If you are not back on payday, but already know how you are going to spend your money, you may want to consider tighter financial planning. If you want to spend consistently – buy, order, enjoy or save on a big new purchase – then spending is really important so you don’t lose control of your balance. I would like to draw your attention to ways of spending. Are you spending wisely, or are they instantaneous purchases? Do you know what and what kind of purchases you really need to make and without which you can do without?

Consider tighter financial planning

First of all, think about all items of expenditure: those that are inevitable (such as communication bills and car leasing, loan payments offered by TOP creditors in Latvia for a lower fee) and those that can be influenced and changed depending on your wishes and needs, such as drinks in clubs, tickets for sports events, and private transportation bills. When the approximate distribution of expenses is known, it is worth reflecting on what is more important – a trip to another country or here in Latvia, getting to know a new culture and seeing nature, or keeping your daily routine. If you choose the first one, then read on to learn how to save money for your dream trip.

COFFEE NO

Whether it’s a roasted coffee mug at a nearby coffee brewer, where a barista prepares coffee for you with just the right amount of sugar, puts just half a spoonful of cinnamon and cocoa over almond milk foam, or a quick-bought coffee cup at a nearby kiosk coffee machine, Your bank account is so incremental that it’s hard to notice. A daily cup of coffee, costing 2.50 EUR, will turn into 75 EUR in a month, so you will spend almost 900 EUR per year on just a roasted coffee. With this amount of money you can spend the whole summer in one of the Balkan countries or live comfortably in Bali for at least two months. After all, it’s your choice: a deep ocean retreat with surf training, or a daily cup of coffee that makes the cafe profitable. However, if you can not give up the specialty coffee drink, give up the extras added, choose black tea, or make coffee yourself, taking it in a thermos. Buying a thermos will pay off in less than a week, and winning a caffeine addiction will allow you to live more freely, be more productive, and save money for long-term goals.

LEARN COOKING

Here you have to say: learn. Masterclasses can be very expensive, but learning how to cook at home is a skill that will not only blindly follow recipes, but will also practice different cooking techniques and combinations, thus educating yourself in the field of gastronomy and coming up with new recipes.

The skill of preparing a meal for yourself is important if you want to save both on the restaurant and on the expense of health and, ultimately, travel as you wish, whenever you can and wherever possible. However, eating or dining at restaurants is always much more expensive than making a healthy meal at home. Every time you go out for lunch or dinner, you spend at least double or triple compared to making the same meal at home. Although most young people learn to cook while studying at university, you may still choose to dine and dine at restaurants.

While studying or working, it is possible to cook meals for the whole week if there is no time left on weekdays. In addition, you can pack the rest of the dinner for work the following day for lunch. There is also no need to fear that you will not be the perfect cook from day one: it is important to just start experimenting. If, however, it is too early for experiments, start with simple and quick recipes: search them on the cookery portals and you’ll find millions of interesting, nutritious and diet-friendly recipes that won’t be as expensive at the same time.

Stop using the machine that become expensive for everyday use

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Car maintenance, use and insurance, not to mention auto parts replacement, use of tire service and other expense items, can reach levels that become expensive for everyday use. For example, rising fuel prices and other factors, such as mandatory winter and summer tire changes, can further increase the cost of maintaining the machine. That’s why you need to get rid of your private vehicle as soon as possible. Not only does this save you on annual inspections, it also improves your health and fitness if you prefer to walk or bike instead of the machine. However, if you do not want to travel on foot or by bike, or if there is no infrastructure available in your city, you should learn more about public transport. If you live in a small town or rural area where you have to travel long distances to the city and public transport, it is advisable to sell the expensive car you own now and buy a cheaper replacement instead, so you can earn both now and in the long run. In the long run, savings can be made on machine maintenance and parts replacement, especially if you want to buy a cheaper but not unique or antique vehicle that has trouble replacing. The immediate benefit of selling the car can be paid for in a ticket to South Asia, Australia or even South America, depending on the difference in the value of both cars.

SHARE THE ROOM

Although rental costs are usually fixed, they can be reduced by finding a room or apartment member and dividing the rent and utilities by half. You can save on one of the biggest costs: renting a room or apartment. If you want to reduce all possible costs, you may want to consider staying in your family’s home room for a while, but if you want to become permanent, that choice may seem restrictive. However, if you want to travel longer and cut one of the biggest costs – rent – living with your parents will be the most economical option. This can save you enough to stay in Asia or South America for at least a year in a few months, and needless to say, renting out will definitely save on food costs as well. If, however, you do not want to go to your parents, sharing an apartment with someone else is an option worth considering. For example, you can turn a living room into an additional bedroom or separate your studio apartment into a barrier, creating two separate living areas and earning rental income. In contrast, when you find a trusted apartment mate and want to go on a longer trip, you will have a trusted person to oversee the apartment and possibly rent your room while you enjoy your trip. It will guarantee you income every month, and while it is mostly inadequate and does not fully cover your travel, a small amount of financial support is useful and perhaps even sufficient if you want to travel to underdeveloped countries.

While traveling can be expensive, planning ahead and putting aside money for a future trip, not just for everyday entertainment and unnecessary expenses, can save you enough to travel not only to Europe, but also to Africa and Asia, Australia, and possibly even America. The key is to understand which expenditures are needed but which you can sacrifice to fulfill your dream. Then just follow the plan and everything will work out!

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