How to save for full-time travel is something that baffles many people. The question is simple and the answer is too.
It boils down to priorities. If you prioritise saving for travel, it is more than possible.
There are also several ways you can make money for travel that few people think about. Some risks and some blindingly obvious ones many people miss.
Let’s have a look at some of the steps you can take to make enough money to travel indefinitely:
How much cash do i need to travel?
Depending on several factors, this number varies drastically.
BUT, the good news is, most people are shocked to find out that their inflated idea of how much travel costs, is just that…. inflated!
We wrote a whole post about how the cost of living is less when you are traveling and about how you can make money on the road, while you are traveling, so that the party never has to end.
You do still need to have X amount before you get started. Have a quick read of my story, how i was able to afford full-time travel.
What’s the key to traveling for as long as i want?
Also keep in mind that there are HUNDREDS of ways to make money while you are traveling, so you may only need to save up for the first few months and from then onwards, you can become location independent.
If you’d like to find out how to make money on the road, you can read how to afford full-time travel.
Once you know how much you need….Make it Happen!
Save for full-time travel
Budget on your fixed costs and be rigid with your variable costs.
Have a look at your last three month’s bank statements. This will help you understand exactly where your money goes each month.
Once you have a good idea of where you are spending your money, decide what you need and what you want. What is simply a luxury.
Saving money for travel is all about where your priorities lie. Would you rather go to the cinema twice a month or would you rather have an extra $100 towards travel each month.
Create a Savings Plan
Make sure that if you have any spare pennies left over each month that you put them away.
Set up with your bank for the money to automatically be put aside into another bank account.
Open a flexible savings account with a good interest rate, call it “I’m outta here!” and start sending money its way!
Make a list of your needs and wants, and make sure you know the difference. Like really know the difference.
Be in it for the long run
You must realise that saving a large sum of money will not happen overnight. Commit to sticking it out for a while, if you need to.
You may be lucky enough to have assets you can sell, but if you don’t, it may take a while and be committed till the sweet (not bitter) end. Trust me, it’s gonna be sweet!
Regardless of how long it is going to take you, if you are committed to your savings plan, you can work out how long it will take you to make the amount you need.
Let’s say it’ll take you a year, right? How fast has the last year of your life flown by? When you look back, time goes by so quickly. If you commit to your goal and stay focused on it, it’ll be so worth it! And sooner than you think.
If you want to save for full-time travel then you either need to cut back on expenses or increase your income.
If i told you that the Starbucks you get each morning on your way to work was costing you $45 dollars a month, when you add it all up. Do you need it? The answer is just simply, no.
That’s $540 saved in a year just by not getting that one cup of coffee on your way to work.
If you apply this principle to your hypothetical shopping addiction, your social life or your eating habits as well, you could save enough in a year for a couple of flights!
We canceled our cable TV subscription and only streamed or downloaded movies or shows. This saved us a lot of money.
Take a close look at your income and expenses and be ruthless. If you have to stay with mom again for a few months before you leave, or get a roommate, it’ll be worth it when you’re watching the stars from a private beach in Indonesia.
Eat out Less Often
Eating out becomes expensive. Quickly! This is the biggest tip i can give you in terms of how to quickly reduce your daily costs.
I am confident that you can save hundreds more each month just by being careful about your food choices.
Sell your stuff
If you are serious about how to save for full-time travel, you may like us want to get rid of your attachment to things. To stuff.
Before we left, we sold all of our furniture and appliances, we sold a home, rented out another, and we sold our two cars.
Depending on what you own, this could make up the bulk of your savings.
Henry and I made more than one of our annual salary’s, just by selling our stuff.
This was the bulk of where our savings money came from.
Earn some extra income
If there is some part time work you can get, some extra overtime hours you can put in at work, or some online work you can do in the evenings or on the weekends, do it!
You may work yourself tirelessly for a while, but you have to keep the end goal in mind.
It will all be worth it when you can quit your job, and buy a one way ticket every month to some new exotic destination.
Also, if you plan to make money online while you travel, your last few months at home could be the perfect time to start learning how to make money online and getting a taste for what it feels like to make some money on your own terms.
You could work a few hours at night or on the weekend to start setting yourself up for a lifetime of freedom.
You can read more about how to afford full-time travel here. We detail many ways that you can make money online.
Get rid of excess stuff
Even before you are ready to head out, you can start minimizing.
We made a list of all of the stuff we were going to sell (Speakers, Nespresso Coffee Maker, cars, home, Barbecue grill, etc). Then we put an asterisk * next to each item we could sell immediately. For example, we didn’t NEED our Soundbar or Nespresso Coffee Maker for the last few months. But we did need a fridge. Half of the things on our list had *s next to them.
It was an amazing realization to see how much sh*t you don’t need!
Get rid of it!
Cash in any investments
If you have any investments, savings plans or commodities you can sell off, decide whether you are willing to use them on travel or if you have to keep them.
Remember, owning a home or a car can also be looked at as an investment or at least asset you can sell to get a cash injection. You just have to decide if you prioritize things more than experiences. If your answer is experiences, then i say sell the stuff. Live the dream instead.
I had some money invested through my employer and i decided to spend it! Life’s too short.