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Traveling the world is a dream that many of us have. After all, it helps us expand our horizons, improves our social and communication skills, and enhances our tolerance for uncertainties on top of many other things. However, the usual struggle when it comes to realizing this dream is figuring out how to afford it. So here are some tips that will give you an idea on how to finance your travel dreams:
1. Set Up a Vacation Savings Account
It’s super easy to tell yourself that you will save money and make a travel fund, but it’s even easier to forget all about your plans whenever you get paid. That being said, having a savings account specifically for your travel funds will help you not just set that money aside, but also not touch it until it comes time to start traveling. You can choose to have the bank automatically withdraw a specific amount of money from your main bank account and transfer it to your travel fund every time your paycheck is deposited. Under 30 Experiences claim that to effectively save money, you should base the amount you set aside on your current credit situation. If your credit situation allows it, you can just save for part of the trip and then finance the rest as you go along.
2. Trade In a Vehicle
If you are the type who can’t seem to settle in one place for a long time, it might be worth considering trading your car in. Obviously, you can’t take your car along for every single trip, but you can use it to fund your adventure. At certain times of the year, most car dealerships have special trade-in offers that might be available to you, and deals will differ based on where you are. However, in most states, you’ll have to pay tax on the difference between your new car and the trade-in. You may also be able to use your car as collateral for a loan.
For example, title loans in Florida are heavily regulated by both the Florida Office of Financial Regulation and the Attorney General, as well as by the Consumer Financial Protection Bureau (CFPB). This is done to help protect borrowers and provide them better rates when using their cars as collateral for loans.
Similarly, LoanMart explains that residents of Youngstown, Ohio are able to use their vehicles as collateral to take out title loans, allowing for more flexible payment options and extended repayment periods. While loans in Cincinnati are made through credible banks such as Capital Community Bank, a Utah chartered bank, ensuring that all loans are legal and regulated.
3. Find a Job That Lets You Telecommute
Sometimes, even when you have enough money for a simple trip, your day job might get in the way. So, if you are at that point in your life where you have foregone your life’s dream of traveling for too long, start looking for a job that lets you telecommute. This way, you won’t have to set aside your dream as you work.
Check if there is any government program that is suitable for remote workers where you’re from. Residents of Vermont are eligible to receive up to $10,000 under the state’s Remote Worker Grant Program while New Jersey residents may be disappointed to know that the state has discontinued its Smart Moves program which had incentivized workers to find alternate ways to get to work.
4. Use Credit Card Rewards
If you plan to frequently take travel or work flights, it pays to learn about how you can get rewards in the process. If you always use a specific airline, you could sign up for a rewards card to collect miles and points which, when amassed, can turn into upgrades and even free flights. You can also get rewards from using your credit card regularly whenever you are traveling. In using rewards to ‘Finance Your Travel Lifestyle’, remember to read the terms and conditions so you know when to employ them as well as how the payment scheme and rewards redemption plays out.
Of course, if your current situation makes it nearly impossible to take on your dream vacation right now, you can still settle for taking shorter vacations to affordable destinations. You can check out our post on ‘Affordable World Travel: Destinations to Visit When You’re Broke’ to pick out your next budget-friendly vacation.