Unfortunately there is one necessary component to travel.
Actually, I’ll let you in on a little secret.
You need money for most things, traveling or not.
So let’s set the record straight, whether you are travelling or not you need money, so you might as well just make the decision to travel since the money aspect is no different to a nine-to-five lifestyle. (There’s nothing wrong with that either btw, but this is a travel blog)
It’s about choosing how to manage your money. It’s much easier than you think and you really don’t need thousands in order to travel more.
We totally get how difficult it is to save money, especially if you have children. Something is always coming up to steer your focus into other things you feel are more important.
This is okay.
What we want to do is to help people see how little changes here and there might lead to that well-deserved break in the future.
Different travel styles
Everyone deserves to have time out from the normalcy of their lives to kick back and enjoy it.
Long-term travel is not for everyone. We are conscious here on the blog that we have a wide range of readers, from those who backpack and travel long-term, to expat travellers and those who are interested in short breaks.
We want to show you simple tips to save, or create more money, so it applies to anyone no matter how they travel. Let’s face it, money applies to everyone.
We are going to be focused more on providing posts that speak about the topic of money. We are going to be talking more about reward programs, ways to save, ways to create and ways to cut back on your expenses.
We will be researching and testing all sorts of things out for ourselves and report back on what we discover. (We need to get better with these things too, so we might as well share what we learn.)
I tell you what I am a little frightened.
I’ve developed this notion about myself over the past few years that I can’t manage money, so I have shied away from talking about it. This is a result of a huge money mistake that we made, an investment gone horribly wrong,which destroyed our retirement nest egg.
We don’t have that cushion anymore.
We know how scary this topic can be and hope we can relate and hence help more.
Despite our money catastrophes, we have managed to travel more in our lives. It is our greatest passion so we find ways to make it work. Having this blog has been one way, but I know that is not really relevant to most of you.
Let’s look at ways that are starting with
Analyzing where you are now with money
Craig and I have avoided all conversations revolving around money, saving and budgeting for a long long time. I could not make myself look at the income and expenditure sheets as they were grossly unbalanced in the wrong direction. When I looked all I could see were mistakes and I’d crumble with the pain and the fear.
Hiding will never make things better. I need you to be courageous with me because trust me I tremble inside even just writing this and I want to run real fast.
But, we gotta face the music in order to make a change.
So we have faced the music and it was better than we thought. We have obviously been doing some things right.
The first thing you have to do is get real with money.
Where do you stand with it? If you are like me and it makes you feel a little frightened and sick, you have got to work on changing that else it will not get better. Start to love money (It’s not the money itself you have got to love but the freedom and choice it brings).
The better you FEEL about money the more it will come and visit you. Makes sense right? We don’t go and knock on the door of anyone’s place if we know they don’t like us. AWKWARD
Take a reality check.
How good are your finances? How bad? Where is your imbalance? If it is in the right way then keep doing what you are doing. If it is not, changes are needed.
These changes will help bring more money into your life which you can then use for those much needed breaks you DESERVE.
Work out your monthly income and expenses
Track your income and expenses for the month. Don’t leave anything out.Where are your patterns? What are you wasting money on? Why are you wasting it? Think about what you were feeling at the time when you made those unnecessary expenses.
For us, we have been spending way too much money on coffees and eating out. By tracking my feelings, I know why. It is because I have been feeling trapped and suffering cabin fever. The need to experience something different and feel better about my home life has been causing me to make these choices. But it is just entrapping me even more.
So now I have to look for solutions. I am menu planning to try to make home meals more enticing, we have a coffee machine at home now and I am slowly reducing my dependence on caffeine. We are exploring through cheap fun things like bushwalks, bike rides and picnics.
One of the best ways to reduce your costs is to pay off any bad debt. Put extra money into this each week. Any extra bonuses whack straight on it to work it down. We have paid off several credit cards doing this. Paying interest is bad, earning interest is good.
Now track your income. Where is it coming from? How much? Where is the potential for increasing it and creating more income streams.
What is the gap between your income and expenses? How can you widen that in the positive direction?
There are only two ways
Come up with a plan
Set up money buckets
Now you are aware of your income and expenses you need to distribute your money into certain buckets. Have a different bank account set up for each.
We have worked out a plan to distribute our income in the following ways.
- living costs
- business expenses
Each bucket has a different bank account. (Accounts for savings will be those with higher interest rates. Make your money work for you.)
Every person’s situation is different and so you will have different buckets set up. For us, we need a tax bucket and a superannuation bucket as we have to make those payments ourselves. We need high-interest rates for these.
A certain percentage goes into each bucket based on needs.
Your savings bucket needs to be a buffer for any emergencies but split this bucket so there is a dream bucket segment to it. Skive off a few percent of your savings bucket each month into your dream bucket.
Focus your travel expenses to come from your dream bucket. You gotta have a dream and you have to contribute to it.
Once you set up your buckets and have a money plan, you will be more focused on filling them up. You’ll start to get very clever at finding ways to reduce the money that has to go into the expenses bucket so you can add more to the dream bucket.
It is so so easy for us to say we don’t have any money to put into the savings bucket. Believe me, I know about the too much month at the end of the money thing.
You really have to find a way to put something into the savings bucket, even if it is only $10 a week. You can manage that.
By putting in something to that savings bucket you are subconsciously telling yourself you DESERVE it, AND you are letting the Universe know you can MANAGE money. That means more will enter into your life. Like attracts like.