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I will share five steps to save money to travel. Before I list the steps, I will share my goal for 2022 to earn a companion pass with Southwest Airlines. I surpassed the 2021 goal; I achieved A-List Preferred. Before you follow the five steps, think about your 2022 goals.
Four years ago, I started using a savings plan circulating on Facebook. I saved $1.00 the first week of the New Year, $2.00 the next week and continued the pattern throughout the year. When I read a post on another travel blog, I opened a savings account at a different bank. It is easy to spend your travel funds when saving in the same bank where you pay your bills. I scheduled deposits every other month. You can also save $114.83 each month. Whichever plan you choose, you will save $1378.00 each year. However, I needed a backup plan. I dipped into the travel account around Christmas to buy gifts.
I opened a savings account with $5.00, and there is no minimum monthly deposit. There are no monthly service fees. Do not withdraw money or close the account early. A check will arrive by mail in November, or I can set up a direct deposit to send my earnings to another account. The Christmas savings account is FDIC insured.
“You got any spare change?” In 2021, I saved $46.00 in spare change. I deposit the coins in my travel account at the end of the year. I jumpstart my savings for next year. Do you need a digital coin counter? Click on the image below.
I set a budget for my credit cards. I intentionally put aside $200.00 a month to pay Southwest, $150.00 for Amex Hilton Honors, and $100.00 for Marriott Bonvoy. Because I charge everything on my Amex Platinum, it does not matter what I charge. I will pay the balance at the end of the billing cycle. My rule is, “Don’t put anything on the platinum card if I cannot make the payment by the due date.” Southwest is the only account that will carry a monthly balance, especially if I find more than one great fare.
If there is cash that I did not spend on a trip, I add the “extra” money to my next trip. Here is a recap of my budget. I save $450.00 a month to pay for flights and accommodations and use some cash from my travel savings account as spending money. You will save based on your income and the credit cards in your possession. You may not know where you will be traveling in 2022, but you can think about your budget. I shared five steps to save money to travel.
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