Financial Planning for Travel: How to Set Aside Money Even Without a Specific Destination

Travel is one of life’s greatest joys, but it often comes with a hefty price tag. Whether

you’re dreaming of a beach vacation, a safari adventure, or an immersive cultural experience halfway around the world, the costs can add up quickly. That’s why it’s never too early to start planning and saving for your next trip.

In fact, the best way to avoid the stress of last-minute budgeting is to begin your financial planning at least 12 months in advance. Even if you don’t have a specific destination in mind, setting aside money for travel can set you up for a stress-free journey and give you the flexibility to go wherever the winds (and your budget) take you.

How to Set Aside Money Even Without a Specific Destination

Create a Dedicated Travel Fund One of the first things you should do when planning for travel is open a separate savings account specifically for your trip. Having a designated travel fund helps you track how much money you’re putting aside and prevents you from dipping into those funds for other expenses. Consider automating your savings so that a fixed amount is transferred every month, ensuring you stay on track.

Determine How Much You Need to Save You don’t need to know your exact destination to estimate the cost of your trip. Look at the general expenses involved, such as airfare, accommodation, meals, transportation, and activities. Research average costs for these categories based on different types of trips, whether it’s a budget backpacking adventure or a luxury stay. If you aim for a mid-range trip, you might be looking at around $3,000–$5,000 for an international getaway, depending on your preferences. We have created a Travel Budget Planning Guide to help you get started.

Set a Monthly Savings Goal Once you have an estimated total budget, break it down into smaller monthly goals. If you plan to save $4,000 over the next 12 months, you’ll need to put aside around $335 per month. If that seems steep, you can start smaller and increase your savings as your financial situation improves.

Look for Ways to Cut Back Saving for travel doesn’t have to mean a complete lifestyle overhaul. However, finding small areas where you can cut back can make a big difference. Skip a few nights out, cook at home instead of dining out, or cancel subscriptions you aren’t using. You’d be surprised how quickly those savings add up over the course of a year. Even reducing your daily coffee habit or taking public transportation instead of an Uber can add a significant amount to your travel fund.

Be Open to Different Destinations One of the great things about saving without a specific destination is that it opens you up to a variety of possibilities. You may find that your funds allow you to visit places you hadn’t originally considered or that you can take a longer trip to a more exotic location. The key is to stay flexible and ready to book the best opportunity when it arises.

Track Your Progress Tracking your savings goal will keep you motivated. Use an app or a simple spreadsheet to check how much you’ve saved each month. Celebrate small milestones along the way to maintain momentum. If you find that you’re ahead of schedule, you may even consider upping your monthly contributions to enhance your travel experience.

Travel doesn’t have to be a spontaneous, stressful decision. By planning and saving a full year in advance, you can take the financial strain out of your travel experience and set yourself up for the trip of your dreams. Even if you don’t know exactly where you want to go, setting aside money for travel will ensure that when the time comes to book, you’re ready to make it happen — without breaking the bank. So, why wait? Start your travel fund today, and in 12 months, you’ll be ready to take flight!

We have created a Travel Budget Planning Guide to help you get started.