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If you’re thinking of traveling more, you’re not alone: 65% of surveyed folks in the US said they plan to do the same in 2021. Experts, in turn, forecast the numbers to be higher come 2022.
Regardless of when you intend to go holidaying again, you want to do it with enough cash. That way, you don’t have to worry too much about running out of dough and ending up with more debt for the sake of travel.
To that end, we created this guide on how to save money for traveling. Read on as we’ve compiled some of the top budgeting tips to help you make that dream vacay a reality.
Cut Back on Some Indulgences
In 2020, the average US consumer expenditure on food away from home totaled $2,375. On top of those expenses was the average of $478 spent on alcoholic beverages.
Those are areas of spending that you may want to cut back on if you aim to save money for travel. For example, you can prepare homemade meals instead of eating out or getting delivery. You may also want to reduce the number of days you go out drinking with friends.
You can then put all the money you save on food and beverages toward your travel budget. That can be a lot of savings, seeing as restaurant delivery can cost almost five times more than cooking at home.
Set up Automatic Bank Transfers
One of the best ways to commit to saving cash for your travels is to set aside what you want to save immediately. You can do that by setting up automatic transfers to your savings account.
For example, suppose you wish to save at least $2,000 within the next three months. That means you need to start saving no less than $667 per month.
To help you reach that goal, you can automate the transfer of that amount each time you get your salary at work. You can also divide it by two ($333.50) if you get paid twice a month.
Either way, automatic transfers can help you avoid using the money for other things. As a result, you may find it easier to build the budget you want and need for your future travels.
Use a Travel Credit Card
The best travel credit card can help you save on flights, hotels, tours, and vacation packages. That’s because each transaction you make with such a card earns you reward points. You can then redeem and convert those points into travel-related perks.
What’s more, some travel credit cards give you free checked baggage. You can even book two flights for the price of one, such as if you have someone else coming with you. Moreover, many of the best credit cards give free or discounted travel insurance.
Start Following These Tips on How to Save Money for Traveling
There you have it, your guide on how to save money for traveling. Start by re-allocating expenses toward your travel budget, like food away from home.
From there, automate the transfer of whatever you can save to your savings account. Lastly, don’t forget to consider using a travel credit card with many perks.
So long as you follow those tips, you’re likely to find it easier to save money for your next holiday.
Are you ready for more money-saving tips? Feel free to check out our lifestyle section then!