Jerry F.
Record your expenses. …
Make a budget. …
Plan on saving money. …
Set savings goals. …
Decide on your priorities
Also
Cut the coffee – Love your Starbucks? Well, Starbucks loves your money. Coffee is a daily expense that quietly drains your bank account without you ever noticing. That daily $5 coffee costs you $150 per month. At $1,800 per year, that’s two months in Southeast Asia. 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, switch from cappuccino to a standard brew, start drinking tea, or brew your own cup.
This is an easy, low-hanging-fruit expense that can yield big savings right away.
Learn to cook – We all need to eat, but restaurants are getting quite expensive these days. I have increasing sticker shock every time I go out to eat. You want how much for pasta?! To keep your food bill low, cook more often. I learned to cook while in college (a skill that has helped me ever since) and before I left for my first trip, I cut down my eating out to two times per week. Every other meal I cooked myself. I would save the leftovers from dinner for lunch the next day, thus saving more money. You don’t need to be a whiz in the kitchen, either. There are a million and one cooking sites that will teach you how to cook fast and healthy meals — perfect for people without much time.
LEARN MORE: HOW TO EAT CHEAP AND SAVE MONEY ON FOOD
Lose the car – Cars are crazy expensive to own, between insurance, repairs, loan payments, and filling your tank with gas (current average price of gas: $3 USD per gallon). Get rid of your car if you can. Learn to love the bus, take the subway, bike, or walk. It took longer to get to work using public transportation, but I found that I didn’t really need a car as much as I thought. 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.
Find a roommate – You’ll see a huge gain in your savings by lowering your housing costs. Downsize your apartment or bring in some roommates. If you can, try to move in with Mom and Dad. Six months before I went abroad, I moved in with my parents. I didn’t love being 25 and living with my parents, but I saved over $3,000 in rent as a result. If this is not an option for you, bring in a roommate. Turn that living room into a spare room if necessary. In NYC, people turn living rooms into bedrooms and studio apartments into two bedrooms by putting a folding screen in the middle of the room. It’s not the most ideal living situation, but it does save money.
Get rid of cable – In the age of Hulu and free (and legal) streaming TV, there’s no reason for you to be spending $50 per month on cable television. Get rid of it and just watch everything online for free.
Ditch your landline – I honestly only know about 10 people these days who have anything other than a mobile phone. You don’t need both a mobile phone and a landline. Ditch your phone line and avoid doubling your phone expenses.
Downgrade your phone – Having an iPhone costs about $83 per month (unless you have T-Mobile, which I switched to from Verizon because it’s the best carrier for US frequent travelers). While smartphones are handy devices, getting a cheap phone without any fancy apps will cut your monthly phone bill in half. You might get bored on the train not being able to read the news, but saving an extra $500 a year will allow you to spend a few more weeks in Europe, buy fancier meals, or learn to scuba dive in Fiji.