Tips on Saving Money for Travel

If you’re keen to travel more, then you need to find ways to save up the cash to pay for your trip(s). You’ll either need to spend less or earn more. If you can manage both, all the better. Below are my tips to help you save money for travel.

Set a Target

You need to have a financial target; whether you plan to take more frequent tips from our home base or a longer trip.  Do some research on the cost of your proposed trip(s) to give you an idea of how much you’ll need to save.

Reduce Expenditure

  • Cut down on takeaways; buy ready-made meals to heat up at home or cook from scratch.
  • Have fewer drinks when you’re out. Have a glass of tap water between drinks, or make your drink last longer.
  • Shop around for the best deals; use price comparison sites to find the best deals for insurance, gas and electricity.
  • Shop more at discount supermarkets like Aldi and Lidl. I find that Home Bargains are great for cheap brand name food and household items.
  • Look at creative ways to save money such as getting to grips with DIY, thereby saving money on tradesman, learning to sew.and hosting a swishing (clothes swapping) party.

Draw up a monthly budget to see how much you can afford to put into your travel find every month after covering your living expenses.

Get the Highest Rate of Interest on Your Savings

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Open a savings account specifically for your travel fund. Set up a standing order from your current account for that monthly sum to be automatically transferred into the savings account. Find the savings account with the highest possible rate of interest. If your trip takes place in more than a year, you could get a guaranteed rate of interest in a fixed rate savings account. The highest rate I could find for on a one year fixed rate account was 1.85% from BM Savings. You can get some good rates of interest in regular savings accounts; the Nationwide pay 2.5% if you deposit between £500- £1,000 a month. The Santander 123 Current Account pays 3% interest if your balance is between £3,000 – £20,000. There is a £2 a month fee but I more that cover this by cashback earned on household bills paid by direct debit. You need to stay in credit for this account to be worthwhile.

Use Your Cash ISA Allowance

In the current tax year you can put up to £15,000 in a tax-free Cash ISA. If you don’t have to pay tax on your savings, they will grow more quickly. BM Savings is offering 1.6% on their instant access Cash ISA.

Save Up Credit Card Cashback

I get 1% cashback on my Barclaycard American Express credit card. As long as you are buying things that you’d buy anyway and you pay back your credit card in full every month, it’s free money which can bolster your travel fund.

Increase Your Income

Take on a second job; not only will you earn more money but you’ll have less free time in which to spend your cash. You may be able to find a temporary job in a store in the run up to Christmas or find some bar work. You could also make money online by setting up a site or blog. Don’t think that you can just throw up a site, add some affiliate links and the money will pour in. Choose a topic in which you’re interested and knowledgeable. The advantage of this is that you fit in the work when it suits you from home.

Stay Focused

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It’s all to easy to get fed up with trying to spend less and save money and be tempted into a spending spree. You need to stay focused on your trip and how much your enjoy your travels.

Rates of interest correct on 20 October 2014.