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Smart Strategies for Saving Up for Your Travel Goals
2 Frugal Dudes
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Episode 145: How to save for travel so that you can see the world on a budget. Learn smart saving tips for traveling with Savely app founder, Hov Marukyan.
When you ask most people what their top three financial goals are, most will be able to tell you a few general answers. For example, buying a house, building a retirement fund, or saving for travel.
However, when you dive deeper and ask how they plan on accomplishing those goals, a lot of people don’t know the answer.
As with any goal, you need to reverse engineer your financial goals to make an action plan for accomplishing them. Here are three steps to breaking down your financial goals to find money for travel.
First, identify what you want to do with your money. For Hov, traveling to Rome by the time he was thirty was a big bucket list goal that he was determined to achieve.
After you’ve set your travel goal or other financial goals, identify how much money you will need to make them a reality.
For travel, specifically, this means taking a look at the area where you want to go and getting an estimate for transportation, accommodations, food, etc.
You may determine that to travel to Italy, you need to be able to spend $200 per day plus flights. For a week-long trip, that equates to flights plus $1400 for expenses while there.
Once you have your target travel money goal set, you can move onto the next question.
Once you know what you want to do and how much it will cost you, you need to set a timeline for accomplishing it. Some people will do this step second and make their budget fit the timeline instead. The more time you have to plan and save, the more attainable your travel saving goal will be.
For example, if you plan to travel to Italy in two years, you could commit to saving $85 per month to reach your goal. If you plan on going in one year, that monthly contribution jumps to $170.
When you look at saving in this framework, achieving your travel goals is completely attainable. This process can be applied to any of your long-term financial goals.
There are a few reasons why people fail to save money and don’t accomplish their travel goals: willingness and ability.
When someone lacks the ability to save for travel, they don’t have the money to do so. While there are cases where this is true, most people have the ability to take a few dollars here and there. However, they are connected to the idea of instant gratification and fall victim to marketing. Rather than setting aside a couple dollars a day, that money gets spent.
Willingness, on the other hand, is setting aside time to sit down and crunch the numbers to identify how much it would cost to do the things they want to do. It’s about setting time to do basic research.
Creating automation and separation in your bank accounts can help you reach your goals. Separate your savings accounts for different goals, then automate your income to distribute money into your savings accounts accordingly.
Savely is a platform that uses a special algorithm to help you identify your travel costs and creates a visual savings account. By doing the legwork for you and sending you reminders to save, while capturing your progress, Savely can help you commit to your travel goals.
Sign up for the Savely App and email Hov at [email protected] and let him know that you discovered Savely through 2 Frugal Dudes for a $10 contribution toward your first trip.
Music: https://www.bensound.com/royalty-free-music
Disclaimer: Kevin and Sean are not professional financial advisors. Do not take any advice they give without first speaking with a professional and performing your own due diligence.
Episode 144: Learn about why women should invest in property, how men and women invest differently, and the challenges females face with becoming high-level investors with Monick Halm of Real […]
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