Would you rather spend your money on fancy coffees every morning, or a plane ticket to one of your bucket list destinations? If you love traveling, you would probably pick the latter.
For determined globetrotters who were not born into wealth, sacrificing small pleasures in life for their big, epic vacations may come easy. However, for the rest of us who are challenged when it comes to delayed gratification, it may be quite the challenge to save up for a future vacation.
Fortunately, thanks to new technologies like the ones available in the digital banking sector, it may be easier to develop financial discipline and earn your way to the travel adventure of a lifetime. You just have to combine the resources available to you with the right common-sense strategies. Here are some tips for putting away dedicated funds for jet-setting:
1) Set Your Travel and Budget Goals
One of the most challenging aspects of saving money for any big goal is finding the motivation to consistently prioritize long-term gains over immediate gratification. To overcome this challenge, it’s crucial for you to define your travel goals and to establish a realistic budget that covers various expenses—such as tickets, accommodation, food, and activities.
Apps and tools designed for travel budgeting can be incredibly helpful in keeping you on track. It would be even better if these were integrated with your bank. You can explore a digital bank like the Philippines’ Maya for customized services tailored to your traveling aspirations.
To illustrate, Maya’s Personal Goals will allow you to open temporary goal accounts specifically for personal goals like saving up for a travel fund. You can set a target date and amount for your travel personal goal to mature. As you transfer money from your main account to your travel fund, you can watch your balance grow faster as you earn more with up to 4% interest p.a., which will definitely boost your motivation and commitment to saving.
2) Open a High-Yield Savings or Time Deposit Account
Make your money work for you as you prepare for your trip, especially if it’s going to be a long one to another continent. Consider opening a high-yield savings account that offers better interest rates than regular savings accounts and touching it only when you’ve saved up enough over a long period.
Instead of sticking with traditional commercial banks, explore options with the best digital bank. Doing so can help you unlock generous interest rates that are simply incomparable to commercial banks. Putting your money into a high-yield savings account will also allow it to remain liquid, providing better flexibility in case of emergencies.
For even better returns, consider planning well in advance of your epic trip, like a year or two before. This will give you enough time to accumulate more money through a time deposit account. This type of account can offer even higher interest rates and keep your travel funds secure for the duration of the locked-in period you set.
3) Cancel Your Unused and Underutilized Subscriptions
Next, on the way towards improving your finances, examine your monthly subscriptions closely. What are the streaming services, magazines, or apps that you genuinely utilize? Do you truly require a subscription for music streaming if you mostly listen to free podcasts?
Many individuals discover they’re paying for more than they actually utilize. Cancel a few subscriptions, and you may be able to free up a surprising amount of money each month—funds that could be better allocated towards your travel goals.
4) Be Proactive in Looking for Deals and Discounts Before Shopping
Before making any purchase, whether big or small, take a moment to explore potential savings opportunities. Utilize websites and apps that offer vouchers and promo codes to ensure you’re getting the best deal possible. If you’re a fan of a brand, try buying directly from their e-commerce website where they typically offer discounts and promos on specific items.
Also plan your purchases around sales periods to achieve significant savings. This proactive approach will ensure that every cent saved can contribute to funding your vacation dreams.
5) Limit Online Shopping to Necessities
Online shopping may be both convenient and gratifying, but it can also tempt us into unnecessary spending. If you intend to save a significant amount of money for your travels, it’s essential for you to ingrain a mindset for distinguishing between wants and needs.
For example, you might feel the urge to buy new clothes for an event when you could easily repurpose items from your closet. Similarly, think about whether it’s truly necessary to upgrade your phone when your current model is still functioning perfectly well. For wants like these, impose a waiting period. Often, the impulse to buy diminishes over time when you delay purchasing.
On the flip side, take advantage of online shopping for essentials like toiletries, laundry detergent, and bulk food items if you can get them for better prices. Try to compare the prices from grocery stores, e-commerce stores, and other platforms to see where you can save the most money.
Before clicking “buy,” ask yourself if the purchase is a genuine necessity. Envision what you want to do on your dream vacation and think about whether another purchase will hold you back from it.
6) Find Other Creative Ways to Save
Don’t hesitate to think outside the box when it comes to saving money. Why not bike, commute, or carpool to work instead of driving? Take on DIY projects for items you need, or turn a hobby into a side gig. You can also host garage sales or offer freelance services online if you have the time. Saving a few thousand pesos every month before your travel adventure will be well worth it.
The act of saving up for a vacation will teach you a lot about budget management, the value of money, and figuring out your financial priorities. With strategies like the ones above, it may be possible to build your travel fund faster than you might think.
Remember, the key to saving successfully is consistency and a proactive approach to managing your finances. Well before you set foot on the plane, start planning and build your savings!
