You need money to travel, and you need money to clear your debt as well. With the limited resources the only way you can do both is by saving. Now, savings means sacrifices and proper planning and if you can plan well and stick to it, then you can do both with ease and comfort. Start with creating a budget which would only feature your needs and would be devoid of all your wants. This would not only put a control on your savings but would also help you to identify all those expenses which you thought as your need all these times.
The Categories of Spending
Spending can be categorized into three categories and dealt with accordingly. You have to meet the fixed expenses that include the rent or mortgage payments along with the entire utility bills like power and water. You would also have to pay the bills for your phone and internet, cable TV, gas and all other expenses that you have been paying every month for years now and cannot change it for living your life. Then there are the variable expenses wherein all the grocery bills along with dining and entertainment would be included. Lastly, all the debt expenses including credit cards and student loan would come into.
Plan and Set Aside
You should make a proper planning for all the payments you need to make and keep aside money for the fixed and other expenses. You should also budget for your debt payments and can click here to know more about it. When you have paid your fixed expenses, you should come to the payment of your variable expenses, and this is the only area in which you can make some curtailments. If you see that your spending is exceeding your income, then you should curtail some variable expense and save some money for your travel plans.
No More Credit Cards
Store your credit in a safe place so that you do not use it and further hamper your debt situation. It is best to give it to a reliable friend and take it back only when the financial situation is revived. It is unwise though to cancel or freeze your credit card as you would have to pay whatever due to remaining upfront. For your information, credit card interests are the highest and the most dangerous ones who should be avoided at all cost because once it starts, it spirals up pretty fast.
Get Your Debt Organized
Take out all your debts and find out the entire amount due. Prioritize the debt according to the rate of interest on each and continue paying more than the minimum for the highest one so as to clear it off first and fast. You would have extra money in hand to continue to do so with other debts. You can also do it in a reverse way if you want to reduce the number of debts fast. Either way, you benefit and save money so that you can travel even while being in debt.