Some people have the money but don’t have the time to travel. Some have the time but don’t have the money. But there are those who just know how to manage the two and enjoy the travel life.  Time and money play important factors on how one can travel.

This topic has been one of my dream posts. I’ve been itching to write this since many of my readers/friends were asking how I fund my travels. Here’s one example from Faye (I asked her permission to post her message):

Question:

hi, just a quick question. how do you finance your travels? do you do an 8-5 work like every one does coz i really like to travel but because of money contraints i can’t do it. thanks in advance and i really love reading your blogs and nice photos by the way!

Answer: First, I freed myself from the 8-5pm cubicle job so I now have ample time to travel. But I’m not saying that you should quit your cubicle job. It’s not an easy road but it was a life-changing decision for me to follow my passion (back story: How Traveling changed my life).

Question: But what about the money? Where do you get your funds if you’re self-employed/ freelancer? 

Answer: In almost a year that I’ve been out of office, I learned that when you do what you love, money will follow. Being a freelancer/self-employed allowed me to think out of the box and to work smart. It allowed me to harness the other potentials that I have. It opened the door to opportunities which led me to take not just one role but three: Freelance Journalist/Travel Writer, Financial Consultant, and Tour Organizer/ Entrepreneur

I want to share to you guys how you can build your travel fund and explore the wonders of God’s creations:

WAYS TO BUILD YOUR TRAVEL FUND

1. VISUALIZE. Make your dream board. Post a photo of your dream destination on an illustration board. Write your target month and year on when you want to accomplish it. Then place it on a position where you can see it everyday. (YES, I have proven this effective. I have fulfilled my dream destinations because of this and other factors as well).

Take a glimpse of my dreamboard:

2. WORK SMART. Don’t rely on one income stream. This was what I learned from freelancing. If you’re employed, use a skill that would make you earn (example: photo editing, photography, article writing, editing. There are numerous online jobs that can be found on websites such as odesk.com and elance.com). As for me, I write for travel magazines / other travel sites, which fund some of my travels.

3. SAVE. SET UP your TRAVEL ACCOUNT. When I was a kid, I started putting coins in a piggybank. Then when I was about 7 or 8, I opened a bank account and started saving. Now that I work and earn, I opened three bank accounts. One account is dedicated for receiving money and paying for monthly bills. Another account is dedicated for investing. Another account is dedicated for travel. To determine how much you should save, check this entry.

If you have a BPI account, the expressonline (their online banking system) has a function where you can apply for a Save-Up. The bank will generate a new account for you and it will automatically deduct a specified amount that you want. However, SAVING IN THE BANK ALONE WILL NOT MAKE YOUR MONEY GROW. Yes, the interest is pathetic but still it’s helpful in putting funds which you can’t withdraw until you transfer it to your main account.

3. INVEST. When I was 20, I learned to invest. I started building my emergency/travel/retirement fund through variable life insurance or unit-link life investment. The younger you start, the better earnings/ returns you will have.

• Variable Life Insurance/ Unit-linked investment- This type of investment is linked with a life insurance so I’m not only protected but I’m also growing my money at the same time. In this type of investment, money is pooled together and invested in government bonds (fixed-income securities) and equities (blue chip companies in the Philippine Stock Market e.g. PLDT, Meralco, Jollibee, DMCI, SM, San Miguel).

• How does money grow? You buy at a low price of Php 1.50/unit. Let your money grow for 10 years (concept of Peso-cost averaging: investing a fixed small amount of money at a regular interval and money grows over time.) When you want to withdraw your money, withdraw when the unit price is greater than the price that you bought it.  (If you want to learn more about this, send me a message and I’ll be more than willing to discuss and help you)

• UITF (Unit Investment Trust Fund) – this type of investment is an open-ended pooled trust fund which is operated by a trust entity. I have started this just this month so I cannot comment yet on how this type of investment performs. BPI and BDO have this type of investment.

Did I make your nose bleed? I hope not. I hope I was able to communicate well on how you can build your travel fund. Knowledge is indeed power. In school, we’re not taught about how to make our money grow and live the life that we want. If you need a personal assessment/ assistance, I’m just a message away (hello [at] tripadora [dot] com)

Money is not a problem. There’s always a way to let your soul wander and live life to the fullest.

This entry is part of the 20th Pinoy Travel Bloggers’ Blog Carnival entitled: How to fund your Wanderlust as hosted by Journeying James.