When it comes to travel, having enough money to first, book the trip and then to sustain the trip is very important. In this post, we will share 10 ways to save enough money for your next overseas adventure. The trick to saving enough money for travelling comes from two ways. 1. Cutting down on expenses and 2. Making a budget and a savings goal.
How to save money
Saving money can be difficult, but it really doesn’t have to be. A lot of people have this misconception that you need a lot of money in the bank to travel. This is just not true. I’ve always found that I never spend as much money overseas as I originally thought I would. But saving money is important, so we wanted to share some ways we save our money. We want to share ways that aren’t just the cliches, like turning the power points off when not using them. Yes, we do that, however, there is more to saving money than that. It is having a goal and working out ways to achieve that goal. So, here are 10 ways to save enough money for your next overseas adventure.
1. Write a budget and a savings goal
Before you can save any money, you must write a budget for everything and stick to it. I like to do my budgets on a monthly basis. We also budget for every grocery shop, every day trip we go on, anything that I think I may spend money on, I set a budget. To create a budget, write down your monthly income and minus your expenses, such as power, internet, subscriptions, groceries, fuel. You may need to estimate some of your expenses. For example, depending on how often you drive your car you may not put the same amount of fuel in each month. If you do have to estimate some, always over estimate.
The next thing to do is set a goal of how much you want to save by a certain period of time. For example, if you want to have saved $3,000 six months from now work out what it will take to get there. Goals are easy to achieve if you do them correctly, break them down into smaller chunks. Work out how much money you would need to put away each week for it to equal $3,000 by that date. So to make $3,000 in six months you would need to save $125 per week to reach that goal. $125 per week is easy to do if you are earning an average of even just $500 per week. Saving $3,000 is a lot easier to do and is a lot less daunting if you put a little bit away each week.
2. Pack your own food
This is a fairly obvious thing to do but it amazes me how many people I see at work buy their lunch or dinner every day when they are on their break. Packing your own food to eat will save you a tonne of money. There are 261 working days in Australia in 2019 if you spent just $2 every single day for your lunch that equals to $522 in one working year. Not to mention the food is never that cheap, if you go to a fast food shop and you get a small meal that can be more than $5 or $6, depending on which establishment you go to.
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3. Cheaper alternatives and sale items
4. Use public transport, ride a bike
The cost of cars is insane when you add it up over time. To fill my car up from empty to full, it would cost about $60-$70, depending on the price of fuel. If I was to fill my car up with $65 worth of fuel every three weeks for an entire year it would equal to more than $1,125 per year. That is a lot of money. That is not including the cost of car insurance, registration and any repairs the car may need. For those reasons, I sold my car. I am fortunate enough to live very close to public transport so I take full advantage of those services. If I was to drive to work five days a week, it would cost me an extra $11 per day for parking, $55 for the working week. It is not always possible to catch public transport, but use it if you can, even if you only drive halfway to work and use public transport the other half. It may take you a little longer and it may be a little bit cramped, but the savings will be enormous. If you want to cut down on your expenses even further, and you live close enough to work, ride a bike.
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5. Instead of spending tips, put them away
Do you make tips at work? I previously worked in a job where I was given tips from patrons. Years ago I would have taken those tips and spent them buying lunch or dinner. I started to save those tips and put them away. At the end of each workday, I would put my tips for that day in a tin. I might have only made $10 or $15 in tips during the working week, no it is not a lot of money but it is a lot more when you add it up over time. If I made $10 in tips each working week for an entire year it would equal to $520. That is a lot of money you could put away for an overseas trip. Every little bit counts.
6. Open up a high-interest savings account
An easy way to save money is to open up a high-interest savings account. Shop around, Kayleigh and I opened up a joint savings account with a different bank to what we both use because it had a high, fixed interest rate. Putting money into a savings account is good because you get paid a bit of interest every month, but it also keeps your savings separate from money needed for expenses.
Before I opened up a savings account I would spend money that I shouldn’t have or take money out of my own savings to pay for something, defeating the purpose of a savings account. There are benefits to our savings account. If we put money into our account we get paid interest. If we don’t put a certain amount in, the bank charges a $6 maintenance fee. We see this as a benefit because it forces us to put a particular amount of money into our savings each month so we don’t get that $6 charge.
7. Withdraw cash
One way to save money that people may not necessarily know about is to use cash instead of a card. If you’re paid $700 weekly, take out $200 and pay for everything with the cash. It automatically sets a limit on how much you can spend. There is a good chance you will still have some cash left over before your next pay. The leftover cash can be deposited straight into your high-interest savings account or put in a tin with your tips.
8. Keep track of your power usage
With the app, we can see exactly how much power we have used and we can adjust it accordingly. We might need to turn Power points off for longer periods of time or turn lights off earlier. Sometimes we might even rug up in thick, warm clothes and use a blanket instead of turning the air conditioner on.
If you are interested in signing up you can sign up with our referral code below. By signing up here you will get a $75 discount off your Powershop bill.
9. Phone plan
How much are you paying per month on your phone bill? You are most likely paying way too much. There are many affordable deals out there. I know people who are spending between $80 and $100 on a phone plan. I pay $17.90 for my phone bill each month. That gives me 2Gb of data, calls, texts, it is everything I need. Best of all, it is a no lock-in contract. An $80 a month plan on a 24-month contract will set you back $1920, compared to just $429.60 I will pay for the same duration of time.