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20 REAL WAYS TO SAVE FOR TRAVEL IN 2020

updated August 25, 2020 — first published January 1, 2020

In addition to discovering curious and unique travel inspirations, we’re all about saving. Watching what we spend (and what we don’t) is pretty much the only way we’re able to afford our travels. And our strategies are working! We traveled more in 2019 than either of us have in our lifetimes, and we’re planning much more ahead.

But we haven’t always been so disciplined. Our approach has been a process of learning, thinking more consciously about spending, and fine-tuning our habits little by little.

So, with that in mind, we’re sharing our best ways to save for travel, which we hope you’ll find useful. These are the exact approaches we’ve incorporated to help us pay down debt, plan, budget, and basically gut unnecessary spending.

We’ve also launched Motivate Mondays, a free weekly email subscription to help inspire your savings strategy. We all struggle with saving. It’s a constant effort that takes just as much discipline as a solid exercise routine or healthy eating habit. Stay on track with us and sign up today! You’ll also get instant access to our Motivate Mondays archive, packed with articles on travel savings tips, budget-friendly travel destinations, and strategies for ditching debt for good.

Stay safe and happy exploring!

Vincent and Elaine

1. PLAN YOUR ADVENTURE

You're much more likely to achieve your goals if you envision exactly what you want and take the time to write it down. Making smarter money choices will become infinitely easier once you know what you’re saving for. Include pictures of your travel destination in various places like on your refrigerator, bathroom mirror, and the dashboard of your car. Better yet, put one in your wallet or wherever you keep your debit/credit cards.

2. Automate Your Savings

This is the most important lesson anyone can learn in order to become a better saver. Open secondary savings accounts, including one for travel, and have a portion of your paycheck automatically deposited. And if those accounts aren't tied to your everyday checking you'll lessen your temptations to make a withdrawal. Out of sight, out of mind. 

3. Use Fintech (Financial Technology)

In addition to automating your savings, consider using smart phone apps like Acorns or Digit. These apps use an algorithm to move small amounts of money from your checking account into your savings doing all the work for you. Many banks and credit unions also offer a “round up” feature for their debit cards which is another easy way to add to your savings.

4. save your Tax Return

Most Americans (73%) receive a tax refund every year. While many people use that money to pay down credit card balances after spending during the holiday season, commit to saving at least 10% or more for your next travel adventure. Consider doing the same if you receive any type of bonus from your employer.

5. Maximize Your Earnings

Not all saving accounts are created equal. While many big banks still offer a measly .01% APY, with a little due-diligence on your part it should be pretty easy to find options for earning 2-3% or more. Consider opening a Money Market Account or a Certificate of Deposit (CD) to maximize your returns without any risk to your principal. While you may not become the next Warren Buffet, you should always make your money work as hard as it can for you.

6. Refinance Existing Debt

When people hear the term “refinance” they typically think of mortgages. The truth is, you can refinance any type of debt and save money in the process including auto loans, student loans, and more. You may need to improve your credit score in order to qualify for a lower rate, which brings us to our next tip…

7. Improve Your Credit Score

Having a great credit score can help you refinance high interest debt and even save in other ways like lowering your insurance premiums. You’ll want to start by obtaining a free copy of your credit report from each of the three major credit bureaus by visiting www.annualcreditreport.com. Review your reports with a credit counselor or banking professional to determine how to best improve your score.

8. Track Your Spending

Tracking your spending for at least a few months will give you a clear picture of your spending habits and how both expected and unexpected expenses impact your bottom line. Use an app, take pictures of your receipts, or do it the old fashion way with pen and paper. Whatever the method, comb through your transactions and determine how much you spend on what. It can be useful to create categories like: going out, groceries, alcohol. etc. Until you truly know how and where you’re spending your money, it's hard to make smarter choices.

9. Create a Budget

Only 67% of Americans bother to create and use a budget on a regular basis. There are many reasons why people avoid using one, but remember that a budget is nothing more than a tool to help you reach your financial goals. Budgets that are only about cutting costs will never work. Be sure to include categories for travel and other things you enjoy to remind you why you’re even using a budget in the first place.

10. Switch Back to Cash

While it may be unrealistic to give up the convenience of our plastic cards forever, try switching back to cash for at least 30 days. You may be surprised by how your money choices change when you have to actually part with physical currency vs. swiping and signing. I have fond memories of counting all of the change my father saved in a giant jug as a kid which we would then use as “fun money” on our summer trips.

11. cut your vices in half

Using marijuana, booze, and e-cigarettes can add up to hundreds of dollars per month. Add in a latte or your favorite coffee house brew each day and you could be spending over a hundred per week depending on frequency. When you track your spending, pay particular attention to these areas and consider setting a budget for half of what you normally spend.

12. Find Free Things to Do

One of the most important lessons I’ve learned over the years is that, “It’s not what you earn but what you spend," One of the quickest ways to start adding some extra cash to your travel savings is by finding free things to do instead of spending money. There are numerous websites and blogs dedicated to finding free or low cost entertainment options no matter where you live. Go outside. Read a book. Volunteer. Dedicate a few weekends to not spending on costly activities and the savings will add up. 

13. Price Compare Monthly Expenses

Review anything and everything that’s a monthly expense and find out if there’s another company or option to help you reduce or eliminate that expense entirely. After living a year in Denver, we switched our insurance company, cell phone carrier, and internet service provider which ended up saving us over $150/month.

14. cut the cord

Many of you have probably already ditched cable in favor of Netflix, Hulu, Disney+, or a combination of streaming services. Where else can you save money on entertainment? Buying your own modem/router will generally save the cost of internet service by $10-$15 per month.

15. Reduce Your Utilities

Many of our modern electronics are major energy sucks. Start saving money on your electric bill by unplugging your computers and similar devices instead of letting them simply go into sleep mode. Consider switching to more energy efficient appliances if it’s time to replace them. Homeowners should also look at adding solar as an option as technology has continued to improve while prices have come down.

16. Buy in Bulk

Costco, Sam’s Club, and even Amazon are all great options for buying items in bulk at a discount. No matter where you shop, always look at the unit price to make sure you’re truly getting the best deal. It can be easy to go overboard, so exercise a little caution and only purchase items that you know you will use and last a long time. Certain items like paper towels, trash bags, and personal hygiene products are typically good choices for buying in bulk.

17. SELL YOUR shit

That’s right; it’s time to ditch those things you no longer use. Unless it has extreme sentimental value, we recommend selling everything you haven’t touched in the last six months. The exercise bike in the basement, the electric guitar in the back of your closet, and any remaining clothing items you’re still holding onto from the ‘90s. Let. It. Go. 

18. Side Hustles

Thanks to the advent of the “gig economy,” everyone can find some type of part-time job to help supplement their income. Whether you want to drive for a ride share program, become a dog-walker for Rover, or put your handyman skills to work for TaskRabbit, adding a little extra income (on your own schedule) will help you get that much closer to your next travel adventure.

19. Ditch Your Gym Membership

Sure everyone likes the idea of a gym membership, and we tend to think the cost of one will be the motivator for actually going. Wrong. The truth is, there are an infinite number of options for getting any kind of work out you want for free as long as you’re willing to commit to it. Hiking, running, walking, watching a free online routine are all ways to avoid the money suck that a gym membership can often be.

20. move

This may not be a viable option for many of our readers, but nothing represents a bigger chunk of our monthly expenses than housing. Are you in a situation where you can take on a roommate? Can you move in with a relative for a short stint? Can you downsize and take on a cheaper mortgage or rent payment? If you can, this could return hundreds if not thousands per month to your cash flow.

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