How to build a travel fund: Lessons from My $12K Savings in 2017
- How I Built a $12,000 Travel Fund
- Moved Out & Sold Everything
- Cut Out Eating Out & Daily Coffee
- Canceled All Monthly Subscriptions
- Stayed With a Friend
- Reclaimed My Security Deposit
- Open A High Yield Savings Account
- Shared a Phone Plan
- Sold My Car
- Actionable Steps on How to Build a Travel Fund
- Increase Your Travel Fund by Monetizing Your Skills
- The Importance of Discipline
How I Built a $12,000 Travel Fund
In 2017, I set out to build a travel fund of $12,000 to support a year-long adventure. Inspired by a YouTuber who traveled Europe and Southeast Asia on a similar budget, I aimed to make my dream trip a reality. With that goal in mind, I started making sacrifices—selling my belongings, cutting back on luxuries, and keeping things as simple as possible. This savings plan allowed me to save enough for a life-changing experience.
If you’re wondering how to build a travel fund, whether it’s for a short vacation or a year abroad, the following strategies can help you achieve your travel savings goals.
Moved Out & Sold Everything
One of the biggest steps I took to build my travel fund was moving out of my apartment. By selling almost everything I owned, I decluttered my life while boosting my savings.
From furniture to personal items, I turned these into extra cash, which I deposited into my high-yield savings account. The quick accumulation of funds was an essential part of reaching my savings goal and moving closer to buying that plane ticket.
Cut Out Eating Out & Daily Coffee
Dining out and daily coffees may seem harmless, but they were eating away at my budget. By cutting out these expenses, I started to build my travel fund much faster.
Brewing my own coffee and meal prepping not only helped me save money, but also taught me the value of being mindful with my spending. Redirecting these savings into a separate savings account ensured that every bit of extra cash I saved went towards my travel fund.
Canceled All Monthly Subscriptions
When you’re trying to figure out how to build a travel fund, one often overlooked strategy is to cancel unnecessary monthly subscriptions. I cut out streaming services, magazine subscriptions, and other non-essential expenses. Redirecting that money into my travel savings was a simple but powerful way to save money over time. If you’re serious about reaching your savings goal, it’s crucial to be intentional about where your money is going.
Stayed With a Friend
Moving in with a friend allowed me to drastically cut down on rent and utility costs, freeing up more money to put into my travel fund. By contributing only a small amount to rent and groceries, I managed to save hundreds of dollars a month.
This helped me accelerate my savings and focus on building a travel fund for my dream destinations. Reducing transportation costs by living closer to work also made a noticeable difference, putting more toward my travel goals.
Reclaimed My Security Deposit
When I moved out of my apartment, I received my security deposit back—a significant chunk of money that went directly into my savings account. Adding this to my travel fund gave it an immediate boost, bringing me closer to my savings goal. If you’re wondering how to build a travel fund quickly, look for one-time financial boosts like this to give your savings a jumpstart.
Open A High Yield Savings Account
Rather than keeping my savings in a regular checking account, I opened a high-yield savings account to make my money work harder. Earning 4.50% interest, this decision steadily grew my travel savings over time. If you’re trying to figure out how to build a travel fund efficiently, setting up a high-yield savings account can make a noticeable difference in your overall savings plan. The more interest you earn, the quicker you’ll reach your savings goal.
Shared a Phone Plan
Another small change with a big impact was joining a family phone plan. This simple switch cut my phone bill by over $65 per month. The extra cash I saved from this went directly into my travel fund. Every little bit counts when trying to build a travel fund, and making these adjustments helped me get closer to my goal of buying that plane ticket.
Sold My Car
Selling my car was a major move in building my travel fund. It was one of my largest assets, and selling it added thousands of dollars to my savings account. This was the final push that helped me reach my $12,000 savings goal. If you have any major assets like a car, selling them is a great way to increase your travel savings quickly.
Actionable Steps on How to Build a Travel Fund
If you’re serious about saving for your dream trip, it’s important to set a clear goal. Whether you’re saving $1,200 or $12,000, breaking it down into monthly targets will keep you on track.
Additionally, tracking your expenses is essential. Use budgeting apps to categorize spending and see where you can make adjustments. The more you understand your financial habits, the easier it will be to create a savings plan.
Start cutting unnecessary costs by eliminating extras like dining out or unused subscriptions.
Instead of letting your money sit idle, transfer it into a high-yield savings account to maximize your earnings. This will also keep you motivated as you watch your travel fund grow.
If possible, find ways to increase your income. Whether it’s through freelance work, selling items, or teaching online, funnel any extra cash into your travel savings.
It’s all about consistency, so automate your savings whenever you can and stay disciplined about avoiding impulse purchases. Visual reminders like a savings tracker or pictures of your travel destinations can help you stay motivated as you work toward your dream trip.
Increase Your Travel Fund by Monetizing Your Skills
Another way to grow your travel fund is to figure out what skills you can monetize. Think about what you’re already good at—can you teach online, cook, bake, crochet, or maybe offer design services? Platforms like Fiverr or Upwork allow people to sell their skills while keeping flexible hours, which is perfect for saving money or even working while traveling. Many people, especially since COVID, have found ways to turn their skills into income streams. You could even transition to full-time remote work or become a digital nomad before you know it.
It’s also worth considering if your current job could offer remote opportunities. Don’t hesitate to ask if working from home is possible, as this can help you save on commuting expenses and offer flexibility for future travel. Every little bit helps when you’re building that travel fund!
The Importance of Discipline
Staying disciplined is key to successfully building a travel fund. It takes commitment and sacrifice, but in the end, it’s all worth it. Regularly review your budget and make adjustments as needed. If you’re serious about saving, each small change can add up and get you closer to your goal. Just imagine yourself boarding that plane to your dream travel destination and remind yourself why you’re saving in the first place.
In conclusion, learning how to build a travel fund requires focus, intentionality, and sacrifice. But if you follow these steps, you can save money and achieve your travel dreams just as I did. Once you have reached the point that you’re ready to set out and travel for the first time here is a list of the best travel destinations for first time-travelers.
