Written by Suman Sekhar Sarangi
Do you keep postponing your dream holiday? Do you keep thinking you will go on an amazing vacation someday?
Do you dream of enjoying an authentic lasagna in Italy or strolling down the streets of Times Square in New York?
If you've been fantasizing for years about your ideal vacation, maybe it's time to take action and make your dreams turn into reality.
Start planning now so that you can take your dream vacation in the near future. Sometimes it's a huge task to get real with that travel bucket list and actually make that dream trip happen. No matter what's lies between you and a lifetime’s travel experience, you can begin to make it happen today.
Question is… How?
Well, it’s quite straightforward. Create a travel fund.
Why Travel Fund?
Travel is one of those things we consider to be "too expensive" and often struggle to save money to go on a trip.
But, nothing is impossible if you're committed enough to make your dream holiday itinerary a reality. The key is to create and commit to a structured savings plan for your travel.
How Can You Take Your Dream Vacation?
Here are 5 effective ways to build the travel fund for the future as 2020 is ”The Year of No Travel”.
#1: Set a Travel Budget
Every good plan starts with a balanced budget. Budgeting for travel is not as daunting as it sounds.
Reducing avoidable expenses to facilitate regular savings and doing some groundwork to capitalize on the plethora of deals on offer can help you tick itineraries off your bucket list without investing a lot of money.
Understand how much you’re going to need to meet your daily expenses, pay off debts, and save for the future. You can set aside the remaining money to build your travel fund. Setting aside INR 10,000 a month would help you save INR 1,20,000 over the span of a year that would be enough to fund a lavish holiday for yourself.
Make sure you put this money in a different account, which brings us to the next point…
#2: Create a Travel Savings Account
Where should you put the money to save for your travel plans?
A savings account is an option because it gives you high liquidity. But it also means the money might get used for other expenditures. You need to put it away where the money is out of sight, yet accessible at short notice.
Getting a dedicated travel savings account can help you understand how much money you have to finance your travel and how much you'll need to meet your target. Open a zero balance account so you don't have to pay any fine when you actually spend it.
Using a dedicated account would also help you maintain your budget during your journey, as the simplest way to know how much you are spending is to track the balance of your travel savings account.
You can also track the true cost of your trip without making too much effort.
#3: Set up Automatic Transfers of Payments
If you don't trust yourself to save money for travel every single month, automate your savings!
The best way to do this hassle-free is to set up a Recurring Deposit from which money is transferred automatically from your primary savings account to your travel savings account. Set an amount and date on which you want the money to be deducted automatically. This way, you will experience the magic of compounding and earn interest on your savings.
Letting automated systems take care of savings is immensely helpful as you' don’t have to remember to put anything aside from yourself. When you pay your travel savings account, you're essentially putting away the money that you might otherwise spend.
If you’ve made a recurring direct deposit for your paycheck, you can often work with your employer to split your deposits into multiple accounts. So you could have 5-10% of your paycheck going straight to your dedicated travel savings account; without having to move it on your own or being tempted to spend it.
#4: Declutter, Cut Unnecessary Spending & Keep Track of Your Savings
Decluttering and minimizing your possessions not only simplifies your life, but it can also help you finance your trip. Marie Kondo, the author of The Life-Changing Magic of Tidying Up, said it eloquently when she quoted,
"Get rid of all the physical objects that no longer bring you joy."
After your savings get automated, you need to keep track of your progress on a daily basis to ensure you're on track. Your financial state might change with time and that's quite normal. Look for ways to reduce unnecessary spending. When you’re aware of your cash flow, you'll be in a better position to make smarter spending choices and identify areas you can cut spending.
#5: Make More Money: Start a Side Hustle
Another great way to fill up your travel fund is to make more money by starting a side hustle.
Starting a side hustle is not that intimidating. The best part about starting a side hustle is that not only it adds revenue to your income but also creates a career-changing opportunity which normally you wouldn’t have stumbled upon at your full-time job.
If you’ve been thinking to start a side hustle, click here to know how to get started.
Let’s take a real-life example. Assume you want INR 4L to fund your next travel vacation. INR 4L=25K * 16. You may take multiple projects for INR 8500 per month to earn this required INR 25K. This may seem tough right now, but it’s not that hard.
Struggling for side hustle ideas to get started? Don’t worry, we got you covered. Check out HustlePost to get a copy of our e-book on ‘20 Side Hustle Ideas & Execution Strategies.’
To sum it up, start saving for your travel fund right from today by following the tips that we shared with you.
Travelling is all about putting yourself out of your comfort zone and making memories that last a lifetime. Get out there and explore, you never know who you’re going to meet and what opportunities you’re going to find!
Before you get to your dream destination, don't forget to buy travel insurance. If any incident happens, this will take care of you.
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Thank you for reading!