How To Make Travel A Reality When You’re in DebtJun 27, 2018
If you’re carrying debt, you might think there’s no way to travel this summer. However, some careful planning ahead of time could help you make your travel dreams a reality.
This podcast examines How To Travel When You’re Paying Off Debt. We look at how to decide if travelling while in debt is doable, planning to make travel possible, why staying on budget is critical, and the best ways to avoid returning home with more debt.
Planning ahead of time is critical to traveling if you need to manage a tight monthly budget and avoid consumer debt on vacation. Here are some tips for how to set yourself up to keep reducing your debt while saving for your vacation.
Budgeting for travel
It might not seem as exciting as actually traveling, but budgeting to reach your vacation goals is the way to get there.
By making “vacation savings” a line item in your regular budget, your goal will be front and centre. If you follow the 50/20/30 rule of budgeting (where 50 per cent of your income goes to essentials, 20 per cent to savings, and 30 per cent to personal), your vacation fund will grow faster and allow you to travel without accumulating debts.
However, remember that saving for your vacation shouldn’t take away from your regular savings goals such as paying back student loans or saving for retirement. Traveling is a personal and non-essential choice in nature. If you treat it that way, you won’t sacrifice any of your regular financial responsibilities or goals to travel, and you won’t find yourself behind when you return.
Make cuts in the right places
If you are struggling to find room for vacation in your finances, rethink your personal category. You might find things you can sacrifice to make it happen. Memberships (gym, book clubs, streaming services), parking passes, monthly activities like salon services, or activities like brunch, seeing a movie, or golfing, could all be ways to save. By holding off on those regular monthly expenses for a few months, you could save hundreds towards your travel without having to take on any new debt.
Resources to help you reach your goal
There are some great resources out there to help you save and manage your money in fun and easy ways. Check out Mint’s budgeting app to keep your spending on track, even on the go. How To Save Money has some great articles to help you save before you travel and while you’re planning your travel itinerary. You can also use the Financial Consumer Agency of Canada online goal calculator to help you work out your savings goals.
With some strategic planning, you can achieve your travel savings goal. Put your budget to work today to get on the road this summer.