by TGB
holiday budgeting

One of the most frustrating parts of travelling is the financial component. If you’re on a road trip, or you’ve got plans to travel the world, if you really want to do it properly, you’ve got to take a year out, to learn about other cultures and societies, as well as yourself. But, with this, we’ve got to make sure we have the finances in place. Saving up for a long year on the road is never easy, but are there any ways that we can do this?

Financial Help

This is the quickest way to get your finances in check based on what you want to achieve. You have to plan ahead and see what it is you want to do over the course of 12 months, but this means you have then got to find the appropriate ways to get financial help. You could get a secured loan, but some people do wonder are secured loans bad? But whatever your opinion on it, it’s certainly a great way to get a significant financial injection. Financial help is usually related to something a bit more productive, like extending the house. But, when you acquire a loan, you have to remember that as long as you can pay it back, and understand the interests associated with it, it is worthwhile. In one respect, you are furthering your education and while taking out a loan to fund a year-long travel experience isn’t what everyone would do, but it is certainly an option to peruse.

Working As Much As Possible Without Going Insane

A lot of people do this; they go home, live with their parents, and then work as much as humanly possible to build up their finances. It requires a very regimented mindset in order to achieve this properly, but as you’ve got a solid goal, this is one way to keep you motivated. Working as much as humanly possible in a full-time job but also, exploring other avenues for extra money, can help you you get a better seat on a plane, or spend a bit more time in one area. Look at where you want to go, how much everything costs, and then you can budget accordingly. It’s always better to over budget but then, realise how much it is all going to cost in terms of how many hours you need to work. Also remember, in terms of getting another job, if your main source of income doesn’t allow it, is to get a freelance position. Ultimately, you got a goal, so you need to get your head down. For something like call centre work, it’s not glamorous, but it might be a perfect way to put in the hours while not necessarily stretching your brain. So many people work in contact centres, especially if it’s quite an easy job.

save for a long term holiday experience

Budget A Weekly Allowance

Keeping yourself regimented is crucial. As soon as you have dictated your working schedule, it makes it easier to budget accordingly. You can also start to look at areas where you can scrimp and save even more. For example, if you are able to get a freelance job where you work at home, you don’t necessarily feel that you have to go out and spend money on lunch. Everything you have is at home so you can really push the pennies. While your weekly allowance is crucial, think about those moments when you need to spend a little bit on yourself. It’s okay to have a drink or two but look at it in terms of the essentials in comparison to what you want. There is a major difference between the two. And something like the 50/30/20 budgeting approach can come in handy to make you realise exactly what the essentials are in your life. Because you’re going to be spending a long time traversing the globe, this is where all your finances should go, so think about restricting yourself in the meantime. At the same time, so don’t be afraid to live your life!

Set Up A Different Bank Account

One of the greatest methods of keeping your finances intact is to a different bank account. As your money can then go into one fund, it’s less tempting to take money from it to spend on insignificant things. Getting a different bank account helps you to see the money amass. And if you want to, you can see if there are higher interest rates accounts that can penalise you for taking money out early. Or, if you want to, you can put money in someone else’s savings account, or have a relative open it in their name. This does require a lot of trust, but if you really struggle with finances, and take everything out just as soon as you get paid, this may very well help.

Compile Your Birthday And Christmas Money

While there are plenty of little methods to curb your lifestyle, if you start to think about going on a year-long holiday as a worthwhile experience, don’t think about material goods! You can very well embrace the minimalist lifestyle, which means that you can start to focus more on experiences. And this is something that is definitely worth thinking about. When your family members give you money for birthdays or Christmas, put it towards the holiday. The great thing is that you can see the money increasing in your account and then, you know that every time you spend some of that money, it’s all for a great purpose. Do you need material goods to enjoy life? Ultimately, if you are someone who is going on holiday and likes to travel the world, it’s far better to get something in terms of experience under your belt. And when you look at it in a financial sense, it can prove to be quite overwhelming to save up for an extended holiday. And then when you start to think about your material goods, and how little these things will really matter, especially when you’re 5,000 miles away, this is something that can help you focus your mind, and enjoy the experience so much more.

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