It is no secret that families, friends, and even colleagues love to travel together. A travel fund allows you to do this. Besides allowing people to enjoy the beautiful sights and places, traveling together is an opportunity to create wonderful memories with treasured people. It is an adventurous endeavor that almost everyone would like to experience every once in a while.
That being said, even if traveling is such a fun and momentous activity, the reality is that it is hardly considered inexpensive. You may opt for the cheap stuff all throughout your travel. However, you don’t know when, or even if, there will be a next time for you. Considering this, it may be worth it for you to go for better options right away—even if they might cost more. So to maximize your travel experience, you should financially prepare for it.
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It is a financially wise decision to save up money that is specially dedicated to future travels. This way, you can rest assured that spending money for that amusement park ride or fancy meal won’t compromise your other necessities. This is what an intentional travel fund allows you to do.
What should your travel fund include?
As its name suggests, money in your travel fund is money dedicated to all your travels. It may be a simple weekend with friends at a nearby beach resort; it could also be an overseas trip to a different continent altogether. It is up to you to decide on these details.
In general, your travel fund should include a budget for your transportation including any plane or train tickets, meals, leisure, emergency money, and other fees or expenses. The scale of your fund can depend on how big your travel will be.
How to build your travel fund
Starting a travel fund may seem overwhelming, but it does not have to be that complicated. To get started, follow these steps.
STEP 1: Start with planning
Before saving up, it is better for you to start with a concrete plan. You can answer these questions:
- What is the goal of your travel fund?
- How can you achieve that goal?
The answers to these two questions work hand in hand. For the first one, it is important to have a travel goal that you can actually achieve. Set one that you think is realistic, considering your financial status.
The second question is equally important. There’s no point in having a goal when you have no means to achieve it. So you should determine the amount you can regularly set aside for your travel fund. It should be an amount that you can set aside without compromising your non-negotiable expenditures, like utility bills and food. If necessary, you can also cut off unnecessary expenses from your regular budget and dedicate that money to travel instead.
Once you answer these two questions, you have both a financial plan for your travel fund and a timeline to achieve your travel goals. You can easily compute how many months you will need to reach your goal, and then you can adjust your monthly allocation in order to achieve the goal faster.
STEP 2: Create a special account
This special account should be for travel alone. This way, you can reduce the chances of overspending. It also lets you monitor your travel fund balance easily during a trip.
One option you can consider is to open an investment account that is locked. This way, as you build your travel fund, your money can grow itself as well.
STEP 3: Save! Save! Save!
Ultimately, success lies in the execution of the plan. Your plan won’t work if you don’t have the dedication and discipline to intentionally set aside money for your travel fund. Stick to your plan.
A travel fund is meant to liberate you, not restrict you. Even if building a travel fund may require dedication and discipline especially when times are hard, it is worth it in the end. So if you don’t have a travel fund at hand, why not start one right now?
