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“Money Hack Secrets to Help You Travel More” sounds like a tall order, but I’m here to deliver on that promise and provide great ideas. Traveling is a dream for many.
However, it often seems out of reach. But with the right money hacks, you can start making it a reality. Here are six essential tips to help you travel more often without breaking the bank.
Money Hacks To Get it Together & Travel
I’ll first explain what a money hack is and give you five of the most impactful ones that have worked for me.
What does money hack mean?
A “money hack” generally refers to a strategy or tip for managing finances more effectively, saving money, or increasing wealth. It can include anything from budgeting techniques and investment advice to discount finding and expense reduction methods. Essentially, it’s a practical trick or method designed to optimize financial health.
Money Hack 1: Start an Emergency Fund
This isn’t going to sound glamourous and I don’t want to sound like Debbie Downer, but an emergency fund is crucial for financial stability. This fund should cover at least three to six months of expenses. Many people don’t have this in place and can’t figure out how to get control over their finances.
It acts as a safety net for unexpected events such as plumbing issues, needing new brakes for your car, or [insert other major mishap] that inevitably happen . And, you’re not always ready to handle with your regular paycheck.
This way, you can avoid using travel funds or other parts of you budget for emergencies. Until this is in place, you won’t feel like you have a command of your money. If one thing goes wrong, your travel plans and other goals will most likely fall apart. Besides the fact that it can be stressful and ANXIETY PRODUCING.
Firstly, determine your monthly expenses. Then, calculate how much you need for emergencies. Next, set aside a portion of your income each month. Consistency is key here. This is something you can automate too.
The more you save, the more secure you’ll feel. And with peace of mind, you’ll be able to focus more on travel plans, which is another money hack to reach your travel goals.
Money Hack 2: Set aside money for travel with an Online Bank
Starting a travel fund is a smart move. Online banks like Capital One or Ally Bank offer excellent options. These banks make it convenient to open up multiple accounts for specific goals. So, you can grow your savings faster. Plus, you don’t get hit with fees if you make a mistake and overdraw on your account.
Open a separate account dedicated solely to your travel goals. Set up automatic transfers to this account. Regular contributions, even if small, add up over time. It’s easy to track your progress online too.
This method keeps your travel savings organized and distinct from other funds. This dedicated travel account is a money hack that ensures you’re always building towards your next trip.
Money Hack 3: Try the Receipt Reference Technique™
You’re about to discover how I saved $100 monthly with the Receipt Reference Technique™. I came up with this idea out of necessity and I believe it can be a game-changer. It’s been shared on Yahoo Finance and other big sites on the internet to save money and stop wasting food.
After grocery shopping, I placed my grocery receipt on the fridge to monitor what I bought and in order to prevent waste.
Then, I reviewed the receipt before opening the fridge, to remember what I recently purchased and it’s potential expiration date, in an effort to finish everything before it went bad.
By marking off what we used, I adjusted my shopping and meal planning to avoid over-purchasing. As a result, I reduced food waste, spent less money, and saved $100 a month, totaling $1200 annually. It also helped me meal plan accordingly.
Small changes and making this a habit can lead to significant savings. This technique is a practical money hack to keep more money available for your travel plans.
Money Hack 4: Use Credit Cards Responsibly
Credit cards, when used wisely, can be beneficial. Many offer rewards points for purchases. These points can often be redeemed for travel benefits. For example, you can earn free flights or hotel stays.
Always pay off your balance in full each month. Avoid accumulating debt, as interest charges can outweigh rewards. Choose credit cards with the best travel rewards that fit your situation.
There are many sites that just show cards that make them a commission and aren’t necessarily thee best cards for you. Research and compare options to find the best fit for your needs on a site like Travel Freely.
Utilizing credit card rewards is a savvy money hack to maximize your travel benefits. YOU DONT HAVE TO BE RICH TO DO THIS. When done carefully, an everyday person can live a rich life with this hack.
If you want to hear more, listen to the is podcast ep! Best Card for Travel: Plus, Tips for Points, Cash Back & Other Benefits
Money Hack 5: Create a Budget and Stick to It
Please don’t roll your eyes at this one. It’s way easier said than done, but creating and sticking to a budget is fundamental. Start by listing all your income and expenses. Allocate specific amounts for savings, bills, and discretionary spending. Be realistic about your spending habits.
Track your expenses regularly. Adjust your budget as needed to stay on track. For instance, if you overspend one month, cut back the next. Consistency in budgeting leads to more savings for travel and other goals in general. A well-managed budget is a crucial money hack for ensuring you have extra funds to spend on your next adventure.
Money Hack 6: Set Aside Money for Irregular Expenses
Irregular expenses can disrupt your budget. These bills might come annually, quarterly, or semi-annually. Common examples include insurance premiums, or holiday expenses.
Determine how much these irregular expenses cost you annually. Divide this total by the number of paychecks you receive each year.
Set aside this amount from each paycheck into a separate account. This way, you won’t be caught off guard by large, infrequent bills. You can make a budget until you’re blue in the face, but if you don’t set the money aside, it can throw of your monthly bills and spending. In my experience, most people forget about these bills and it feels like a surprise every time.
How to Combine These Money Hacks
By combining these strategies, you’ll enhance your ability to travel more. Each step complements the others, creating a robust plan for financial management. With discipline and planning, your travel dreams can become a reality, thanks to these effective money hacks. In the meantime, you can start research budget-friendly bucket list ideas to do now.