Travel budget guide for a digital nomad like you. Every digital nomad must be prepared when it comes to travel budget.
In this post, we are going to tackle the steps and considerations a digital nomad must know. There are certain strategies on how to travel on a budget: mapping out your current cash flow, calculating the projected travel and living expenses, creating a travel budget based on a template and shifting into saving mode and be a nomad budget-friendly.
1. Mapping Out Cash Flow
Understanding your financial situation as of now will give you the idea on how to properly budget for your travel. Take note about how much money you are earning and how much you will spend. It will help you to make some changes to achieve your goal. It is recommended to track on a spreadsheet, it will enable you to see the actual numbers.
You can access it here: free template. Download the spreadsheet and fill in your data. You can add your data a few months back to be able to see the pattern and predict things accurately.
- Here are some few questions you need to answer:
- Are you saving money or spending more than you earn?
- Do you have an emergency fund?
- Are you in debt? If yes, how can you get rid of it?
- Are there expenses that you can cut down?
- Calculate your projected expenses
There are reasons why I asked you to note down your earnings and expenses before making a travel budget. It is because one of the keys to being a savvy and successful digital nomad is to travel within your means. The location of your travel is another factor that you have to consider. Traveling in the Philippines is a lot different than going to the United States.
Your next step is to determine your destination. Select at least five top cities you want to go to. Fill out the template for your estimated living cost for staying a month in that city. Research about the cost of living in your chosen cities and make a rough estimate. Select your destination and plan out and make bookings for your trip.
Helpful travel budget estimators:
Check out this map for a quick reference of travel budgets by country:
2. Savings Mode
As you already know the costs for you’re your travel to your destination and examine how to travel on a budget. You can save more for a while to come up with your desired lifestyle. Let us discover a few more ways to have a savings-oriented mindset. It will help you to save more cash and learn valuable skills to budget your travel expenses.
3. Reduce or Do Away Your Debt
Debt is the most common problem for most of us today. It feels like a dark cloud looming in your head. If you are struggling in debt, I do understand you. Here are a few tips for you to reduce or do away with debt.
Pay more monthly to avoid interest. It is advised to pay your debt every month to avoid paying for the interest. If you pay your debt monthly, you will likely get off from that debt sooner. You can save if you pay your debt more per month and expect to pay off in lesser time.
If you have multiple debts, select the one with the highest interest. Only pay a minimum amount in other debts and focus on the highest rate first until you pay off. Then move to the next until such time you are freed up.
4. Emergency Fund
A useful time as a travel budget is to put some money for an emergency fund. Ideally, an emergency fund can cover about six months of your living expenses. If you feel the goal is unattainable lower it down to three months. Set aside some cash into a saving account. It doesn’t matter how much as long as you are placing something. For instance, every week place $5, $10, or $20 in a piggy bank. In a few months, you will see you have saved a few hundred dollars.
5. Cut Down Expenses
Before you buy something, ask yourself first if you really need it. Identify your wants and needs. Want is different from need, right? There are instances that most of our wants are just life’s luxuries. Something that we can live without. Learn to sacrifice your short-item happiness.
- You can ride a bicycle or have a ride with a family or friend instead of riding your car to save money for gas.
- Cook meals at home. Buying from a restaurant or fast food can be expensive.
- Bring your lunch instead of going out with office mates or co-workers.
- Make a grocery list and stick to it to avoid buying unnecessary things.
- Plan your weekly meals.
- Buy items on sale.
- Cancel subscription and membership that are not that important.
- Prepare your own coffee than buying in a coffee shop or café.
- Turn off lights, unplug appliances and gadget when not in use to save electricity.
- Plan friend gatherings like picnics instead of going out to a restaurant.
It only takes a little creativity to save. Money will come to you if you know how to handle and save.
Travel Budget Tips To Take Advantage
1. Look for Promo Fare and Flights
Budget airlines are as follows:
USA: Frontier Airlines, Allegiant Air, Spirit Airlines, Sun Country Airlines
Europe: RyanAir, easyJet, Wizz Air, Vueling, Volotea, Eurowings
Asia: AirAsia, JetStar Asia Airways, IndiGo, Lion Air, Nok Air
2. Bus, Train, and Ferry Options
Look for bus, train and ferry options in your destination. You can save traveling by land or water.
3. Consider Booking on Hostels or Private Rooms Airbnb
Check these websites:
Private rooms in Airbnb will give you some privacy plus wifi connection. Try to ask the host before you check in if the place is suitable for working. A private room option is affordable compared to a full apartment.
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The life of a digital nomad can be sacrificing yet enjoyable to travel in different places. At first, it looks hard but as you master the art of travelling while working, you will really love your freedom. The tips presented are very helpful for you to plan your trip ahead and save for your travel.