The surmounting student loan debts, credit card loans, and utility bills do not stop millennials from pursuing their travel passion. In 2018, millennials splurged a whopping $200 billion on travel alone, with 33 percent of the US millennial population planning on allocating a $5,000+ budget for vacations.
Why Millennials Love to Travel
Growing up when the world was in the early days of embracing digital technology, millennials are the first digital natives exposed at a young age to the wonders of the internet. As of the current, 90.4 percent of millennials are actively using social media, spending at least 3 hours a day, on average.
Millennials are often inspired to travel to certain destinations with posts they see on social media, often carefully curated to peak their interests. Millennials travel because of experience. They want to taste as well the unique cultural immersion they see on social media.
Millennials do not travel as tourists. Instead, they shy away from the cookiecutter typical tourist experience and immerse themselves in an authentic cultural experience offered by the locals. Unlike older generations, 86 percent of millennials seek out travel destinations with historical or cultural significance.
Over the years, millennials received a lot of bad rap regarding their spending habits. Boomers and older gen Xers cannot fathom most millennial life choices. But gradually, people have a deeper understanding of why the majority of millennials settle for a lifestyle deviant from the previous generations.
How Millennials Raise Funds for Travel
Despite juggling several financial responsibilities, it is surprising how millennials can still afford their travel lifestyle. Through recommendations coming from avid millennial travelers themselves, we have come up with a list of how millennials can afford a travel lifestyle.
Move Back Home or Live With a Roommate
For a young person living in the city, splitting utilities and rent is extremely helpful in savings. In upscale cities like New York and San Francisco, you can save up to $700 or more per month when you live with a roommate. The only downside of this decision is that it may not be the right choice for everyone.
Another option to save up money not just for travel is to temporarily move back home with your parents. Though it is not exactly an attractive option, you can undeniably save a lot from groceries, rent, and utilities, allowing room for travel expenses.
Prepare Own Meal
Millennials spend a sizable portion of their income on dine-ins and take-outs. The majority are even willing to splurge on a lavish meal more than they could afford just for the experience. Furthermore, with a busy lifestyle, most millennials opt to rather eat out than spend a significant amount of time preparing meals.
But for some millennials wanting to double up their savings for travel, cutting back on restaurant meals is the key. Imagine, if you spend around $15 on every weekday lunch, preparing your own meal could help you save up to $300 a month. In a year, you could raise an amount of $3,600.
Take a Side Hustle
For most millennials who cannot give up their lavish lifestyle, doubling up their source of income is the best solution. Many millennials take up multiple side hustles to fund their trips.
There are plenty of side hustle options millennials could choose from. Apart from the traditional babysitting, coaching, and dog walking, there are several online freelance jobs available. In some cases, millennials even join paid market research programs in order to raise money.
Owning a car may appear to be convenient, but such convenience comes with a huge commitment cost. You have to allocate money for gas, insurance, down payment, and maintenance service. And if you think Uber helps you save on those expenses, think again.
Opting to use public transportation allows you to save, on average, $1,000 or more in a month if you live in major cities like New York, Los Angeles, and Chicago.
Perhaps the only two major drawbacks of commuting are: long commutes and waking up early. But comparing the slight inconvenience with the cost, you can ultimately save a lot.
Cutback on Starbucks
The millennial generation is also dubbed as the coffee generation, with the average millennial spending almost $2,008 every year on coffee. Spending $6 a day just for coffee can significantly put a dent in one’s savings. It is the small expenses that we do not account for that essentially put us out of budget.
If you do not want to go cheap with your vacations, millennial travelers suggest cutting back on those lavish lifestyles. Make your own coffee at home. Invest instead in a durable coffee maker and sustainable coffee tumbler. Not only are you saving money for yourself, but you are also saving the environment. Following these suggestions, no financial setbacks can hold you down from pushing through with your travel plans.