I Want to Have Travel Fund

I’m a 23-year-old single woman who likes traveling. As someone who likes to travel, I want to set up a vacation fund. Is there an ideal budget percentages that I can apply for myself? For investment, I'm currently saving around 30%-35% each month. How much should I allocate per month for vacation fund?          

1. Do you have an emergency fund?
A. No, I don’t
B. I have less than Rp 36 million in my bank account
C. Yes, I have

2. Do you have debts?
A. Yes, I still have credit card debt
B. I’m still paying down my car loan
C. No, I don’t

3. Which one describes your traveling style?
A. I can’t walk too far
B. I’d rather stay in a cheap hotel than in a hostel
C. I can adjust my traveling style with my budget


If You Score Less Than 50:

Forget the idea of having a vacation fund if you still have debts –especially credit card debt. You can allocate your monthly budget for investment to pay off bad debts. It’s useless to save or invest your money while you still have an amount of debt that will eat up your savings.       

If You Score Between 50 & 80:

It’s good that you can discipline yourself to save 30% of your income –or more—for investment. Until your emergency fund is secured, you can allocate 20% of your income for savings and put the rest into investment. After that, you can open a separate account for vacation fund based on your dream destination. You can choose a local or regional destination if you have less than a year to build the fund. Don't worry, you’re still young! It’s better to save and postpone your dream holiday for a year then to go on a vacation that you can’t afford and become broke afterwards.   

If You Score More Than 80:

Congratulations! It’s really nice to know that a young person like you cares a lot about her personal finances. Moreover, you have secured your emergency fund and have investment portfolio. You can have a little bit of fun and plan a nice holiday for yourself by reducing your investment portion and allocate it for a vacation fund. The vacation fund should always be included in your entertainment expenses. Here is a recommended budget percentages for your current condition:

  • 50% for basic expense (Rp 5 million)
  • 20% for investment (Rp 2 million)
  • 30% for entertainment (Rp 3 million—1/3 or Rp 1 million will be allocated for vacation fun)

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