Why You Lack a Travel Budget (And How to Address It)
“I wish I could travel more.” This is a sentiment many of us express—or hear—often. However, if more than a billion people globally are successfully traveling, why does it seem so unattainable for some? The explanation is more straightforward than you may believe: it’s less about income and more about priorities.
Travel Isn’t a Luxury—It’s a Decision
When individuals claim they cannot travel due to finances, what they typically mean is that they have opted to allocate their funds elsewhere. A travel budget isn’t a mythical stash of extra cash—it serves as a representation of what you prioritize in life. If visiting new places matters to you, it needs to be reflected in your monthly financial plan.
Consider your budget as a representation of your priorities. Each dollar spent is a choice indicating what is most significant to you. If you’re allocating hundreds of dollars each month for car payments, dining out, or the latest technology, that’s where your priorities rest. And that’s perfectly fine—if those things bring you enduring happiness. However, if you also desire to explore the globe, it may be time to reevaluate how you’re spending your money.
The Fallacy of “Not Enough Money”
Having traveled extensively, I’ve encountered individuals from various professions—teachers, construction workers, bartenders, and even custodians—who have managed to see the world on limited incomes. In contrast, I know individuals with high incomes who seldom leave their hometowns, complaining about a lack of time or funds. The key difference? Priorities.
Let’s dissect it. If you’re spending $699 monthly on a car payment, that totals over $8,000 a year. Drive a less expensive vehicle or pay off your existing one, and you suddenly have enough for several international trips. Spending $800 a month on eating out or $400 on weekend bar tabs? That adds up to $4,800 per year—sufficient for a month-long excursion in Southeast Asia or Central America.
Experiences vs. Material Goods: What Will Stay With You?
As you age, it’s the experiences you cherish, not the possessions you acquired. The unexpected boat ride in Vietnam, the street food in Bangkok, or the wonder of standing before Angkor Wat—these are the lasting memories. Not the shoes you owned or the phone you used for capturing the moment.
In the U.S., consumerism often leads us to equate success with material wealth. Larger homes, newer vehicles, more gadgets. However, research indicates that individuals in nations with fewer material possessions frequently report greater happiness. The 2024 World Happiness Report places the U.S. at 23rd—behind countries with smaller living spaces, increased taxes, and lower average earnings. Why is that? Because they emphasize community, well-being, and yes—vacation time.
How to Create a Travel Budget (Even on a Limited Income)
Establishing a travel budget doesn’t necessitate a hefty salary—it requires deliberate choices. Here’s how to begin:
- Monitor Your Spending: For a month, record every dollar you expend. You might be shocked by how much goes to non-essential purchases.
- Pinpoint Low-Value Expenditures: Are you spending hundreds on subscriptions, takeout, or impulse buys? Redirect those funds to a travel savings account.
- Establish a Travel Objective: Select a destination and approximate the costs. Having a specific goal can boost your motivation.
- Automate Your Savings: Open a separate savings account for travel and set up an automatic monthly deposit—even if it’s just $50. Over time, it accumulates.
- Be Creative with Costs: Traveling doesn’t have to break the bank. Utilize budget airlines, opt for hostels or local stays, and travel during off-peak periods.
Reevaluate the American Dream
In 1950, most American families resided in homes under 1,000 square feet. Today, the average exceeds 2,000 square feet, and many households have multiple vehicles, televisions, and closets brimming with unused items. Yet, many still feel that they cannot afford to travel. The