Travelling around the globe isn’t an easy task to do. You need to finance your travel plans from your existing income. You need to save money to be a globe trotter. Apart from money , you need financial planning to support your travel plans. Financial planning doesn’t happens overnight. It requires you to analyse on various factors viz income, expenses, savings, short term goals, long term goals etc. We always have the tendency to plan our travel when we retire but along with retirement you need stable savings too go on a vacation. So here are few tips that you can work upon while you are still young and earning, so that you don’t have to wait till you retire.
1. Create a Budget: First and foremost, create a spreadsheet in Excel — or another program — and start tracking every single purchase or payment. Do this for about a month or two to get an idea of where your money gets spent. This is a huge eye opener for some people and from here you can consciously decide how you need to change your spending habits.
2. Set up a separate savings account :Having a separate place for your savings to go is key in saving money for travel. Give your travel fund its very own place in your finances, and do your best to make sure you’re only putting money in, and not taking any out.
3. Pay off your credit card :Getting rid of your existing debt is a great way to make sure that all your income is going to the right place when you’re debt-free. If you have existing credit cards or other debt, it would be a good idea to focus on getting rid of that first so you can start saving, then go away with a clean break from debt.
4. Pick up extra work:If you have enough time in your schedule to find a little bit of extra work, it’s the perfect opportunity for you to earn some more cash and occupy your time so that you’re not spending it. Take that extra shift at your current job, or search for odd-jobs that you could do on your day off.
5.Get the Best Interest Rate:Do some research to find a good interest bearing savings account. Also, you should never have to pay monthly fees to have an account since many banks offer free checking and savings.