There are travelers who have left their eight to five job and changed their cubicles into endless roads. While not everyone may cut out the same kind of path, wherein others stick to their jobs while going on travels every now and then, it is important that one must be prepared to secure the future.
Life on the road is not always a bed of roses. There are extra expenses that may be incurred when you are mobile. Plus, a sustainable job may also be a concern. To top it all, various external challenges occur unexpectedly that may often deplete one’s financial resources. Take for example the following events in different countries that rocked the global economy and affected the livelihood of many people.
- Greece debt crisis
- Rise of US interest rates
- Decline of China’s Yuan
- Low global oil price
So, how do you counter these occurrences and make sure that you still have something while traveling? How do you finance your travels and other needs? Here are a few tips that you may want to consider in order to secure your future:
1. Save, Save, Save
While you are still able to earn, make it a habit to set aside a certain amount for your various funds – for emergency and hospitalization, for retirement, for travels, for the family & children, for certain projects, and for investments. Take note, savings is not something that remains after you spend your earnings. It’s the other way around. Once you receive your remuneration or salary, immediately put an amount to your savings account and then budget whatever remains from it. All it takes is a bit of discipline until you get the hang of it.
2. Manage Your Expenses
There are those who argue that they are not able to save because their income is not enough to cover all their expenses. Then, you have to cut down on unnecessary spending or be wise in choosing what you buy, where you are able to get the right value for your money. Maybe there are cheaper alternatives to what you usually spend on? Like dining out, where you can either cook at home or prefer more affordable options than eating in restaurants. Otherwise, if you have too many bills to pay which you feel are important, then you have to find a way to increase your income, whether to look for a higher paying job, or get other work or business opportunities.
3. Monetize Your Time & Skills and Earn on The Side
You may already have a full-time job but the salary is not enough. Or you run your own business but income is not sufficient or sustainable. You have to find other sources of income. If you are traveling, maybe you can blog and earn from it, or build a business online, or take some freelance work, or have your place or car rented out. Your time, skills and assets can help you earn additional revenues that can be added to your funds.
4. Invest and Diversify
Putting all your money on a savings account may not be sufficient to finance your travels and your future. Bank rates are quite minimal. To make your money grow, you can put some (not all!) amount, something that you consider dispensable, into various investment opportunities. And don’t put all your eggs in one basket. Diversify.
Recently, Sun Life Asset Management introduced to us its Prosperity Card, which you can gift to your loved ones and even to yourself, to let people start investing. The card costs P5,000.00 (app. USD 106.40) and the card’s recipient can activate it online through is stores in the Philippines, or through a Sun Life Mutual Fund Advisor and choose from the available six types of investment. It ranges from low earning, low risk to high earning, high risk. As Sun Life Asset Management Company, Inc. (SLAMCI) President Valerie “Riena” Pama puts it, “Investing in mutual funds is now more convenient and more accessible than ever with the Sun Life Prosperity Card. We hope that with this new offering, more Filipinos will start an investing habit and ultimately achieve financial security.” More information can be found at sunlifeprosperity.com.ph.
Be a wise traveler. Make sure that your future is financially secured while enjoying the present by exploring different places. Your passion to see the world shouldn’t put your other plans — like building your tomorrow — on hold. Let PROSPERITY, as much as ADVENTURE, be part of your vocabulary and your everyday life.
Very interesting tips. I may have to invest my savings money to make it affordable to travel comfortably. Thanks
That’s what I do. I work and save for a trip then travel when I can.
Great tips that can be followed easily if we take some care. Saving for future travel can be the motivation for saving!
We do need to carefully plan and prepare for our future. Thanks for that insight as well!
It would be great to be able to travel a lot, but alas, there are definitely expenses to think of. These are really helpful, it’s important to have a budget especially when you’re in a different country with a different currency.
One must be conscious about budget, spending and future needs even when traveling.
Great post Claire. We definitely can’t be reckless and careless. We need to be aware and responsible. Part of being responsible is being aware of our expenses. One of my good high school buddies, Michael the Happy Solo Traveler who is also from Bacolod, is able to travel pretty much everywhere because he’s still earning even if he’s traveling. Because of the internet, that sure is possible. Thanks for sharing!
That sounds great! I also do online work so that even when I’m mobile, I can still earn.
I bookmarked this blog. i myself would like to have a life of travel but at the same time also have a secured finances.thanks for sharing this.
I’m glad this is insightful. I’m happy that my post can inspire or help others.
Interesting tips…. Its all the more difficult for me when I’m an entrepreneur with my own business to take care of, but I still love to travel. Where to put money – business or travel? And how to keep the business stable when I travel??? Big headache, but still, I love both too much to give up on any!!!
I think you get more opportunities with having your own business. You can travel and do business. 🙂
It would be a nice mix if you use other sources of income when you travel. It would enable you to save your regular income yet still maintain your travel passion.
Yes, I so agree with you. Thank you for that sharing.
I’ve have a friend who is into investment shared with me similar tips like these, true that we should not only focus in one area. No harm putting them in others as well, so if one fails at least there are back ups.
I’ve heard the same from many financial managers, which I think is logical and helpful.
I am fond of travelling and now it means with family. So you need to budget out wisely before planning a trip and we keep our finances on a way that we have a fair share for travelling.
Though I mostly travel with friends and we split on expenses, I’ve traveled also once with relatives (with children and elderly) and budgeting was really a big consideration then as we had to shoulder most of the fees and other spending.
As great as it is to be reckless and live in the now, it’s also wise to think about your future while traveling. I think a great balance is needed. I wouldn’t want to miss out on amazing things I can do while I’m young because of worrying about the future either.
I agree on you with that. Some are too conscious with their financial status that they also miss on certain experiences. A good balance is truly the key.
I’m now officially a SunLife investor and I’ve gone through the first brighter life institute course so I’ve come across the topic on diversifying your investments as well. 🙂 I like how they make investments accessible to regular people.
That’s great to hear! I have a Sunlife account as well but I still have to meet again with my financial advisor after I attended their press con.
Well time are not really good so we all have to spend wisely. It will be great if we can have passive income, we still can have income even though when we are not working. That helps a lot.
That’s right. Passive income can help us save for the future.
Insuring your future is always good. Hoping that the company you insure with will deliver the goods when the time comes is another thing.
I agree. One has to really look at various options and the credibility of the companies they invest in.
This is easier said than done. 😛 But thanks, nevertheless! I totally agree with the suggestions here. It is very challenging to save money for the future, while traveling deals are scattered all over your webpage. I have realized that I could still enjoy traveling while saving for the future by setting aside a travel fund and sticking to it. I also prefer hostels and inns. The only test now is how to get my bf to do the same. hahaha