Thank the heavens for the digital nomad lifestyle! Now, you can start ticking off your travel bucket list without worrying about your workload at home. With just a laptop and internet connection, you can still take care of your work responsibilities during your five-day staycation at a private resort.
But are you financially ready to start your traveling digital nomad journey? If not, don’t lose hope for your travel dreams yet. Stick around as we share with you five tips on how a digital nomad like you can finance your travel.
#1: Research your itinerary and list down ALL your expenses
Research your destination and the activities you’re planning to try out first. When you get a hold of your itinerary, list every estimated expense next, including entrance fees, food expenses, your budget for souvenirs, and so on.
When you’ve summed up all expenses, you can identify how much you’ll be spending per day. Depending on your earnings, you can try saving the spending amount per day.
For example, you found out that your five-day trip to the north costs you 500 pesos a day. You can then save 500 pesos from your earnings to your travel savings monthly/weekly, or 250 pesos bi-weekly.
#2: Dedicate a savings account for travel
When you’ve determined where to put your travel savings – in the bank or to your piggy bank, it’s time to start the money keeping part. There are two fun and effective ways you can stick to saving for your next getaway:
- Practice the 50-30-20 rule when budgeting your money. In this principle, if you want to maximize your monthly earnings for expenses and savings, you should follow these allocations:
- 50% of your earnings for necessary expenses, like your bill
- 30% goes to your needs, like eating out monthly at fancy restaurants or going on a relaxing getaway for two or three days
- 20% then goes to your savings goals, like for paying your loan or saving for the grandest trip of your life!
- Use money-saving apps to help you motivate and discipline yourself for saving. You can set a target amount for the goal, how frequent you’ll be saving (weekly, monthly, etc.), and the amount you can commit to your choice of frequency. Some travel saving apps worth checking out are:
#3: Learn skills that can help you save money
Remember those free courses online you took to enhance your skill set and take on more clients? The same goes for real-life situations.
For example, instead of ordering food online every day, why not learn to prep your own? There are plenty of cooking tutorials online, even if you have ZERO cooking experience. The money you save from ordering can now be dedicated to your next vacation!
Plus, eating food you made on your own feels more rewarding.
#4: Launch a special project or business to fund your travel
If you’ve got some spare time, you can try starting a business online using your skills and cheap-but-quality materials.
If you’re a graphic designer, you can design some T-shirts, pins, stickers, journals, or bookmarks, then sell them online.
If you’re someone who’s not afraid of the camera, and you’ve got some knowledge or inspiration to share, start your YouTube channel and earn from ad revenues.
Even if you’ve already saved enough for your trip, you can continue earning and saving for other goals, like a bigger vacation for next year.
#5: When in doubt, borrow funds to cover your travel expenses
Perhaps your current funds and earnings aren’t enough to fully cover your travel expenses. You can always borrow money from your parents, siblings, close relatives or friends, or take a loan from the bank.
The best thing about travel and personal loans is that you can get the money upfront, and you can think about repaying it after your vacation. If you have some savings but want to dedicate it instead for emergency cases, taking a loan is an option for you. Online businesses like Cash Mart makes the hassle and paperwork of securing a loan almost non-existent.
But before you borrow, check your savings and forecast your earnings for the coming months first. If any of these are enough to cover your travel expenses, then use these instead of taking out a loan. It’s worth it in the long run when compared to the interests you’ll be paying for the borrowed money, especially with loans.
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Johanes is a digital nomad and a web content writer who loves to go on spontaneous travels. She also likes to go camp under the stars and play with her dog and cats.