Have you ever been dreaming of walking around Paris & New York, soaking in the beaches of Maldives & Hawaii or immersing on Filipino culture and breathtaking view of Batanes and Ilocos? I do! I’m daydreaming right now…
Ride a bullet train in Kyoto, see Cherry blossoms in Osaka, cross Shibuya crossing & dress fashionably in Tokyo, chill at Hello Kitty Cafe, shop skincare products and make-up in Seoul, experience K-pop culture for real are some bucket list items checked last year. I’m not rich, but I was able to spent thousand of pesos to experience all this. What makes it possible? Being frugal and practical, saving and waiting and a lot of research to cut the travel cost.
Two years ago after being debt free, I started this habit of saving for travel. Here are 4 simple steps to start with your travel fund:
Cut your spending. It’s time to evaluate your spending habits. Do this by listing down and tracking your daily expenses. From here you can see where most of your money goes, and which expense you can cut-off to fund your travel. Remember, the money you save from ditching this unnecessary spending should go to your Travel Fund. Here’s the spending habit I change:
- Daily driving to office (I drive to Alabang and commute from Alabang to McKinley)
- Bring baon at work (packed lunch, snacks, fruits, tea, coffee)
- Lessen dining out, watching movies in cinema, posh coffee and milktea
- Do manicure, pedicure, hair treatments, waxing at home
Simple lifestyle works, and it’s the secret of the rich people. I blog about simple lifestyle works inspired by Mr Dave Ramsey, you can check this post.
Allocate “Travel Fund” in your monthly budget. Set percentage of your net income that will automatically goes to your travel fund. Do this every payday and whenever you receive your bonus and incentives.
Earn extra by making use of your skills and resources. Last year, I had extra income from:
- Having my car rented out to service people from Laguna to airport.
- Assist people in online hotel and flight booking and charge booking fee.
Invest. This is where I get my money for shopping when I travel (so that I don’t feel guilty). When you already have enough savings for emergency fund. Start investing your excess savings, put your money in UITF equity fund or in Philippine stock market and get an ROI of around 5-15% annually.
Work, Save, Travel – @imjenicejoy