Saving $12,000 in Seven Months for Travel
I love the beginning of the month. It’s when interest accumulates on high interest savings accounts, all of my payments come through, and it’s also budget and goal review time.
My goals for 2014 have been far too easy to reach. I’ve already promoted myself by going for a promising job opportunity; I’ve surpassed my online earnings goal each month of the year; my goal of remaining unplugged for at least one hour of quality time with the husband per day has been surpassed and my weight is dropping nicely and is in line with my goal to lose 15 pounds in 2014.
I’m nothing if not future oriented, and my theme for 2015 is all about travel.
My job is temporary, so I am not tied down. At the end of my contract, I am free to travel for a little while. My travel plans for the new year hopefully include a trip to the New England states, an extended trip to South America, and hopefully another to Europe or the UK.
Though at least one of these trips will be free, compliments of my American Express Gold Rewards Card [use my referral link for 25,000 bonus sign up points], I don’t spend enough money on my credit cards to travel hack my way through ALL of these trips.
Maybe just one or two.
To be able to go on these trips as well as pay the mortgage, save for retirement and maintain my savings rates, my new goal is to save $12,000.
Why $12,000?
$12,000 is a realistic amount, while still being challenging.
Saving $12,000 will require discipline and cutting back. This is especially true considering my husband and I are jetting off for a three and a half week honeymoon in Asia next month.
Luckily, Asia can be inexpensive. We are visiting Nepal and Indonesia, so we won’t be spending an extraordinary amount in either place. We have been selling a lot of our wedding decor on Facebook and Craigslist, and keeping the cash in an envelope for spending money when we leave. That should help significantly with the cost of food and attractions in both places.
I estimate that without any free flights or hotels, my trips will cost about $9,000 in 2015.
Since I won’t have a regular income when I am away from my day job, I would be using the extra $4,000 (and whatever I save with free flights and accommodation from my various credit cards) as a buffer in case I don’t find enough freelance or contract work to be able to make a decent income on the road.
Setting a Schedule, Not a Deadline
If you read any personal finance blogs besides Add Vodka, you’ll know the term SMART in relation to goals. SMART, in case you haven’t heard of it, is the notion that a goal won’t be achieved unless it is:
Specific
Measurable
Attainable
Realistic
Timely
My goal of saving $12,000 is pretty measurable. I’ll get into the specifics as to how I will reach this goal below. It’s realistic and attainable without being too easy. As far as timely, well..
What the T really means is that the goal has to have a deadline attached to it. I recently read a 45 page piece by James Clear about reaching goals and changing your life through habit transformation. In it, James argues that setting a schedule instead of a deadline is far more effective to reach goals and change your life.
Marrying the two theories and applying them to my goal of saving $12,000, to reach the goal and to continue saving after my goal has been reached, the steps I am going to take to make this happen are as follows:
- With my new gig, after taxes, fees, and increased commuting costs, I make $1350 per month more (this is a modest estimate). That’s the bonus of being temporary and getting a percentage in lieu of benefits. Every pay day, I will pay myself first by transferring $675 into my account. This sets a schedule of $675 every two weeks being deposited into a high interest savings account.
- Every extra dollar I earn from freelancing, my online income streams, or anything else will be transferred immediately into the same account. While this isn’t a set schedule as transferring $675 every two weeks, it will become a habit (and fortunately already is).
- I will review my progress toward my goal monthly. If it doesn’t appear that I will be meeting my goal by February 2015, I will pick up more freelancing jobs and pound the sand to try to find more work.
- Continue to make huge progress on slowly deflating our lifestyle back to normal; cutting back on eating out, spending on material things, and continue being frugal and smart with our money.
I am excited to not only reach this goal, but also permanently change our lifestyle by deflating it and examining our spending. Look for my progress in my monthly goal progress reports.
Girl, you are a hustler! You will nail it. I remember setting my goal to earn $10k online before our trip, and trying to visualise that amount in there. Once I hit it I kept going and boy did that feel good.
That’s amazing earnings, E! How long did it take you to earn the 10K?
Indeed, traveling is a great adventure to experience. However, it is also a fact that it costs substantial amount of money. I like your perspective of making a schedule rather than a deadline when it comes to reaching your $12,00 goal. With this, you are able to determine the steps you are going to take as well as the amount of time you are willing to allocate for every step. Good luck to your goal for 2015!
Thank you!
Ahhh Daisy, this is so exciting! You are going to have an incredible year by the sounds of it. I love all the destinations you’ve picked. I agree 100% on your goal method, I try to apply the same principles with my goals. Seeing yours makes me motivated to stay diligent on my own saving goals. I have no doubt you’ll knock it out of the park!
I’ve had a fabulous last few years so I know it’s just going to continue. Just keep saving!
this is AWESOME!! Can’t wait to watch your progress (and see all your photos of your trips!)
I’m excited to go on those trips with a big chunk of change just for travelling in my bank account.
Wow, it sounds like 2015 is going to be amazing! I love the concept of scheduling versus goal-setting. I have been working on that lately, surprisingly. I might need to take a gander at that link.
James Clear writes some amazing stuff. I’d definitely recommend reading some of his blog.
Giiiiiirl, you are going to rock that goal. After our talks + more talks w/ family and friends this weekend, I’m so excited for 2015. Once all my trips are done/paid for in October, I’m going into major savings mode from November-June. I need to set a goal for those 8 months, so I can get outta here and be ready for Summer 2015! I’m tentatively thinking I’ll be able to save $8,000, but will run some numbers in late October to confirm. Can’t wait to talk more about this + other things next Monday! 😀
2015 will be amazing, as has 2014. I’m sure you’ll be able to do $8K! I can’t wait for Monday!
I love the though process that went into this. Congratulations and good luck with your savings. I look forward to following your progress.
My thought processes are nothing if not unique, haha. Thank you!
Great way to plan for 2015 and I’m sure you’ll reach your target! I love traveling so I’ll be looking forward to seeing any pics you can share on your upcoming honeymoon to Asia.
Asia is definitely going to be a well photographed experience. I can’t wait!
That’s one heck of a biweekly transfer to savings! I love that your killer raise is going straight to your savings account. 🙂 And you’re going to have some great trips too!
I can’t handle any more lifestyle inflation, so I couldn’t imagine it going anywhere but!
Love this ambitious goal – maaaan am I jealous! I haven’t travelled like this since 2008!!
Don’t be jealous, be motivated! When there’s will, there’s a way.
Wow! I love the idea of this goal and the reasoning behind it. What I really like is the fact you are actually telling us how you’re going to do rather than just generalizing. Thank you for being honest!
I hate reading vagueness, because I get the sense that something is being hidden. I am all for full disclosure!
That’s a huge chunk of money! I’m looking forward to seeing your progress.
It is, but I almost feel like I should be trying for more, haha.
You got this! Really looking forward to your progress 🙂
Thanks Mario
Hustler girllllll I love it!!! So exciting!
Exciting doesn’t even begin to describe it!
I love, love, love travel and I know you’re going to blow this goal out of the water. Can’t wait to read your travel posts.
I can’t wait to write more of them. I am disappointed in myself that I haven’t posted more about the travel I’ve done so far.
Your 2015 goal for travelling is amazing! Reading about the term SMART reminded of the organizational behaviour class I took earlier this year. It’s a term for employers to help employees set their goals.
I will need to save $12,500 for January 2015 or have it aside for renovations for the house.
Thumbs up on being able to transfer $675 to you account every paycheque.
I really liked Organizational Behaviour when I was in school. The SMART theory is being challenged a bit but I think it still has a bit of merit. We have a similar goal! Good luck with yours!
Wow, impressive stuff!
I would love to be able to ditch everything every 8-9 months and do some traveling or even just chill out in the UK! Darn permanent jobs 🙂
Life as a freelancer sounds great but I’m sure there are a few downsides… Something I’ll be looking into very soon though I think.
Cheers for the inspiration!
I’m not a freelancer, just a contract employee. The only downside there is, is lack of health benefits – but I am paid a percentage in lieu.
You CAN ditch everything every 8-9 months – just do it.
That’s an awesome goal!!! Can’t wait to see all the pics!!
I’ll be posting plenty!
You should try to visit Philippines too! We have lots of beautiful places and white beaches here. 🙂
One of our layovers on our way home is in Manila. I wish we had time to actually explore. It’s on my list of places to see 🙂
That sounds amazing! Tell us more about your trips and your travel hacking 🙂 I want to live vicariously through you!
Oh I definitely will. No need to live vicariously – if I can do it, you can do it Emma.
Wow that’s a lot of traveling! Good luck with your goals and also what I wanted to say the last few comments but kept forgetting was that I like your new blog look. 😀
Thank you! I worked hard on customizing it. It takes longer than you’d think! Phew!