International travel offers a wealth of benefits that can enrich your life in numerous ways. From immersing yourself in diverse cultures and tasting new cuisines to meeting people from different walks of life, the experiences you can gain from traveling abroad are impossible to replicate. Exploring new places can also broaden your perspective on the world and push you to expand your comfort zones, as well as give you plenty of opportunities to practice life skills that will serve you well in any context. For reasons like these, you may be very excited about your first opportunity to travel abroad.
However, to fully enjoy these experiences, you’ll need to be prepared for the significant costs involved. Flights, accommodations, meals, activities, and transportation can all add up quickly, making it crucial for you to keep a well-planned budget. You’ll want to prepare well in advance for this milestone trip and save up a substantial amount of money, as well as implement some good financial management practices for traveling out of the country.
This article will provide you with practical saving advice tailored for your first international trip. Try the following tips to save money effectively and ensure that your adventure is both enjoyable and financially manageable:
1. Open a Dedicated Account for Your Travel Savings
There’s a reason many financial experts advise opening separate accounts for your savings goals, travel included. Separating these funds out from your regular expenses makes it easier to track your progress and avoid the temptation to dip into these savings for other purposes.
Look for a high-interest, fee-free account to maximize your savings potential. From there, regularly deposit a set amount into this account until you’ve reached your goal and can turn your dream trip into a reality.
If you find yourself unsure about where to store your travel savings, a digital bank may offer you certain significant advantages over a traditional one. These institutions typically shoulder much lower overhead costs than traditional banks, as they don’t operate physical branches. The savings often translate into higher interest rates, fewer fees, and more innovative savings solutions for customers.
For instance, the digital bank Maya gives savers in the Philippines easy ways to work toward their financial goals with solutions like Maya Personal Goals, a savings product that earns a guaranteed 4% interest p.a. monthly. Travelers who want to save well in advance of their first international trip can also exploreMaya Time Deposit Plus, where they can leave a sum to accrue high interest over an extended period and reap the rewards when the time deposit matures. With help from tools like these, you’ll find that even your more ambitious travel goals will be well within reach.
2. Set a Generous and Well-Defined Budget
A well-defined travel budget is like a roadmap that will prevent you from losing your way when it comes to managing your travel expenses. You can start putting one together by estimating the costs of your trip’s major components, such as flights, accommodations, food, activities, and local transportation. Research your destination to get an accurate idea of these expenses, and ask locals or frequent visitors for advice if possible.
Once you have a budget, make sure you also have a way to track your spending and make adjustments as needed. Try allocating specific amounts for each category to prevent overspending and, if possible, err on the side of overestimating to play it safe. You may not be able to control just how expensive certain aspects of your trip are, and it’s better to have money in excess than to have too little of it when you’re far away from home.
3. Book Flights and Accommodation Early
Airlines and hotels often offer lower prices for early bookings, and chances are you’ll also have more options to choose from if you book ahead. Take advantage of fare alerts on travel websites to get notified of price drops, and consider being flexible with your travel dates so that you can find the best deals.
For accommodation, explore various options such as hostels, guesthouses, and Airbnb, which can offer cost-effective alternatives to traditional hotels. Early planning not only saves money but also gives you peace of mind knowing that your major travel arrangements are secured.
4. Shop Around for Travel Insurance
Unexpected events can disrupt even the best-laid travel plans, so it’s always good to invest in travel insurance as part of your preparation. Medical emergencies, trip cancellations, and lost luggage are just a few scenarios where insurance can save you significant expenses. Compare policies from different providers to find the best deal that offers comprehensive coverage.
It’s also worth it to consider multi-trip insurance if you plan to travel more frequently within the year, as it can be more cost-effective than single-trip policies.
5. Plan to Eat Like a Local
The chance to experience local cuisine is one of the joys of traveling abroad, and it can also be a great way to save money. Eating where the locals eat will often lead you to more affordable and authentic meals compared to your reliance on tourist-heavy restaurants.
Visit street food stalls, local markets, and small family-owned eateries for delicious and budget-friendly options. If your accommodation includes kitchen facilities, consider buying fresh ingredients from local stores and preparing some meals yourself. This approach will both save you money and provide a deeper cultural experience of the country you’re visiting.
6. Research Public Transport
It can be both more exciting and cost-effective to find your way around a new city if you make use of public transportation. Buses, trains, and trams are typically cheaper than taxis or car rentals and offer a more immersive way to explore your destination.
Before your trip, research the public transport options available, and purchase travel passes or city cards that offer unlimited travel and discounts on attractions whenever these are available. In addition to saving you money, familiarity with local transit systems will also enhance your overall travel experience by allowing you to move around just like a local does.
7. Consider Traveling Off-Season
Traveling outside peak season can yield substantial savings on flights, accommodations, and attractions. Off-season periods, which vary by destination, typically see fewer tourists, which in turn leads to lower prices and less crowded sights.
Find information on the best times to visit your chosen destination so that you know when the off-season is, and be mindful of the weather and availability of attractions during this time. You may find that you can enjoy a more relaxed and affordable experience traveling off-season while still making the most of what your destination has to offer.
Your first trip abroad can be an extremely rewarding experience that gives rise to countless memories and opportunities for personal growth. If you commit to planning ahead and implementing smart saving strategies, it won’t be hard to fully immerse yourself in the joys of your travels from start to finish. Aim to save enough so that the value of the experiences and lessons you gain from travel far outweigh the costs involved.