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Monday, January 26, 2015

Saving money to travel


Saving isn't easy. 

Emergencies happen. Date nights happen. Cute shoes happen.

And they should....well, not emergencies...

Despite the occasional need for spending, there are ways to save for big ticket items and experiences without compromising the things you love. 

But you have to change things up a bit. 


Define what it is that you want. It's easy to say that you want more money. Why are you saving? How much do you need? 

For example, are you saving to travel? How long will you be on the road? What is your cost per day? 

On the other hand, if you want an income property that costs $150,000, you probably will need $30K for a down payment. How will you save that? 

Are you saving for an emergency fund? Figure out your three-six month expenses and start saving. 

Define you goal. From there, you can figure out your saving plan and your monthly or weekly steps to achieving that goal. 

Here are some ideas. 

  • Track your spending for a week or a month and then analyze it with a critical eye. Look at it as it were a work project. Where can you save? Where is there evidence of wasteful or unnecessary spending? Are you paying interest on your credit card?
  • If you haven't already, set up an automatic savings plan with your bank. You can have a set amount withdrawn every week or every month or twice a month...whatever works for you. Saving $25 a week will give you $1300 in a year. It's a start. 
  • Speaking of banks, Bank of America offers a "Keep the Change" option for debit card users. They will round up your purchase and put the difference into your savings. Everything counts. 
  • If you pay off your credit card every month, consider a card that gives you points or cash back. This is only worth it for people who carry a zero balance.
  • Do you need cable? For about $100 a year, the benefits of Netflix streaming is better than the fees charged by cable and satellite providers. We have a Roku device, and with Netflix and the content provided through my Amazon Prime membership, we're all set. Our tv gets local channels without cable. It depends on your needs. How much are you spending now? 
  • Avoid the 300% markup on booze and entertain at home. 
  • Clean out your closet and sell your stuff on Instagram. Take clear, unfiltered photos, use concise hashtags to market your things, and link to a PayPal account for easy transactions.
And then...

  • I love Starbucks as much as anyone. But I refuse to pay $4 or more for a latte. Consider drip coffee and add your own milk. Or make it a once a month treat if it's worth the nearly $50 cost. Everyone has their non-negotiables..define yours.
  • Cook at home. And cook with what's fresh, in season, and on sale.
  • Pay your debts. Pay off the smallest one first and then continue to "pay," applying that payment and another to the next smallest debt. Work your way up. 
  • Paying a mortgage? Doubling up on a payment, even once a year, may save you in interest over time. Use a windfall, like a tax refund, to make it happen.
  • Pay off your car early, if you can. Keep it in good condition and hang on to it. When it needs repairs, consider the local voc-tech school. You will pay for parts only (not labor) and you will help out the kids being hired in the local garages when they graduate. Most voc-tech schools are ASE-certified. This is a win-win. Take the money you saved and add it to your savings. 
  • When you want to go out, look at what free events your city is offering. Many libraries offer free museum passes and Bank of America card holders can get into many museums for free on the first weekend of ever month. Take the money you would have spent and add it to your savings. 
  • Go back to your tracking...transfer money saved to your savings.

The law of checks and balances dictate that what we spend is always in exchange for something else. 

Nomadic Matt claims that you can travel the world for $50 a day. Is that dinner out worth a day on the road? 

Sometimes yes. But if your goal is bigger than that dinner out, it might be worth a dinner in. 

What was the most valuable tip you read here? How do you save for big ticket items or experiences? 














33 comments:

  1. Being aware of wasted spending is so important for finding extra money for saving.

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  2. I'm so good at saving and not spending, so hopefully years from now when the time comes to travel the world, I'll be ready!

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  3. It's true, Kerry. You can't change what you don't know. Good luck with Snowmaggeon!

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  4. Kudos to you, Rebecca. It sounds like you're on your way! Have a great week!

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  5. I've been meaning to write a post like this myself! You hit on a lot of the important stuff- and I've been seriously considering a credit card with travel rewards lately. Do you have one?

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  6. I've done most of these things for years and totally agree! I shop thrift stores, do coupons and try not to pay credit card interest. I do splurge on a Starbucks latte now and then. I mean a girl has to live :)

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  7. These are all great tips. I'm planning for retirement but I'm also saving for Christmas and a vacation. I have a fund for each as well as a set goal for all.

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  8. I end up working at coffee shops a ton. I love coffee and need the wi fi and the space! But I buy the cheaper coffees there and make the lattes and such at home. That's my line, I guess!

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  9. I like the idea of setting your goal of what you're saving for. Too often, my goal is too many things and then the money gets spent on something else entirely! I need to set my goal in stone and just let it be that! Great tip!

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  10. Geat tips which I hope will help me save to travel! :-D

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  11. When my husband and I got married, one thing we told each other was that at least ONE yearly vacation was important. We have an envelope that we save out a certain amount of cash for every month. Like you said, it is about prioritizing. I will make my own SB a few times a week to be able to get away at least once a year!

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  12. My husband and I compete to see who can save more change each year. It is adding up.

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  13. I have been meaning to get better with saving for many years but I never really put a plan in place and I never track my budget. Huge fail. I'm good about packing my lunch and not eating out much. I have been contemplating getting rid if cable for years Bc it's $100. I said this year I'm going to start putting away $1/day towards savings/emergency and you've spurred me to do so!

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  14. I wish I'd seen that point about selling via Instagram before selling/giving away EVERYTHING I owned in Canada. I got money for the furniture, but I gave away so much clothing because I didn't think that was a good way to sell it.
    There are some really great points here, Kelly!

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  15. This is such a good post. Sometimes we don't realize how much money we spend on unnecessary things. I am good at budgeting and figuring out how can I get more money back. Like you post about selling things, a lot of people forget about that. I am constantly putting things I don't want up for sale

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  16. These are some great tips, i find when i have my budget up to date and follow it i save better as well because I'm allotting for everything, we got off track in 2014, but are steering back straight for 2015....

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  17. These are such great tips. I think what really gets me is the cute shoes, jewelry and clothes. I think I'll use this tips and see where I am when spring break rolls around. Thank you Kelly.

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  18. These are great tips Kelly! Aside from selling old stuff on Instagram, you can make cash from your items a little more quickly if you sell things like clothes, shoes, handbags, etc to a store like Clothes Mentor, Plato's Closet or online at ThredUp or Twice.

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  19. A favorite tip? Wow. what a terrific post, with every single paragraph offering great ideas and excellent points! Great read!

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  20. Thanks, Peggy. Everyone probably has something they can save for, so I tried to keep it practical and user friendly. Thank you so much for the encouragement! :-)

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  21. Thanks, Rachel! I have never heard of these other sites. Thanks so much for sharing!

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  22. We all get off track from time to time. Getting our ultimate goal back in site helps. Vision boards work for me. Whatever works for you is the best idea. :-) Thank you so much for stopping by, Bijee.

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  23. Cute things always happen, Jazmine, but you have to ask yourself whether they're worth the delay in your goal. If they are, enjoy! If not, tell yourself, "not today." :-)

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  24. Thanks, Ashley. Selling what you don't want is a great strategy. Too bad you weren't able to take advantage of it. Live and learn...next time. Or when you think you need a good decluttering. :-) Thanks, again, Ashley!

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  25. Christy, I have the Capital One Ventures card and I love it. I use it for everything and keep a zero balance. You get 2 points for every dollar and there are no foreign transaction fees. You can use it on flights, hotels, cars, gift cards, etc...no blackout periods. Love it! Good luck!

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  26. Absolutely, Ali. I'm a Starbucks girl too. I also use services like Groupon and Goldstar for further discounts, because you're right...a girl's has to have fun. :-)

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  27. Thanks, Melissa. Tracking is a powerful tool. We can't change what we don't know. Good for you for selling what you don't want. Many of us hang on to stuff that just ends up as clutter.

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  28. some great tips. I just recently had a job change where I make substantially less so saving for travel is even more important now.

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  29. It may be more of a challenge, Brittany, but it is still doable. Every cent counts. :-) Good luck! And thanks so much for stopping by.

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  30. These are so great, Kelly! I had to share on Twitter :) I used many of these tips myself saving up for moving abroad, especially the Keep the Change program and every week (I was a barista) I would immediately just put all my tips in a box (minimum $30/wk). After over a year of doing this I had a nice travel fund going on and my co-workers were always in awe. It's all a matter of priorities! I also cancelled my newspaper and Netflix subscriptions... really any bills you can eliminate, the better. Then I discovered the wonder of public libraries and how you can find all this and more there for free!

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  31. Thank you so much, Cynthia! We all have to decide what is worth our hard earned money. For some, it's clothing, new cars or nights out. For us, it's travel. I would rather drive an old car with no car payment than give up travel in any form. I can give up cable and watch Netflix or Hulu. It all about priorities, like you said. :-) Thank you so much for stopping by! Have a great weekend and thanks again for sharing.

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  32. Fantastic tips! I think there are small ways we can save money that don't really affect our daily lives in the broad scheme of things that can allow us to take extra holidays!

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