Logistics of RTW travel – part 3: How to create your savings budget

Now that you know how much money you’re going to actually need for your trip, creating a savings budget is pretty simple (actually sticking to it may be another story…).

STEP ONE
Take your summary from STEP EIGHT when you did your spendings budget back out again:
TRANSPORT: $4,600
ACCOMMODATION: $2,850
SPENDING: $2,400
INSURANCE: $400
COSTS AT HOME: $1,700
TOTAL FOR TRIP: $11,950
STEP TWO
Work out what cash flow you already have going towards your trip. For example, you may have already started saving a bit, you may be entitled to some holiday pay while you’re away, or maybe you know that you’re going to be getting a half decent tax return.
NEED: $11,950
MINUS:
Annual leave pay $2,000
Already saved $1,500
Tax return $500 (approx)
TOTAL: $4,000
STEP THREE
Easy maths: how much do you need between now and when you want to start your trip?
Currently: January 2017
Travel starts: January 2018
Need: $7,950
STEP FOUR
Break it down to less scary numbers:
1. Need $330 per person, per month for 12 months
2. We both get paid fortnightly, so we each need to put away $165 per pay
And that’s pretty much all there is to this part! Like I said, once you know roughly how much you’re expecting to spend on your trip, it’s super easy to work out what to save. Sticking to the budget can be hard, but one of the best things I’ve ever done was to open a separate travel bank account. Now, every pay day, whatever I need for my next trip goes straight into that separate account, not to be touched until I start booking and paying for it!
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6 thoughts on “Logistics of RTW travel – part 3: How to create your savings budget

  1. Pingback: Logistics of RTW travel – part 4: Tracking your bookings (& saving your sanity) | Eat. Travel. Blog: Ordinary Girl, Extraordinary Dreamer

  2. Pingback: Logistics of RTW travel – part 5: 10 things to do before you head off | Eat. Travel. Blog: Ordinary Girl, Extraordinary Dreamer

  3. Pingback: Logistics of RTW travel – part 6: Staying healthy on the road | Eat. Travel. Blog: Ordinary Girl, Extraordinary Dreamer

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