How I Finance My Travels

My personal finances have come a long way since I started backpacking in 2007. Rather than going on a trip and then figuring out how to pay for it later, I now save up for a trip in advance so I can spend guilt-free.

How I felt about money in my 20's

When I first started traveling, I used money I didn't have. Through a combination of credits cards and student loans, I was living large. But I would come home and feel sick about the debt I was accruing, literally losing sleep over how I was going to pay it back. 

I'm certain I put this trip to Koh Samui on a credit card

This trip to Cuba? Credit cards.

Once I actually drained my accounts and ran out of money and had to ask a family member to wire me a couple hundred bucks to get home. Yikes.

I was over 100,000 dollars in debt at age 28, but I attended a personal finance course with my mom and learned discipline and skills. By age 30, my net worth was 0 which was a huge improvement.

The tracker I made when I was down to my last 24k of debt

Travel is now a priority for me in my budget.

Today, I use a sinking fund. I put a certain amount in a high-yield savings account every month specifically for travel. This builds up until I have enough money to book my trip! And I make sure to save enough so I can travel well, staying in nicer boutique hotels, doing a bit of shopping, and splurging on fine dining or guided outdoors excursions.

I also strategically use a Delta AmEx because I live in Atlanta which is their headquarters. The SkyMiles account comes with perks like air miles, priority boarding, and flight vouchers so I often fly for free. 

Slaying a car loan after my Prius died unexpectedly last year

A huge change in my behavior is that I never charge anything to my credit card unless I know I have the money in my checking account to cover it immediately. I use the Actual Budget app to track monthly spending, and a spreadsheet to track my longer-term net worth changes.

This system gives me peace of mind when I am on vacation. Just putting a bit of structure into how I fund my travels is freeing. I come home with a clean slate, ready to start saving up for the next adventure!