Budget Travel for Beginners, Part II

Now that you know how much money you need to go on your dream trip, the trick is saving up what you need. It may seem either a little easy, or a little daunting, but fear not, we’ve got ways to help you out! There are different systems of tracking your money; some like using only cash, others, only their credit cards; some like to have a monthly budget and others like to keep it to a bi-weekly one. What’s important is not just to go on that dream trip (because that’s SUPER important) but also that you can maintain a comfortable living situation before, during and after your trip. Compromise is key, but not at the expense of food on your plate, clothes on your back and a roof over your head.

(An accurate depiction of what it feels like if you travel without budgeting properly)

So if you don’t already budget at home, it’s a good idea to start! It works a lot in the same ways as travel budgeting except some categories might be a little different. See how much money you have coming in each month, and from there, take down the necessities for daily living. Bigger expenses like rent, food, transportation, utilities, internet, phones, etc. are all things that make up our daily lives, and that often we don’t always factor in. Once you calculate your basic needs, it’s easier to see where extra cash can float around from. And that my fellow wanderers, is where your travel fund will be: in the bit of money you aren’t spending, AND whatever is left over. It’ll surprise you at how quickly your travel fund will grow!

When it comes to food, try going out less and staying in and cooking more. It’ll do wonders for your wallet and it’s a good time to try out some recipes before hitting the road and travelling. In regards to utilities, you can be more conscious of what you’re using; turning off lights, not blasting the heat or the AC (and dressing according to the temperature changes), taking shorter showers or doing all of your dishes at once. These are little fixes to everyday essentials that can be a big help in the long run. And the more you save, the more this little piggy is going to sing on it's way to the bank.

The next step is figuring out how long you want your budget increments to be (ie. per month or bi-weekly) and then picking a way to track your spending.

1. Mason Jar method: an easy (and quite literal) way of seeing your money disappear. This is a cash only way to make your purchases. You take out once a month, the money you’ve allotted to your categories and put them in separate jars (that you should have labelled beforehand). When you go out to make your purchases, take out what you need, and put the change back in the correct jar when you’re finished. This way, little by little, as the days go by, you get to see what you have left to work with. In the end, whatever’s left in excess, add it to your travel fund jar and see that money accumulate!
2. Perfect with plastic: use mainly (and if not solely) your credit cards to make your purchases. Though you may not actively see your money disappear at first glance, it’s still easy to track how it’s being spent by checking the purchase log on your online banking profile. You can notice patterns, irregularities and figure out how to make changes to your budget should you need to. It’s also a good way to estimate how much you’ll need for each of your expense categories when establishing your initial budget. A bonus is that your card is your limit. So if you have a big limit on your credit card, maybe opt for a smaller limit to make sure you don’t overspend, and DON’T forget to track your purchases regularly. For this budgeting method, it’s best to check-in bi-weekly rather than monthly so you’re more aware of how much you’re spending and on what.
3. Receipts, Write, Repeat: the holy grail of information and budgeting dreams. This method comes down to documenting everything. And I mean EVERYTHING. You can use solely this method, or add it to one of the two mentioned above. The trick with this one is that by writing everything down at the end of every week, you become conscious of how much money you spend, how much you usually have left, and what you usually overspend or under-spend on. This method necessitates a notebook or little binder, an hour (or less) of your time each week, and all of your receipts. This means your coffee runs, your grocery bills, your phone bill and rent receipts. By tracking your spending you can more easily manoeuvre your money. This is the method I use in my day to day life, and it also helps me pre-budget for trips. Once again, split up your spending into categories, log them in your book once a week (even if your budget is bi-weekly or monthly), and this way you don’t have to limit yourself to cash or cards. The idea is to divide and conquer...your expenses, so they are easier to manage. It’s also useful to have little gadgets for tracking; they are portable, handy and provide an instant way to know how much you’re spending and on what!

As fellow wanderers, you are now fully equipped to maintain (your expenses) to make it rain (money everywhere)! Whether you're just planning a quick trip, or the one of a lifetime, you are ready to roam without breaking the bank. You'll never have to worry anymore about saying: RIP to your Savings!

Kyla