With the significant relaxation of Covid-19 protocols, many of us are already making plans to travel with family and friends. In this article, I will share with you how you can effectively save money for your dream trips.
This article was published in Scoot inflight magazine, November 2019 issue.
For a big year-end vacation, begin saving at the start of the year. Otherwise, three to six months in advance may suffice.
Determine How Much You Need
Use these factors to help estimate the cost of your trip:
When you’re creating a budget, give yourself a 20 per cent buffer – any overflow can
count towards your next trip.
Set Up A Dedicated Travel Savings Account
Set aside a fixed sum each month in a savings account. Yes, the interest rate from a savings accounts is negligible, but it allows your funds to stay readily available. This is a risk-free approach, unlike investments which sometimes take years to be profitable, are subject to market volatility, and may have limitations related to withdrawal.
Live Within Your Means and Reduce Unnecessary Spending
These small changes can help you reach your savings target
What other daily expenses can you replace with money-saving habits?
Keep Track of Your Expenses
Tracking your expenses will help you spot any spending issues you may have so you can make adjustments accordingly to reach your financial goals. To start, download a
budgeting and expenses tracking app. Some examples are Wally, Wallet, Spendio, Spendee, Spending Tracker, Seedly and Pocket Expense. If you’re already using an app, that’s great!
I hope the above is helpful. With some thoughtful planning and by saving diligently, you can make all your travel dreams come true!22222