Traveling today is hard. When you tell your friends or colleagues that you want to travel, they start sharing with you posts of travel groups and budgeted travel plans. But what is the point if you do not have even have a budget? Hence, today, we will be sharing how you can save up and be able to do whatever you want to relieve your stress.
Step 0: Save half the salary
If you earn, for instance, a salary of PKR 50,000, save half of it. Put it into your savings account. Once you only have PKR 25,000 you will be forced to follow the rest of the steps. In fact, you will limit your spending to that amount only.
Step no. 1: Set a goal
First of all, set a goal. You may think that you already have numerous goals so once you have money, you can choose any and follow through. This practice is endorsed neither financially nor psychologically.
By financially, I mean that when you have numerous goals, your saving will not be able to help you afford all of them. And this will boil into psychology as well because midway when you look at your saving and 15 expensive goals, you will lose confidence. Therefore, one goal at a time!
For this article, let’s keep the goal as travelling.
Step no. 2: List your luxuries
List all your luxuries. You may think that you do not have any luxuries, but trust me, you do. All the online shopping that you do as soon as you get your salary, is a luxury. If you order food from restaurants while at work, that is a luxury. Basically, anything you can do without is a luxury. So, if you think that this month, you need two dresses, stop at two. Do not buy ten, thinking that you will be using them regardless. The eight dresses are a luxury.
Step no. 3: List your primary expenses
List your primary expenses as well. There are expenses that you cannot do without. This will include rent, utility bills, travel to and from work, food, toiletries, grocery shopping. At times, you do not have rent expenses on your head but you have to contribute, so add that amount.
Step no. 4: Filter the expenses
Now, filter these expenses. Rent and utility bills cannot change. However, see if you can make some changes to your daily transportation. If you are choosing expensive avenues, go for cheaper ones. As for food, see that if you are ordering online every day, start bringing food from home. When you go grocery shopping, do not buy more than what you need in a month. There is no point in getting four bottles of ketchup if you can do one.
Step no. 5: Set a daily limit
Once all that is set, also have a daily limit. The daily limit allows you to have a breath of air. It’s like pocket money that you give to yourself because if you don’t have anything to spend, you will suffocate and end up spending all your savings.
Step no. 6: Save the rest
This is rightfully the first point as well as the sixth point. Everyone has a different salary ratio. After you have made sure your primary expenses are taken care of, save the leftover amount.
Four months in, you will have your PKR 100,000. Even if you were forced to spend 20,000 somewhere in the four months, you will still be able to save PKR 80,000. You can easily travel in this amount.
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