17 Ways to Cut Your Expenses and Have More Money for Travel

No matter how cheap we want to be, travel requires some money. There’s no way to avoid that, so in order to save for our trips, we need to cut our expenses. Here are some simple and creative ways to cut your expenses, make money, and get on the road sooner! The post 17 Ways to Cut Your Expenses and Have More Money for Travel appeared first on Nomadic Matt's Travel Site. Get out a sheet of paper and write down all your set expenses: rent/mortgage, car payments, cable/streaming bill, cell phone, insurance, school payments, etc. Tally them up. Then write down all your discretionary spending. This is what you spend on food, movie nights, drinks, shopping, that daily coffee from Starbucks, your daily midday snack, and other similar things. If you don’t know what you spend money on, go track your expenses for a two-week period, see what you spend, and come back. Add that all up. What did you get? Probably a large sum of money. And I bet there will be many expenses you didn’t realize were there. Financial experts call these “phantom expenses” — we never know they are there because the expenses are so small. People bleed money without realizing it. A dollar here and a dollar there…it adds up. Even a daily bottle of water or candy bar can make a substantial difference over the course of a year. What does this have to do with travel? Well, one of the main reasons why we think we can’t travel the world is money. “I can’t afford it,” people say to me, “I have too many expenses.” Most of us certainly have expenses we can’t cut (though remember when you travel the world long-term, many of those expenses disappear), but if we cut our phantom expenses, reduce our set costs, and find other ways to save we can build our travel fund much more quickly. Cutting your daily expenses, being more frugal, and downgrading to a simpler way of living will allow you to save money for your trip around the world without having to find extra sources of income. Of course, the lower your income, the longer it will take to save enough to travel. But longer does not mean never. A little bit every day adds up to a lot over a long period of time. Here are some simple and creative ways to cut your expenses, make money, and get on the road sooner: 1. Track your spending As mentioned in the introduction, most people don’t have a budget so the first thing you need to do to save money is to know where you’re spending it. In an age where you tap an app and a car arrives, it’s easy to not think about how much we spend. You can use a spreadsheet or one of these websites. You’ll probably be surprised at where your money goes once you start paying attention. Start tracking your expenses — and keep doing so — so you can keep cutting out the low-hanging fruit and find where you’re spending money. 2. Set up a separate bank account Financial experts have long recommended this for a variety of things. When you set up a separate bank account and have money automatically deposited into that account each pay cycle, you don’t have the urge to spend it. “Out of sight, out of mind”, right? This works for travel. No matter how much you put away there, putting that money in a separate bank account means it’s away from your spending and you won’t overspend. Think of this like a piggy bank. Don’t raid it. It’s your travel fund. Let it sit there and grow. Just make sure that the account is a high-yield online savings account. I’ve done this since the time when I was preparing to go away on my first trip and I netted hundreds of dollars in extra money thanks to interest (and a bit more while I was traveling too as the money was sitting there while it was being spent down). Interest rates are very high these days and you can earn around 4% on your savings account! Take advantage of that! Here are the current best rates: Not from the US? Check out these websites for information: Canada UK Australia New Zealand 3. Get a new credit card A travel credit card can give you free money, free rooms, and free flights. After accruing miles and rewards points with your card on everyday purchases, you can redeem them for free travel on your trip. Travel credit cards are a big weapon in a budget traveler’s arsenal. You’ll even earn huge sign-up bonuses when you get a new card. For more credit card suggestions, check out this list of the best travel credit cards. And, for more information on travel credit cards in general, here is my comprehensive guide on how to pick a good travel credit card. 4. Cut the coffee Love your Starbucks? Well, Starbucks loves your money. Coffee is the little thing that quietly drains your bank account without you ever noticing. That daily coffee can cost you $90 per month ($3 for a regular coffee, more if you want some fancy Frappuccino). At $1,080 per year, that’s a lot of money. So, what’s more important: your daily cup of Joe or spending more time on the beaches of Thailand or exploring the jungles of Borneo? Give up the coffee, or switch from the cappuccino to a standard brew. Move to tea, or brew your own cup. Folger’s might not taste as delicious as a venti triple mocha latte with whipped cream, but it’s a lot cheaper (and, let’s be honest, healthier). Sure, giving up your cup of coffee seems like a “duh” thing. And, yes, there is utility in the time saved from buying one. Under normal circumstances, this would be “small thinking” financial advice that isn’t worth the time or effort. But, right now, you have a travel goal to reach and every penny counts. 5. Learn to cook Dinner out is usually someone’s biggest discretionary expense—and it’s also one of the easiest to eliminate. Instead of buying $20 lunches and $30 dinners, brown-bag it to work and cook dinner at night. When I saved for my first trip, I was spending $70 per week on groceries. I cooked once for dinner and ate the leftovers the next day for lunch. Sure, cooking can be intimidating since not all of us are Julia Child in the kitchen. However, I found cooking to be an invaluable skill, not only because it saved me money before my trip but because it’s also one of the easiest ways to cut down expenses when you travel. The more I cooked, the more I loved cooking. And the more I saved. (I also got a lot healthier because I knew what was in my meals, which was an added bonus.) Of course, grocery prices have gone up since the mid-2000s and you’re likely spending a lot more than $70 on groceries (I currently spend around $125 per week). But cooking is still cheaper than eating out or getting your food delivered via an app. Here are some sites to check out to get the ball rolling: Food52 Deliciously Ella Bon Appétit Jessica in the Kitchen 6. Lose the car Between insurance, repairs, loan payments, and filling your tank with gas, cars are crazy expensive to own. Get rid of your car if you can. Learn to love the bus, take the subway, bike, or walk. It may take longer to get to work using public transportation, but you can use that time to plan your trip, read, write, or do other productive tasks. I understand that this tip may not be feasible for everyone, especially those in smaller towns that don’t have an extensive public transportation system, but an alternative is to sell your car and buy a cheaper used one, which you will only need until you leave for your trip. Buying a throwaway car will allow you to pocket the money from your more expensive car and put it toward your travels. Additionally, with the proliferation of Uber, Lyft, and other ride-sharing services, it’s never been easier, even in small towns, to find transportation. Do the math on it but it may be cheaper to get Lyfts around town than to own a car. (Plus, if you need a car for long distances, you can easily rent one.) 7. Save on Gas Gas adds up! Luckily, there are plenty of ways to save on gas! First, use the app GasBuddy to find cheap gas near you. Second, sign up for all the major gas station loyalty programs. By default, they save you around 5 cents per gallon. Shell’s Fuel Rewards is the best because you attach it to a dining program leading to savings up to 50 cents a gallon. Moreover, use GasBuddy’s credit card, which can be tied to any gas station loyalty program for an additional savings of 25 cents per gallon. Most supermarkets also have loyalty programs that offer gas savings. If you sign up for Costco, they have huge savings on gas, too. 8. Cut your streaming Cutting the cord was supposed to save us money, but with so many subscription services out there, it feels to me that we are paying more than we did with regular cable. I mean, how many streaming services do we really need!? Rather than subscribe to all of them at once, try rotating which ones you are using. I watch everything I want to watch over the course of a few months on one service, cancel it, sign up for a new service, and repeat. By doing this, you are never paying for more than one service at a time while still being able to binge watch what you want. 9. Sign up for travel newsletters No one likes to clutter up their inbox, but by signing up for mailing lists from airlines and travel companies, you’ll be able to get updates about all the last-minute sales or special deals happening. I would have missed out on a round-trip ticket to Japan for $700 USD (normally $1,500) if it wasn’t for the American Airlines mailing list. Additionally, consider signing up for a website like Going.com. They hunt down deals and send them directly to your inbox — for free! They also offer a premium service that offers more (and better) deals but at the very least join their free newsletter. Chances are you’ll find some awesome deals! 10. Replace your light bulbs Electricity costs money and, since every penny counts, using energy-efficient light bulbs will cut down on your utility bills. Moreover, due to energy efficiency initiatives in certain states, many electric companies will give you a rebate if you buy LED bulbs. Be sure to check out which rebates your local energy company offers no matter where you live in the world. Going green can save you green! Check your local government or utility company’s website for information. For US readers, check out EnergyStar or the DSIRE database. For Canadian readers, check out this page run by the government. For everyone else, check your local government or utility company’s website for information! 11. Buy second-hand Why pay full price when you can pay half? Use websites like Amazon (discounted books and electronics), wholesale websites, Facebook Marketplace, and Craigslist. Towns big and small usually have thrift stores like Goodwill where you can pick up clothing and odds and ends. Sure, you don’t want to buy everything used, but you can definitely buy most things used! (Plus, it’s good for the environment since you’re giving stuff an added use life rather than having it end up in a landfill!) 12. Cut coupons The Entertainment Book, grocery coupons, Groupon, and loyalty cards all reduce the price you pay at

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