As an adult, you may be looking forward to the first travel adventures you can fund on your own. Travel will give you a chance to disconnect from the mundanity of your routine and create meaningful experiences for yourself that will contribute to a richer and more fulfilling life. There may be few things more exciting to you than the chance to expose yourself to new places, people, and cultures and to develop a wider and more appreciative view of the world.
That said, there’s no denying how expensive travel can be, and doing so may be even more challenging if you have other financial goals you want to achieve. Fortunately, with the right saving techniques and mindset, you can adequately prepare for your travel expenses without having to dip into the savings of your other goals. Here are some helpful tips saving tips to help you build both your travel fund and your fund for other leisure activities:
1. Create a Clear Budget for Each of Your Goals
Without a defined plan, it’s easy to overspend on one goal at the expense of another. That’s why it will be important to create a clear and organized budget for each of your financial targets. Doing so will help you allocate your income in a way that supports multiple priorities simultaneously.
Start by listing all of your financial goals, both short-term and long-term, and assign a specific amount for each one. Next, examine your income and current expenses to determine how much you can allocate toward each goal.
When creating a timeline for your financial targets—travel-related ones included—keep it realistic, as this will influence how much you need to set aside monthly. A well-thought-out budget will allow you to keep your finances balanced and under control and give you more leeway to enjoy the fruits of your labor.
2 Open a High-Interest Savings Account and Start Saving Early
Long before you start traveling or spending on leisure activities, like your gaming hobby or your favorite sport, open a high-interest savings account to make it easier to meet various financial goals. This type of account lets you earn more on your savings over time by allowing your money to grow with minimal effort on your part.
To maximize the benefits of this financial product, you should start saving early on so that you can accumulate more interest. It’s also ideal to open an account with a financial institution that has the best rates in order to reach your goals faster.
Maya Bank, for example, has different products that offer high interest savings Philippines’ consumers can take advantage of. The base rate of Maya Savings, for instance, is 3.5%, which is higher compared to what traditional brick-and-mortar banks have to offer. This interest rate can even be increased to 15% if you complete certain tasks that require you to use the bank’s other products.
Another service you can explore from Maya Bank is Personal Goals. Maya Personal Goals will allow you to accumulate a guaranteed 4% interest p.a. monthly, giving your savings for travel and other leisure activities a serious boost forward. Moreover, with Personal Goals, you can create up to 5 sub-accounts or “goal accounts” at a time. Try dedicating a sub-account for each of your financial targets, including your travel plans, to make it easier to allocate funds for each goal while keeping your finances on track.
3. Maximize the Benefits That Come with Your Credit Card
Many credit card programs offer rewards that can be redeemed for travel-related expenses, such as flights, hotel stays, and tickets to top tourist attractions. As such, they can help you maximize your travel budget, especially when you use them wisely.
If you’re at the point where you can trust yourself with a credit card, use the perks and freebies that come with it to trim down your overall travel costs and potentially free up more for either future travels or your other financial goals.
For the best results, choose a card that aligns with your spending habits, lifestyle, or travel preferences. If you like flying with a certain airline, for example, sign up for one that gives free points or redeemable miles, which you can immediately use to cover the cost of your flights and achieve substantial savings as a result. And if your credit card comes with additional perks like VIP airport lounge access, all the better for your travel savings.
4. Take Advantage of Travel Sales
Travel sales often present significant discounts on flights, accommodations, and vacation packages, and taking advantage of them is a great way to stretch your travel budget further. However, the best deals aren’t always offered every day. To properly capitalize on them, you’ll want to increase your chances of being notified about them.
Consider subscribing to newsletters from airlines, travel agencies, and booking websites, as many travel companies announce exclusive deals and flash sales to their subscribers. This way, you can get a head start on securing significant travel discounts before anyone else.
Don’t hesitate as well to use travel rewards or loyalty points in conjunction with sales whenever applicable. Combining a sale with rewards can lead to significant savings, making your travel dreams more attainable and your other goals more easily achievable.
5. Make More Affordable Travel Choices
Lastly, the way you approach travel can significantly influence your overall costs. If you can focus on prioritizing budget-friendly options and being flexible in your decisions, you’ll be able to enjoy fulfilling experiences without overspending.
For instance, instead of booking a room at a pricey hotel, you can stay at an affordable rental. This way, you’ll have more money to spend on things and activities that will allow you to further appreciate the uniqueness of your destination.
Another good idea is to walk to nearby attractions and landmarks instead of taking a taxi or renting a car. Doing so will enable you to greatly reduce your transportation costs. You’ll be surprised at how cost-effective choices like these will pay off for your subsequent trips and other financial aspirations.
The more dreams you have in life on top of traveling the world, the harder it may seem to allocate funds for everything. But tips like these should help you improve your financial discipline and enjoy the rewards, both during an upcoming trip and in the far future.