The travel bug hits many, especially over the course of the summer. Last year alone, direct spending on leisure travel totaled $718.4 billion dollars! Seeing all of the popular destinations like beaches and fruit vineyards is, of course, really fun. However, what if all of this jet-setting was taking you out of a good financial standing? Would you know how to reel it back in?
As we discuss how to live a fulfilled life while maintaining your wallet’s sanity, remember it’s all about the bigger picture. Sure, seeing the globe is great for future conversations, but having a secured plan of action for your lifelong investments is even better. Continue reading to learn more about honoring your inner wanderlust without going broke.
What people with a good financial standing know
People with a good financial standing know that every action counts. They don’t let an impulse buy of new shoes or clothing hurt their accounts. Every move is relatively planned and they use an established set of budgeting beliefs to stay on course. It could be exciting to book a last minute flight for 1/2 the price, but it makes no sense when the accompanying hotel stay is at its highest because it’s peak season.
Budgeting beliefs a traveler can stick with
Here are a few tips to help you maintain a healthy financial position and travel regimen at the same time.
1: Semi-annual trips are worth it- There’s really no need to take a hugely expensive trip every season. Instead, opt to see your favorite hot spots on a twice a year maximum basis. Delaying a trip and allowing time to plan each detail will make it so much more enjoyable.
2: Your real-world responsibilities come first- For some, the wanderlust bug hits so hard that they ignore their other obligations. Don’t neglect your job just to take a vacation. The earnings and financial stability that come from your employer will pay for many trips later on. Continue to make your real-world responsibilities come first.
3: Couch-surfing and guest rooms make sense- Whenever possible, stay with relatives and close friends. You’ll save a ton of money and have the luxury to spend your cash elsewhere.
4: Establish an emergency fund- Nothing is worse than having an accident while traveling and no cash to pay for medical expenses. Before you book any further trips, save at least $1,000 dollars in an emergency fund.
5: Track your travel spending- According to Ali from Travel Made Simple, it’s a good idea to know exactly how much a trip has cost you. “That way you’ll have a better idea of what your spending habits are when you travel.” Part of the budgeting beliefs of people with good financial standing includes monitoring their transactions.
Setting a personal budget
In conclusion, setting up an allowance as a traveler does not have to be daunting. It’s as simple as making a plan, knowing your responsibilities, and having a pre-existing emergency fund. When it comes to creating a working money plan, we have to look at our entire financial scenario. Remembering the tips above, and keeping your wanderlust in financial check, will support many beautiful memories in the future.
Resources:
U.S. Travel Association, U.S. Travel Answer Sheet
Nomadic Matt, How to Travel Cheap: The Ultimate Guide to Traveling When You Have No Money
Travel Made Simple, How to Make a Travel Budget
