2902: 9 Ways To Save Money For Travel (Or Any Big Purchase) by Sarah Von Bargen of Yes and Yes

[00:00:00] [SPEAKER_01]: This complex financing talk is very challenging. Do I get my depot ever?

[00:00:06] [SPEAKER_02]: But you already have a depot.

[00:00:08] [SPEAKER_01]: No.

[00:00:09] [SPEAKER_02]: Yes, you have the Vodafone Gigadepot.

[00:00:11] [SPEAKER_01]: That's right! And I have myself in the hand how big my depot is.

[00:00:15] [SPEAKER_02]: Now with the Vodafone Gigadepot and the data volume of the data in the next month. Go on in the 5G network of Vodafone. Vodafone. Together we can.

[00:00:26] [SPEAKER_00]: This is Optimal Finance Daily. Nine ways to save money for travel or any big purchase.

[00:00:33] [SPEAKER_00]: By Sarah Von Bargen of YesAndYes.org. And I'm your host and personal finance enthusiast, Diana Merriam.

[00:00:41] [SPEAKER_00]: Now let's get right to it and continue optimizing your life.

[00:00:49] [SPEAKER_00]: Nine ways to save money for travel or any big purchase. By Sarah Von Bargen of YesAndYes.org.

[00:00:58] [SPEAKER_00]: Number one. Get a second job or a side hustle. Blowing your mind with my originality, right?

[00:01:05] [SPEAKER_00]: But it's obviously easier to save money if you've got two or three streams of income.

[00:01:10] [SPEAKER_00]: And a second job doesn't have to mean working every evening and weekend at Starbucks.

[00:01:15] [SPEAKER_00]: You could tutor the neighborhood kids, house-sit for family friends, babysit your cousins. There are a million options.

[00:01:22] [SPEAKER_00]: I know that working two jobs is a drag of epic proportions.

[00:01:27] [SPEAKER_00]: But if you're doing it for a limited amount of time and to raise money for a very specific reason,

[00:01:34] [SPEAKER_00]: it seems exponentially more tolerable.

[00:01:37] [SPEAKER_00]: At least that's what I always tell myself while I'm tutoring poorly behaved fifth graders.

[00:01:43] [SPEAKER_00]: Number two. Put yourself on a crazy tight budget.

[00:01:47] [SPEAKER_00]: Again, with the mind-blowing, right?

[00:01:50] [SPEAKER_00]: Susie Orman, watch out.

[00:01:52] [SPEAKER_00]: Making a budget is wicked easy.

[00:01:54] [SPEAKER_00]: Look into how much you need to buy your round-the-world ticket or new car or house or Jimmy Choo's.

[00:02:02] [SPEAKER_00]: Look at how much discretionary income you have.

[00:02:04] [SPEAKER_00]: Do a bit of math and see how long it should take you to save enough to buy said pair of shoes.

[00:02:10] [SPEAKER_00]: If you're not happy with that amount of time, re-examine the way you spend your money.

[00:02:15] [SPEAKER_00]: Surely you can trim a little fat.

[00:02:18] [SPEAKER_00]: Cancel the cable.

[00:02:19] [SPEAKER_00]: That's what Hulu is for, y'all.

[00:02:22] [SPEAKER_00]: Split Wi-Fi with someone in your building.

[00:02:25] [SPEAKER_00]: Cancel your gym membership and go for walks with friends or work out at home.

[00:02:30] [SPEAKER_00]: Start cooking at home instead of eating out so much.

[00:02:33] [SPEAKER_00]: Go cold turkey on Starbucks.

[00:02:36] [SPEAKER_00]: Don't drink so much.

[00:02:38] [SPEAKER_00]: If you're gonna party, pre-game at home so you're not spending $40 at the bar every weekend.

[00:02:44] [SPEAKER_00]: Get a flatmate.

[00:02:45] [SPEAKER_00]: Or, if you engage in retail therapy, also known as being human, why not hit up a thrift store or a nice second-hand boutique?

[00:02:54] [SPEAKER_00]: You'll save heaps of money and still feed the hunger for new shoes.

[00:02:59] [SPEAKER_00]: My budgeting non-secret.

[00:03:01] [SPEAKER_00]: I allot myself a certain amount of fun money each week and withdraw that amount in cash from an ATM.

[00:03:08] [SPEAKER_00]: Once that money's gone, I'm stuck at home eating soup and watching library DVDs until Sunday rolls around again.

[00:03:16] [SPEAKER_00]: Number three.

[00:03:17] [SPEAKER_00]: Realize that every non-essential thing you buy is a step away from your dream.

[00:03:23] [SPEAKER_00]: Oh, that's a bit dire, isn't it?

[00:03:25] [SPEAKER_00]: But it's true.

[00:03:27] [SPEAKER_00]: Before you buy yet another set of decorative towels, realize that all that terrycloth equates to one night in a Cambonian hostel.

[00:03:36] [SPEAKER_00]: Or a can of paint for the house you want to buy.

[00:03:39] [SPEAKER_00]: Or two weeks worth of car insurance on that Saab you don't have yet.

[00:03:43] [SPEAKER_00]: If you want to make these things happen, you have to make them a priority, right?

[00:03:48] [SPEAKER_00]: Number four.

[00:03:50] [SPEAKER_00]: Find sponsors.

[00:03:52] [SPEAKER_00]: If you're saving up for something remarkable and do-goodery, like launching a non-profit or working with an underserved population,

[00:04:00] [SPEAKER_00]: there might be people willing to help fund your dream.

[00:04:04] [SPEAKER_00]: Learn how to write grant proposals and contact your local paper to see if they're willing to write up your story.

[00:04:10] [SPEAKER_00]: If you're incredibly cheeky and clever, you could even aim for corporate sponsorship.

[00:04:17] [SPEAKER_00]: Number five.

[00:04:18] [SPEAKER_00]: Remind yourself why you're doing this.

[00:04:21] [SPEAKER_00]: No amount of budgeting will help if you're not in the right mindset.

[00:04:25] [SPEAKER_00]: And let's be honest, giving up your Americano habit isn't particularly easy or fun.

[00:04:31] [SPEAKER_00]: But nearly everything in life worth having requires a bit of work and sacrifice, no?

[00:04:37] [SPEAKER_00]: Make an active effort to remind yourself why you're making these sacrifices.

[00:04:42] [SPEAKER_00]: If you're saving up for a trip to India to learn how to make paneer, listen to some Punjabi MC and rent some Bollywood flicks.

[00:04:51] [SPEAKER_00]: If you're socking away money for a house, make lists of features in your dream house.

[00:04:57] [SPEAKER_00]: Stop by Design Sponge and haunt all those real estate open houses.

[00:05:02] [SPEAKER_00]: You'll be more likely to stick to your financial guns when the reason is at the forefront of your mind.

[00:05:10] [SPEAKER_00]: Number six.

[00:05:11] [SPEAKER_00]: Sell your stuff.

[00:05:13] [SPEAKER_00]: Granted, this money-making scheme is best employed when you're moving or about to travel.

[00:05:18] [SPEAKER_00]: But certainly, there are some things sitting around your house gathering dust.

[00:05:22] [SPEAKER_00]: If you've upgraded to a flat screen, maybe someone wants your old TV.

[00:05:26] [SPEAKER_00]: And if you've got a laptop, do you really need a netbook?

[00:05:31] [SPEAKER_00]: Craigslist awaits, my friends.

[00:05:34] [SPEAKER_00]: Drastic measures to be utilized only when you're really broke or need to save a huge amount of money.

[00:05:40] [SPEAKER_00]: Number seven.

[00:05:42] [SPEAKER_00]: Move back in with your parents.

[00:05:44] [SPEAKER_00]: Twin beds, dial-up internet, and casseroles every night for dinner.

[00:05:49] [SPEAKER_00]: But it's probably rent-free.

[00:05:51] [SPEAKER_00]: I'm sure you'll save everyone's sanity by helping around the house, not bringing boys home from the bar at 2 a.m., and setting some parameters before you move in.

[00:06:02] [SPEAKER_00]: Number eight.

[00:06:03] [SPEAKER_00]: Teach ESL in Asia or the Middle East.

[00:06:07] [SPEAKER_00]: Drastic?

[00:06:08] [SPEAKER_00]: Yes.

[00:06:09] [SPEAKER_00]: Effective?

[00:06:10] [SPEAKER_00]: Definitely.

[00:06:11] [SPEAKER_00]: After the first six months when I spent all my money on IKEA furniture and t-shirts with terrible English, I saved $1,000 a month.

[00:06:21] [SPEAKER_00]: Really, with no effort and no impact on my swanky quality of life.

[00:06:26] [SPEAKER_00]: It should be noted that this doesn't hold true for ESL in all Asian countries.

[00:06:31] [SPEAKER_00]: I'd hazard to guess that you'd have the most luck in Japan, Taiwan, Korea, and Hong Kong.

[00:06:37] [SPEAKER_00]: Correct me if I'm wrong.

[00:06:39] [SPEAKER_00]: And number nine.

[00:06:40] [SPEAKER_00]: Take part in medical studies.

[00:06:43] [SPEAKER_00]: My goodness, but this is drastic, no?

[00:06:46] [SPEAKER_00]: I've never done these myself, but I have several friends who financed large chunks of college with medical studies.

[00:06:53] [SPEAKER_00]: And they still have all their limbs and appear to be fertile.

[00:06:57] [SPEAKER_00]: Of course, if you're going to do these, exercise caution, do heaps of research, and start small.

[00:07:03] [SPEAKER_00]: P.S.

[00:07:04] [SPEAKER_00]: I would be remiss in my role as pseudo-financial advisor if I didn't make the point that you really shouldn't buy trips or cars or houses that you can't afford.

[00:07:14] [SPEAKER_00]: I'm looking at you, America's housing crisis.

[00:07:18] [SPEAKER_00]: I know that those shoes are calling your name, but if the choice is between groceries and green cute boots, be a grown-up.

[00:07:26] [SPEAKER_00]: A human can't live on patent leather alone.

[00:07:33] [SPEAKER_00]: You just listened to the post titled, Nine Ways to Save Money for Travel or Any Big Purchase, by Sarah Von Bargen of yesandyes.org.

[00:07:43] [SPEAKER_00]: And I'll be right back with my commentary.

[00:07:45] [SPEAKER_00]: Buy low, sell high.

[00:07:47] [SPEAKER_00]: It's easy to say, hard to do.

[00:07:50] [SPEAKER_00]: For example, high interest rates are crushing the real estate market right now.

[00:07:55] [SPEAKER_00]: Demand is dropping and prices are falling, even for many of the best assets.

[00:08:01] [SPEAKER_00]: It's no wonder the Fundrise flagship fund plans to go on a buying spree, expanding its billion-dollar real estate portfolio over the next few months.

[00:08:10] [SPEAKER_00]: You can add the Fundrise flagship fund to your portfolio in just minutes and with as little as $10 by visiting fundrise.com slash OFD.

[00:08:22] [SPEAKER_00]: That's F-U-N-D-R-I-S-E dot com slash OFD.

[00:08:28] [SPEAKER_00]: Carefully consider the investment objectives, risks, charges, and expenses of the Fundrise flagship fund before investing.

[00:08:37] [SPEAKER_00]: This and other information can be found in the Funds Perspectus at fundrise.com slash flagship.

[00:08:45] [SPEAKER_00]: This is a paid advertisement.

[00:08:48] [SPEAKER_00]: Whenever you're saving up a large sum of money, the hardest part is often sustaining your focus amid competing desires.

[00:08:57] [SPEAKER_00]: You know what you need to do from a practical perspective.

[00:09:01] [SPEAKER_00]: Spend less and make more to increase the gap between your income and expenses.

[00:09:06] [SPEAKER_00]: And then you deploy that gap in service to your savings goal.

[00:09:11] [SPEAKER_00]: That part is obvious.

[00:09:13] [SPEAKER_00]: The hard part is in the small day-to-day decisions that pop up.

[00:09:17] [SPEAKER_00]: You're tired after a long day, and it would simply be easier to get takeout than to cook the food in the fridge as you planned.

[00:09:24] [SPEAKER_00]: You're going to an event, and you think you'd feel more confident in a new outfit, though you have plenty of options in your closet.

[00:09:32] [SPEAKER_00]: You're invited to go to Bali with a group of friends, and you don't want to miss out.

[00:09:36] [SPEAKER_00]: I think the key to having the fortitude to say no to these opportunities to spend money that's slated for your long-term goal is to find ways to stay focused on the greater one.

[00:09:48] [SPEAKER_00]: While it's true that you want the takeout, the new outfit, and the trip to Bali, you have to remind yourself that you want the house you're saving for more.

[00:09:58] [SPEAKER_00]: Spend time imagining how you will feel in the new house, how you will decorate, who you will invite over for dinner.

[00:10:05] [SPEAKER_00]: Let the thoughts of the new house, or whatever savings goal you have, become so consuming that the smaller wants simply pale in comparison.

[00:10:15] [SPEAKER_00]: And that'll do it for today.

[00:10:17] [SPEAKER_00]: Have a great rest of your day, and I'll see you tomorrow where your optimal life awaits.