Money

Is Travelling In Your 20s Sabotaging Your Savings?

Our 20s are a confusing time. We’re told to make mistakes. Fall in love! See the world! But then we’re also told by millionaires who managed to purchase investment properties in their early 20s to stop going to Europe every summer and quit buying so much smashed avo and coffee. For many twentysomethings, the question comes down to: to travel or save?

How do we avoid finding ourselves halfway through our 30s and still waking up with a throbbing hangover on a Sunday, with our bank account overdrawn from Uber eats? Completely broke after returning from a rad time road-tripping across Route 66, or after fist-pumping our way through music festivals across the EU?

While may seem like we can only choose to see the world or build ourselves financial stability by 30 – but not both – that’s not the case.

To travel or save?

Investing – whether that be in shares or property that grows in value over time – is the best way to create a passive income and set you up, without the need to sacrifice drinking steins in Munich or hiking the Inca Trail to Machu Picchu. It’s all about understanding the investment landscape and getting the right advice as early as you can, based on your specific situation.

Chloe Lin, creator of GoGo Budget Travel, only started investing a few years ago and now has more than $100,000 in her account. She credits that to investing before she started travelling, and educating herself on how to choose a good investment. All while stashing away a significant amount of cash, she’s been able to travel to Japan, Taiwan, Vietnam, India, and across Australia and Europe. For Chloe, it’s not a matter of choosing either to travel or save.

“It’s not about getting rich quickly,” Chloe told The Cusp. “It’s about looking to the long-term. I look at … whether the company is making money, if it’s profiting, how efficiently it’s running, and if it passes these criteria, it means it’s a good company.”

Divide and conquer

Chloe finished her university studies only a couple of years ago and managed to save $5000. She also worked full-time, and put aside a certain amount for investment every month. She follows the rule that 45% of your monthly income should go on necessary spendings, 35% on groceries, 10% for financial gains for investment and another 10% for play which she spent on travel. She aims to increase the percentage going into her investment growth each month.

“If you start early, you’ll have nothing to worry about when you’re in your 40s.”

“I can have certain funds for investments and for travel,” she says. “Eventually my passive income will be so great that I won’t really need to fork out more money or even work anymore so my passive income will fund my travels.”

Her advice?

“Everything comes with risks,” she says. “It’s like, if you never learn how to drive a car on the roads it’s very risky. If you want to invest, get financially educated. Attend financial seminars. Pick up courses that really help you, and the earlier you start, the better.”

Get some advice

Treasha Lim is a Financial Advisor and Property Investment Strategist for KlearPicture Group and says that being able to save and invest in your 20s whilst having the opportunity to travel is very achievable, providing that you have the right advice.

“People are just lacking being shown the step-by-step process relative to their specific circumstances,” says Treasha. “You’ve got to see this as your trust fund and your future by starting earlier.”

One suggestion she makes is that young people work towards a deposit for a house. She suggests getting started by putting your savings into a high interest account.

“I know it sounds easier said than done but if you start early, you’ll have nothing to worry about when you’re in your 40s,” she says. “And you’ll be able to travel for longer!”

If you’re ready to start putting money away so you don’t need to choose to either travel or save, set up a budget and stick to it.


Sam is a freelance writer passionate about sub-cultures, oddballs of the world and music. She runs a Melbourne music website and writers banter for VICE, The LAD Bible, and other websites. You can find her on Twitter at @hamsoward.

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