I have talked about this many times before so i decided to make a post about it. One of the questions i get asked the most is “How can you afford to travel so often?”. The answer is simple: I create a travel fund which i only use for travel related expenses. The difficult part is in wanting to make it work.
So what exactly is a “travel fund”? A travel fund is an account which i put money into and only use that money for anything related to travel.
I have my primary checking account and a secondary checking account which I’ve designated as my travel fund. My job offers direct deposit and i can split how i want my check to be distributed. When i first began traveling i set it up so that from every paycheck $50 would automatically get transferred to my secondary account. If you get paid biweekly that would help you save at least $100 month. Shortly after i began to raise it to $75, then $100 to eventually $150. When i first started i cut the debit card associated to the travel fund account just to avoid temptation and to ensure i would reach my goal. Once i got comfortable with it i ordered a replacement debit card. You obviously don’t have to go through these extremes if you know you won’t touch the money but it definitely helps doing this if you need that extra push.
The key to this is to be realistic. Don’t set up $100 from every check if you will then tap into the funds because you didn’t budget correctly. It helps to see how much extra money you have left over after bills such as rent, car insurance etc each paycheck and then designate a specific amount for your miscellaneous expenses and the rest designate it to your travel fund. Just remember the purpose of this is to allow you to travel, if you put the will behind it you can do it!
Here are some numbers to help you get an idea of how much you can save if you get paid biweekly.
Amount: $50×2= $100/month; $600 in 6 months
Amount: $75×2= $150/month; $900 in 6 months
Amount: $100×2= $200/month; $1,200 in 6 months
Amount: $150×2= $300/month; $1,800 in 6 months
Let me know if you give it a try!