Nothing ruins the benefits of a relaxing holiday faster than the credit card bill that shows up 30 days later — and that you can’t pay in full.
Don’t let that be you.
The good news is that you can absolutely travel on a limited budget. You’ll need to be strategic, patient and willing to plan ahead, but incredible travel experiences shouldn’t come with years of debt attached.
Get a dedicated travel account
You’ll need a dedicated travel savings account with no fees and a competitive interest rate. You can open one through your current bank or shop around for alternative financial institutions offering promotional interest rates, cash incentives or bonus rewards.
The key is making saving easy and spending difficult. Set up automatic contributions through online banking on a weekly, biweekly or monthly basis, ideally timed with your payday or personal “money day” — the day you review your finances and budget. Unlink this account from your debit tap so you don’t accidentally spend it while you’re shopping.
Start with an amount you know you can stick with, whether that’s $25, $50 or $100 per paycheque. The amount matters less than consistency.
As your travel fund quietly grows in the background, you’ll also have time to think through exactly where you want to go, when you want to travel and how much you’ll realistically need.
Choose a travel rewards credit card
The trick is finding the right card for the type of travel you want to do, whether it’s international adventures, domestic getaways, road trips or family vacations.
Look for a card with reasonable annual fees and strong earning opportunities tied to spending you’re already doing, such as groceries, gas, restaurants or recurring bills.
Many travel rewards cards also offer bonus points with specific retailers or during promotional periods. Take advantage of these opportunities when they align with your regular spending habits, but don’t fall into the trap of spending money simply to earn points.
That’ll backfire, and take money away from your travel goals. A free flight isn’t free if you spend thousands unnecessarily to get it.
As your trip takes shape, calculate how points can help offset costs such as airfare, hotels, rental cars, rail passes and even travel insurance (if you don’t already have this through work).
Accelerate your plans with bigger money moves
Once you have a destination in mind, you may be motivated to speed up your savings.
Some of the fastest ways to grow a travel fund have nothing to do with budgeting.
Host a profitable yard sale. Sell sporting equipment, furniture or electronics you no longer use. Pick up freelance work, overtime shifts or a short-term side hustle. File outstanding benefits claims. Submit your tax return if you haven’t done so already, in hopes of a refund.
Many people are sitting on hundreds or even thousands of dollars worth of unused items that could be converted directly into travel memories.
Ask yourself a simple question: “What would I rather have … a dusty treadmill in my basement or a week in Italy?”
Deal hunt like a boss
The best travel deals usually go to the people who are flexible.
Consider travelling during shoulder season, which is the period just before or after peak travel months. Flights are often cheaper, accommodations are less expensive and destinations tend to be less crowded.
Set up airfare alerts through sites like Google Flights, Hopper or Skyscanner. Monitor package deals and be willing to shift your travel dates by a few days, or weeks, if it results in significant savings.
You can also save substantially by travelling mid-week, packing light to avoid baggage fees, staying slightly outside major tourist districts and booking accommodations with kitchen access so you can prepare some meals yourself. Space out any foreign currency purchases to avoid trying to “time” the FX market; even the pros find this challenging.
Small savings across multiple travel categories can add up to hundreds of dollars.
It’s easy to get caught up comparing your trip to what you see on social media.
Don’t.
The goal isn’t to have the most luxurious vacation. The goal is to have an amazing experience without creating financial stress when you get home. Sometimes this takes time, but it’s worth it.
A modest trip paid for with cash will almost always feel better than an extravagant trip financed with debt. And nailing down the savings process for your travel will open doors for you to take flight (all the puns intended) again and again.
