Should you give up traveling due to the current economic state?

To travel or save, that is the question!

Apr 24, 2025

$10 was written on the price tag. I wouldn't have batted an eye if the price tag had been attached to a t-shirt or fancy mug. Yet, when I saw the black numbers printed on a yellow price tag for a carton of a dozen eggs, I froze in disbelief.

While visiting my family in California, I expected eating out to be costly, but going to the supermarket felt like my wallet was competing in the Olympics.

Now that I’m back in Spain, I don't have to sell my soul for a carton of eggs. However, the country of tapas and flamenco isn’t an exception to inflation. Thankfully, we aren’t experiencing the exorbitant prices of the US. Yet, prices are rising here, too.

I think it's safe to say that most people are sweating bullets over their finances.

And because grocery bills are looking like medical bills, it doesn't leave a lot of money left over for leisure activities such as travel. Many wanderlust individuals like myself are wondering if they should cancel their upcoming trips. After all, we might need to use that money to stock up on canned food.

If you're feeling like you're in a financial limbo between saving and spending, I have some insights to share with you. Hopefully, my advice and personal experience will help you make the best decision for yourself.

I’ve been living abroad and managing life as a solo entrepreneur. I’ve made money, mistakes, and everything in between. I’ve also spent the last four years as a freelance finance writer and money and travel coach.

Needless to say, I know how to manage my money during hard times. Here are some steps you can take to do the same.

Let’s dive in.

Being a big girl when it comes to my money

As I write this, the butterflies in my stomach are fluttering around. I’m going to get a little personal here.

When I moved abroad seven years ago, I took something with me that has been a mental and financial burden for the entire time I’ve been abroad: my debt.

Now, I won’t lift my skirt too much and reveal how much debt I moved abroad with. I will say it was a significant yet manageable amount.

Over the past years, I’ve been hustling to pay off my debt. Luckily, the lower cost of living has helped me to support myself, pay off two debts, and have a little money left over to enjoy things like dance classes and traveling. My financial journey has meant I've had to make sacrifices and say no to things I really wanted to do.

Needless to say, I've learned how to manage my money during difficult times.

So, if you’re stuck between "I know I should save, but I want to travel," I know exactly how you feel. Here are some ways you can do both.

How to save money and still have money to travel

With any advice, focus on doing one thing at a time. Slow and steady wins the race.

1. Understand your financial situation

What I’ve learned is that we may be aware of our financial situation but not understand it. This means you may know that you make enough to pay your bills, you have your spending habits, and have X amount in savings.

However, do you understand the ins and outs of your financial situation? Do you know how much money is coming in? How much is being taken out for taxes? What are your money leaks? Where are you wasting money?

To understand how you’re using money in your life, you can do three simple things: track your income, expenses, and spending. This will give you a full picture of your expenses and tell you if you need to cut your spending, save more, or if you’re financially sound.

2. Do you have enough money saved for emergencies?

Let’s face it, no one knows what’s going to happen with the economy. With the administration flip-flopping like pancakes, we’ve been teetering closer and closer to a recession. So, the most important question is: do you have enough money to cover yourself in an emergency?

If you lost your job, could you still buy groceries? If your engine stopped working, could you replace it? If the answer is no, then having an emergency fund can help you during these difficult times.

The recommended advice is having at least three months of living expenses saved. If that amount seems too far away, focus on saving a smaller amount, even if it's $100 at a time.

Protip: Setting up automatic deposits into your savings account is one of the easiest and fastest ways to grow your savings.

3. Pay off debt

If you think debt is something you have to live with, I encourage you to reshape your thinking. Even if you’re able to make your minimum payments every month, debt can be the wart on your finances that can get worse in time.

One way I racked up debt was by trying to earn travel credit card points. I wanted to be cool and travel for free. As a result, I spent way too much on my credit cards and wasn't able to pay them off. But if I had to do it again, I'd be smarter by:

Using my credit card to pay mandatory expenses
Paying my bill in full each month
Reading the fine print

Remember, unlike wine, debt does not get better with time.

Focus on paying off your debt, and once it’s all gone, or you’ve made a signiicant dent, you can use that money to put towards traveling.

4. Readjust your budget

Now is a great time to reexamine your budget. If you don’t want to cancel your future trips, consider what other expenses you can cut to put more money towards your trip.

If you haven't already, put a travel category in your budget. Treat that category like a regular bill. Set an amount that you're going to add to your travel fund every month.

5. Focus on traveling locally

This is something that I’ve been focusing on. Living in Andalucía, I've been to the big cities like Seville, Granada, Cordoba, and Malaga. But there's a special charm to places like Alcalá la Real and Valdepeñas. Yeah, you've probably never heard of those places. Yet, small cities provide enchanting landscapes and open communities you can't find anywhere else.

6. Save for bigger trips and travel where the dollar will go far

Sometimes it’s not about how many trips you take but where you go. Focus on that big trip you really want to take. Adjust your savings so you can go all out on that trip. Additionally, try to go to places where the US dollar will go far.

7. Look for different ways to travel

The great thing about travel is that there are so many ways to experience it. For example, there are:

House Sitting
Volunteering
Homeswaps
Traveling for work

Looking into other ways to travel can save you money and open you up to new experiences.

8. Increase your income

More money can mean more travel. So, focus on increasing your income where you can, such as raising your prices, asking for more hours, starting a side hustle, and sell your skills.

I started this year being able to earn more money because I was brave enough to raise my rates with one of my clients. It’s scary but often a necessary task.

I hope these tips are helpful. Comment below which one you'll be trying out.

Things to read

Here are some things I’ve written or have read that I think will either inspire you, help you or at least make you smile.

Things to watch

If you need some visual stimulation here are some things to watch.

How much money do you need to move abroad?

Signing Black In America

Thanks for reading. For more money tips and stories about living in Spain, make sure you subscribe.

Kiersten’s Substack

Discussion about this post