Many think that traveling is a luxury which can be done only if you have loaded pockets. Wrong! It is possible to travel the world on a shoe-string budget too. If you’re planning to travel long-term, then a travel budget is essential as it will eliminate the stress of running out of money. So, how to do it? Read on to find tips and tricks on how to create a travel budget.

Determine Daily Travel Budget

Yes, budgeting is necessary even when traveling. Consider the duration of your stay and determine how much you need to spend each day to stay within your budget. Include the accommodation and activities you plan to do during the trip. If you overspend a few days, balance it out by under-spending on another day. You can use apps to track your budget and to ensure that you stick to the planned budget.

Avoid Expensive Restaurants

Eating out is one of the biggest travel expenses. Avoid fancy and expensive restaurants and stick to local places. Not only will you get an authentic culinary experience but it will be good for your pockets as well. If possible, try to cook your meals at your accommodation for a few days.

Track Your Expenses

Use a travel and budget app to track every single dollar you spend. At the end of the week, add up all the expenses — this will give you an idea if you are aligning with your budget. It will help you determine if you need to cut down some expenses or have extra money to enjoy a treat. In case you urgently need money, you can use a personal loan for travel purposes through various available loan apps. Tracking the expenses will give you direction in your spending habits.

Use Public Transport

Public transportation options like buses and trains are much cheaper than private taxis or tourist buses. It will also give you a great opportunity to interact with the locals and enjoy a new commuting experience.

Stay In Cheap Accommodation

Look for homestays, locally-run guest houses or hostels to cut down your accommodation costs.  Not only will you save money but you can also increase the duration of your stay and enjoy a city at a slower pace as compared to staying for fewer days in an expensive hotel. You can even consider low-cost accommodation options like Couchsurfing or AirBnB. Most of them also have a functioning kitchen where you can cook, thus bringing down your meal expenses too.

Avoid Unnecessary Splurging

Avoid going to huge malls or fancy shopping outlets. Hold off impromptu purchases as you can easily go overboard with the daily budget. Don’t buy every single local souvenir you come across. Unnecessary shopping will add to your luggage weight too and you may have to shell out extra money for overweight baggage.

If you don’t have the money right now but the itch to travel is there, then start a FundMyTravel Campaign, create a budget, apply for a scholarship or loan, and start planning your dream trip. Just remember — stick to your budget. Go on, enjoy the world!

 

About the Author:

Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at shiv@moneytap.com.