How Much Do You Earn? Do You Really DESERVE A Luxury Holiday?
Don't get me wrong. I'm not trying to be a spoil sport here.
In fact, I'm here to help you.
No, i'm not going to sponsor your next holiday. You're not a beggar, and I'm not Donald Trump.
What I am going to do, is help you to calculate how much you DESERVE TO SPEND on your next holiday trip AND introduce you to a more realistic alternative.
So before you book your next trip, here are a few things to think about.
What Is Your Monthly Cashflow?
Take Home Salary - Fixed Liabilities - Intended Savings = Amount Left For Travelling
Lets do a simple calculation based on a Take Home Salary of $4,000/mth.
- Parents allowance $500
- Food (assumming $20 a day) $600
- Miscellaneous bills (credit card, handphone, etc) $500
- Transport (I presume public transport costs around this?) $300
- Insurance (and you'll insure peanuts for this amount) $300
- Personal expenses (KTV, movies, weekend enjoyment) $300
- Vices (shopping, dining at cafes so you can upload photos of "food & you" on instagram, Starbucks, cigarettes, beers, hang flowers for girls) $500
(I'm assuming your home [if any] is fully paid for by your monthly CPF contribution)
Now, you'll want to save some money for a rainy day I hope? Assuming the above is roughly correct, you're left with a monthly savings of $1,000. What are planning to save for the year? $12,000? or a measly $6,000?
Amount Left For Travelling
Let's say you decide $6,000 savings a year is sufficient. That leaves you with $6,000 for a whole year of holidays. For your mini Bangkok trips and a once a year Europe/Japan/Korea/ trip.
And you still want to stay in Hotels?
Eat according to "10 Best Restaurants In Paris?" which you read in some food blog?
You want your $8,000-10,000 European Holidays? Plus go Europe sure must buy Chanel & Prada because it's SO CHEAP?
I'll tell you what happens next. Despite having $6,000 left for a whole year of vacations, you'll still end up using your credit card. You'll put airtickets on installment plans and insist on hotels still. Go holiday must eat good food right? If not how can call holiday? And shopping must go on. It's so cheap it's a BARGAIN!
Good for you. Continue to load up on your debt because your a Singaporean, you deserve luxury.
Aren't $8,000 European Holidays The Norm? How Dare You Suggest I Can't Afford It?
Singaporeans need to come to terms with how much income they make and ditch the typical Singaporean "Earn $4,000, spend like you earn $10,000" kind of mindset.
Forget about "Face". It's not like you're going to get anyone's respect if you've the latest Hermes collection on you while you're sweating it out at the bus stop. My calculations above don't even factor in the cost of owning a car. If all you earn is $4,000 a month, who are you trying to impress by buying an entry level BMW 3 Series? (Singaporeans favourite car)
If you're on a salary of just $4,000 and have a credit card/car loan debt of which you're just barely making minimum payments every month, not only do you NOT earn a genuine $4,000, you DO NOT get a single holiday because you suck at managing your money.
Yes, people like you don't even deserve a Bangkok trip. Pay off your debt first. O$P$.
So What Can I Do About It?
Alot of blogs and people will tell you to use your credit card to earn points. I'm sure you've read posts like "How I used my credit card points to travel for free" or some bullshit like that.
The bad news is, while those stories might probably true, it applies ONLY to people who have good debt/money management. It DOES NOT apply to typical Singaporeans with their mentality of self entitlement with an obvious inability to control their spending.
And the good news? You can do something about it. All you have to do, is simply adjust your mindset. Stop thinking you can afford hotels. You can't. A 20 Euros cafe meal? How much did you make last year?
Forget about that "All Day Breakfast". Nobody wants to see a photo of the Eggs Benedict you just spent $20 on. There are enough idiots doing that on Instagram or Facebook. Do you really need that Starbucks coffee? I don't know about you, but I have mine free from the coffee dispenser in my office.
And The Reward For Your Effort Is?
Once you're able to trim your cashflow (see above) by getting rid of such vices, you should be able to free up perhaps $8,000 worth of travelling budget for the year.
Here's where you can go with a budget of $8,000/Year and 18 days Annual Leave.
- Japan ( 5 working days leave should get you 9 day break once you add in the weekends)
- Europe ( 10 working days leave will get you a 16 day holiday in Europe with weekends added in)
- Thailand ( 1-2 working days leave in the middle of a long weekend should get you 4 days 3 nights in Bangkok for a shopping trip or a Phuket beach holiday)
- Hongkong (same logic for Thailand applies for Hongkong, or even Taiwan)
So there you have it. $8,000/Year & 18 Days Leave, COMFORTABLY gets you......
Japan, Europe, Thailand & Hongkong (all in the same year)
You could go on JUST ONE European Holiday for the year.
What kind of holiday do you really deserve?
You may want to read "Here's Why Singaporeans Can't Afford A Holiday Every 3 Months"