Are you dreaming of exploring exotic destinations but find yourself limited by your budget? You’re not alone. 

Many people are passionate about traveling but struggle to save enough money to turn their dreams into reality.

Going, a flight deal alert website conducted a survey on those people who were not traveling in 2023. 

There were 6 significant reasons and guess which reason was at the top? 

“Lack of Money” was cited as the number one reason (27% of respondents). 

So, if you are willing to travel and don’t have sufficient funds to support your wish, you are not alone in dealing with the same problem. 

But traveling is the most exciting entertainment one can experience. 

But how to save money for travel? Here we will find out 13 ways to save money for travel. 

Do you want to travel this year? I also do. Let’s find out how we can save money for our next trip. 

13 Tips and Tricks to Save Money For Travel

Start a Dedicated Travel Fund.

Consider setting up a separate account solely for travel expenses. By saving a fixed amount each month, you can accumulate enough money for your dream vacations over time.

The amount of money you can save will depend on how much you earn and spend in your daily life. Nonetheless, even small contributions can accumulate over time.

Let’s take sample calculations to illustrate this point further. If you make it a goal to put away $200 monthly for two years, then at the end of that period you would have saved $4,800 in your travel fund. 

This total could cover return flight fares, hotel expenses as well as some activities based on where one is going. Dividing the savings into smaller monthly amounts makes it easier to save.

To safeguard your travel fund from being spent on other things, open a separate bank account exclusively for saving for those purposes. 

This ensures that you cannot access money meant for traveling and spend it otherwise. Moreover, having automatic transfers from checking accounts to travel funds will help you to save money in case you forget. 

Earn Extra Income 

It is important to understand that cutting your travel costs is not the only way to boost your travel fund. Earning some extra income on the side can supercharge your savings and help you reach your travel goals faster.

Whether it’s working part-time, freelancing, or starting a small business aside, earning money on the side will help you get closer to your travel targets quickly. Starting a side hustle is an excellent idea to save money for travel. 

I have personally experienced what it means to make some extra money which has gone into financing my travels. It has even enabled me to save for flights, accommodation, and other memorable experiences during the trips.

The amount of money you can save from earning extra money will depend on the opportunities you pursue and the time invested. 

Let’s say that you decide to start a part-time job with a $12 per hour wage and work for 15 hours weekly. That would be an additional $180 each week which adds up to $720 in a month. This additional income over a year sums up to $8,640. 

You may initially find it challenging to juggle between getting more income and fulfilling other responsibilities but in the end, it’s rewardable.

Remember each additional dollar you earn brings new places near and makes unforgettable memories realizable!

Travel Reward Programs

Travel reward programs are a significant aid for saving money on travel. Airlines, hotels, and credit card companies provide these programs that give you points or miles which can be traded in for flights, hotel stays and other traveling expenses.

The potential savings here can be substantial. For example, assume you utilize a travel rewards credit card that gives you 2 points per $1 spent on all your monthly expenses such as groceries, gas, and bills. 

If you spend about $2000 each month that would be 4000 points earned. Starting at just 25,000 to 30,000 points many airline and hotel programs offer free nights or flights!

What is more; by exploiting promotional offers and bonus categories provided by the reward program one can raise their earnings even higher. 

By maximizing category bonuses on my travel cards I have been able to earn enough points for several complimentary roundtrip flights. It takes some planning but the payoff is worth it.

Which travel reward programs to join depends on your spending habits and travel goals. Therefore investigate the best ones available to you. 

Cancel Subscriptions

Some time back I conducted this exercise myself and was amazed at how much money I had been wasting on unused subscriptions and memberships. 

Take a peek at your last few months’ bank and credit card statements. Locate any recurring payments like streaming services, gym memberships, subscription boxes, etc., that you don’t use or can do without. 

For example, pretend you quit paying for a $15/month streaming service, home delivery of groceries costing $50 per month, and finally the box with educational toys and clothes worth $25 every month. 

You have just allocated extra funds for travel amounting to $90 a month or $1,080 per annum! 

Learn to Cook 

Eating out regularly while on a trip can make you spend more money than you should. To reduce expenses and increase savings, one can start cooking at home.

On average, an individual spends about $13 per meal when eating out. That means that if you go for lunch and supper every day during weekdays, it would amount to a total of 130 dollars in a week or 6,760 dollars in a year! 

Were you just to prepare even half of these food items at your house, yearly savings could be over $3,000.

However, cooking at home does not have to be so complex and time-consuming. There are tons of blogs, and YouTube videos on food recipes to assist you. 

Buy things such as groceries in bulk quantities so that they last long enough. The more times pass by the faster you will get around the kitchen.

Make a Budget

I was astonished at how much I could save just by becoming more conscious of my spending when I initially started budgeting well. Though it takes some discipline, watching your travel fund grow can be very encouraging. You can do this!

First, make a note of your income and expenditure for an average month. Start with summing up the fixed costs such as rent, bills, and loan payments before proceeding to variable spending categories like groceries, gas, dining out, etc. 

Identify areas where you can cut back on and channel these funds into your travel savings instead.

As an example, imagine that you spend $400 per month eating out and another $100 on entertainment right now. By reducing these categories by 50%, you would release $250/month or $3,000/year towards travel! A clear budget makes it easier to make those trade-offs.

With a proper plan, you can even save USD 25K in just six months.

Travel During the Offseason

Traveling at different times of the year such as during the off-season or shoulder season can lead to significant savings on airfare, accommodation, and activities. Frequently traveled places are usually less populated and affordable when there is a low demand.

For instance, flying from the U.S.A. to Europe can cost up to 50% less during autumn and winter seasons than in summer. 

In addition, hotel prices also drop sharply so that one which goes for $300 per night in July may be rented for half the price in November. Tours too often come with discounted tickets, especially during low season.

Some years ago I had an opportunity to apply this formula in my trip to Italy. This way I managed to save more than a thousand dollars only in flight tickets and hotels after choosing late October instead of the summer tourist season. 

The weather was good; the crowds were less thus I could spend more money on other things.

By being somewhat flexible with your travel dates, you might be able to get amazing deals during the slow season. Research those special times for each destination you’d love to go to most. Savings could even let you travel more often or enjoy more luxurious vacations.

Use Public Transport 

While traveling, using public transport instead of renting cars or hiring taxi cabs can save you a good amount of money. Many big cities have cheap and effective bus, train, and subway systems.

For instance, in New York City it is only $33 for the 7-day unlimited subway/bus pass. Compare that with paying for rents of over $300 per week plus parking charges and gas. In towns such as London, traveling underground costs less than taking a cab everywhere.

Another advantage of public transit is that it allows one to become involved more in the local culture and lifestyle. 

You will be able to interface with residents, locate out-of-the-way neighborhoods, and travel like a true resident.

During my last visit to Tokyo, I got myself a reloadable card for use on the transit system and used an app to help me get around their incredible rail system. Compared to private transport, this was so convenient and affordable. 

As a result, I saved hundreds of dollars which could then be spent on great food, fun things to do, or lovely presents instead. Try it next time you are going downtown!

Look for Package Deals

Combine flights, hotels, and activities into a travel bundle to save a lot. Airline companies and hotels want to fill up all their seats and beds, so they offer discounts on packages.

For example, think of a trip to Cancun. Booking return flights separately would cost around $500. The six-night hotel stay might be about $900. However, if you book them as one package, you may just pay $1,200 altogether – saving more than $200!

Adding rental cars, tours, or other extras to the package will give you even greater savings. It’s worth it to compare the components individually with those in a package so that you can make an informed choice.

I always look at the vacation deals when planning trips even after I had earlier priced items separately. 

You can never tell when there will be an awesome discounted package offer coming your way. In preparation for my Hawaii tour, I came across a flight+hotel+rental car package that cost 800$ less than booking every item alone!

Eat Like a Local

When we go on trips, one of the best ways to eat with locals and save money is to eat in local restaurants or street food areas. Most times,  hotels near the main attractions are very expensive and poor in terms of quality.

In some countries, a meal at a genuine local restaurant can cost as low as $5-10. Compare this to twenty dollars plus for an entree dish from a tourist trap eatery within the same town. 

Over seven days traveling overseas, having local foods could cut your budget for food by over $100.

A few days ago my friend was in Mexico City.  According to him, he has never tasted better tacos and tamales than those he bought from unsuspecting vendors on the streets who charged him about $3 a meal! 

Make sure you do some homework before your trip so that you know where to find some good joints for meals, local markets for groceries, and places where you can grab snacks on the go. Eating like locals do is fun during travel! Your taste buds will love it and so will your wallet. 

Use Credit Card Discounts

 Through their online portals, many travel credit cards offer reduced prices and extra rewards for making bookings. Using these incentives well can help you save a bunch on air tickets, hotel stays, and renting cars.

For example, if you redeem the points for travel purchases through the Chase portal using the Chase Sapphire Reserve card, it’s 50% more valuable. 

For instance, 50,000 points that may be earned as a sign-up bonus could be exchanged for $750 in flights and hotels rather than just $500 in cash back.

Plus, some cards give you yearly travel credits, discounted airport lounge access, and free checked bags, among other cool perks. I have an Amex Platinum card which grants me up to $200 in annual Uber credits plus a $100 TSA Pre/Global Entry credit.

Conducting thorough research is key to getting the most suitable travel credit card that suits your spending patterns and traveling preferences. 

Do Free Things 

There are always several free activities and attractions to experience, no matter where you travel, as long as you know where to find them. This can be a great way of saving money on your journey.

Many famous museums offer free admission or discounts on certain days or times. You can also explore for free through walking tours, visits to parks, and checking out public street art.

If you visit Washington D.C. see the Smithsonian without a fee. You can join a walking tour to see national monuments like The White House, Capitol Hill, and Lincoln Memorial, or visit the lively Eastern Market neighborhood.

Before leaving, just perform some study about your trip destination to plan numerous cost-free activities. You don’t always need to go on expensive tours or buy tickets, even if they offer something unique.

Cashback site

There is a way through which you can save more money while making your travel bookings, that is by earning cash back. You make your bookings through these sites which get paid for the referrals made and they also share their profits with you.

Cashback percentages become really substantial if we speak about expensive purchases such as airline tickets or hotel accommodations. 

For instance, on different portals, one may find 6-10% cashback rates at major online travel agencies like Expedia and Priceline. By simply clicking through the site, you can earn $60-$100 cashback for a $1,000 holiday package.

Before making reservations, it is advisable to check the rates of several cashback websites. The same retailer may be offering varied rates across different platforms. Additionally, some companies provide boosted cashback during certain promotional periods.

It is my habit to always go via Rakuten or TopCashback before booking any form of traveling.

FAQs

How much money should I save for travel?

The amount you need to save depends on your travel destination, duration, accommodation preferences, and lifestyle. A general rule is to budget $50-100 per day for budget travel in cheaper destinations like Southeast Asia, $100-200 for moderate travel in Europe or North America, and $200+ for luxury travel.

How can I save money for travel while in college/university?

As a student, look for ways to cut expenses like cooking meals, limiting nights out, using student discounts, and finding free campus events. Consider getting a part-time job, legit work from home, or selling unused items to boost your travel fund.

How can I save on accommodations while traveling?

Look into hostels, Couchsurfing, house-sitting, camping, or home exchanges as affordable alternatives to hotels. Traveling in the off-season can also yield big hotel discounts.

What are some unconventional ways to save money for travel?

• Use packing cubes for easier travel with just a carry-on bag and to skip checked baggage fees.
• Explore different airfares using flight search engines instead of targeting a specific destination. You might discover a surprisingly cheap flight to a new place.
• If fares are much cheaper, even with driving costs, consider flying from alternate airports further away.
• Get airfare alerts from sites like Hopper and Trip.com to catch quick-flight deals.

Now You Know How to Save Money for Travel – Start Planning Now 

I love to travel a lot, and writing this article was a journey for me. Nothing can beat an exciting tour. We have a very short life, and the world is full of wonders and diverse cultures. Explore the world as much as you can.
You don’t have to reach to travel. What you need is motivation to see the world and willingness to save.