It’s been more than a decade since I started traveling our very own country and visiting its nearby nations like Japan, South Korea, Singapore and China. For me, it was the most liberating and exciting years of my life as I got to experience a lot of things, meet so many interesting people and try simple (and sometimes strange) activities.
And in those ten years of exploration, I suddenly realize how my travel lifestyle has extremely changed. From being a budget traveler in the early years, I started splurging halfway. It was only in the last 3 years when I started thinking of future finances and investments. It was only then when I realized that I need to prepare for my future and my loved ones. This is how I do it and I hope it will somehow help you start in preparing a financially stable future.
Budgeting. I computed how much I was earning every month and started listing down my usual expenses. Basically, my money comes from my salary which I earn from my full time job. Sometimes, I get to earn extra money from doing part-time jobs like writing and blogging, but those projects are very rare especially nowadays. My expenses surprised me a lot. Listing down everything gave me an idea that I was spending too much on things I don’t really need. Aside from the basic monthly expenses like apartment rent, food, transportation, phone, electricity and water bill, I realized that online shopping cuts a big chunk of my salary. From then on, I started doing the 50-30-20 rule. Fifty percent of total monthly earnings would cover my personal and my family’s basic needs while the thirty percent would go to my daily expenses, wants and my emergency fund. The remaining twenty percent would go to my savings and investments.
Avoid debts. I tried to avoid any forms of debts as much as possible. I stopped using my credit cards on some unplanned expenses and online shopping. I unlinked it to prevent myself from immediately purchasing something online. Since the pandemic is not yet over, I also stopped purchasing advance flight tickets and hotel accommodations. I remember I wasted some money on travel related expenses which I can no longer enjoy since I was having a hard time getting my refund. In order to guide me on managing my finances, I started researching on different platforms like blogs and podcasts on financial management. I also came across a website which offers the reader the resources, tools and program to get them out of debt. You may also want to check the said website here to learn more.
Save. I opened another bank account so I can immediately transfer my savings. These savings will serve as my primary resources when I want to travel in the future and will also serve as my alternate fund in case an emergency happens.
Invest. I made investments on insurance, bonds and real estate. Quite hard at first for someone who doesn’t earn much but it is already a good start to prepare for my future. You can consult a financial adviser or read blogs on financial literacy in order to guide or prepare you on what you will be facing.
If there is one thing I somehow regret, it was starting quite late. So as a piece of advice, start while you are young if you can. Try putting part of your hard earned money to good use. Save in a bank, invest even a little money. There’s nothing wrong in preparing for a better future where you are financially stable and have nothing much to worry about.