How we manage our finances for Travelling?

Posted on February 2, 2018 by Ghoomophiro

It is the most widely asked question to every traveler, “How do you save enough money to travel?” But the thing is, it is easy if you plan right and have your priorities straight. It is easier for people like us aka #ghoomophirosisters whose long-term goal is to just travel and experience things and places because then it is the only place we will invest in and would save for.

How to save enough for travels:

1. Income and Expenses: The basic idea is to work, earn and then use that money to travel but the problem comes when you can’t ‘save’ enough. This is because people generally pay more attention to the earning than the expenses. The payments on mortgages, rent, cars, food, it all creates a dent in your income and takes away the money from your savings. So instead of just simply working hard on earning more money, cut back on unnecessary expenditure. Adjust to an old phone instead of a new model. Shift to a place with low living costs. Don’t eat out much and spend money unnecessarily because every penny you waste could help your travel expenses.

2. Half a year policy: Many travelers work a full-time job for half a year and then use the money they saved for traveling for the other half. We ourselves like this approach better than most and did it for my beginning years of traveling when I was just kick starting. It worked great for a while till I chose to take up traveling full-time. So, for newbies, I’d suggest this approach. It is the most stable approach too and you get to travel consecutively with no breaks, without having to worry too much about the financial situation. The main problem that arises is taking those 6 months off though.

3. No luxuries: You don’t have to completely become a hardcore budget traveler but don’t expect total luxury holiday either. The best thing I do is use the money I have saved for traveling judiciously. Planning and traveling off-season helps a lot. I spend time in finding good but affordable accommodations and doing a little research about the place I’m visiting to find how I’ll be able to save a few bucks. Usually, there are certain perks reserved for travelers.

4. Travel wisely: Don’t spend more than you have. Plan your destinations according to budget. Use smart tricks like having credit cards with traveling perks and using the same airlines to get loyalty points and then cashing them out for more travels. But what becomes even more important than money for traveling is time. If you limit your expenses, you’ll save money and would have to work less, thus saving time for travel as well.

How to earn while travelling:

6. Freelancing: This is the lifesaver of every traveler because instead of having to bear a 9 to 5 job, you can work from anywhere, even while traveling. Since there is internet access almost everywhere, one can work on the go. Earn while travelling. What more could you want? It puts any of your talents like creative writing, web designing etc. to good use. But it is better to work a little beforehand to save before going on travels. But the freedom and flexibility that being a freelancer provides are just what a traveler needs.

 

6. Travel Blogging: It does sound like the most attractive option but it is not always the easiest thing. Many travelers are unable to support themselves through travel blogging alone because it DOES need a lot of hard work to be put in and originality of ideas because there ARE a lot of travel bloggers out there doing fantastic jobs already. But if you are able to run a successful travel blogging site, then you can monetize it and collaborate with brands to help in funding your travels.

Managing the finances:

1. Budgeting: The time spent planning the budget for everything from flight, accommodation, transport, and food along with extra expenses is what helps out in not going overboard with the money while traveling. It does get hard to always stick to the budget but it eases off the load and keeps you cautious of how much of your savings you will be utilizing and not end up spending more than you can afford on a trip where it could be easy to travel cheaply.

2. Finding a term plan: As travel insurance is quite an important part of traveling, so is life insurance! That is why finding the right term plan is an important aspect of managing your finances. Reason? A term insurance plan or a term plan is highly economical with respect to the high coverage they provide. As much exciting travel can be, we also need to be prepared for any contingencies. That’s why a term plan is designed to take care of your loved ones in case of your disability or any critical illnesses. Plus, they come with excellent tax benefits under sec 80 C and 10(10D), which means you can save more to complete your travel plans. If you wish to know more about how much premium is needed for a term plan, you can use a premium calculator to know what fits your requirements.

   Some easy tips:

   1. The best things in life come free to us: Might sound absurd to people who think traveling is some sort of glamorous life with people who have lots of money. That’s not the case. You can enjoy traveling with just a backpack, hitchhiking and enjoying nature. Because usually, the part that I like most about a place are the views and scenic beauty. And there’s no money required for enjoying nature as far as I know. Instead of going to a popular and expensive spot in a place, go to a park or in the countryside. Enjoy spots that are free.
   2. Priorities: Is traveling a short-term or long-term thing for you? Act accordingly. Live your life, work, spend accordingly. Because Travelling is not just an option, it is a lifestyle and many people just keep ‘wishing’ to travel, not really doing it. So, decide what to do and go do it. All the other things fall into place after you have decided to risk it. While you work or spend time with friends hanging out at places, it should always be at the back of your mind.

   In the end, I will just say money is not the real deciding factor in traveling no matter popular beliefs. Anyone can choose travelling over a stable life and then make their way through affording it. And once you have taken the plunge, you learn the tricks through experience and find your own creative ways of earning while travelling and saving money too. I could just as easily give up travelling and get a fulltime job for earning money but I would never trade the life I have right now, the total freedom, the wanderer soul for anything.

   About Aegon Life:

   Aegon Life Insurance Company Limited launched its pan-India operations in July 2008 with a vision to be the most recommended new age life insurance Company. The fulfillment of this vision is based on having a complete product suite, superior technology, providing customized advice and enhancing the overall customer experience. This joint venture adopts a local approach with the power of global expertise to facilitate a direct to customer approach, leveraging digital platforms to bring transparent solutions to customers and to prioritize their needs. Aegon is one of the world’s leading financial services organizations, providing life insurance, pensions and asset management and Bennett, Coleman & Company, India’s leading media conglomerate, have come together to launch Aegon Life Insurance.

   About Term Plans:

   If your insurance needs are specific and time-bound, term insurance plans are perfect for you. These plans are ideal for policyholders looking for life insurance cover with benefits for a specified period that can be availed by paying a small amount of premium. Term plans are economical and offer high life coverage. They are also designed to take care of your loved ones in case of disability or any critical illnesses.