How to Save and Budget for Your Dream Trip

Planning a long-term trip is an exciting adventure, but before you can hit the road, it’s crucial to figure out how to budget and save. The first step is determining how much your trip will likely cost, how much you want to save, and whether you’re willing to work while traveling. Once you have a clear savings goal in mind, you can then explore practical ways to reach it.

In my case, I’ve lived quite an indulgent lifestyle, so saving for travel meant making conscious decisions to cut back on both little and big expenses. Here’s how I went about it, though your approach might vary depending on your own lifestyle and location. I’m based in Australia, where things tend to be more expensive, but the principles can be adapted to any situation.

Step 1: Eliminate Small, Everyday Expenses

The first thing I did was look for small expenses I could cut out without drastically changing my lifestyle. Here are some things I found that added up over time:

Spotify subscription: $9.99 per month
Other subscription services (magazines, streaming, etc.): $15 per month
Daily coffee: $4 per day
Lunches out: $8 per day on average
Occasional breakfasts: $15 per week
Weekday drinks (unless it’s a special occasion): $30 per week

Altogether, this added up to $444.99 per month! I started cooking at home more, packing leftovers for work, and even swapped my daily coffee for flavored tea. I also found free or cheaper alternatives to some of my subscription services, which made a significant difference.

Step 2: Rethink Big Ticket Expenses

If you’re planning a big trip, you might need to consider making bigger lifestyle changes to save money faster. For me, the most obvious places to cut back were on major expenses like housing and transportation.

I had already given up my car and instead opted to use public transport or bike around. Owning a car in my area was an expensive liability, and renting an apartment was more affordable than owning a home, especially when factoring in costs like insurance and maintenance. I decided to funnel the money I saved from not owning a car or house directly into my travel fund. This decision helped me build a solid savings base without compromising my basic needs.

Step 3: Be Mindful of Casual Spending

I also started to pay more attention to the little impulse purchases I was making throughout the day. For example, when my friends would grab a bubble tea, I would ask myself, “Do I really need that right now, or could I just stick to water?”

Here are a few other questions I’d ask myself before spending:

Do I really need a piece of gum? (Answer: maybe, if I made garlic-heavy meals the night before!)
Can I skip the extra glass of wine at dinner and save it for a future treat?
Do I need to buy that new book, or could I borrow one from a friend?

It was also helpful to put my spending into perspective. For instance, I’d remind myself that skipping two lunches could cover the cost of one night in a hostel in Guatemala. Or, two glasses of wine at dinner could instead go toward an unforgettable horseback ride through Nicaragua’s countryside.

Step 4: Adopt a “No New Stuff” Policy

One of the biggest changes I made was to stop buying new things. I used to buy clothes, jewelry, shoes, and home goods on a whim, often because they were on sale. Once I made the commitment to travel long-term, I imposed a “No New Stuff” rule. This meant:

No buying new clothes
No new accessories or shoes
No new home gadgets or furniture
No electronics unless I planned to take them with me on my travels

At first, it felt restrictive, but soon it became liberating. I stopped being influenced by marketing or those enticing sale emails. I no longer felt the urge to buy new things to wear to events or replace items that were still functional. I just made do with what I had, which actually reduced my stress and clutter.

Finding Balance

While I made significant changes to save for my trip, I also focused on maintaining a healthy balance. I knew I couldn’t be too extreme because I didn’t want to spend a whole year feeling miserable just to save a bit more. For example, I didn’t move back in with my parents, even though it would have saved a lot of money, because I valued my independence and proximity to friends. Similarly, I didn’t want to cut back on socializing entirely—I didn’t want to spend an entire year just “waiting” for my trip to happen. Instead, I made strategic adjustments that allowed me to enjoy the present while still saving for the future.

Additional Tips for Saving for Travel

Create a Budget: Track where your money is going, and have a clear plan for how much you need to save.
Cut Out Unnecessary Spending: Look for small things you can stop paying for, such as subscriptions or expensive habits like daily coffee runs.
Seek Cheaper Transport Options: Could you walk or bike instead of using public transport or driving?
Plan Your Trip Costs: Get a rough idea of how much things will cost once you’re on the road. This helps when making decisions about casual spending.
Unsubscribe from Unnecessary Emails: Avoid the temptation to buy things you don’t need by unsubscribing from marketing emails (unless they’re travel-related, of course).

Conclusion

Saving for a long-term trip doesn’t have to mean depriving yourself of everything. By making mindful changes and cutting back on small expenses, you can build a travel fund that allows you to explore the world without feeling guilty about your choices. Finding a balance between saving and living a satisfying life is key—after all, travel is about enriching your experiences, not just about how much money you save.

Do you have any tips or experiences to share about saving for a big trip? How have you managed your budget while preparing for your travels?