When you search for advice on saving money for travel, you’ll likely hear the same old tip: stop spending on things like $5 lattes. The idea behind this is simple: if you cut out little luxuries like coffee, you can save big over time. But for some people, like me, that advice just doesn’t sit right. I love my coffee rituals—they help me unwind and enjoy the moment. Why should I give that up to save money?
Instead of restricting ourselves completely, let’s focus on a smarter way to manage spending, which allows you to enjoy the things you love while still saving for travel. The key is being mindful about where your money goes.
Step 1: Understand Where Your Money Goes
The first step to saving is knowing exactly what you’re spending on. Write down all your monthly expenses. If you want, you can use a spreadsheet to help you organize everything. List all your essentials—rent, utilities, groceries—and then jot down other regular expenses like Netflix, gym memberships, or any subscriptions.
Once you see everything laid out, categorize them by priority. What can you live without? What’s non-negotiable for you?
Step 2: Build a Spending Plan
Now that you’ve got a clear picture of where your money is going, it’s time to create a spending plan. Aim for these percentages:
- 50% for essentials (rent, bills, groceries, etc.)
- 20-30% for lifestyle (things like going out, entertainment, or hobbies)
- 20-30% for savings
The idea is to prioritize what matters most. Maybe you value your coffee and Netflix subscriptions, but could you cut back on dining out or streaming services? This doesn’t mean being restrictive—it’s about being intentional with your choices.
At the start of each month, pay for your essentials and automatically transfer money into your savings. What’s left can be spent based on the limits you’ve set. If you have a budget for dining out, once you hit that limit, it’s time to call it a night and enjoy a cozy evening at home.
Step 3: Save Money While Traveling
Once you’ve reached your travel savings goal and are ready to hit the road, don’t throw your budgeting plan out the window. Stick to the same approach of allocating money for different categories—like food, accommodations, and activities. Some countries might be cheaper than others, but the same rules apply. Prioritize what’s important to you. Love fancy hotels? Budget for them. Want to keep drinking coffee? Add that into your travel budget too.
The goal is to enjoy your trip without guilt. By managing your money before and during your travels, you can ensure that your money goes where you want it to go.
Tools to Help Manage Your Spending
Managing finances, especially when traveling, can be tricky without the right tools. I personally use:
- Mint: It helps track all my transactions and creates budgets for things like food, coffee, or entertainment.
- TrailWallet: When traveling, this app helps me track my daily spending and stay within budget.
Conclusion
Saving for travel doesn’t have to mean sacrificing everything you enjoy. By taking control of your spending, prioritizing what truly matters, and sticking to a manageable budget, you can travel more often and enjoy the journey. It’s all about being smart with your money, not restrictive. Start by tracking your expenses, set clear limits, and make sure you’re saving consistently. Your next trip is closer than you think.