Helpful hints on saving money to go travelling?
I am going travelling next year with my best friend, and I am having troubles trying to save money. Can anyone give me hints on saving money, whether it means getting another job etc? Thanks :D
I will tell you what I do, it works for me so it should work for you as well.
1. On each payday I put 10% of my pay away in a savings account. Like if I was paying a bill. Then I forget about it until I need it. Some banks have a "X-mas account" where they take money out of your bank account and send you a cheque mid-October.
2. I review my needs regularly. Do I REALLY need a cell phone, a car, cable TV, a new winter coat, etc.? For example, if you live in a city where buses and underground trains are accessible, you can live without a car. Before I spend money I always ask myself if I REALLY need it, and then I make the choice to either go on vacation or get the stuff I am thinking about getting. You will be amazed at how much money you can save.
3. Getting a second job sounds like a good idea. It might keep you too busy to go out shopping. But if you make too much money in a year you might have to pay X-tra taxes on your income at the end of the year, unless you invest in a 401K and or an IRA fund.
Good luck! First you need a goal. How much money do you need before you leave? Don't just "save up as much as possible". You never will save enough.
Next, figure out how much you can save and still make ends meet. If cannot meet your obligations and save enough for your traveling at the same time, then you may want to get a 2nd job. I've known many people to do just that.
You should also stop buying things that you don't need. Do you eat out a lot? Do you go to the bars a lot? Do you go to the movies or to a sporting event regularly? Can you live without cable TV (I am sure you can). Those things cost a lot of money. If you stop doing those things, then you can have a lot more money to travel with.
And you should open a seperate account for your travel money. This should not be an account that you have easy access to. I would suggest contacting a brokerage firm and open a money market brokerage account. You do not have to buy any stocks with the money (in fact, don't do that), and do not order any checks. With out any checks, the only way to access your money is to make a request in writing or over the phone, and with it being in a money market, you will earn a decent rate of interest (4%-5% or more) Mooniya is right...