Traveling affords us a lot of new experiences. We get to see a world beyond what we are used to. We get to be mesmerized by how life works in other areas of the country or even the world. We also get to realize that nature’s beauty is diverse, and it is manifested in different ways in different places. All of these things are great but in order to travel, you need to know how to save for travel.
Although they really want to, many people don’t travel because of financial constraints. They say that traveling is just so costly. There is a need to pay for airfare, and accommodations get expensive, especially during peak times such as Christmas and summer.
While it’s true that traveling requires money, it’s not really impossible to save money within a reasonable time frame once you know how to save for travel. One just has to learn how to save money the right way so they won’t have to starve themselves or miss out on other parts of life. Here is one money management strategy that has worked for many people.
Many financial advisers will tell you that in order for you to save a significant amount, you need to get a significant percentage from your income and reserve it for savings. What’s left will be what you will spend for your necessities and other things. This advice is not wrong. In fact, the strategy that we present here is based on this; it’s just more detailed.
The JARS system is called this because jars–literal plastic or glass jars– were initially used to put into action this money management scheme. There are six jars, and each represents a domain in life that needs to be funded in one way or another, now or at some point in the future. The following are the said domains:
- Necessities. The money for rent, groceries, Internet bills, and other basic needs of modern people like us are kept in this jar. This domain takes a big part of the money pie, as can be expected. Many people allot at least 50% of their money to this.
- For-Later Major Spending. This is the jar that you should be very much concerned about as a traveler and how to save for travel, especially if you have plans of going out of the country in the future. This jar is basically for major expenses that you project will happen well into the future. What if you don’t have plans just yet? Even if there are no clear goals, this jar should always get a portion of your income. Who knows? You might suddenly decide to go traveling. It will be great to have funds to back you up. Maybe you can allot 15% of your income here.
- Play. As humans, we need reinforcement to keep on going. The play jar is intended just for that. The amount here is to be spent on things that you don’t really need, but that make you happy anyway. This could be a session of pampering in your favorite spa or a quick trip to Breakout Games in Indy, which offers escape room attractions that will surely test your investigative and puzzle-solving skills. So you will have a reasonable amount to spend for self-rewards, you can drop 10% of your money in this jar.
- Investments. A lot of us rely on salaries for sustenance. There’s nothing wrong with this. But in order for us to be financially free, we need to get sources of passive income, and this is what this jar is for. The money that you put here, which should be at least 10% of your total income, is to be used on investments that have high potential for returns. Investing in stocks through products offered by local banks is a good way to start.
- Growth. As a professional, there might be a need to update your skills to keep up with the times. The money that you save in this jar allows you to enroll in classes and other self-improvement programs. If you want to pursue a graduate degree, you can get the funds here. This jar can take up to 10% of your income.
- Charity. More often than not, you are part of a social network and that social network may have special demands in one way or another. Reserve at least 5% of your income for charitable expenses such as buying gifts during birthdays, donating during calamities, and other similar events.
Are the jars really necessary?
Of course not. They are just used for demonstrative purposes and to embody a money management principle that you should learn by heart. The main reason that you are encouraged to follow this principle is so that you can clearly see where your money goes allowing you to spend on one domain without worrying that the other domains are being deprived or sacrificed. To save for travel you need to balance all areas and the JARS method helps you cover all your necessary expenses and identify the things in life you should be saving for.