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Why I Finally Set Up a Travel Savings Fund

October 10, 2016

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Now that I have travel on my mind more often, I finally decided to set up a travel savings fund earlier this year.Travel has been on my radar more than ever after I quit my job, went to FinCon15, and decided on some places I wanted to travel this year.

It’s just so much easier to travel now that I’m self employed. I don’t have to request time off, make sure I have enough vacation time saved up, etc.

The only downside I’ve found while trying to travel now is that I have to work like a crazy person beforehand to get ahead. And I can’t go anywhere without my computer. I tried it once for a weekend trip and I felt like I had left behind my left arm. (Yes, left arm since I am left-handed.)

But the point is, now that I have travel on my mind more often, I finally decided to set up a travel savings fund earlier this year.

Why I Finally Set Up a Travel Savings Fund

Back in April, two of my girlfriends and I took a long-weekend and went to Colorado for some hiking and R&R. It was fun to get away from real life and to go with people who also want to travel.

One night while we were up laughing and talking instead of sleeping, we decided we are going to go on at least one “girls trip” each year. We talked about several places we want to go in coming years and then decided on New York for 2017.

I’ve been to NYC a couple of times, but neither of them have. I know NYC in particular can be expensive, so I didn’t want to have to cashflow the whole trip in one month like I did when we went to Colorado on an almost spur-of-the-moment trip.

The moment I got back home after our trip to Colorado, I set up a new travel savings fund with CapitalOne360 and nicknamed it “New York”.

How I’ll Use My Travel Savings Fund

I started funding my travel savings fund in June with $100/month. By the time we go to NYC in the spring, I should have almost $1,200 in that account. (Other than early withdrawals I’ll have to make for flights.)

My friends and I started pricing flights, hotels/AirBnbs, and the activities we want to do during our trip. We are planning to keep it pretty frugal. But, I know I’m going to spend on all.the.food while I’m there because hello?! it’s NYC!

Whatever money I have left in my travel savings fund after paying for that trip will stay in that fund.

The best part about having my travel savings fund with CapitalOne360 (besides earning more interest on my savings than at a physical bank) is that I can have as many different savings funds as I want with all different nicknames. I can also change the nicknames on my accounts too. Once we determine our trip destination for the next year, I’ll be able to change the name of my CapitalOne360 travel savings fund to reflect that goal.

I don’t know about you, but that is more motivating to me than just seeing “Savings” as the nickname on my account when I login to my online banking.

At this time, I don’t plan to use my travel savings fund for any business travel. I already save for that as part of my business savings each month already.

I’m so glad I finally took the first step at prioritizing travel by setting up a travel savings fund for my future trips. I know it will be a lot easier to make them happen when I have the money ready and waiting. Plus I won’t have to deal with any guilt over spending that money on something fun!

Do you have a travel savings fund?

Now that I have travel on my mind more often, I finally decided to set up a travel savings fund earlier this year.

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10 responses to “Why I Finally Set Up a Travel Savings Fund

  1. I’ve done the same thing a few months ago. I have not been on a vacation in 10 years. I am overdue. Next year, I am planning a vacation. Alone.

    I love CapitalOne360 for my sinking funds and now for my travel fund.

    Have lots of fun! I have to make it to the Big Apple soon.

  2. Congrats on setting up a travel fund. I don’t have a travel fund per say but I do mentally set aside a portion of my budget towards a vacation each year. My wife and I have been able to take some amazing trips by budgeting. Good luck in your travel in the future 🙂

    1. I tried setting money aside in my head, but it was too hard for me to keep track of my savings goals that way, so I finally had to set up a couple of separate savings funds for things like travel and expenses that don’t occur monthly.

  3. It’s funny how when you leave your day job you know you’ll have the freedom to travel and when everything sets in you realize there are some changes you have to make even to a self employed schedule just to take a trip. It is great that you decided to set up a separate savings fund apart from your other money. It definitely puts things into prospective.

  4. This is what I haven’t done, and I will have a travel fund soon so that I prioritize savings and travel more often. And, I think it makes savings a bit easier because I get to manage everything using different allocation or funds.

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