But first and foremost, you must determine how much you actually need to save.
How much would a trip around the world set you back?
Create a savings plan. A good savings plan will have 5 steps:
- Assessment – Compare your trip plan to the reality of your financial situation. Is it feasible, or are you dreaming too big? Make hard decisions. Be honest. Once you’ve got a general idea of your trip’s overall cost, compile a spreadsheet that lists your income vs. your expenses to see how everything stacks up.
- Setting goals – Your savings plan should comprise several goals, some short-term and some long-term. List your goals in specific numbers and don’t be shy to shoot high. But, not so high it kills your enthusiasm for your big trip (people have traveled around the world on nothing!).
- Creating a plan – This savings plan details how you’ll accomplish your goals. This could done by removing unnecessary expenses (see below!), setting a strict spending budget, or adding additional income to meet your goals.
- Implementation – Put your plan in motion and maintain it.
- Monitoring and reassessment – As time passes, your plan will evolve as your spending habits change. Take a look at your progress every month and scrutinize the budget for possible adjustments.
Remember, whatever your budget for a round-the-world trip, it’s best to have a place in mind to visit. So start your saving and check themicemaker.com