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How You Can Afford To Travel The World

How You Can Afford To Travel The World

After traveling to over 40 countries and learning valuable ways to travel hack, I have learned one important rule: you do not need a lot of money (or have a high-paying job) to travel. Many people are hesitant to travel, and hold themselves back from possibly some of the most epic adventures because they think that they can’t afford the costs of traveling the world. With a few simple rules and tips it can be entirely possible to travel short or long term with little income.

In any case, if you’re going to travel the world, you’re going to need realistic financial planning. How much are you going to save? What is the minimum you will need to get you where you want to go without starving or feeling stranded? How do your finances look for when you return home? These are all essential questions to have thought out before one departs on a long trip, and the following guidelines can help you get set to afford to travel.

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Set a Travel Goal

First and foremost, create a travel goal and stick to it. By mapping out what your expectations are for your trip, it’s more likely that you will work towards it on a daily basis. Think about the length of the trip and the type of experiences you hope to gain. For instance, a goal can be to backpack through South America for three months on a $1,000 per month budget, or to live in an eco-village in India for several months. With your travel baseline goals outlined, it’s easier to plan for what needs to be done to get there.

Start a Travel Fund

Unless you plan to use prior savings, you’re going to have to save some cash to pay for your travels. Even if you only put $200 into a travel fund every month, that’s $2,400 you will have saved up in one year. On top of that, anytime you come across extra cash, put it into your travel fund. The more you’re able to contribute to the fund, the more you will be able to stretch out your budget and ultimately make your trip more flexible and enjoyable. This takes financial responsibility, and by making a commitment to yourself to not tap into those savings you will reach your goal sooner.

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Get Your Finances in Order

A couple of months before you are due to travel, make sure to get every single one of your finances in order so that you are not accumulating late fees or paying for things you simply don’t need while you’re abroad. Call your car insurance company to let them know you won’t be driving your car and have them freeze your account until you return. If you don’t plan to use your cell phone on your trip, you can ask your service provider to also freeze your account until you return so you’re not paying for a monthly plan that you will not be using. This goes for wireless internet as well. For student loans or other bills you can’t get around paying, make sure to have enough money in your bank account to continue to pay them. Make sure you can log in and pay all of your bills online using a credit card, or set up auto-pay if you think you might not have access to the internet for extended periods of time.

Take Advantage of Credit Card Sign-up Bonuses

The single most expensive portion of your travels is likely to be your plane ticket. One of the most valuable travel hacking tricks I have picked up over the last couple of years is signing up for a co-branded credit card to earn free airline miles. By getting a new card or two each year I have been able to cover almost all of my flights using airline miles earned from the sign-up bonuses offered with the cards.

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Many travel rewards credit cards have a sign-up bonus of 50,000 points, which is enough for a free, round-trip flight to almost anywhere in the world. When you sign up for a credit card that does have a bonus, you usually have up 90 days to meet a minimum spend requirement, which can be $1,000 to $3,000. The minimum spend is easier to meet than you’d think, and on Well Traveled Mile there are a lot of creative suggestions on how to do it. By earning rewards points you can easily save $1,200 on a trip by not paying for an airfare.

Cut Back on Conveniences

It’s true, we all love our conveniences and luxuries, but if you cut out many of those you will save more money than you would think. Sure, watching shows on demand is great, but in the age of the internet there is really no reason to pay for expensive television programming, especially if you’re looking for ways to afford to travel the world. Instead of buying a $3 cup of coffee, make it at home. Live close to work? Then save money on gas and ride your bike or take the bus to work. Think about all the small, daily expenses you could live without, then do it.

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Cutting back on these expenses will save you more money than you’d think, and once you realize how much money you’ve been spending it will be easier to fight the urge to spend when it’s not needed.

Research Alternative Accommodations

The bottom line is that in today’s well-traveled world, anywhere you travel to you’re likely to find an affordable hostel and they’re usually clean and well kept. By staying at a hostel you can easily find fun and safe accommodation for $10–$15 a night. My favorite sites are Hostelbookers and Hostelworld. It pays to compare prices for the same hostel, and you can often save a few bucks by booking through the cheaper website. Couchsurfing is another option available and provides free accommodation for travelers who create an online profile and request a couch. The benefit of Couchsurfing is that it offers users the chance to have a local experience with their host. My other favorite site for finding cheap accommodation is AirBnB, and on a recent trip to Puerto Rico I was able to save $40 per night by staying in a studio listed on AirBnB instead of a hotel.

Featured photo credit: ©Connor Bleakley via flickr.com

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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

Reference

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