How much money should I save for travelling is a question I am asked a lot. This guide will help you set some saving goals for your travel adventure!
Everyone has a destination they dream of reaching one day. A destination at the top of their bucket list. For me, that country is Iceland. However I hope to tick that one off the list in 2020. But getting there can often seem far away from reality. Saving the money required can seem impossible. Knowing how much is required is the most important step to setting a saving goal. This guide will help you answer the question “How much should I save for travelling?”
Also Read: Tips For Saving For Your Dream Holiday
The best way to set yourself a clear money goal for your next trip is through thorough research. I often bang on about research on my articles, sometimes a lot. But it is extremely important, great research leads to great travelling. It’s one of my travelling mantras. Perhaps it’s the analytic type personality in me.
There are plenty of tools available for free to assist you with your research. Google Sheets is a favourite of mine, as it allows clear tracking of costs and budgeting. Very handy to be able access from the drive also.
Start jotting down every cost that you will need to pay for your trip. Start planning the time of year you will be going and consider off peak for a cheaper trip.
Flights often make up the majority of travel costs, especially with overseas trips. Use Skyscanner to search across hundreds of airliners for the best prices. Remember to check with airlines directly. I have encountered instances of cheaper flights with airlines directly than what is quoted on Skyscanner. An example of this was in my travel agents article.
Search different dates around when you can travel to get the best prices. Keep in mind that the winter months are usually the cheapest (excluding Christmas to New Years).
Hotels make up another big chunk of a trip’s expenses. My favourite method for shopping hotels is through Expedia. Utilise their Flights + Hotel option to get bundle savings. Keep in mind hotel locations as poor locations can blow out other costs. The cheapest hotel is not always necessarily the best.
Use Google Maps to check public transport near the hotels to determine which will be easiest to access. Often reviews will also talk about location and access to transport and attractions so be sure to read them also.
AirBnb is an alternative to hotels which can save you money. Compare the AirBnb prices to hotels and keep location in mind when making your decision.
While the two major costs of travel is flights and accommodation, there are lots of other small costs to factor in.
Food is a cost that is highly dependent on the person and place you are travelling to. I allocate around $15 per day for food. But this is a very broad number. Research food and restaurant prices in the country you will be travelling to. This will allow you to get a more accurate number.
Public Transport costs will also vary heavily depending where you are. Google Maps is a great tool for planning costs to get to attractions. Plug in your hotel location and where you want to go, select public transport option and you will get the price.
Other costs not to be forgotten when planning how much you need to save:
- Airport Transfers
- Currency Exchange
- Mobile Roaming Costs
Travel Bank Account
A travel bank account is a great way to save for your trip. This is a method I have always used and it has made saving much easier.
Set up a travel bank account and automatic transfers to the account when you get paid. This way you don’t see the money and there is no temptation to spend it. Allocate a certain amount to travel in your budget to help with managing the costs. Now don’t touch the money until you are booking your trip! You don’t need that night out drinking or new clothing!
After researching all the costs you should have an accurate figure and a number goal to save towards. This is the first big step in getting to your dream destination. Be proud of the effort, and work hard to save the money!