5 TIPS TO GET OUT OF DEBT SO YOU CAN TRAVEL MORE

get-out-of-debt

Bucket list destinations, travel planning for that next trip, family vacations, quitting your job to travel – we all have our travel dreams and goals.

Since we love all travel let’s talk about how to get out of debt.

Why are we talking about how to get out of debt on a travel site?

I’ve spent the last 18 years traveling around the US and Europe.

I also have a degree in accounting and created a budget spreadsheet that would make a CPA’s head spin.

I have a simple motto – travel passionately, spend wisely, experience more.

You can’t do any of these if you are worried about finances, don’t have enough money to travel, or don’t understand how to manage the money you have.

No matter where you go in the world or how long you will be gone, managing your money is essential. By learning how to get out of debt, you will have the freedom to do more things in life, get rid of stress, and pursue your travel dreams.

Jeremy on his travels

 

 

Why Money and Travel Matter

For family trips and vacations, money and time are important factors when planning that next trip.

For those who want to take a round the world trip or spend months traveling, their focus is a little different than the typical family, couple, or solo traveler who has limited time for trips and vacations.

here are some great money saving tips for world travel that can help you save money for travel.

But if money is tight and vacation time is limited, how can you travel if you are deep in debt?

While many travelers may not think that travel and how to get out of debt go together, learning how to pay off your debt will make life a lot easier.

As a traveler, now is the time to get out of debt.

5 Tips to Get Out of Debt So You Can Travel More

1.  Create a Budget

You can’t spend more money than you have.  In order to monitor your spending habits, create a budget so you can see how your money is being spent.

Spending falls into three categories:

  • Fixed Expenses (rent or mortgage, utilities, cable, cell phone, or any expense you pay each month that you can’t change for a period of time).
    • Variable Expenses (dining, entertainment, groceries).
    • Debt Expenses (credit cards, loans).

    Set aside money in your budget for the fixed expenses. These are things that you must pay every month.

    In the next category, budget for debt expenses (see more about debt below).

    Finally, use the remaining money to budget for variable expenses. Set aside money for savings as well (especially if you want to travel).

    If your spending exceeds your income, then you will need to cut back on those other expenses or eliminate fixed expense items (i.e. get rid of cable, change your cell phone plan).

    When you are done with your budget, make sure you have $100 left that isn’t allocated to anything.

    Follow these tips on how to create a budget spreadsheet which includes step by step instructions and a sample budget you can download.

    2.  No More Credit Card Spending

    passport credit cards get out of debt

 

This article was originally published at www.ytravelblog.com and is written by Jeremy Brahnam.

The link to the original article is here.

Share if you liked it!