Inside: 8 Essential Savings Tips for Long-Term Travelers. Collaborative post.
Ask anyone and they’d agree: traveling the world is pretty fun. Tracking every penny on a spreadsheet so that you won’t be at risk of getting kicked out of your apartment? Not so much.
It should be clear that money is a resource that every long-term traveler should possess.
While some folks may be blessed with a large savings account, a generous family, an established business, or a lucky investment that allows them to easily finance their travels, the vast majority of long-term travelers do need to keep track and be mindful of their cash flow to survive.
Unfortunately, there’s no quick shortcut or magic pill that can boost your travel funds. You’ll have to be strategic and methodical in your money-saving ways to truly make the most of your travel experiences.
If you want to scratch your traveler itch without breaking the bank, here are eight essential savings tips that you should bear in mind to keep your finances in tip-top shape.
1. Practice Minimalism
While it can be tempting to travel with your entire wardrobe to save on costs while appearing fashionable, it’s very possible and much more recommended to travel with just one bag.
There are many perks to packing light. For one, you don’t have to pay for check-in baggage fees when you’re boarding a plane.
Secondly, you’ll naturally adopt a more space-conscious mindset due to limited bag space, which can help you avoid splurging on random things throughout the trip.
Lastly, being a minimalist also encourages you to invest in quality items. While expensive, quality items tend to be more durable than most, so having them can help you extract the lifetime value of the product to its highest potential.
2. Establish a Budget
Every long-term traveler should have a budget tracker. This tool helps them track their expenses, income, and net worth in one easily visualized spreadsheet or application.
Having a budget is a great goal-setter since it lays out all the key information regarding your financial status.
You have to be disciplined and manually add the expenses, but by doing so, you can keep track of your expenses and income, which can help you reverse engineer possible goals—like having a certain net worth in three months or saving up for an upcoming travel cruise.
A budget can also inform travelers when to adjust certain behaviors. For instance, if your income and expenses are about equal, this may mean that you’d have to lower your expenses to have some money left over for savings.
Furthermore, budgets can be as complex or as simple as you’d like. You can add financial ratios, for instance, to see if your emergency fund is still healthy or if your rent expense is below 33% of your total income.
3. Cook or Eat Like a Local
We all have to eat, and food is a daily expense that should be every traveler’s consideration.
You don’t want to dine on a diet of cheap cup noodles all day—as this is simply unsustainable. You want to strike the perfect balance of healthy, filling, and cheap. And there are a couple of ways to achieve that.
For one, you should consider cooking instead of dining out all the time. Eating at home is significantly cheaper and healthier since you’re in control of what you’re eating. Be sure to choose an accommodation that has a kitchen facility to fully take advantage of this.
Alternatively, you can also consider dining in more economical environments. Food courts, markets, al-fresco dining environments, prepared grocery meals, and the occasional fast-food joint can help you control your cash outflow.
By being mindful of what and where you eat, you can end up saving a couple of hundred dollars more each month, which can definitely add up to something significant over time.
4. Take Advantage of Free Activities
It’s common for people to partake in new hobbies when they’re abroad. If you’re an outdoorsy individual, take advantage of free activities to explore and learn more about your local place.
Whether it’s volunteering, hiking, or phone photography, there are a dozen hobbies you can take up that won’t cost anything to invest in.
Find like-minded people on Facebook groups or meetups and join in! You can even make some friends along the way—which can do wonders for your mental health.
Not only are you getting the benefits of immersing yourself in a local culture, but you’re also doing all these things with zero costs. This can make both your brain and wallet two happy campers!
5. Set Up a Savings Account
Setting up a local savings account is the key to unlocking financial stability and accomplishing long-term travel goals. Click here to get started.
This is because it gives you an actual place where you can store your extra money outside your wallet, which can make it less tempting to spend on random things.
Furthermore, a savings account also comes with the benefit of generating some interest for you. And while this figure may not amount to much, it’s still a good way to see your savings grow.
6. Don’t Make Impulsive Purchases
When you’re abroad, you may feel compelled to go with the flow and reward yourself frequently.
And while you should definitely enjoy yourself from time to time, it’s important to prioritize your financial health first and foremost.
One way of doing so is by stopping yourself from making impulsive purchases. When out and about in a mall or market, refrain from buying random things you might regret—like a cup of coffee or some ice cream.
Buying these little things frequently can and will add up. In turn, this can gradually chip away at your savings figure, leaving you with less money than you otherwise would have.
As such, try to quell your fleeting desires as much as possible. If you find it hard to kick the habit right now, look for affordable, alternative solutions, like brewing coffee at home or bringing an insulated water container with water to cool off.
7. Choose Cheap Alternatives
Long-term travelers can also save more money over time by opting for more affordable alternatives of products and services that they’re used to getting.
For instance, if you’re used to riding a medium-tier airline carrier or a luxury bus, then you may want to reconsider switching to a budget airline or commuter bus instead. Instead of going for a taxi to get to your destination, consider taking a bus, train, or simply walking to your destination.
This can save you a few dollars per trip. Just be sure that the total cost of the budget options is indeed lower than that of the medium-tier options.
Besides transportation, look into accommodation as well. Choose a place that’s foreigner-friendly, centrally located, and has every amenity you may need like a kitchen or bathroom. Be sure that the lock-in contract isn’t longer than your intended staying time.
Choosing cheaper alternatives doesn’t necessarily have to be a quality decline. There are once-in-a-blue-moon-type offerings that may come from time to time, so be sure to research and check available options as often as you can before you move into your new spot.
8. Leverage Travel Deals With Your Credit Card
If you own a credit card with a robust rewards program, be sure to take advantage of it when you’re traveling overseas.
Certain credit cards can incentivise you to spend more money abroad. These rewards come in the form of rebates, promos, and point accumulation for prize redemptions.
If you have spent enough (and paid your credit card on time), then you may be eligible to redeem some great deals—like rebates, cashbacks, and discounted codes on restaurants or appliance stores. This, in turn, can save you hundreds if not thousands of dollars across your stays abroad.
That said, you must always make timely payments. If you fail to do so, you can be penalized with fees and reduce your credit score—which can affect the future utility of your credit card.