Traveling the world is the ultimate dream for many. It’s the new American Dream. But, this dream costs money, lots of it. If you have previous student loans to pay off, you are probably not working towards achieving that dream
It doesn’t have to be this way. You can still travel while paying off your debt. It doesn’t have to be today or this month, but you could be travelling in the next few months if you follow my plan.
How To Travel While Paying Off Your Debt
Traveling costs money, we all know that. With loans to add to the burden, traveling is the last thing you can afford. But you can travel while paying off your debt if you follow my simple steps below. Hundreds of Millennial are doing it.
The first step is to set your budget for your traveling plans. Take out your bucket list. Create a spreadsheet of travel costs, accommodation, and general expenses for all the places in your bucket list.
Let’s be practical here. If you want to travel while paying off your debt, you can’t travel luxury. Look for cheap airfares.
Airbnb can be your go to when it comes to accommodation. And as far as general expenses go, you don’t have to dine in five stars. When in Rome, do as the Romans do. Look for a local eatery. These could be much cheaper and will give you a better insight into local culture and cuisine.
Consider all this when making your budget. Get a ball point figure.
Make a Plan
The next step of our plan requires us to actually make a plan. The blueprint of your travel plans. But the first thing you probably need to do is make a big dip in your debts. Make a plan to save money to at least pay off your debts.
At the same time, set aside money for your travel plans. Try to save at least 50% of your travel expenses before you start booking tickets and accommodations.
You might need a second job for the next few months to achieve these goals. But focus on the end goal in sight.
Cut Extra Expenses
All of us have this. Sometimes we aren’t ready to label them as extra expenses. Eating out is one expense. You can easily create a home cooked meal for almost half of your usual dine-in expense. Hold off shopping. Cut down drinking expenses. These might look small savings, but they add up to a big chunk of money in just one month.
You won’t probably make any while traveling so you need to save for the next few months ahead. The rule of savings is to save 20% of your earnings, but since you are planning to live off your savings for the next few months, you need to save a higher percentage. Try to set your saving goal to 50% of your salary. It’s only possible if cut on your expenses and get a second income source.
This might seem too good to be true, but you can find people to sponsor your travels. There are many brands that are willing to sponsor your travels for a mention of their names on your blog or Instagram account. For that, you will have to create an Instagram account or a blog to chronicle your travels.
It takes time. So while you are saving money, you can start visiting local places to write about. Take lots of pictures. Upload them on your social media. Build a fan following. You will have to show brands a good following before they are willing to invest in you.
Most brands will only partial funding of your plans. If you still need more money for your travel plan, you can take out a loan to sponsor the rest of your travel budget. If you already have a loan, it might not be easy to get a bank to sponsor you. That’s where second chance banks help. Let Me Bank can help you find the best second chance banks that will be ready to finance your travels, even if you don’t have a great credit history.
The world is truly a global village now. You can make friends with people around the world. You might even have a friend living in Bali, Spain, or the Middle East. Talk to them and discuss your travel plans. If you are lucky, they might offer you their place for a few days. Or at the very least, they might be able to suggest places to get good offers.
If you are living in our own home or apartment, you can rent it out while you travel. If you are traveling for more than a few months, you won’t need your home. You can even put it up on Airbnb for short leases for other travel enthusiasts like you. You could also rent out your car if you have one.
Make Money While Travelling
Travelling doesn’t mean you have to stop working. If you already have an Instagram account set up, you can use it to contact local shops and tourist attraction in the area you are visiting and get them to sponsor your visit. Or at least let you visit their eatery for free publicity.
With these tips, it might take a few months to achieve your dream but with a strong motivation, you can start travelling in just a few months. So go ahead, and start making your bucket list today. It truly builds your motivation when you have the goal in sight.