When it comes to planning a vacation, everyone is well aware that they need to save money. This is the gasoline that gets the vacation motor running so to speak. We set ourselves a number we are aiming for, and away we go.
The one thing I rarely see others doing however, is living frugally.
I know, I probably sound like your grandpa, but bear with me.
Living within your means involves discipline, hard work and dedication. The average person struggles with finances from day to day, going pay check to paycheck living the cliche of keeping up with the Jonses.
This quote from financial guru Dave Ramsey’s book The Total Money Makeover sums it up best.
“We buy things we don’t need with money we don’t have to impress people we don’t like”.
Let that sink in.
Now, with that being said, living under your means feels impossible. Right? Hopefully, this is where I can help.
Going out, the right way
It’s not how much you go out, but how you do so. The common misconception is if you go out every night you will spend more than doing so once a week.
This is where I say, maybe.
Discipline yourself to $10-$20 cash on a night out alone, leave the cards at home, and budget in costly nights out with your friends. That’s 1-3 beers and a tip for the bartender if you are by yourself.
If you don’t have enough to tip your bartender, stay home or drink less.
I am promoting being frugal, not stiffing the people who take care of you, so don’t be that guy. He pounds $2 PBRs until he’s broke, leaves you a dollar and tells you, “sorry, this is all I have”.
Well, to you not so good sir or madam, you are an asshole and the bartender hates you.
Get a hobby
A monthly hobby is one of the best means of controlling your expenses on leisure activities. I personally study martial arts and have a 24 hour gym membership.
At around $170 a month I have something to do or somewhere to go everyday, at least twice a day.
$170/30 days = $5.67 a day
Remember, cabin fever is the enemy and idle hands will get you in trouble.
If you become a shut in, you risk the pitfalls of splurging and shopping out of boredom. These 2 things will destroy any budget.
Read
A book is a great grounding tool.
Having something good to read will keep you home and can also provide assistance towards your next adventure.
Reading books about financial management or travel destinations are great for keeping your mind on the task at hand and serve as a daily reminder to stay the course.
Get rid of car payments and debt
Paying off debt is just a good life goal.
If you don’t owe others money, then it can start working for you and not against you. While some debt can’t be helped, such as student loans or a mortgage, at least they are assets which provide equity or opportunity.
A $400 car payment does not.
So the point here is to purchase things that are affordable, not outside of our means, and more importantly, to know the difference. Especially if you wish to travel for extended periods of time.
Watch where you shop
Where you purchase groceries and other items can be just as important as what you buy. Search deals, use coupons, and find buy one get one deals to purchase non perishable items in bulk.
There are also a lot of savings apps available on the internet such as Ibotta, which can provide cash back to an account that can later be redeemed as cash or a choice of different gift cards.
Living
This one can be hard to help depending on many factors, your location, family, etc.
“If you will live like no one else, later you will live like no one else”, once again quoting Dave Ramsey.
Pretty smart guy right?
If possible, find a cheaper place to live, get a roommate, or move in with family if it’s an option. This will help you save much faster and achieve your travel dreams.
Safe travels!
