Money lessons from a guy who travels around the world 1
Jason Vitug (USA) is the founder of the website Phroogal – a community specializing in answering people’s questions about personal finance.
Jason Vitug on a trip to Boracay, Philippines.
1. Whatever you do, you must set a goal first
`Everything starts with an idea in your head,` Vitug said on Business Insider.
2. Then comes planning
Goals are just the first step, and they mean nothing without a plan.
3. Just ask others if you don’t know
`I learned a lot of valuable things by asking around with locals and fellow travelers. I learned where the best places to eat, the cheapest hostels, and the nicest places with the fewest visitors are. In general, who
The same rule applies with money.
4. Make a budget
Before traveling, Vitug had never made a spending budget.
5. Always monitor the amount of money going in and out
Once you have a goal, a plan, and a budget, you need to know where you are.
`I always bargain or look for bargains to save money. The same goes for household expenses. If you don’t know how much you’re paying for cable, phone, or even how much you owe on your card
6. Cash is number one
`No matter where I go, paying in cash will help me bargain more easily,` Vitug said.
7. Always prepare for emergencies
`Once, my bus was stopped in the middle of the night in Southern Thailand, and the army came demanding to see my ID card. My British and American friends who were traveling with me all left their cards at the motel. But luckily I still
The same goes for personal finances, always set aside a reserve amount.
8. Not everyone thinks about your interests
`When you travel, you will be taken advantage of by many people. It costs me 3 times more than usual to take a taxi from the airport, just because I’m American,` Vitug said.
It’s important to know what people are selling.
9. Know the difference between wants and needs
Before Vitug went on a trip, he couldn’t stop turning `wants` into `needs`.
However, when he started the trip, he reduced his needs to only two things: food and accommodation, whether eating on the roadside or sleeping in a bamboo tent.
10. Understand what it means to be rich
`Some people in the countries I visit only earn 100 USD per month. They have to pay rent, electricity, water, food, but still have money saved every month,` Vitug shared.
When thinking about his previous life – full of debt even though he was a leader for a credit company, he said: `I was really poor. Even though I made a lot of money, there were times when I owed more than anything.`
