Best Ways to Cut Your Expenses and Save Money for Travel

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Dreaming about exploring the whole world? We’ve put together our top money saving tips on how to grow your balance and save money for a big trip.

Are you dreaming of traveling the world but have not enough savings to make your dream come true? We have something interesting to tell you about budgeting and saving for a big trip. But first, let’s start with a small exercise that is meant to open your eyes on your real expenses. Take some time to write down all of your set spending on a sheet of paper. These expenses combine rent/mortgage, cable bill, car payments, mobile phone, school payments, insurance, and so on. Sum them up.

After that, write all of your discretionary expenses. This is the money you spend on food, drinks, movie nights, shopping, cigarettes, daily coffee, midday snack, sports tickets, and other things. In case you aren’t sure what your money goes on exactly, go track your spending for two weeks and come back to write it down. In the end, add that all up and you’ll probably get a huge sum of money. Well, if you know how to reduce or cut certain expenses, you will be able to save that money for a big trip. Here are our best tips.

Connection between Your Expenses and Traveling

In addition to the set and discretionary expenses, there may be many other expenses you don’t even realize you are making. They are often called “phantom expenses” by financial experts because they tend to be small and invisible, yet they decrease the total amount of money sufficiently. A dollar here and a few dollars there add up. People often waste a lot of money without realizing it. So, what about travel?

Travel and your financial situation are connected tightly as money is the most common reason why people can’t afford traveling. Of course, we all have certain set expenses that we can’t cut off. Sometimes you may even find yourself in a financial emergency when tips about online installment loans through PersonalMoneyService can be very useful and help avoid stress. But if you try to reduce your set spending, cut your phantom expenses, and find additional ways to save some money you will be able to fulfill your dream and build your travel fund.

Stop Using the Car

It’s pretty expensive to own a car. Just think how much you throw away every month on insurance, loan payments, regular repairs, and gas. Isn’t it better to take the subway or the bus, walk or ride a bike? Of course, it may take longer to get to work if you aren’t driving, but many people don’t really need the car as much as they think. Get rid of the car unless you live in a very small town with no regular public transportation system. Then, the alternative is to purchase a cheaper throwaway car that will serve you until you start your trip. In other words, buying a used car will give you a chance to pocket the money from the more expensive car and save it for traveling.

Find a Roommate

Another wonderful way to gain extra savings is to decrease your housing costs. Bring in some roommates or downsize the apartment. If you are a rather communicative person, you may try to find a roommate and turn the living room into another bedroom if necessary. More than that, if you feel comfortable staying with your parents for a while, move in with them for a few months. These several months can make a huge difference and help you save several thousand dollars in rent.

Get Rid of Landline

Do you still have a landline? And how often do you actually use it apart from your regular mobile phone? Let’s be honest, there is no need to have both a landline and a mobile phone these days. Stop doubling your phone expenses by ditching the phone line.

Get a New Credit Card

Did you know that banks offer a travel credit card  may give you free rooms, free money, or even free flights? First, you have to collect rewards points and miles with the card on everyday purchases. Then, you can spend them for free travel. Getting a travel credit card can become one of your biggest budgeting weapons. Once you get a new card you will even earn big sign-up bonuses as well.

Stop wasting your time and money! Follow these practical tips and advice and stay overseas as long as you want.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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