Do you want to save money and start traveling the world?
When it comes to money saving and trip planning, I know it can be hard. Saving Money without a plan and planning without money doesn’t really make you motivated, but I’m going to help you make it a bit more fun and easier.
Personally, I think it’s best to save money first and then start the trip planning. It’s often more expensive with flight tickets months ahead, and you never know if there might be some changes in your plans, then you might have to make several changes in your travel plans which is quite time-consuming.
The key to money saving is simple. Be smart with your money, both before and during your trip. There are so many simple things you can do in life to cut costs, and with that money, you can make your trip longer and a bit more fun.
Down below I’ve mentioned my best tips to save as much money you possibly can before your trip:
1. Become Financially Responsible (Motivation Talk)
When you’re going to save money for a trip, you just have to become financially responsible. It might sound easier than it really is, but for the most people, it’s a lot of work and planning. Learning financial planning isn’t something the most people get to learn in school, it’s something that you have to learn on your own if you want to do more out of your money.
I’ve been in the same situation, it’s hard to save money when you want to live your life at home, but still, want to live your dream somewhere on the other side of the planet. You’re split between reality and your dream, and often it’s the reality that takes over.
If you’re going to do this for real, you have to put your heart and soul and make a long-term commitment. If you will make it work, you’ll be one among the few people who have succeeded to follow their dream.
It’s only you who can save your money, no one else will push you or do it for you, I’m just here to give you tips and a bit of motivation along the way.
So, let’s save money and travel the world!
2. Where is your money going?
One of the first things that you have to do is track your spendings and figure out where your money is going. I know it can be quite stressful checking your bank balance and see how much money you’ve spent on unnecessary things. For me, it was very stressful, but it was also like an eye opener seeing all the things that I had been buying when I actually didn’t needed it.
My best tip is to sit down a whole day, put on your favorite song and have something good to drink/eat and just go through everything. And when I say everything, I mean EVERYTHING.
Write down exactly everything you’ve spent your money on, on a piece of paper.
Some good things to write down are:
- How much do I spend on the necessary things? Rent, insurance, bills…
- How much do I spend on food? Groceries, dining out, water, snacks, coffee…
- How much do I spend on entertainment? Music, sports, partying…
- How much do I spend on myself? Beauty products, clothes, electronics, cigarettes, metro card, gym membership…
When you’ve been writing everything down, down to the dollar, you might be surprised how much you’re spending on unnecessary things. 2 dollars here and 3 dollars there, it can be a lot of money in the end if you don’t know how much you’re actually spending.
We’ve got a good saying in Sweden that goes: ”många bäckar små gör en stor å”, which can be translated into ”many small streams, makes one big river”. It’s simple, cut the small streams, and you won’t have a problem with a big river that flows away with your money.
3. Start planning your budget
When you’ve figured out how much money you spend each month, and know how much of those things you can live without, then it’s time to start planning your budget.
I don’t really think it’s the best to figure out how much money you NEED to save each month, but instead how much money you CAN save every month. Put up a goal of how much money you want to save and then live on a budget until you’ve reached your goal. Maybe you get excited seeing all those money in your savings account that you want to save even more money and make a bigger or longer trip.
When it comes to budgeting your life, you have to put up a realistic budget that you’ll stick to, otherwise, it won’t work.
There are many smart hacks in life that can make your life a bit easier when it comes to money saving, and down below you can read some more about it.
4. Reduce Unnecessary Spending
Now we come to one of the most difficult parts about money saving – to reduce the unnecessary things in your life. Draw a vertical line right through a piece of striped paper and write NEED on one side and WANT on the other side of the line.
On the NEED side, you’re going to write all the things that you need to pay such as rent, bills, and food, and on the other side you write down all the things that you know you can live without. Consider all things that you spend money on such as Spotify, Netflix, dining out, clothes, coffee, and alcohol when going out with your friends.
5. Develop New Habits That Save Your Money
There are many things that you can do in life to save money, and down below I’ve written some examples to give you some inspiration.
Stop riding the bus/metro
If you’re really dedicated to saving your money, then you might consider stopping riding the bus/metro to work. Wake up early and walk or bike to work instead. It’s all about routine and you get some good exercise too.
Cook your own food
Food is probably one of the things people spend the most money on. Food can be expensive, and especially when dining out all the time. Why not take this as an opportunity and become a better cook and start cooking your own food. You might be surprised how good you’re it.
Cut accommodation costs to save money
Consider having a roommate (or two) for a while and share the accommodation costs and bills. Just a few months is ok, and it will make you save money. If you want to save as much money as possible, this is a great way to go.
Sell things you don’t need
I promise you that you got a lot of things that you don’t need. I still have 2 boxes in the attic of my mother’s house, one with winter clothes and one box with things. I can remember around 3 things laying in that box, which means that I don’t really need the rest since I can’t even remember what’s inside that box. I’ve been selling and throwing things away like crazy, and trust me when I say that I feel much happier now and more relieved without all that stuff.
It’s just material things, material things that can give you money to create lots of fun memories on the road.
Quit the gym
Having a gym membership can be quite expensive, so I suggest you to quit the gym and work out for free instead. There’s much that you can do at home, and you can always go out for either a run or a hike in nature.
Stop partying or bring cash ONLY
Consider stop partying for a while and invite your friends over for a movie night instead, or do something fun together such as hiking. But, if you really want to go out with your friends once in a while, I recommend bringing cash only. If you bring cash (that’s included in your budget) you won’t have the problem with overspending.
Compare shops and prices
It’s always a good idea to compare prices when you’re going to buy food, toilet paper, laundry detergent and so on. Often, there can be a big difference. Compare the stores around you, where can you buy products at the best price?
Consider even checking pages like Amazon, which have really good deals sometimes.
- Get motivated: Set both your heart, soul, and mind into that you will succeed following your dream.
- Track your spendings: Where does your money go? (down to the dollar). Write everything down.
- Budget Planning: Put up a goal and start saving as much money as you CAN until you’ve reached your goal.
- Reduce unnecessary spending: What CAN/CAN’T I live without? Be realistic and honest. Don’t cut something out just because it sounds better on paper, be honest with yourself.
- Create new habits in life: Cook at home, sell things, quit the gym, get a roommate etc.
I hope this article was of any help for you to start saving your money! I know it can be hard in the beginning, but the more you do it, the more you’ll realize how motivating it is. There are many small things you can do in life that can make you save money.