One of the most commons complaints that I get from wannabe travellers is that to take travelling more seriously is the ability to afford to so it. Many think that is a luxury to travel more then once/twice a year.
However, there is ONE simple thing that you can do to make that impossible dream life of travel and adventure into the real deal! You can do this by creating a budget which allow yo have the funds to do it.
As I have mentioned before in a post called ‘How to be an Awesome Travel Planner.’ The first step is to figure out what you are doing with your money, such as how much you have going in and how much you have got going out. However, today I am going to explain, in serious depth, how to create a travel budget that you WILL work.
Let’s DO IT!!
What is a Budget?
Before we get into the nitty gritty of how to create one. You will need first to understand what is a budget.
A budget, as defined by the Oxford Dictionary, as ‘The amount of money needed or available for a purpose.’
So in this case, we creating a budget to allows us go travelling more often than we currently doing.
Why I Need One?
Like I said before, by creating and having budget will help you to track to see what money you have coming in and most importantly, where you are spending that money. If you don’t have one then make your goal.
How to Create Your Budget
I have a 6-step system on how to work out what you are currently doing with your hard-earned money and how to start making the most of it. To help carry out this monster of a task, I have created a budget tracker for you to download. You can also use spreadsheets, notebook or online budget trackers, whatever you are more comfortable using!
Step 1 || Income (AKA The Money Coming in)
The first thing that you are going need to do is to work out how much money that you have coming in to your bank account. Majority of the money that is coming in is the money earned from your day job.
This could also be any money that you can earn from blogging, side hustle and benefits.
To find this information out, look at your recent paychecks and bank account statements to get a figure to work out what you earn.
Step 2 || Outgoing Part 1 (AKA Your Reoccurring Expenses)
The next part is to work out your regular and recurring expenses, which comes out of your bank account every month.
These are generally include;
+ Bills, such as Car Insurance, Mobile Phone, Electric & Gas and Water Bill
+ Entertainment Memberships, such as Spotify, Apple Music, Netflix and Amazon Prime
+ Food Shopping
+ Hobby Spending, such as, Blogging Tools & Programmes and Craft Tools & Programmes
+ Saving, such as, Emergency Fund, Retirement Fund and Regular Saving
Again, you will need to look at your bank statements to see the amount of money that each bill is, in order to the exact amount for your budget tracker.
Step 3 || Outgoings Part 2 (aka the rest of the rubbish you brought)
Once you have recorded your recurring expenses, you will need to write down all of other expenses that you have spend money. This generally includes;
+ Coffee Trips to Costa/Starbucks
+ Night Outs
+ Lunch Out
+ After work Drinks
Step 4 || Putting it all together (aka how much money you have left)
The next step, involves subtracting your expenses, occurring and otherwise, from your income. This will show you how much money you have left over.
If you have money left over, you are off to great start! This will make it easier for you to achieve your financial goals without too much adjusting to what you are already doing with your money.
If you have little to no money left spare, you’ll need to look at your expenses and see where you can save that little bit extra. (Don’t worry, we will talk about how adjusting your budget in later in the post and some ideas how to get started!)
Step 5 || Setting Your Financial Goals:
Now that you have worked out your budget, you will need to think about what your financial goals are, what are looking to achieve? These goals can be anything you like, want, wish or dream about.
They can include anything from wanting to travel more, investing in a new programme, subscription or course, investing in a new camera for your travels to buying your first home.
Research how much you are going to need to make these goals a reality because without doing this research you are never going to know how much, which makes setting these goals a bit useless.
Step 6 || Adjusting Your Budget Accordingly
To achieve these goals, you will need to look at your budget and see where you can make these extra saving. Now, I’m not saving that you have cancel your subscription to Netflix or Spotify! You just need to get into the habit of being more mindful of where your money is going.
Here are some money saving tips that can help you get started;
+ Can you get your monthly bills cheaper? Like your Electric, Gas & water bills, car insurance, home insurance, health insurance.
+ Cheap Mobile Phone Plans. Instead of upgrading your phone, change to a sim-only plan which are cheaper as you are not paying for the phone.
+ Cut down on your Coffee Trips to Costa/Starbucks. Invest in a coffee machine and thermo cup
+ Get your weekly for shop cheaper? Shop where products are cheaper, buy store-branded items – they can be just as good as well-known branded items. Keep an eye out on deals and coupons.
+ Set limits on how much you can spend. Having one coffee a week from your favourite coffee shop, spending £50 on your weekly food shop.
+ Set up a specific saving account for financial goals, then you can set up a standing order to send a certain amount of money per money straight into the account.
+ Make More Money! Get a second job, create a blog and monetise it via affiliate links, freelance your services to others, create digital products.
How Do I Stick to My Budget?
The best way to stick to your budget, in my opinion, is to remind yourself why you created a budget. You can do this by creating a Vision/Goals Board, you can do online via pinterest, canva, photoshop, picmonkey or you can this the old fashion way of paper, scissor and glue to create it. All you need to is save/copy/cut pictures, quotes, inspirational article of the goals and visions that you want to achieve.
The second thing that you can do is to write down your goals and put them where you can see them. This can be on your phone, computer, mirrors, fridge.
Over to You...
What is your biggest struggle when creating and sticking to your budget? Do you have any top tips that make you budgeting Queen (or King)?
Let me know in the comments!