You finally made the decision to start traveling but what’s the problem now? Money. Most of us have daily financial responsibilities that we need to take care of to maintain our current lifestyle. Now that you made traveling a top priority, you’ll need to change your lifestyle.
If you haven’t already, you are going to need to learn a new skill set. That is, saving money.
My advantage in this area? Well, having a passion for real estate investing for the past few years, it helped me learn how to save aggressively. I am now able to consistently save 45% or more of each paycheck I get. I want you to know that it never started out that high.
Let me share with you these 5 tips on what has helped me.
1. Create a budget
In my opinion, this is the most important step to take.
Track every dollar that comes in and out. This allows you to consciously see what your actual spending habits are like.
For my travels, my current budget plan is to save a minimum of 20% of each paycheck. Some months can be more than 20% but it’s never less.
And once it’s in that account, you’re not allow to take it out unless it’s to fund your travels!
2. Take out cash
I notice when I use my debit/credit cards, I lose track on how much I’m really spending.
Taking out cash for the month, I can literally see how much I have and can spend it accordingly to how many days there are left in the month.
I find it easier to say no to things using this technique which in return, saved me a lot of money for traveling and real estate.
I still use my cards for groceries, gas, bills, haircuts, etc. This is because it’s something I need to pay for every month and I have already set a budget for these items. There are no surprises when I look at my bank statement at the end of the month.
3. Cut down expenses & earn more money
Pick up a side job. You can work evenings or weekends. Put all that money into your savings account and not for the latest gadget!
Go through your closet, find items that you don’t use or need anymore and sell it away. You’ll even become more of a minimalist while going through this process!
4. Have a piggy bank
As I mentioned earlier, each month I would take out a certain amount of cash just for myself to spend on whatever I want. This can lead to a lot of change and these pocket change can add up quick!
5. Get rid of the credit card debt
With credits cards interest rates being approximately 20%, you are spending way too much money paying the bank!
It’s slowly killing your dreams to travel the world. Create a plan now to get rid of these debts once and for all.
What’s one of your tips to save money??