By chelsea evans

One of my biggest fears has been being unable to live the life I wanted because I was restricted by a budget. I feared I couldn't enjoy what I wanted because being on a budget meant "I couldn't spend my hard-earned money the way I wanted to." These beliefs impacted my desire to travel because it was too costly, and my budget wouldn't allow it. I've always had big dreams of going to different countries, but my personal finances often deterred me from those dreams.

If you're anything like me, you may have felt the joyful aftershock of improving your money management skills and finances. Improving financial literacy has always been crucial for my well-being. As Black Americans, financial literacy can be particularly important for achieving economic empowerment and mobility in our community. It requires work and immense discipline to obtain your goals. With that in mind, fulfilling your travel goals can feel discouraging due to lousy money management.

Don't fret because I have some great tips that can help improve your financial literacy and support your travel goals! It's time for a shift in your mindset, and here's how.

Educate Yourself

This one is major because there are so many resources out there that can help you learn more about being more financially literate. Start by reading books and blogs on personal finance and investing. We also live in a world where we can find answers to things right at our fingertips, i.e., our smartphones! So, if you're not into flipping pages, use your smart devices to listen to podcasts on financial learning. A podcast that I tune into is The Black Girl Budget Podcast. Nicole Donnell speaks on wealth and ownership disparities among black women and how they can impact their financial stability and well-being. This podcast highlights these issues and provides strategies for overcoming them. Nicole takes her audience on a journey to gain practical advice for building wealth and achieving financial freedom.

Social media is also a great place to start when educating yourself because you can easily follow financial experts on Instagram, LinkedIn, and Twitter and join a personal finance Facebook group. Another way to educate yourself would be to attend webinars or conferences on financial literacy.

Set Financial Goals

Setting financial goals before you start traveling is essential in ensuring that you can afford the trip and enjoy it without financial stress. These could include saving a certain amount of money each month, paying off debt, or creating a travel fund. My favorite thing to speak on when it comes to financial goals is the topic of having savings. Let me be honest with you here; it's hard! Once you know your travel budget and expenses, the next best practice would be to start saving as early as possible.

A good rule of thumb would be to give yourself some financial cushion to have at least six months worth of savings before travel. That part sounds easy, but it can be challenging when you have to pay for other major expenses and don't have extra to put into savings. In addition, sometimes unexpected expenses can come up, making it harder to reach your goals. The good news is that you can set a monthly savings goal and adjust as needed. You can start saving at a comfortable pace for yourself to lighten the load.

Setting financial goals before you start traveling is essential in ensuring that you can afford the trip and enjoy it without financial stress. These could include saving a certain amount of money each month, paying off debt, or creating a travel fund. My favorite thing to speak on when it comes to financial goals is the topic of having savings.

Let me be honest with you here; it's hard! Once you know your travel budget and expenses, the next best practice would be to start saving as early as possible. That part sounds easy, but it can be challenging when you have to pay for other major expenses and don't have extra to put into savings. In addition, sometimes unexpected expenses can come up, making it harder to reach your goals. The good news is that you can set a monthly savings goal and adjust as needed. You can start saving at a comfortable pace for yourself to lighten the load.

Create a Budget

Developing a budget can help you track your expenses and avoid overspending. It can also help you save money for future travel expenses as well. Before planning a trip, determine how much you can afford to spend. This will help you set realistic financial goals. A good practice is to break down your expenses into categories.

Once you have an overall budget that includes your everyday expenses, you include categories such as airfare, accommodations, food, transportation, activities, and souvenirs. Breaking down your costs will help you see where you might need to cut back and where you can allocate more funds. Even if you don't have the trip planned, this will help alleviate some stress of wondering if you can afford a trip.

At some point, we all need help with our financial goals. So, I’ve included a Travel Budgeting Worksheet below to help you organize your expenses and plan your budget for your next trip.

Travel Budgeting Worksheet

Transportation Costs

Airfare/Train/Bus tickets: $__________
Airport/Train/Bus station transfer: $__________
Rental car: $__________
Gas/Tolls/Parking: $__________
Public transportation (taxi, bus, metro, etc.): $__________

Accommodation Costs

Hotel/Airbnb/Hostel: $__________
Resort fees: $__________
Taxes and surcharges: $__________
Cleaning fees: $__________

Food and Beverage Costs

Meals at restaurants: $__________
Snacks and drinks: $__________
Room service: $__________
Tips and gratuities: $__________

Activities and Entertainment Costs

Tours: $__________
Entrance fees (museums, parks, etc.): $__________
Equipment rental (ski, diving, etc.): $__________
Shows, concerts, and events: $__________
Other activities (spa, golf, etc.): $________

Miscellaneous Costs

Travel insurance: $__________
Visa/Passport fees: $__________
Souvenirs and gifts: $__________
Communication (internet, phone, etc.): $__________
Emergency expenses: $__________

Total Expenses

Total estimated expenses: $__________

Savings and Resources

Personal savings: $__________
Travel rewards points/miles: $__________
Gift cards and vouchers: $__________
Other resources: $__________

Budgeting Plan

Estimated daily budget: $__________
Length of trip: __________ days
Total budget: $__________

Tips for Using the Travel Budgeting Worksheet

Be realistic: Make sure to account for all expenses, and don't underestimate costs.

Research and compare: Look for deals and discounts, and compare prices before booking.
Prioritize: Focus on the activities and experiences that matter most to you.
Plan ahead: Book in advance to secure lower prices, and plan your itinerary to avoid unnecessary expenses.
Be flexible: Consider traveling during the off-season or adjusting your itinerary to save money.
Track your spending: Keep track of your expenses to make sure you stay within your budget.
Enjoy your trip: Don't stress too much about the budget - remember to have fun and make the most of your travels.

Use Credit Wisely

Credit cards can be helpful for travel, but they can also be a source of debt if not used responsibly. The best thing to do is learn to use credit cards wisely to avoid unnecessary debt. A good rule of thumb would be to keep your credit card utilization low. Your credit utilization is the amount of credit you use compared to your credit limit. I know that life is hard, and it can be easy to swipe that credit card when you're in a financial pinch. Before doing that, keep your credit utilization below 30% to maintain a healthy credit history. By doing so, you could also apply for credit cards that have great travel perks and rewards.

We want to help you reach your travel goals, but not go into debt while trying to. So here are five things you can do to manage travel credit cards responsibly:

Set a Budget: The first step to responsible credit card use is to set a budget for your travel expenses. Calculate the cost of your trip and determine how much you can afford to spend on your credit card.
Choose the Right Card: Look for a travel credit card that offers the best rewards and perks based on your travel needs. Read the terms and conditions carefully, and compare the card's annual fees, interest rates, and rewards program.
Monitor Your Credit Utilization: Keep your credit utilization below 30% to maintain a healthy credit score. Check your credit card statements regularly and keep track of your spending to ensure you don't exceed your credit limit.
Pay Your Bills on Time: Late payments can hurt your credit score and lead to unnecessary debt. Set up automatic payments or reminders to ensure you pay your credit card bills on time.
Use Rewards Responsibly: Don't let the excitement of earning travel rewards cloud your judgment. Only use rewards to pay for travel expenses and avoid overspending just to earn more rewards. Also, check for expiration dates of rewards, and use them before they expire.

By following these steps, you can use travel credit cards responsibly and avoid debt while enjoying the perks of travel rewards. Remember to always stay within your budget and pay your bills on time to maintain a healthy credit history.

Travel is an excellent way to explore new places, learn about different cultures, and create lasting memories. By setting a realistic travel budget, finding affordable accommodations and transportation, and seeking out free or low-cost activities, you can experience the world without sacrificing your financial security. With careful planning and practicing smart money management, you can make travel a reality without breaking the bank.

Always remember improving your financial literacy is a lifelong journey that requires ongoing learning and adaptation. By staying informed, focused on your goals, and making wise financial decisions, you can achieve financial success and live the life you've always dreamed of.