A Step-by-Step Guide for Saving Up for Your Next Trip Abroad

Saving Up for Your Next Trip Abroad

You may be daydreaming about the next time you can travel abroad, in a faraway country where you can explore new cultures, gain unique experiences, and create lasting memories you’ll want to keep close to you all your life. But it’s no secret that any trip abroad involves significant financial costs, including flights, accommodations, food, and activities.

Proper financial preparation is essential for a traveler who wants to avoid stress due to overspending, but who also wants to enjoy themselves to the fullest. For you, preps for the journey from here to the destination of your dreams should start as early as months or perhaps even a year or two before your trip.

Here’s a step-by-step guide on setting your travel goals, creating a working budget for your trip, and saving money more efficiently in other aspects of your life—all towards ensuring that you can get on with your holiday without any worry:

1) Set Your Travel Goals

The first step towards saving for your trip abroad is to set clear travel goals for yourself. Start by choosing your destination and travel dates. Do you dream of exploring the cosmopolitan streets of Tokyo, for example? Would you rather lounge on the pristine beaches in Bali? Or is it your pipe dream to wander through historic and cultural sites in cities like Rome or Paris?

Once you’ve decided on a destination, research the experiences and activities that interest you the most. Then, create a draft of your daily itinerary. This will not only fuel your excitement, but also help you understand the potential costs involved. Ultimately, your travel goals will serve as the foundation for your savings plan, so they should be clear, achievable, and as appealing to you as possible.

2) Determine Your Budget

With your travel goals in place, it will then be time to determine your travel budget. Estimate the overall costs for each component of the trip, including flights, accommodations, food, transportation, activities, visas, travel insurance, and shopping. Visit updated and reliable travel blogs, guides, and websites like TripAdvisor to gather accurate cost information about each of these.

Then, create a detailed budget breakdown, listing each expense category. Try to set a benchmark for the highest amount of money you can see yourself spending for each of these. Aim to save a lot, then to spend conservatively so that you’ll have more loose cash available to you during your trip. You’ll also want to come up with a comprehensive budget that will guide your savings efforts and help you avoid unpleasant financial surprises when you’re already out of the country.

3) Open a Dedicated Savings Bank Account

It’s also a good idea to open a dedicated savings bank account for your travel fund. Upon segregating your travel funds, you can better track your progress and resist the temptation to dip into them for other expenses. Transferring your funds to a high-yield savings account and leaving it alone for as long as possible can help you earn better interest on your savings and make more money available to you during your trip.

In the Philippines, leading digital bank Maya offers generous interest rates on deposits. It also offers personalization features like Maya Personal Goals, which will allow an account holder to set up temporary accounts for personal goals like travel. On the Maya app, you can watch as each deposit gets you closer to 100 percent of your goal amount for your travel fund. Maya Personal Goals’ gamified interface will give a Filipino traveler extra motivation to reach their savings goal.

It’s also free to transfer from your Maya Wallet to your Maya Personal Goals accounts without extra effort. By the time you set foot on the plane, you may have saved enough to indulge as you wish during your travels.

4) Assess Your Financial Situation

Next, take a close look at your current financial situation. Review your income and expenses to identify areas where you can cut back in favor of your travel fund. Are there any non-essential expenses you can reduce or eliminate? Maybe you have unused subscriptions that you don’t need. Or perhaps you can hold off on dining out in expensive restaurants until your trip.

Try to set a realistic monthly savings goal based on your travel budget. For example, if your trip will cost upwards of PHP 100,000, aim to save at least PHP10,000 every month for a year. Saving monthly and adjusting your day-to-day expenditures in light of your travels will make your goal more manageable and attainable.

5) Consider Finding Additional Sources of Income

You can also boost your travel savings by finding additional income sources. Consider taking up a temporary side gig, freelancing, or working part-time. Platforms like Upwork, Fiverr, and local job listings can help you find opportunities that fit your skills and schedule.

It’s also an option to declutter your home and sell unused items on eBay, Facebook Marketplace, or local consignment shops. As for passive income opportunities, you can open a high-yield time deposit that can keep your travel funds safe while they grow during the locked-in period you selected. In the end, all this extra income from your efforts can accelerate your savings more than you expect and allow you to spend more liberally once you’re out of the country.

6) Use Travel Rewards and Discounts

Make the most of travel rewards and discounts available to you to save money on your trip. For example, use a travel rewards credit card for everyday purchases to earn points or miles. Over time, these rewards can significantly reduce the cost of flights and accommodations.

What’s more, keep an eye out for flight deals, accommodation discounts, and package offers on websites like Klook, Traveloka, and Agoda. Remember that flexibility with your travel dates can also help you find the best deals, so keep your options open for travel offers that are too good to pass up.

7) Book in Advance

Lastly, booking your flights and accommodation in advance can lead to substantial savings. Airlines and hotels often offer early-bird rates, which are cheaper than last-minute bookings.

Planning ahead also gives you more options and better chances of securing your preferred choices. And to ensure you get the lowest prices, be flexible with your travel dates. Confirm all reservations and prepare necessary travel documents well before your departure date to avoid last-minute stress.

Saving up for a trip abroad requires discipline, planning, and smart financial management, but you can make your dream trip a reality by following the practical steps listed above. Start planning and saving today, and soon you may find yourself exploring more than one new destination with confidence and excitement about the world around you.