How do I Manage Money & Afford To Travel?
When sitting at a family lunch a few weeks ago my auntie asked me across the table 'So where are you off to next then?' to which my grandma sharply turned to me and said 'Another trip Meriel Mae?!'. I sat awkwardly posed as my mind quickly flicked through its file of 'safe responses' working out how best to extinguish my grandma's stare while answering the question honestly...
When it comes to travel my family believes I am 'always away' or when organising a girl's trip my friends will say she has 'probably already been'. To my fiancé, I am a personal accounts manager and travel guide (lucky him?!) so he can simply pack some pants and his passport to head to the airport as per the itinerary. In truth, it takes a lot of planning, time and money and I fit my travel into the 25 days of holiday I have with my current job. I am just like everyone else working full-time, trying to build a career, eat 5 fruit and veg a day, spending time with friends and family, working out, cooking, cleaning...you get the vibe.
My youngest sister would find it hilarious that during a global financial crisis I am currently sitting here writing about how to budget, me of all people? However, I hope that the way budget is relatable, adaptable and easy to break down. I would just like to acknowledge here that the taboo subject of money is extremely circumstantial and that I have been born into a privilege that others have to fight for. Also, I am no expert and my relationship with money has changed over the years and continues to evolve. It can be overwhelming but can be managed and broken down into the 3 key points which have become the go-to way of balancing my finances giving me the freedom to travel and maintain a life at home.
Monthly Budget
Anyone who knows me knows I'm a spreadsheet girl. I get this type-A creative personality from my mum and I have a Google drive full of excel sheets and maps for places I want to go. If starting this completely new, a good base rule is the 50/30/20 rule which is 50% for needs, 30% for wants and 20% for savings. Nothing groundbreaking this rough percentage system has been around since the beginning of time but is a good starting point. I started saving and budgeting years ago and have gradually adapted how to manage my income as my circumstances have changed.
Steps 1-7
1-Take Home Income - I review my salary post-tax, national insurance and student loan
2-’Needs' Outgoings - I then move on to calculating essential outgoings which are rent, electricity + gas, internet, council tax and water. These are all items that have a 'fixed' outgoing amount which I have little control over.
3-Additional Needs Outgoings - I do the same for my additional outgoing which are food shops, my phone, streaming services, software and apps. This fluctuates from person to person but more on that in the prioritising and sacrifices section.
4-Calculate Remaining Balance - Then I deduct both outgoings from my take-home income to give me the amount that I have for wants and savings. See nothing too scary or complex to follow so far, just simple maths. Hopefully, this remaining amount should take off no more than 50% of your monthly take-home income.
5-Calculate Saving + Wants Amount - This is where I take my remaining disposable income and create amounts for savings and my everyday spending. If you have never created a savings amount before then stick with 20%. For example, if your income is £1500 post deductions then 20% of this is £300 should be the amount to put aside each month. Perhaps this isn't possible as your needs, which you calculated before, are 55% of your salary post deductions in which case reduce your saving or wants by 5% to accommodate this or take a wider review of your needs to see if they can be reduced. Personally, I look back on previous years to see my saving goals against income and circumstances at the time. If my salary has increased and my living circumstances have stayed the same I will increase the amount that I can save and have as my weekly spending money or vice versa reduce the amount if things have changed. This should leave you with around 30% for your weekly ‘fun’ spending as well.
6-Allocation of Savings Money - I then take it one step further and divide my savings between my 3 main accounts which are travel, life and the newly added wedding fund. These aren't always equal for me as I may have a set amount that I need to have achieved by the end of the year in the 'life' account for example. If I had £300 which I can put away each month but needed to have £1500 in my 'life' account 1500/12 would give me £125 per month into that account. The amount I could then put away into my other two would be £87.50. It's a combination of working backwards and forwards depending on if you have specific things you wish to achieve, destinations or events to attend by the end of the year. Either way, my savings come out of my account in the exact same way as my bills do.
7-Balance in Planning: I will then review the year as a whole and allocate certain amounts that I can afford to spend on each trip, more on this below. I note all of this down on an excel sheet and colour it green once I have placed the correct amount into each account.
To be transparent without giving too much away my personal percentage breakdown of spending is 35% on needs 35% on wants and 30% on savings per month. I have managed this balance by carefully selecting what my priorities and sacrifices are and living somewhere within my income level which gives me the freedom to spend more money on travel.
Selecting Priorities and Sacrifices
Achieving a comfortable balance of spending can be hard. Especially with the increased cost of living and with constant small temptations such as shopping and eating out however I make three main sacrifices to reduce my needs/wants and be able to prioritise travel:
1-Cooking at Home: Firstly I cook the majority of my meals at home. You'll know this if you follow me on Instagram but I absolutely love to cook and host. For someone who is happiest when waking up in a new country most of my time spent in London is in or around my local area and having wholesome evenings at home with friends and family. Instead of heading out every weekend invite people over and ask them to bring a bottle or a dish each.
2-Cycling to work: Secondly, I cycle to work even in winter to cut out the cost of public transport. This one is circumstantial as currently I work relatively close to where I live, plus it's a way to get some exercise into my day. If your distance between work and home requires public transport consider walking or cycling part way even if it's seasonal.
3-Gym Membership: Lastly, I don't currently own an expensive gym membership. I cycle to work, run 1-2 a week outside and joined The Pilates Class which is only £130 for the year. I do enjoy a boutique fitness class and brunch with friends on the weekend but keeping my workouts simple and easy works for me and my bank account.
Remember…
Travel doesn't have to be to the furthermost country on the globe, flying 1st class or staying in ‘that’ Instagram hotel. It's about the personal experiences, growth and memories that it gives you. No matter how much you can put aside each month even one night away in your own country or exploring your home town like a tourist can be just as exciting and memorable.
This all sounds great and good as if I have my life fully together but my two downfalls are:
1-Online Shopping: The first has to be, with the help of Klarna, online shopping. This has reduced massively over the years but I try to curb the need to shop by having a Pinterest ‘Wish List’ where I pin all the items that I currently have my eye on and wait to see if they go into the sale or if I still want them a month later. This is also super handy for friends and family when it comes to gifts as they always know that I have a list on the go! I also have a one-in-one-out policy where I use Depop and eBay to sell my pre-loved items before I purchase anything new.
2-Beauty Treatments: Another one of my largest monthly spends is beauty treatments. I do try now and again to do my manicure and brow tint at home but honestly, they never come close to salon quality. Luckily my hair is very low maintenance so only requires a quick cut 3 times a year and I finally bit the bullet to pay for laser to remove the need to pay for waxing.
Balance in Planning
I try and travel multiple times a year therefore the total amount I can save needs to be reviewed and cleverly allocated so I can maximise my trips. Firstly I look at the year as a whole then book any flights to cover myself for 'essential' travel such as weddings or visiting family. I will then book my accommodation for these trips and opt for a pay-later option so I can use my savings that I will accrue monthly to pay this off when the time comes. I will then calculate a rough amount that I will need for spending and deduct this as the total cost of the trip from my yearly travel spending allowance.
Once essential trips are covered things can get more creative as I calculate where and when I would like to go away. Being flexible and budget conscious is key to creating the most fun and financially stress-free trips as possible which is why it's essential to be honest and create your budget before getting carried away. I will always book flights first when they are cheapest then play around with what goes under a pay-later or upfront for accommodation and/or car hire if needed.
All of this I note down in an excel sheet with the total cost of each trip and highlight in green for paid items and red with a date for items that need to be paid for.
I am open to exploring a range of countries, accommodations and times of year for travel. Creating this mix not only allows me to explore more places but gives me a range of experiences while away. For example, during my 11-day trip to Morocco, I stayed in a hotel that cost £26 one night followed by a two nights stay in Berber Lodge for £220 per night. I will cover more on exactly how I book, plan and get inspiration for my trips in a different post but to give you an idea of cost and balance below is a rough breakdown of two trips I took this year.
Morocco: Tangier to Marrakesh: (12 Days 11 Nights) Car + Flights £585, Accommodation £1100, Food + Drink £950, Activities £300, Miscellaneous £50 = £2935 Total - PP £1476.50
Road Trip Through Albania + North Macedonia: 11 Days + 10 Nights: Car + Flights £440, Accomodation £290, Food + Drinks £580, Activties £120, Miscellaneous £60 = £1490 Total - PP £745
These trips were both similar in duration but at very different costs as Morocco was £1476 per person while Albania and Macedonia were £745. Both trips could have been cheaper or more expensive but selecting this mix of places and being flexible with accommodation meant I could afford to see all three countries within my yearly budget.
Have I always paid for my own trips?
It would be wrong for me to sit here and claim that I have always been independent when in truth it's been a real learning curve and I have had help along the way. My parents have always valued experiences over other things and have been fortunate enough to be able to take us to exciting destinations on family holidays so countires with them have been paid for YES.
They have however always encouraged me to work which I started aged 17 at Abercrombie & Fitch every weekend where I made £6.50 an hour working on the shop floor. I earnt and spent my money quickly whether it was on expensive handbags and clothes to later trips with my fiancé while still at university. Holidays with him and friends have always been something I have prioritised and valued the most.
In a world where we praise success and are quick to assume that things come easier for other people, we forget to look deeper into the cost that goes behind everyone's glossy lives and holiday photos. I hope this breakdown and honest account of how I balance travel and money is encouraging, adaptable and will help enable you to explore areas of the world that you always wanted to see. Turning ideas into reality one excel spreadsheet at a time...
If you're looking for some travel inspiration head to my library of posts! More coming soon.
Inspired to plan ahead for the future? Pin this for later so you can come back to this article anytime.
