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4 Incredibly Effective Ways You Can Save More for Your Next Trip

4 Incredibly Effective Ways You Can Save More for Your Next Trip

Not having enough money is one of the most common excuses people give for not going on a tour, vacation or just travelling the world. Is travelling expensive? Yes. Do creative travelers find inexpensive ways to travel and see the world? Yes as well. All you need  to do is rethink your style of travelling whilst sticking to your budget and satisfying your wanderlust at the same time.

Bear in mind, your travel experience doesn’t totally depend on how much you have spent. See this as a way of getting a different experience while saving more money at the same time. Who knows, you might just discover a new favorite way of seeing the world.

You can save more for your next trip by doing the following:

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Ditch the hotel

Why spend tons of money on expensive brand hotels when you can get decent comfort elsewhere? It is foolhardy to spend $150 per night when just $50 or less would have gotten you an equal value. You might want to consider the following means of lodging for you coming trip:

  • Momandpop hotels

These are guest houses and inns run by small families. Not only are they cheaper, they also have more than enough personality to them than the big expensive brand hotels. Some of them are listed on websites like hotels.com as well as tripadvisor.com.

  • House-sit

This is another great way to save money. This is even better when you are part of a big group. House-sitting involves helping someone take care of their home while they are away. In exchange, you get to lodge for free. The length of your stay will depend on the home owners. This service can be explored on platforms like Mind My House, Luxury House Sitting and House Carers.

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  • Apartment rentals

When travelling with family or friends and in no need for a maid service, concierge or other provisions that come with lodging in a hotel, an apartment rental could be ideal. You get to cook your own meals and save some money instead of eating out. For resources for this, you can check out vrbo.com, Airbnb.com, and Wimdu.com.

  • Bid for hotel deals

You might still want a hotel despite the other options you are now aware of. You can get to lodge in a standard hotel without paying big bucks. Research what other travelers pay for rooms in other major cities. You can do this on the internet by checking out BetterBidding.com. You can make use of name-your-price services or opaque from hotwire or Priceline. You can then bid for a similar prices and hope that they accept your bid.

Strategically pay for train travel

Books your tickets in advance, about 2 weeks before the day. This way, you can get yours 50% cheaper. You can purchase them through the national rail website of the country. In case you are not going for a point-to-point trip but for a tour instead, consider a rail pass. Using this properly will save you hundreds of dollars. This is even better when you taking a long distance, high speed or overnight train.

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Also, a pass allows you to pre-book your train travel. You can do this by making use of pre-set amounts or a certain number of rides. If you use this optimally, you will be able to save well, especially when compared to buying individual tickets. A rail pass can help you cut cost by 70% in Australia.[1]

Is your trip a tour?

When going on tours and cruises, it is best to book at the last minute. Tour companies want to fill the seats. The cost of the tour is still the same whether the seats are filled or not. Companies, like Intrepid Travel, offers up to 15–30% discounts when you book last-minute tours.

Grab a cheap flight

These days, cheap flights abound. All you must do is visit sites like Google Flights and Momondo and search for the closest airport to where you are staying. A search through the departure and destinations will show you the list of cheapest flights available. There is also private jet sharing apps that now makes luxurious trips cheaper than ever before.

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Featured photo credit: Pixabay via pexels.com

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Last Updated on June 6, 2019

The Average Retirement Savings and How to Save Wisely

The Average Retirement Savings and How to Save Wisely

Are you on track for retirement?

If not, don’t worry, I’m not sure either. I save each month and hope for the best.

Fortunately, I’m at an age where most people don’t save so I’m ahead of the curve.

But, what if you aren’t in your 20s? What if you’re near retirement and are looking to gauge where you stand?

If so, keep reading. Here’s how to prepare for retirement and save wisely during the process.

What Does the Average American Have Saved for Retirement?

Saving for retirement is tricky.

Tell someone straight out of college to save $10k a year for retirement and it’ll be next to impossible.

Make the same request to someone decades older and they’d be more likely to be able to save this amount. But, a 20-year old college student can be “financially ahead” of someone saving more than them. Why?

Age matters in your financial journey. The younger you are, the more time you have to save and put compound interest to work. As you get older and have more saving power, you’d have less time to put compound interest to work.

Here are the average savings Americans hold by age bracket:

20’s – $16,000

During this stage, most people are paying loans and moving up the corporate ladder. Your best bet during this stage is to focus on eliminating debt and increasing your income. Don’t focus only on getting a high-paying job neither.

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Instead, focus on learning via Podcasts, reading books, and taking specialized courses. Doing this will make you more valuable and give you more career options.

30’s – $45,000

At this stage, you’ve hopefully escaped your entry-level salary and work at a career you enjoy. Your earning power has increased but you now have more obligations. For example, marriage, kids, and a mortgage.

Set a plan to pay off all your debt and focus on eliminating unnecessary expenses. Leverage financial tools like Personal Capital to ensure you’re on track for retirement.

40’s – $63,000

This is the stage where you’re at the prime of your career. Top financial institutions recommend you have at least 2 to 4 times your salary saved up. If you’re falling behind, start maxing out your 401K and Roth IRA accounts.

50’s – $115,000

During your fifties, you’re close to retirement but still, have time to save. You may be helping your kids pay college tuition and other expenses. Since you’re at the peak of your earning power, max out all your retirement accounts.

60’s – $172,000

By this point, you should have about eight times your salary saved up. If not, you’ll depend primarily on social security benefits averaging $1400 per month. Max out all your retirement options as much as possible before retiring.

Ways to Save Money on a Tight Budget

The sad reality is that most Americans aren’t saving enough for retirement.

Even high-earning power isn’t enough to secure one’s financial future. You need to have the discipline to save for retirement while time is in your favor. Don’t wait for you to have a high salary to save, start with having a small budget.

First, get a clear picture of where you stand. Write down a list of “needs” and “wants.” For example, Netflix and Amazon Prime are “wants” and a “cell-phone” is a need.

Use tools like Personal Capital to analyze your spending patterns. Personal Capital allows you to add all your financial data in one place–making it a powerful option to gauge where you stand.

Once you know all your expenses, organize them from highest to lowest expense. When you can’t cut more expenses, call your service providers to negotiate a lower price. If you’re not good at negotiating, use services like Trimm to lower your monthly expenses.

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How to Save Money Each Month

By this point, you know the average amount of money you should have saved for retirement based on your age.

But, breaking this down into monthly goals can be challenging. Here are some rule of thumbs to follow:

Aim to contribute 10%–15% of your salary each paycheck. Review your progress each week.

Why so often? The reality is that life gets in our way and you will have many financial setbacks. Your goal isn’t to be perfect but to get back on track instead.

Reviewing your finances weekly lets you know where you stand with your retirement. This doesn’t have to be a long process either. All it takes is login in Personal Capital to view your net worth and check how much you have saved for retirement.

Turn saving into a game and aim to save more each month. It will get challenging but you’ll get creative and find more ways to save.

Top Money Saving Challenge Tips

To prepare for your financial future and not be another statistic you need to be different.

How?

By adopting new habits that’ll help you become a saving machine. Here are some ways you can save more:

Automatically Contribute Towards Retirement

If you’re working for a company, you can automatically contribute towards your 401k. If you’re not currently contributing more than 10%, make this your goal. Contribute 1% more today and automatically increase this amount a year from now.

Odds are that you’re not going to be negatively affected by contributing 1% more. Many times we spend our money on things we don’t need. Contributing more towards retirement is a great way to secure your financial future.

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Use the Right Tools to Know Where You Stand

Once you’re contributing more towards your retirement accounts, gauge your progress. Make use of finance tracking apps to help you view the big picture of your retirement.

When I’d first signed up for the app Personal Capital, I didn’t know I had a negative net worth. Despite saving thousands of dollars, my debt brought my net worth to the negative. Knowing this motivated me to save more and spend less.

Now, I have a positive net worth. But, it was because I was able to view the big picture using the app. Find out what your net worth is using a finance tracking app and you may surprise yourself.

Bring in Experts to View Your Blind Spots

If you have too little or too much money saved, you should consider hiring financial experts.

Why?

You may need someone to hold you accountable to help you reach your financial goals. Or, you may need help managing your money as effective as possible.

Regardless of the reason, getting help may help improve your financial situation.

Before you hire an expert, find out which areas you need help the most. For example, if you’re constantly overspending, find a debt counselor. If you’re struggling with choosing the best investment options, hire a financial advisor.

Speed up Your Retirement Contribution

After learning how to manage your money well, the next best thing is to earn a higher income.

You’re capped at how much you can save but not much you can earn. Even if your employer isn’t giving you a promotion, you can still take charge of your financial future. How?

By starting a side-business.

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This will be something you’d work on after you’ve finished your day job. Once you start earning income from your side-business, you’ll be financially better off.

The best part is the more work you put into your side-business,[1] the more potential it has to earn more money.

So start a side-business in an area you’re familiar with. For example, if you enjoy writing, do freelance writing for small e-commerce businesses.

Once you’re earning a higher income, you can contribute more towards your retirement. Don’t wait for the right opportunity to secure your financial future, create one.

Reach Financial Freedom with Confidence

What if you were able to retire tomorrow with no problem, all because you’d have enough money saved up and little to no debt left to pay off? How would you feel?

My guess is that you’d feel happy and relieved.

Most Americans are falling behind their retirement goals for many reasons. They’re not prepared, they carry bad money-habits and are thinking short-term.

For you to retire successfully, you need to work backward and adopt better habits. Contribute more towards your 401K and focus on growing your income.

If you do, you’ll save money and pay debt faster.

Don’t beat yourself up if you’re behind your retirement goals. Take the first step today towards a brighter financial future. Isn’t retirement worth the hard work and sacrifice to be at peace?

Featured photo credit: Huy Phan via unsplash.com

Reference

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