LET THE FUND BEGIN
Financial planner Karen Tang shows how you can effectively save money for your dream trips.
START EARLY
For a big year-end vacation, begin saving at the start of the year. Otherwise, three to six months in advance may suffice.
DETERMINE HOW MUCH YOU NEED
Use these factors to help estimate the cost of your trip: the exchange rate; the prices of activities you’re interested in doing; your accommodation; whether you’re going free and easy or joining a tour; your meals; what you’d want to buy there; and travel insurance. When you’re creating a budget, give yourself a 20 per cent buffer – any overflow can count toward your next trip.
SET UP A DEDICATED TRAVEL SAVINGS ACCOUNT
Set aside a fixed sum each month in a savings account. Yes, the interest rate from a savings accounts is negligible, but allows your funds to stay readily available. This is a risk-free RIGHT ON THE MONEY Karen Tang has been a financial planning practitioner for 15 years. karentang.sg Karen Tang decided to become a financial planner after she suffered the consequences of acting on bad financial advice from a trusted friend. “I decided to do everything I could to save people from making poor financial decisions that could cost them dearly in the future,” Tang says. She has been doing so for 15 years now. “Karen is sincere, caring, and competent,” one of her clients says. To provide greater value to her clients, in 2010, Tang completed hundreds of hours of study and sat for six exams to become a Certified Financial Planner™. approach, unlike investments which sometimes take years to be profitable, are subject to market volatility, and may have limitations related to withdrawal.
LIVE WITHIN YOUR MEANS AND REDUCE UNNECESSARY SPENDING
Write a shopping list before heading for the supermarket and stick to it. Do not save your credit card details online so you won’t be tempted to shop. Bring packed lunches to work. Eat more frequently at home. Implement a cash-only policy during the week. Share subscription services with family and friends. Leverage websites or apps that offer deals and discounts on food, goods, and services. These small changes can help you reach your savings target.
KEEP TRACK OF YOUR EXPENSES
Tracking your expenses will help you spot any spending issues you may have so you can make adjustments accordingly to reach your financial goals. To start, download a budgeting and expenses tracking app. Some examples are Wally, Wallet, Spendio, Spendee, Spending Tracker, Seedly and Pocket Expense. If you’re already using an app, that’s great!