Get out a piece of paper and record all your set costs: mortgage or rent, car payments, cell phone bills, insurance, school fees, and so on Add them all up.
Then, write down everything you spend at your discretion. This is the money you spend on things like meals, movies, drinks, shopping, your daily Starbucks coffee, cigarettes, sports tickets, your midday snack, and other similar items. If you don’t know what you spend your money on, keep track of it for two weeks and come back to see what you spend.
What did you get when you added it all up? likely a substantial sum of money.
Additionally, there will most likely be numerous costs that you were unaware of. These are what financial experts refer to as “phantom expenses” because we are unaware of their existence. Money is squandered without people realizing it. It adds up to a dollar here and a dollar there. Over a year, even a daily bottle of water or a candy bar can make a significant difference.
What connection does this have to travel?
You think you can’t travel the world because you don’t have enough money. I have too many expenses, and people tell me, “I can’t afford it.” The majority of us undoubtedly have costs that we are unable to reduce; however, keep in mind that when you travel the world for an extended period, many of those costs vanish. On the other hand, if we reduce our fixed expenses, reduce our phantom expenses, and discover alternative means of saving, we will be able to rapidly build our travel fund.
In short, you need to make a budget if you want to travel more or save for a specific trip. You will be able to see where you can cut costs and where your earnings are going.
Cutting your day-to-day expenses, being more thrifty, and downsizing to a less difficult approach to everyday life will permit you to set aside cash for your outing all over the planet without tracking down additional kinds of revenue. I realize these tips work since I utilized them before my most memorable round-the-world outing (yet use them to keep my everyday costs low).
Naturally, the longer it takes to save enough money to travel, the lower your income. However, never is the end of the world. Over a long time, a little bit every day adds up to a lot.
To save money, make money, and get on the road sooner, consider the following simple and inventive strategies:
1. Keep track of your spending Because
as was mentioned in the introduction, the majority of people do not have a budget, the first step in saving money is to know where you are spending your money. It’s easy to forget about how much we spend in this day and age when you can tap an app and a car will arrive.
Use a service like Mint or a spreadsheet to keep track of all your expenses. Once you start paying attention, you might be surprised at where your money goes. I realized that I was spending close to USD 100 per month on scooter rides because I live in Austin. They don’t take me very far, and I’ve decided to start walking more because the weather is usually nice. It’s better and less expensive. That amounts to a savings of $1,200 annually (or a few months in Southeast Asia!)
Start keeping track of your expenses and keep doing so so that you can keep cutting out the easy things and see where your money is going. To accomplish this, you can use a spreadsheet or a website like Mint or Onomy.
2. Establish a separate bank account
as financial experts have long advised. Set up a separate bank account and have money deposited into it each pay period. No matter how much you put away, keeping that money separate from your spending means you won’t spend more than you should. This is similar to a savings account. Don’t plunder it. Your travel fund is this.
3. Stop drinking coffee! Love Starbucks? Indeed
Starbucks loves your cash. Espresso is an everyday cost that unobtrusively depletes your financial balance without you in any event, taking note. That everyday USD 5 espresso costs you USD 150 each month. That amounts to two months in Southeast Asia at USD 1,800 per year.
Which is more significant: your morning cup of Joe, spending more time on Thailand’s beaches, or exploring Borneo’s jungles?
Giving up coffee indeed seems like a dumb thing to do. Additionally, the time saved by not purchasing one is certainly useful. Under typical conditions, this would be “little reasoning” monetary counsel that does not merit the time or exertion.
Yet, at present, you have a movement objective to reach and each penny counts.
4. Learn to cook because everyone needs to eat
but eating out is expensive. Cook more often to reduce your food expenses. While I was in college, I learned how to cook, which has helped me ever since. Before I left for my first trip, I ate only twice a week. Every other feast I cooked myself. To save even more money, I would use the dinner leftovers for lunch the next day.
Also, you don’t have to be an expert cook. You can learn how to cook quick and healthy meals from a million and one cooking websites, YouTube videos, and recipe blogs. A meal never takes me more than 20 to 30 minutes to prepare.
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