This photo made me sigh. Calling Hachiko…how do those cherry blossoms look?
And this made me smile. Walking barefoot on grassy fields is a favorite pastime since I was a kid in Bicol. I used to let my heavy bags slide down after a long day at school and spend the good part of an hour quietly observing birds, trees and clouds and smelling the earth. I nurtured my inner introvert that way ☺
Work and life balance is a big deal in personal finance. When it comes to a point where work sucks in all our energy, we are no good both at work, at home, at church or in the community. Imbalance kills the inner joy in us; it is an enemy of money-smart peeps like you.
But since vacations are expensive especially in a country with more than 7,000 beautiful islands, it is best to plan and prepare for them carefully. Our personal finance article today on “Travel now, pay later” gives some tips:
1. Book early. It’s mid-summer, and most people would like to head out of town, if they haven’t done so already. Pick a vacation spot you and your family will enjoy then book flights and hotel rooms as soon as possible. This will make sure you’ll still have a summer getaway in comfort. Find out too, if the airline and hotel you’re looking at will give added points for your credit card company’s rewards program. Extra points will mean extra rewards later on. Plus, paying with a credit card may entitle you to free travel insurance.
2. Compare costs. Not only should you compare hotel room rates and air fares; compare costs between destinations as well. For instance, there may not be much difference between traveling to Hong Kong or Macau and traveling to Palawan and Davao. The weak US dollar has made reasonable travel packages abroad possible.
3. Budget the monthly installments. The Travel Now, Pay Later scheme is an installment plan which you should treat in the same way you would treat an appliance purchase. Find out how much the monthly installments for your vacation would be, then calendar it in your budget and planner. This scheme is easy on the pocket, enabling you to enjoy a big-ticket item (your vacation) without taxing your bank account.
4. Don’t forget transfer arrangements. Transfers between airport to hotel and vice versa may be arranged beforehand; so do city guided tours. Take advantage of these offers as these will enhance your travel experience.
5. Charge only what you can afford to pay. Just because you can use your credit card for the Travel Now, Pay Later scheme doesn’t mean you should get the most expensive travel package offered. Take only what you can afford to pay in the next three or six months (depending on the terms of the scheme). Don’t be saddled with debt with the vacation of your dreams. That will come in later in life, when you can afford to do so.
There are credit card companies who offer travel packages that will allow you to “travel now, but pay later.” Perhaps you have already availed of them or are planning to. Do you think these are good deals?
Yes or No?
*Photos from Agence France Presse.
April 3rd, 2008 at 7:21 am
Not on credit card.
alwys save for travels/holidays because the interest u pay is too much.when u travel,u will spend $$$thousands and interest will also be high.
the best thing to do is….plan.then save—say,in about two or 3 years (Europe?Fiji?) or less for local but equally breathtaking views in Mindanao?.this gives u ample time to sort out ur finances.
discipline ur money and budget wisely.at the same time,enjoy life.
If u can avoid credit cards,AVOID.Instead focus on saving and wise budgetting.
April 3rd, 2008 at 2:17 am
Another thing, one of the lessons I learned in booking flights is weekday flight (Tuesday, Wedneday and Thursday) is cheaper than weekend flight. So instead of flying on Friday, try Thursday or Wednesday - it can save you some bucks.
April 3rd, 2008 at 2:11 am
To add some tips in touring Europe:
-Travelling by train can be a cheaper alternative but you have to plan and compare the costs. You can purchase EURAIL - train tickets that you can use for unlimited rides in x countries for x days. Youth (below 25 yrs old) gets really huge discount and those travelling in groups (at least 2 or more). There are different types, you have to plan, compare and choose the one that suits your need. Visit http://www.eurail.com for details and http://www.ricksteves.com for tips.
-If you plan to visit museums, you can buy museum pass. This gives you the opputunity to visit unlimited museums for x days depending on the validity of pass you bought. But of course, you need to know which museums you want to vist and if they are included in the pass. Compare the entrance fees against the cost of the pass before you buy.
-Consider daily/weekly passes in buses and metro (subway or city train) if you plan to use them a lot. For instance, in 2006 we bought the weekly metro pass in Paris for 15 euros and this allowed us unlimited rides in the metro and the bus. Each ride is approximately 1 Euros so after 15 rides, you break even. But then again, you always need to compare if these passes will really save you money or not.
-Research, research and research… Be careful of the passes sold online. Not all of them are good. Read blogs and tips from travellers who have been there
April 2nd, 2008 at 10:45 pm
In traveling to a 1st world country, get a guide book and plan ahead of time - airfare, hotels, transport, sightseeing etc. It’s a spoiler paying full price for stuff simply because you’re not on the know. Taxi from airport to Tokyo is $350. Train is only $10.
And keep your “consumption basket” consistent with those of locals - you’ll be pleased! Japan is great for foodstuff and stuff to play in your Playstation or Nintendo. US for shopping in retail outlets. Europe? always expensive hehehe
In Japan, Engrish is always a problem! I don’t think Moneysmarts can help u with this one hehehe
April 2nd, 2008 at 5:52 pm
Credit card packages?
Attractive?? Yes… Good?? it depends. That is, if you will get onto a package within your means. Otherwise, you will over indulge. Believe me, I have been taking trips overseas for the last 25 years!! But if you’re earning P100k per month at least, by all means, splurge on a vacation.
Piece of advise, when visiting another country, get to know the authentic culture - stay out of the cities and experience their rustic living. it’s where you’ll meet the real people and good food! You will be more enriched culturally and would have more stories to tell, I’d say unique stories to relate when you return to the Philippines.