How to Start a Travel Fund to See the World While Tackling Debt

Bert Maxwell's picture
Categories: 
Whether you want to quit your job to travel the world, plan your next family vacation, or plan for that epic bucket list destination, it can be hard to do any of those things if you're in massive debt. But just because you have a lot of debt to pay back does not mean that you necessarily have to put your travel plans on the back burner. This article will not only help you decide if travel and paying off your debt are both manageable goals, but it will give you a few tips that will help you save both for your next trip and for debt repayment. 
 
How to Start a Travel Fund to See the World While Tackling Debt
 

Should Travel Always Be Off The Table If You Have Debt? 

 
Surprisingly, there would be some travel experts and bloggers who would say that world travel doesn't always have to take a back burner to debt repayment. The way these lifestyle experts would express it, "life is just too short" to not see the world while you're still young and vital. These stalwart travelers may believe that since they and many Americans will have some sort of debt throughout their lives, waiting to pay all of it off before they start their worldwide traveling exploits is foolhardy. 
 
It might be tempting to throw your bills in the air and start packing your suitcase right away without any thought whatsoever to debt management. But be aware that the debt situation that many of these travel bloggers are in may be very different from yours. These travel bloggers may put off paying their debt for the foreseeable future, but most of their readers have no way of knowing if that's a smart thing to do. If the bloggers are not careful, some of them could be in a lot of trouble a few years from now. 
 

How to Save for Travel While Paying Off Debt 

 
The first thing you should do is automate your debt. What we mean by this is setting up your monthly minimum payment so that it automatically comes out of your bank account. Then set aside one day a month where you put all of your extra money towards your highest priority debt. Before you know it, a significant portion of your debt could get paid off before long. 
 

3 Other Tips for Getting Out of Debt So You Can Start Traveling 

 

Make a Budget 

Monitor what you spend by creating a budget. Divide your spending into three categories: 
• Variable expenses: Entertainment, dining, groceries
• Fixed expenses: Rent, utilities, and cell phone. These expenses don't change from month to month 
• Debt expenses: Expenses such as credit cards and student loans
First, pay off the fixed expenses. Then set aside money for your debt expenses. The rest of the money should go towards variable expenses, then your travel fund.
 

Stop Using Credit Cards 

A lot of people don't know how to use credit cards properly. With credit cards, you can spend more than you earn very quickly. To stop the financial bleeding, stop all credit card usage until you pay off all of your balances. 
 

Start Paying Off That Debt 

Start with the smallest debt you have. Pay the minimum balance, plus a little extra (or more if you can afford it) until the debt is paid off. Then take your next debt and its minimum payment. Take the extra amount you put towards the now paid off bill and put it towards the next one in line. Do this until all of your debt is paid off in full. 
 
Pin for later:
How to Start a Travel Fund to See the World While Tackling Debt
 
 
 
Share