Pay Yourself . . . to Travel
My motto in life is; work hard, play hard. I believe it is very beneficial to everyone to work hard. No matter what you do, work hard at it. Now, because you work hard, I believe you should play hard. Your life must have balance and so I don’t believe in working all the time. I also think that if you are working hard, then obviously you have specific goals that you want to achieve; whether having more money or just having a better life. You have to be wise about the budget required to play hard, so while you work you must keep that in mind.
From my monthly corporate pay check, I give myself a pay check. So while my pay check takes care of my monthly expenses and obligations, groceries, gasoline etc., my portion does only what I want to do. Invariably most of this money goes to travel. It’s not cheap to travel so you have to be wise financially in how you attain this goal.
Another way to attain this goal is to work in “reverse”. When planning a trip, add all the cost for airfare, hotel, spending money and other incidentals, and make a budget with some flexibility for changes or price increases that may come into effect and impact your budget. Now when you have a total, considering the timeframe for the travel, you can now calculate how much you need to pay yourself from your salary in order to attain that budget in a specified time. As soon as you have the airfare book the flight, and now you have just two other major expenses to cover.
One important rule of thumb is never keep this money in the same account as money for bills and other recurring expenses. You may even arrange with the payroll department at your company to do a direct deposit of this 10% into a separate account. You must exercise discipline and not touch this money for any other purpose. Keep a tab on the amount saved so you will know when to book your hotel, or book the tours you are interested in.A credit union is a great place to stash away this saving that does not have the typical hidden fees of other banking institution.