How to finance your travel bucket list
3 Minute Read
An overwater bungalow in Bora Bora, a winter escape to see the northern lights in Iceland, a foodie trip to Japan; these are just a few bucket list vacations that may be on your dream travel list.
But how do you turn those travel plans from a dream to reality? Savvy saving strategies and proper planning can help you get on the right track to finance your bucket list, no matter your age.
Choosing a budget and destinations
When planning your travel goals, think realistically about affordability, your timeline, and your goals. Sure, a 5-star trip where you eat dinner at Michelin restaurants every night sounds great. But is that your actual goal? Or is the goal really just a trip to Italy?
Decide what is most important to you and do some research to create a realistic budget for how much you think it will cost. Remember to allow for some wiggle room for exchange rates and price adjustments over time, especially if the trip is further out. From there, figure out how much you can afford to save each month to reach that goal.
Automate a travel savings account
Hopefully, you already have a budget in place that breaks down how much you should spend each month. While circumstances differ from person to person, you should have about 30 per cent of your monthly income left over, after living expenses and financial priorities for lifestyle and travel.
A good idea is to set up a separate account for your travel funds. Open a high-interest savings account (HISA) for your travel savings, or if your travel plans are a year or more out, consider putting the money into a GIC. Make your money work for you while you wait. Even though HISA and GIC rates aren’t as high as traditional investments, the interest earned could still cover a couple of drinks or a meal.
Prioritizing your bucket list
Saving to finance your bucket list will look different for everyone, depending on their goals and lifestyle. You also likely have multiple travel goals, some of which may be achievable more quickly than others, so you will need to prioritize.
A big part of this is the financial aspect: how long are you willing to save before you take your trip? You should also consider a few destination-specific factors. Here are a few things to ponder that may influence your timeline:
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Can you only travel at a certain time of year? What destinations are best at this time?
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Is the destination nature- or wildlife-focused? If so, is climate change, or even species extinction, a risk?
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What is the political climate of the region you would like to go to? If it is somewhere that struggles with stability, you will want to be cautious.
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Popularity of a destination: Is it getting more popular? In which case, leaving it until later might make it busier and more expensive.
How to finance your bucket list faster
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Get a credit card that offers travel rewards: Several options on the market let you redeem your points for hotel stays, flights, and more. If your bucket list trip is a year or two down the line, you could rack up some significant points from day-to-day spending in the meantime.
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Re-evaluate your priorities: Consider adjusting your budget to make your dream trip a priority. That doesn’t mean skimping on the cost of living and financial responsibilities, but can you go without Netflix for a few months? Do you need Amazon Prime? Can you cook at home more often instead of eating out? These small changes can add up over time.
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Consider a side hustle: Do you have a skill you can turn into a bit of extra money to help you reach your goal? Or some extra time that you could pick up a part-time job for a few extra hours each week?
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Consider selling anything you don’t need: Many of us have too much stuff that others might want. Hold a garage sale, take some things to a consignment store, or list them on Poshmark or Facebook Marketplace.
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Book in advance: If you have your heart set on a specific trip and know you can save for it in time, it might be worth putting down a deposit to lock in the price. This is especially true for big bucket-list trips (e.g., Antarctica), which allow you to book a couple of years out and pay in installments.
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Talk to a CAA Travel Consultant: Not only can they do the heavy lifting on research, but they are also tapped into industry trends and have access to long-term bookings that could secure a spot in high-traffic destinations.
