Travel vs. Savings: Which Should Come First?

Piggy bank, calculator and coins on a table

Being able to travel the world is a top aspiration in life. And why shouldn’t it be? Traveling is enjoyable and rewarding. It’s no wonder that people, the younger generation especially, are so willing to spend for it. Traveling isn’t all there is to living, however. Practically speaking, it isn’t ideal to simply save just enough to fund the next adventure; travelers should remember to keep a nest egg for a rainy day, too.

This is the dilemma for today’s travelers. How can they travel to their heart and soul’s content without neglecting their finances and saving money?

Make Wise Decisions

Financial advisors tell us one thing: start saving early and do it wisely. Instead of keeping a spare wallet where you stash a thousand pesos every month, deposit it in the bank. Better yet, look for an investment and insurance company that offers affordable policies. The benefits may come later in life, but at least you will have had secured your finances. Moreover, some policies have early cash payouts which you can spend for travel or choose to reinvest.

Wisely managing your funds makes it possible to continue traveling without sacrificing financial security. Instead of going on four trips in one year, cut it down to one or two. You’ll be able to travel while saving enough to funnel into your insurance.

It’s Never Too Early to Start Saving

The CEO of the American College of Financial Services put into context the benefits of saving early. A 25-year-old can invest less than $200 a month for 40 years. With a 10% interest, that can grow to $1 million by his or her 65th birthday. If, however, an individual starts saving at age 35, they’ll need to pay a monthly premium of $439 to achieve a million dollars by age 65.

Insurance in the Philippines works the same way. The older you start saving and investing, the more expensive it gets to reach your target amount.

Following your heart’s desire to travel is a fine goal. It is, however, unwise to feed your wanderlust at the expense of your financial security. You don’t even have to choose between travel and saving. Balance the two well to live a satisfying life.