6 Reasons to Open a Travel Savings Account

Hello, my traveling friends! It’s a start to a new year, and that means taking the reins back on our finances and/or starting new goals & manifestations.

This year, I decided to break out my savings into 4 separate accounts. One of them is a depleting savings account, specifically for travel.

Why you may ask?

Well, here’s my 6 Reasons to Open a Travel Savings Account!

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Table of Contents

6 Reasons to Open a Travel Savings Account

Now, I’m not a financial advisor. I am, however, pretty good with money.

I spent 2019 paying off all my student loans to be debt-free in 2020. A goal I accomplished faster than anticipated due to determination. I’ll make a point to talk more about my financial journey this year. I know it’s a goal for a lot of travelers.

Going into 2022, I’ve realized the only thing I want to spend my money on this year is: Travel.

Keep Savings Separate

Choosing to separate your savings accounts, isn’t a new concept. Many do this. It’s similar to the envelop system, except your money will remain in a high-yield savings account so it’s easily accessible.

I love seeing money go into this account. Perviously, I lumped all my cash together and hated seeing anything come out of it (even for emergencies, or a new car battery, etc). For the first time, I’m comfortable seeing it deplete, so long as it pertains to travel.

Budget Travel in Advance

Having a separate savings account is super helpful for budgeting. I can predict and calculate how much is going in and how much I will have by a certain month, etc.

Knowing how much I’ll have this summer is important to me, as that’s when I want to be the most adventuresome.

Prioritizes Travel

Last year, I was nothing short of terrible about taking PTO. One of my goals this year is to be more conscious of work/life/balance.

Since I’m one person, I have the luxury of making travel my priority. Additionally, seeing the funds in that account makes me want to spend it on something worth my wild. As opposed to a new handbag, etc.

Helps Organize Your Spending Habits

From booking your flight to buying groceries or restaurant expenses – having a separate account can help cover those costs and, also, monitor them. You can easily figure out where you’re overspending or not spending enough. It’s also helpful to see if you should go big somewhere or take a less expensive adventure.

It’s Tweak-able

Though I set up automatic deposits into my travel savings account if I need to borrow from another account I can. Additionally, if I am over budget and need to cover an expense somewhere else, it’s a quick transfer.

Pay Off Your Card ASAP

It has never been easier to pay off my credit card’s travel expenses every month. As mentioned in my 2021 Recap & Goals for 2022 post, I’m learning to maximize my credit card points. This helps me stay on track and pay it off immediately.

It’s Stress-Free

I no longer feel terrible about spending money to travel. I’ve set aside the funds and I get to use them as I deem fit. I used to have such stress just seeing it come out of my standard/nest-egg savings account. It’s freeing and eases my anxiety to know how much I have and plan where in the world I want to go/spend it.

I love sharing posts on how I finance traveling solo with you guys. It’s not always easy and I often stick to a budget but this is exactly why having a depleting travel savings account is resourceful.

Do you have a savings account for travel? What do you love and hate about it?

Happy savings, dolls!