Want to learn how to stretch your money now so you can travel later?
By the time you reach retirement, you may find that your life is a sum of the experiences you have had in life. That understanding will include the people in your life, your work experiences and the things you have done and the places you have seen.
There are many people in the world whose lives have been greatly enhanced by taking the opportunity to travel.
Do you really want to be a wallflower who never experiences the outside world? Hopefully, the answer is a big emphatic no! The reality is the world is so much bigger than the world you have seen to this point in your life.
There are great things to see and going on in the world outside.
In an effort to motivate you to think seriously about traveling and seeing the world, the following information is directed at helping you learn to save for traveling and finding ways to stretch your traveling dollars as far as possible.
Here’s How You Can Stretch Your Money
Yes, it does cost money to travel. While there are steps you can take to stretch your traveling dollars, you first have to establish a traveling bankroll.
If you find yourself having difficulty putting money aside, there’s a good chance you are overspending or living beyond your means. You can identify which of these issues is causing you the most difficult by laying out a reasonable monthly budget that includes only your needs.
If your “needs” are gobbling up a majority of your available financial resources, you are living beyond your means. If your living expenses are in line with your income but you still lack savings, you are overspending.
If you are serious about saving so you can travel, something has to give. If you are living beyond your means, might you be willing to relocate and lower your mortgage or rent? How about a lower car payment or being more energy efficient to lower your utility bills?
Maybe you could even consider buying your clothes at discount stores instead of name brand mall locations.
If you are simply overspending, you could choose to eat more meals at home and watch movies on the internet instead of going out on the town.
All of this is about making sacrifices. If you are willing to make sacrifices today, you could experience some of the great things the outside world has to offer in the months/years ahead.
Traveling on the Cheap
If you are serious about traveling, there are two ways you can approach it. You can save for one big vacation, go all out and see a few things, or you can be more frugal and look for inexpensive ways to accumulate more experiences.
No matter where you decide to go, your transportation costs are likely to be your biggest burden. If you don’t allow time to find good transportation deals, you are at the mercy of the airlines.
If you were to plan your vacations a year in advance, you could allow yourself more time to find really good deals. Almost every destination will be available at a big discount at some time in the future.
Shop your transportation costs and save lots of money for the next vacation.
Accommodations is another area you can save if you are willing to forgo the best hotels. Think about it? How much time do you really want to spend in a hotel room? Don’t pay for what you don’t need.
The same could be said for souvenirs.
If you think about it, souvenirs usually end up in a drawer, closet or trash can. Treat your friends to pictures on social media and save your money for more travel.
Dealing with Emergencies
If you are just starting to save money, it is wise to be aware of the financial options available to you in case of an unexpected emergency. Understanding what you can do before something happens will keep you in a state of readiness.
Educate yourself on different loans and the terminology used so you will know the difference between direct payday lenders and sourcing agents.
At the end of the day, your money will be spent somewhere and all you’ll have is memories. By traveling, you can ensure you’ll have a book of memories to keep you satisfied throughout the years.
Minimize Your Taxes
Most people don’t realize this, but taxes are one of the biggest expenses they have. If your earnings are on the higher end of the scale, it’s likely that you’re paying a fairly big chunk toward the IRS each week.
That’s the bad news.
However, there’s good news. You can control how much you pay in income tax, at least to a point.
There are numerous ways that most workers can cut their taxable income. These options have the side benefit of adding to your net worth.
Traditional IRAs, 401(k) plans and HSAs are all deductibles from your taxable income. By reducing the amount Uncle Sam sees on your tax return, you get the full benefit of those tax-free or tax-deferred dollars.
If you saved in a taxable account at a marginal tax rate of 12%, you’d only be able to invest 88% of those dollars. Tax-advantaged accounts allow you a measure of control over when you pay taxes and how much you have to pay.
There are few ways to make the most out of your paycheck that will benefit you as much.
By employing a clear strategy that maximizes your savings and minimizes your expenses, you can stretch your money further than you might think possible. Working on a side hustle or two can bring in a little bit of income that can go a long way toward building your wealth.
They say that money doesn’t bring happiness, but as Kenny Powers once said, “I’ve never seen anyone looking unhappy riding on the back of a jet ski”. While wealth won’t solve all your problems, it can provide options for you as you stretch your money into retirement.