How To Establish Your Own Travel Fund

Establish Your Own Travel FundA travel fund is money saved completely to cover both major and minor expenses your next travel might cost.


There are three major reasons you need to establish your own travel fund:


1. To prepare you financially;

2. To eliminate the feeling of guilt and

3. To serve as  backup for any unexpected expenses.


To travel on a budget is pure hard work.


There is a constant hunt for the best flight deals to take, the cheapest hotel and accommodations to book  and the best way to enjoy the whole trip without losing your resources.


With a travel fund ready, you are financially prepared to make sound decision.

With a travel fund ready, you won’t feel that much guilty to spend.

With a travel fund ready, you will are secured that if something unexpected happens  you have a spare money to use.


One of the biggest excuse people make for not travelling is it’s so expensive.  Actually money is the main reason why it had always remained as part of my wish list for years. But the idea of stepping out my comfort zone, trying something new are enough reasons for me to accomplish this goal.


In my 24 Life and Money Lessons Learned in 24 Years I mentioned how much getting outside and experiencing life made me happier.


Isn’t it nice to once a year go somewhere you’ve never been before?



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How To Establish Your Own Travel Fund


Emergency fund is a must-have. There are no ifs, ands or buts to have one. A travel fund, on the other hand is different you have a choice whether you will build one or not.


But just like building an emergency fund, saving money for travel takes financial discipline and commitment. You need to exercise willpower in doing any decisions that may affect your savings.


Today I manage to come up with four simple steps to help you establish your own travel fund as well. The four steps are:



1. Plan

2. Take Action

3. Track Your Progress

4. Spend and repeat


Let’s begin.


Step 1. Planning


The very first step in saving money for travelling is to plan.


This step involves looking inside your current financial state and mapping out your entire monthly budget to know where you could save for a travel fund.


Assess your monthly expenses


Now that you have your travel fund goal set aside, you can now map out your monthly income and expenses. This is important because you want to have an idea whether a Php 100,000 travel fund goal in the next six months is feasible or not.


Do you budget?


Budgets are essential tools used to know where your money goes. It can be as simple as pen and paper, a downloadable template or free apps. Whatever budget works for you.


In your budget, simply write down how much money comes in along with everything you spend your money on in a month.


Here’s a closer look on how I budget my money:



  • I divide the total to three main categories – bills (essential expenses), savings and investments (financial goals) and miscellaneous (lifestyle fund).


  • With a clear picture on where my money should go, I can now start spending. I see to it that save and invest first before paying any bills due or shopping for toiletries, a new book, etc.


Download the pre-built 50-20-30 Budget Rule Excel Template along with other amazing freebies on the SavingsPinay Resource Library. Not yet part of the resource library? Sign up here.


Looking in your budget, highlight areas where you are spending a little extra than normal. It can be credit card expenses, phone plans or electricity bill. You might also want to evaluate whether your current income is still enough to cover your monthly expenses. Maybe it is time to start a side hustle.


A budget can reveal a lot about your current financial status. Without it, you will remain blindsided on how much money you would be able to save if you just try.

Set your travel fund goal


How much money do you want to save for travelling?


Unlike an emergency fund that has a recommended amount of 3 to 6 months worth of your current income, how much your travel fund is will solely depend on you.


When I had a Pampanga Trip in 2015 with my eldest sister my goal is to save at least Php 3500 for hotel, eating out, ticket for the balloon festival and miscellaneous expenses. I thought about the trip in November and with a clear end-goal I started leaving small amounts here and there on my payroll account every month as savings.


In  three months of doing this, I had more than enough money to cover the whole trip. Cool. So what’s your travel fund goal? Php 10,000? Php 25,000? Or Php 50,000?


Be specific with the amount. Only then could you really psyche yourself in saving for one.  


Establish Your Own Travel Fund

Step 2. Taking Action


The next step to establish your own travel fund is to take action.


And this step is what you need to focus your attention for. No matter how much planning you do, if you missed taking action you will definitely fail your travel fund goal.


Here easy and effective ways you can save for a travel fund and make your dream vacation come true.


1. Change your money mindset


Working on a big goal requires a change of your mindset. You want to manifest your goal and turn it to reality, right?


So, it all begins with  having a meaningful relationship with money.


  • Believe in yourself. Believe that you have the ability to earn and to save that travel fund goal you have.


  • Before making any purchases think about what traveling to your dream place would make you feel. Does buying a new makeup make you feel  happier than buying a plane ticket to Palawan?


2. Open a separate savings account


Knowing how much you need to save is important, but having a dedicated place to put those money is equally necessary too.


Why have a separate savings account for your travel fund?


You can automate your savings

Automating your savings is the best and the easiest way to assure that your money goals are accomplished. These automation can be done through online banking facility of your preferred bank.


You can designate your money better

Having both your salary, savings, emergency fund and others in one account is CHAOS. What more if you will add up your travel fund, right? A second savings account works best in saving money because you can easily designate where your money go. If you only have your payroll account to rely then you will easily lose track of your savings.


My best tip is to find the best travel bank account for you. Learn more about the best travel bank cards in the Philippines – Prepaid and Debit Visa/Mastercard  from A Mary Road.


3. Allot a percentage of your income to save


I mentioned earlier how I manage to save up for my Pampanga trip by allocating a percentage of my salary as a travel fund. This tip is effective and you can implement easily this coming payday.


With your monthly expenses assessed and your travel fund goal already set, find out how much you need to be saving.


If your end goal is Php 10,000 and you need this amount by February 2018, then saving at least Php 3,000 a month is a must. See if this fits in your budget. If yes, then save that percentage immediately!


If no, then adjust other areas of your budget that can make this saving goal possible. Maybe you can have a no-spend December and January (although this would be very hard to do as it the holiday season). But, you get the point.


You can go as little as 10% of your salary a month or 20% or 30%. As long as you still prioritize your emergency fund, investments and essential items. Put those percentages on your dedicated travel fund account right away.


4. Use your bonus


Take note of any bonus coming and/or extra income you have. These additional money can help you a lot! Use your bonus to establish your travel fund fast instead of buying new gadget, new clothes, etc.


Related: 9 Smart Ways You Can Spend Your 13th Month Pay


5. Sell unused stuff


If you are really committed in traveling then try selling your unused stuff.  You can start a garage sale or an ukay-ukay instagram shop. Put “I want to establish a travel fund” as the reason why you are selling your stuff away. People will surely support the cause.


6. Cut down on your spending


If you are living from paycheck to paycheck and there’s literally no way you can  support  travel fund in your current finances then it’s time to be some extreme frugality.

The thing is you need to cut down on your spending and live as frugal as possible if you want to establish your own travel fund. List down the your expenses in a month and determine any item you can cut down like movie nights, dinners or subscription from magazine etc. 


Below are other doable frugality examples you can try.


  • Bring lunch to work
  • Have a no-spend week or month
  • Stop unnecessary restaurant or fast food meals and drinks
  • If you do need to dine out, maximize the free water instead of ordering soft drinks to save
  • Let go of any subscription for a moment – Netflix, Spotify, Cable and/or Gym



I’ve been very frugal when it comes to my food consumption. My lunch is about Php 50-75 a day compared to before when I spend Php 100 – 120 eating on fast food chains. I try as hard as I can to go out of the house at 6:30am so I can have a leisure time to walk the street going to the FX Terminal instead of paying Php 8 for the pedicab.


I even cut major expense on my commute. I found out a new way to go home from work which allows me to save 8pesos on jeepney ride. This means I’m saving almost 320pesos a month on transportation allowance. Not only that, my new found ride is point-to-point so it decreases my chance of having impulse dining out instead of having dinner at home. I am so amazed by how it dramatically changed my day to day expenses.


There are different ways you can save money and establish your own travel fund! Trust me. It’s all about commitment.


7. Save your spare change


Another cool way to save money on travel is to put your spare change or coins in a piggy bank. Every piso counts. A piggy bank maybe old school but still one of the most effective way to save for your travel.


8. Plan your trip in advance


This has got to be the most important action you ought to be doing.


Plan your trip in advance!!!


Proper planning will help you find ways to save for your travel expenses.


  • Booking your flight in advance will guarantee you the best price possible.


  • Get your desired dates on your flight and accommodation


  • Take advantage of hotel and accommodation deals, promos and discounts especially now that it is holiday season. Enjoy massive discounts for your trips and tours next year if you book today.


  • Outline a better itinerary for your travel s