phuket

Love backpacking? Use this smart way to save for your trips

Long term travel is catching up fast around the world. If you go to South East Asian countries, you will see Americans and Europeans staying in a hostel for months! Some join the hostel as a staff while some take up other interesting projects, like Laila who we met in Thailand. She is an Australian and visited Thailand as a long term traveler. But, she fell in love with the turquoise waters and a carefree lifestyle. Now, she is a professional Scuba Diving instructor and just living life in its sweet moment at a pace which she likes.

Such experiences in foreign lands are etched in their memory forever and they can reminisce the memories throughout their lives. Wouldn’t you also want to have such splendid experiences? Well, we all do!

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With Laila in Phuket, Thailand  

However, the 1st argument that my friends make is the strength of different currencies. Euro, USD or AUD are definitely stronger currencies than Indian Rupee. But, this shouldn’t be an excuse to throw your dreams out of a window. If you take charge of your financials, you should be able to save enough money for long term travel. If not a year or two, it’s easily manageable to save enough for 3 months.

Now, I have been saving for long in order to fulfill my long term travel desire. As of date, I have been able to save well and have reached 70% of my target. So, how am I doing it?

Initially, when I started saving, it was a difficult thing for me. I had just started earning and splurged money carelessly on various lifestyle facets. An expensive dinner and drinks over a weekend would cost me a bomb. So, I wanted to start compulsory savings to curb my expenses. When the Salary is deposited and the next day half of it gets deducted and deposited in savings, you don’t have any option but to limit your expenses. The disposable income is now lesser and this directly relates to lesser expenses.

I started SIP Investment plan and initially, I deposited 10% of my salary every month. This was deducted automatically and I realized that my expenses were dropping substantially. After a few months, I increased my SIP Mutual fund investments up to 50% of my Salary. I used to go broke at the end of the month. But, the only thing I compromised on was a lavish dinner overlooking the ocean. Well, I have had many of those, so no regrets.

Everyone has dreams and goals that they want to fulfill. In my case, traveling full time is a great desire. These goals need a smart planning and SIP will be that one-stop solution for fulfilling dreams such as mine. For example, “Sabse Important Plan by Birla Sun Life” is a good SIP tool to start with. It will analyze your risk appetite, ask your goals and suggest good portfolios for investment.
One thing you need to know about SIP mutual funds is that they are not like shares. Instead of buying shares of a particular company, you invest in units which compromise of shares of many companies. This helps you to mitigate risk and diversify your investment across various companies. Additionally, there are mutual fund managers who come with years of experience. So, your investment is in safe hands.
I hope you found this blog useful. Start saving now! It is recommended to buy SIPs directly from the company. Invest and take a 3 months break from monotony a year from now!

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Umang Trivedi

umang.trivedi71@gmail.com

I started travelmax.in to share my travel stories around adventure, offbeat experiences & Budget travel in India & around the world. I also compile travel tips & ideas for you! Feel free to explore my website & leave comments!

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