If long term travel is your goal, then setting up a separate savings account is really something you should look into.
I remember when I was a student in the UK. All I wanted to do was travel. I couldn’t wait for final semester to be over so that I could go see the world and experience new things. I decided to take a year out, and I would not have been able to do this financially had I not planned it out properly from the beginning.
Here are some tips for long term travel and managing your funds so you don’t run out of money.
1. Choose a better Credit Card
How many of us are just paying through our noses in interest rates on credit cards? Well, by thinking smart, and doing your homework, you could find out, which are the best credit cards in your country with the lowest interests rates. Transferring from your existing credit card, to a better credit card which gives u a 0% balance transfer, would actually save you a lot of money. More money = more days traveling!
2. Keep the Travel Account Separate
If you can create a separate bank account for travel, chances are you will not overspend, as you will not be dipping into money that is off limits. Seeing the total amount available, also helps the budgeting from week to week.
3. Always prepare a Budget beforehand
Creating a daily budget has always helped me spend within my means. I tend to pick the upper limit so that if I use less than that, then it is a bonus for me. I tend to go by the cost of living relative to my own country as well. This is a good benchmark especially when visiting more “expensive” countries.
4. Keep track with a Spending Journal
It can be easy to lose track of what you are spending especially when it is for nick-knacks and emergencies. Always keep a journal of your expenditure so you don’t bust your budget.
5. Join A Rewards Program
There are all kinds of rewards programs out there that can help you spend less as a traveler. Most hotel chains have a rewards program and if you travel frequently, you might be able to pick up points to dine for less or get cheaper room rates, or free upgrades. There are also airlines that offer credit cards so that you can cash in on their reward programmes. Finally if you search for the top travel credit cards in your country you might find that you can actually earn points on everyday purchases as well as include travel perks like no foreign transaction fees, limited trip insurance and let you convert your point to flying miles. The sky’s the limit!