Last week, I was fortunate enough to travel to Ireland for the very first time. And I loved it! The Emerald Isle is gorgeous, from its rolling green hills to its beautiful canals to the innumerable cows & sheep & horses to be seen from the motorways. The people are warm and friendly, cheerful and welcoming. I learned so much about the history of this country and the perseverance of its people. I saw a cultural performance consisting of Irish dancing and traditional musical instruments. I ate dinner in a castle and enjoyed an evening of poetry. I visited the Cliffs of Moher, the production floor of the House of Waterford Crystal, and a genuine Irish pub.
You know what else I loved about my first visit to Ireland?
That it was paid for in cash before I left home!
Yes – that’s right! I saved up my money first then booked my trip. I’ve been travelling for years. At first, it was just within North America but now I go further abroad, mainly to Europe. Yet, no matter the direction in which I point the plane, my motto has always been – have money, will travel!
Always Pay For Travel in Advance
So now that I’m home, it’s time to start planning my 2020 trip. Have I picked a country to visit? Nope. Do I know how much my trip is going to cost? Also, a firm “No.” Do I have any sense of whether I’ll be travelling in early, mid or late 2020? That’s a negative!
I am absolutely certain of one thing though. Whatever I wind up doing and wherever I wind up going, it’s going to cost me some money. At a minimum, I’ll need to pay for airfare. And since I’m in Western Canada, I can count on my airline ticket costing me atleast $1,000. If I book another trip with my preferred travelling company, then I’ll need a minimum of $2700 for my chosen package. Leaving Canada means that I’ll have to buy currency for my destination. And that might cost a pretty penny depending on the exchange rates in force at the time. And let’s not forget travel insurance & souvenirs.
The trick is to start saving for my next trip today so that I have the money when I need it. Even though I’ll charge the trip to my credit card, the money will be in the bank so that I can pay off the card when the bill arrives. Points – yes! Travel – yes! Debt – NO!!!
Next year’s travel is a short-term goal. I know that I spend a good deal of time telling you to save for your retirement and to build your own pension. However, the fact of the matter is that you have a right to spend some money on the things that bring you joy. In my case, that’s travel. And this is how I pay for my magnificent vacations each year…
Getting the Money Together for Travel in 2020
First, I rely on having a dedicated sub-account at Tangerine Bank, which is nicknamed “Travel.” (Originality is not really my strong suit.) The money that goes into this account is spent only on… you guessed it – traveling to wherever I want to go. It could be a weekend in the mountains – it could be a spa weekend in Vegas – it could be another overseas trip to a new-to-me part of the world!
Second, I’ve created an automatic transfer from my chequing account to my travel account to fund my voyages. This transfer seamlessly ensures that my short-term goal is partially funded every time I get paid. A portion of my paycheque is re-directed to my desire to see & visit new corners of the world. The more I can save from each paycheque, the longer I can afford to be away from work.
Third, I visit different websites and talk to other travellers so that I can figure out where to go next. This also gives me an idea of just how big my travel account has to be before I can travel again. It’s also a great incentive to keep my hands-off my travel funds! Travel is one of my priorities, but I’m only human. Just like everybody else, sometimes I’m tempted to spend my money on other things. (Right now, the 2019 Nissan Rogue is calling my name even though my current vehicle is more than sufficient to meet my needs.) Talking to other travellers and dreaming about my next destination keeps me from spending travel-money on non-travel stuff.
Fourth, I book my trip. I do this once my travel account has enough money to cover my flight, my package price, my insurance, and the cost of my foreign currency, if required. I generally book my trips atleast 6 weeks out. This gives me 2 or 3 more pay periods in which I can gather a bit more money for my trip.
Fifth, I enjoy myself wherever I go! I believe in carrying a heavy wallet on vacation since I have no guarantee that I will ever be back to that spot again. If something catches my eye or there’s an experience that I want to have, then I need to have the cash on hand so that I don’t have to deny myself. I want to get as much out of my travels as I can without going into debt to do so.
Have Money, Will <Heart’s Desire Goes Here>
You know your heart’s desires best, so I want you to set up your own dedicated funds so that you can achieve what brings you the most joy. Today, technology allows you to easily create accounts for saving towards particular goals. Open an account – set up an automatic transfer – save enough money for what you want – attain your goal by paying cash for it – repeat!
It doesn’t get any more straightforward than that!