Due to the pandemic, many travel plans this year have unfortunately been cancelled, postponed, or changed. A lot of scheduled trips and dream vacations have been put aside as safety precautions. For those who availed travel insurance in the Philippines beforehand, this could help recover some of the expenses.
As this year was unpredictable, it is reasonable to redirect savings to essentials for the time being. This, however, doesn’t mean you can’t set something aside for future travels. If you’re wondering how, here are ways to save money for your next destination:
Adapt a budget plan for the new normal
Budgeting is a challenging task with limited resources. Using a journal or phone app, take note of all your expenses from now on. Assess how much you have in your bank accounts and cash you have on hand. Next, write and visualize all expenditures to easily account for them later on. Review, downgrade, or cancel plans and memberships as necessary for you to minimize spending.
Test out the 50/30/20 rule
For budgeting beginners, the 50/30/20 method is a simple plan to attain your financial objectives. Allocate your money to 50% on essentials or needs, 30% on flexible spending or wants, and 20% on goals or savings. This is a good start to organize your expenditures. You can gradually adjust these values later once you see what works for your lifestyle.
Set a weekly target
Setting a daily or a monthly goal can be ineffective. Checking your savings everyday can also add unnecessary pressure on you. On the other hand, evaluating every month might get you shortsighted on unexpected problems brought by the crisis. One way or another, you must find an efficient way to monitor your financial status. A weekly target would be manageable enough for many of us.
Schedule online shopping
Similar to physical purchases, scheduling for online shopping would prevent you from buying items on a whim. With the exception for emergencies, you could plan to order essentials like groceries and supplies in bulk. Give yourself enough time to compare pricing, find better alternatives, and anticipate sale promotions.
Find additional sources of income
This is the time to gain more means of livelihood if you can. Keeping your job or business during the pandemic is advantageous. If looking for a full-time job seems tough, part-time or freelancing work might temporarily suffice. With proper research and help, you might also want to look into doing online business.
Overall, slowly building up your savings for future travels is strategic to avoid clashing with your current needs. Protect yourself from other unforeseen inconveniences by getting insured with a trustworthy insurance company in the Philippines.