with strategic credit card use, you can transform your daily routine into a travel-saving machine. So, pack your bags, embrace the adventure, and venture into the world without breaking the bank!