How to Balance Your Wanderlust While Having Financial Goals

Travel vs. Savings: Can You Have it All? 

The travel bug has bitten you. Images of sun-drenched beaches, bustling cityscapes, and breathtaking landscapes dance in your head. Yet, a nagging voice whispers about retirement plans and financial security. This internal conflict is a familiar song for many travelers. We crave adventure, but the pressure to save for the future can keep us grounded.

But fear not, fellow wanderlusters! Striking a balance between travel and financial goals is absolutely possible. Here's your roadmap to fuel your adventures without derailing your long-term aspirations!

Charting Your Course: Prioritize and Plan

• Define Your Dreams: Do you yearn for a multi-month backpacking trip through Southeast Asia, or are you drawn to shorter, curated cultural experiences? Visualize your ideal travel scenario and set SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound) to make it a reality.
  

• ​​Prioritize and Plan with the 50-30-20 Rule: For many, creating a realistic budget is the first step towards achieving travel goals. The 50-30-20 rule offers a simple framework for prioritizing your spending!
  

1. 50% Needs: This category covers essential expenses like rent, utilities, groceries, and transportation.

2. 30% Wants: This includes discretionary spending on entertainment, dining out, and hobbies. Travel can definitely fall under this category!

3. 20% Savings: This crucial portion is allocated for your future goals, including retirement savings and your emergency fund.
   

The beauty of this rule lies in its flexibility. By analyzing your income and expenses, you can determine if a slightly higher percentage within the "wants" category is feasible to allocate towards travel. This might involve cutting back on other discretionary spending or finding creative ways to earn extra income.

• Embrace Budgeting: This might not be the most exciting part, but it's crucial. Be honest with yourself about your income and expenses. Here's where a budgeting app like YNAB can be a game-changer. YNAB securely connects to your bank accounts and credit cards, giving you a holistic view of your financial landscape. You can categorize your spending, set goals, and track progress over time. This self-awareness allows you to see how travel can realistically fit into your financial picture. Let's say your dream solo trip to Thailand costs $10,000. With YNAB, you can track your spending for a few months to see where you can cut back. Maybe you can reduce your dining out expenses or re-evaluate your streaming service subscriptions. Every dollar saved is a dollar closer to your travel goals!
  

• Consider opening a separate checking account specifically for travel expenses with Charles Schwab. Charles Schwab checking accounts and debit cards don't charge foreign transaction fees or ATM fees when used internationally. Schwab will also reimburse any ATM fees charged by other operators.
  

If you have direct deposit set up with your primary checking account, you can automate a specific amount to be deposited into your travel account each payday. This "out of sight, out of mind" approach can be very effective for sticking to your budget. (By combining this strategy with the budgeting tips mentioned earlier, you can ensure your travel dreams become a reality without derailing your long-term financial goals).

• Get a Travel Rewards Credit Card (Use Responsibly!): Travel rewards credit cards can be a powerful tool for budget-conscious travelers. Look for cards that offer points or miles specifically for travel expenses like flights and accommodation. However, it's crucial to use these cards responsibly and pay your balance in full each month to avoid accruing interest charges.
  

I recommend the Chase Sapphire® Preferred Card: You can apply here for the card: You will get 75,000 bonus points (That's over $900 toward travel when redeemed through Chase Travel) after you spend $4,000 in the first three months your account is open!

• Boost Your Savings Growth: Every dollar saved brings you closer to your travel dreams! Consider stashing your travel fund in a high-yield savings account. Look for banks currently offering Annual Percentage Yields (APYs) above 4.5%. Keep in mind, these rates can change, so be sure to do your research and compare options before choosing an account. These accounts offer a significantly higher interest rate compared to traditional savings accounts, allowing your travel fund to grow a little faster.
  

Unforgettable Adventures on a Budget:

• The Affordability Advantage: Research destinations known for being budget-friendly. Southeast Asia, Eastern Europe, and Central America offer incredible experiences without breaking the bank. Consider shoulder seasons (the months between peak and off-seasons) for even better deals.
  

• Travel Style: Understanding your travel style is key to creating a budget you can stick to. Do you thrive in budget-friendly hostels or prefer the comfort of private guesthouses or hotels? Knowing your preferences helps you choose destinations and accommodation that fit your budget.
  

• Embrace Free Activities: Free walking tours, museum free-admission days, and picnics in beautiful parks can be incredibly enriching experiences. Many cities offer free cultural events, concerts and activities. Research your destination thoroughly to discover hidden gems.
  

• Unlock Unique Adventures with Airbnb Experiences: Airbnb Experiences offer a fantastic way to explore a city through the eyes of a local. Imagine savoring a delicious home-cooked meal prepared by a local family, or embarking on a personalized walking tour led by a passionate local guide. Airbnb Experiences go beyond traditional tours and classes, offering a variety of unique activities like taking a cooking class, going on a bike tour, or going dancing. The goal is to give guests a unique way to experience a city, culture, or cause through the lens of a local expert.

• House Sitting/Swapping: Save on accommodation and potentially experience local life by housesitting or swapping homes. Platforms like TrustedHousesitters and Nomador connect travelers with homeowners who need responsible individuals to care for their homes and pets while they're away.
  

• Worldpackers: Work Exchange for Accommodation: Explore the concept of work exchange with Worldpackers. This platform connects travelers with hosts around the world who offer accommodation and sometimes meals in exchange for a few hours of work each day. Tasks can range from helping out at hostels or eco-lodges to assisting with creative projects or language practice. Worldpackers is a fantastic way to experience new cultures, learn new skills, and save on accommodation costs while traveling!

Travel is an Investment in Yourself: Travel isn't just an expense; it's an investment in your personal growth and well-being. Here's why:

• Boosting Confidence: Navigating new places builds independence, resourcefulness, and problem-solving skills. You'll learn to rely on yourself and your intuition, fostering a sense of self-reliance and confidence.
  

• Expanding Horizons: Travel broadens your perspective, challenging your comfort zone and fostering self-discovery. You'll learn about different cultures, gain a deeper understanding of yourself, and create memories that will last a lifetime.
  

• Creating Lasting Memories: Let's face it, when death comes knocking, will you truly look back fondly on your upgraded bathroom or reminisce the breathtaking memories you made while exploring a new country? Travel experiences create memories that stay with us forever, enriching our lives in a way material possessions simply never will.

Remember, the key is balance. Prioritize your financial goals while acknowledging the importance of personal growth through travel.

What are some creative ways you've saved money for travel? Share your tips and experiences in the comments below, and let's inspire each other to explore the world while building a solid financial future!