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Monday, June 17, 2013

How I Manage My Travel Fund


As a traveler you can't avoid running into a wall of queries about where you get your travel fund. I've hit my head smack on it numerous times, each instances explaining the cliche answers of "working hard and saving up". Which is easy to say but an entirely different world applying it in the real world. I am currently juggling between traveling and a day job, so while I earn a decent and regular income, there are the questions of how to handle these funds to financially support my passion for traveling and at the same time saving up for rainy days. I started saving a few years ago and is now planning to open a bank account online to separate my travel fund from my actual fund for everything else. 

The fund for everything else should reach an amount that could sustain you for six months, just in case the economy turn bad and you find yourself without a job. My travel fund, of course is in an amount which could sustain me a couple or one more trips in the future. Choose, and if possible switch bank accounts for the best deal. Look for a bank that also offers a debit card which you could use in other countries and with the lowest transaction and currency exchange charges.


In my case, almost all of my salary goes to my savings. I have breached further that six month leeway and wouldn't mind stretching it for a year, while at the same time increasing my contribution to my travel fund. The more money you pour on these two separate accounts, the more secured you will feel about your future and as a traveler, the closer you get to realizing your dream of long term travel.

When you set out for a year on the road, it's also given that you need to quit your job. It's not worth it to throw everything out on the lam for just a year of wham-bam awesome experience traveling, in exchange for becoming broke the rest of your life. Make sure, you fill up that travel piggy bank but also to your personal savings. Besides, you need some show money when applying for visa to other countries :)


I currently follow this tree model of saving up. My travel fund belongs to the instant access obviously for spur of the moment trips. While my regular expenses is my cash-on-hand. Savings account, mutual fund, stocks and other investments are there to support me for a longer term. (you can also get something from here to supplement your travel fund). Then, I religiously save and support each branches every salary day. It's like watering the plants. You do it more often, it will just keep on growing. Tax free is where you can enjoy life at its best. Remember, you can only do so, if you know how to manage your money.






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