Did you remain hooked to your TV screen throughout the Olympic season this year? Did you cheer wildly for your favourite athletes? Do you want to make it to the next Olympics and watch them live? Are you hesitant thinking about the expenses? No need to fret! You can make it to the Tokyo Olympics of 2020, if you judiciously plan and responsibly save for it.
Here’s how you can do it:
Plan what kind of a trip you want: How long will you be staying? Do you want to travel business or economy? Will you be staying in budget hotels or in luxury ones? Will you be attending all the events or only a selected few? These are some questions you need to ask yourself before embarking on a journey to save.
Pay yourself first: Arranging for a portion of each salary to be deposited directly into a savings account takes the stress and tedium created out of the constant thinking of falling short on your savings at every expense incurred — basically, you save automatically and the money you keep each month is yours to spend as you please. Over a period of time, depositing even a small portion of your salary into a savings account can add up (especially when you take interest into account). Hence, start as soon as you can for maximum benefit.
Set saving goals: Since you have a specific purpose for saving, it gets a lot easier to do this. If you have made a plan of exactly what you want from your trip as elucidated in point 1, decide on a saving goal for each quarter of the year and try to save as close to it as possible.
Track expenditure: Setting saving goals is easy, what is really hard is keeping track of the expenses. To keep on-track towards your financial goals, try budgeting at the beginning of each month. Record each and every expense and analyse where you are overspending to channelize that part of your money into your savings account.
Decide on your priorities: Do you need that overpriced shirt from Armani? Do you need another car right now? Can all this money go towards making Tokyo a reality for you? Ask all these questions before making any major purchase. Remember to prioritise and save towards making your goal a reality.
Get creative with tax: There are some perks and allowances which are non-taxable if actually incurred. There may be many expenses which you are incurring at your job. If you leave your job today, many of such expenses will end. Such as you follow a certain dress code just for the sake of your job. You travel to the office daily only for the job. You may be entertaining clients and spending over them to fulfil your job requirements. You must be reading certain newspapers, magazines or books for your the same purpose. These are forced expenses and your employer should pay for them. Talk to your employer and ask for your pay to be restructured. However, remember that these allowances are given according to the grade. Talk to your employer and learn about your eligibility for these perks.
In the end, the most important thing to achieve your goals will be your own will power. Remember your aim, remember what you’re saving for and try not to give in to temptation.
See you in Tokyo!