Travel Savings Strategy, Version 1.0

Excerpt from my journal, dated October 8, 2002

I can’t believe it’s already a week into October. Time Flies after Labor Day. Spoke to lawyer today. Said I should have inheritance by end of month. Time to start planning. Don’t want to blow this opportunity.

Sadly, in late 2001, my grandmother on my mom’s side passed away at age 90. During my college years, she had made it a habit to make generous contributions to help pay tuition. My senior year though, I somehow convinced my parents to let me use some of the money to fund my first backpacking trip - a summer in Europe! Then I learned after she passed away that she left me enough money to pay off my credit card debts, and have a little left over to save as seed money for my RTW trip. It was a windfall I didn’t want to fetter away, so I was very adamant about budgeting the money months before I received it. 

Once the money was wired to me, I paid off my credit card debt, then canceled 2 of the 3 cards. I put   $3,000 in a Certificate of Deposit (CD) where I could earn some interest, and more importantly, lock it up to discourage impulsive spending. At the same time, my mom used part of her inheritance to pay off my college loans. Since those loans had been under my name, they had been on my credit report, and were negatively impacting my credit rating. With the loans and credit card debt paid off, I refinanced my car loan through my bank, thereby saving $1,000 in interest. 

I was lucky to have had the opportunity to knock off my debts, however it still left me far from my savings goal, and the $475 monthly car payment wasn’t going away for a few years. From the start, I knew changes on a daily basis would be required. At the same time, part of my goal was to continue to enjoy a similar standard of living while I saved. Getting a second job and living on Ramen noodles were not in my future. One job was enough for me, and I was just starting to enjoy cooking and ethnic foods. 

Instead, my first goal was to save $25 per (biweekly) paycheck, or $50 per month. As I paid down debts, and received raises and/or promotions at work, I would increase my monthly savings. Early on, it didn’t feel like I was making much progress, however in retrospect, I was making a U-turn in my financial habits. I was become a saver, rather than a spender. I might not have been saving money as fast as I had hoped, however I also wasn’t going into debt. 

While the savings account balance waddled it’s way upward, I also made another critical decision. After my existing lease was up, I moved closer to my new job by landing a greatly discounted studio apartment. At the time I was signing the lease, the apartment manager said that it was a great deal because my rent would only increase 5-7% per year if I continued to live there. In effect, I would be experiencing the discounted rates for as long as I decided to live in the apartment. As I write this, I just renewed my lease for the fourth and final year, still reaping the rewards of my good timing. While I could’ve afforded a one bedroom apartment with more space, it would’ve lead me to spend more money on furnishing and decorating it. Instead, I adopted the old adage “Want what you have, and don’t want what you don’t have.” Or from my Buddhist readings, I practiced being desireless. 

Several years passed before my savings began to catch up with my ambition, and during that time, finding ways to stay inspired and motivated were of utmost importance!

Previous Page | Table of Contents | Next Page