What’s more exciting than going on a big trip that you’ve been planning for months? As the day of your departure grows near, the anticipation becomes much more palpable. However, before the elation really sets in, you should already have a plan in place for how you’ll save up.
Big trips are expensive. This is why it’s important to give yourself ample time to save money. You have to keep in mind all the things that you’ll spend on it. On top of that, you should give yourself a little leeway in case you underestimate your initial budget.
Below are some tips to help you save up for a big trip:
Plan your itinerary
While some say you should be as spontaneous as you can when you go on a trip, it helps to have a basic plan in place. You don’t have to know what you’ll be doing every hour, but having some idea of the activities you’ll partake will give you a rough idea of how much you need to spend per day. If you’re planning on going on a trip to different countries, your itinerary will serve as a guide for your expenses. Different countries have different costs of living, and knowing how long you’ll stay in certain countries or areas will help you plan your budget.
Have an idea of how much things cost in your destination.
You may be used to paying $5 for a cup of Starbucks coffee in your home city, but prices are most likely different in your destination. Do a little research about how much basic needs will cost. The most important things to consider are the cost of meals, transportation, lodging, and (if you’re an avid shopper) goods. This can also help you plan where to eat or stay if you’re on a tight budget.
You should also consider the exchange rate of your local currency and your destination’s currency. This can help you quickly convert expenses to your local currency, which will give you a good idea if an item is expensive or not.
Factor in all the expenses
You probably already know the total cost of all the necessities for your trip. However, you should also consider miscellaneous and emergency expenses. Tips, bank fees for withdrawals, taxi rides, and emergency expenses can add up to quite a lot. It’s best to err more on the side of caution when it comes to your budget.
Use a savings calculator to plan how much money you should set aside
The Savings Calculator can help you find out how much money you need to set aside per month. You only need to input information such as your initial balance, how long you’ll save up for and how much money you’re aiming to save up for your trip. You can also include the interest rate of your bank.
Once you input all the data, the Savings Calculator will let you know how much you need to save each month to reach your target. As mentioned earlier, it’s better to save a little more than to end up short on cash. For this, we suggest rounding up your budget to give you a little more leeway.
Planning for a big trip and saving up for it can be stressful if you don’t know where to start. However, once you’ve ironed out your plans and you know how much money you’ll need to save, it will all pay off!