Wednesday, January 11, 2012

Laying a foundation to budget traveling.

Lay The Foundation

  1. Pay yourself first. Contribute to 401k, buy stocks, antiques (I’m kidding), or other types of investment. A portion of your paycheck MUST go to post-travel life. Very fortunate few get to travel for a living, most likely you won’t be one of them.
  2. Pay off your debt. Or even better, do not get into debt.  I have lived debt free ever since that. Being in debt also means being in a commitment (to pay it off), which brings me to the next point:
  3. Do not get anything that require commitment. Do not buy a house, or a car, or a 2 yr cell phone contract… Do not get pets who live for a very long time either. If you can not imagine living without animals (like me), consider fostering for your local animal rescue. It’s a win-win situation. BIG BONUS: You also get to save a life.

Save, save, save

  1. Downgrade. Move to a cheaper place. It’s the easiest way to trim your expenses. I saved a lot month by moving to a smaller AND closer-to-work apartment.
  2. Find a cheap hobby to keep yourself away from movies and malls on weekends. Do not get into rock climbing . It’s addicting and expensive. You end up driving very far on weekends, spending money on food and gas. Not to mention the equipment.
  3. Cook more. You can save tons by not eating out. I’m serious.
  4. Do the many little things that make a big difference in savings. I don’t go to the malls, I put on more layers than turning on the heat, I make my own coffee rather going to Starbucks.

So, that’s the short list of things that have worked for me (and have not). I wish I could give an insider tip on what to invest, or some other big money-saving revelations. But unfortunately, it’s just a matter of making sacrifices (but not too many of them), and attempting to strike a balance between living in the now and saving for the future.

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