News & Updates
One Way to Budget for a
Homeland Tour
by Kimberlie
Meyer
“How can I save enough money for a
homeland trip?” is a
question advisors at Lotus Travel often hear as we support people as
they plan
for a homeland trip. With the economic issues being a very prevalent
topics
these days, we at Lotus Travel decided to offer some practical
suggestions on
this topic for our readers. Some
families may be able to take advantage of the great winter rates
offered at the
end of this year, with our great winter tour rates (link to winter
tours). However if
you’re just starting to plan, you
may want to lift an idea or two from our hypothetical “Jones” family of
three.
So, let’s “peek in” on the budget of
the “Jones” family and
see how they created a financial plan to achieve their homeland trip
goal. Jack
& Jill Jones are parents to Mei Lei Jones, currently age eight.
While the
details will vary, we hope you can gain some practical insight for your
plans.
Jack works full time as an advertising manager and earns an
income of $50,000 annually. Jane
has
her sole proprietor accounting firm and earns $25,000 annually, working
on a
part-time basis. Their daughter is 8 years old and attends a private
school. They take a
week long family
vacation every year to a beach house and spend $3,000 on this vacation.
The
Jones family would like to save what they need for a homeland trip
within two
years of starting. They
have researched
tours and conclude they need approximately $11,000 for their trip, or
$460 per
month for the next 24 months. After
taxes,
their current monthly income and expenses are: $4,750.00:
Mortgage | $1,200.00 | Cable/Internet/Telephone | 130.00 |
Groceries | 600.00 | Eating Out (includes Starbucks) | 370.00 |
Utilities | 250.00 | Vacations Savings Fund | 300.00 |
Car Payment | 250.00 | Gifts | 150.00 |
Car Insurance (2 cars) | 200.00 | School Tuition | 500.00 |
Gas | 400.00 | Charitable Giving | 400.00 |
Total $4,750.00 | |||
- They decided to
forgo their usual beach vacation, opting instead to take a week-long
vacation at a national park an hour’s drive from their home. The park offers family
cabins, hiking/biking trails, a beach, jet-ski rental, and sailing
lessons, as well as a nearby town that has a movie theater and
mini-golf. They
spent $1,800, and were able to add that to the second year’s vacation
fund for a total of $4800.00 (extra saving $150.00/month)
- John was in the
habit of stopping at the local Java Hut for a 16 oz latte on the way to
work each morning and with Jane on the weekends.
They spent $90.00 per month, or $1,080 a year. This number really shocked
them when they realized how much they were spending on coffee. John decided to bring
coffee from home for his morning commute, and only have a latte once
per week with Jane on their usual Saturday morning date. (extra saving $70.00/month)
- The family was in
the habit of eating out for dinner twice per week.
They spent $280.00/month.
They decided to cut back to one time per week and to
choose only moderately priced restaurants, spending half of their usual
budget. (extra
saving $140.00/month)
- John and Jane
brought their lunch with them to work and their daughter brought her
own lunch to school. They
liked to eat healthy and were very loyal to certain brands of household
products. Jane had
been researching ways to save money on their grocery budget. She found two helpful
websites that provided tips for cutting your grocery bill, provided
valuable coupons, and posted which stores had deals each week. Using www.moneysavingmom.com
and www.pinchingyourpennies.com,
Jane was able to save money without sacrificing healthy eating habits. She purchased only what
they used, purchased whichever brand was on sale and she had a coupon
for, and joined a local food cooperative to buy items like rice, pasta,
flour, and other healthy items in bulk. (extra savings $150.00/month)
- Another big item
on their budget was gasoline. Both
John and Jane had to commute to work.
Their daughter attended a private school on the other
side of town, which was near Jane’s job.
However, Jane only worked half days, so often she was
driving home, then going back to pick her daughter up in the afternoon. By asking around at her
school, Jane was able to arrange to car pool with another family. Jane would take the kids
to school in the morning since it was not far from her job, and then
the other mother would pick the children up in the afternoon. They also realized they
made a lot of little trips in their car, which really could be combined
into a larger trip of running errands with a little bit of planning. Jane combined stopped for
groceries, made trips to the mall for gifts, and other errands. (extra saving
$100.00/month)
- John and Jane had
a bundle for their cable tv, internet and phone services from the local
cable company. In
looking for areas where they could economize, they realized they did
not really need 100 channels their expanded service offered. They were able to
negotiate a family package that contained the channels they most often
watched. Although Jane had to give up her favorite food programs, and
John no longer had all his sports networks, they still had the
educational channels they watched most often.
To replace the movie channels they would sometimes
watch, they went to the local library once a week to check out movies. (extra saving $30.00/month)
As they packed for incidentals for
their homeland trip, Jane
thought that about the memories created on the homeland trip would be
lasting a
lifetime. And they
things they cut of
out their budget to accomplish it were not of lasting value. So, she
felt good
about the plan they had accomplished.
Here’s the final breakdown of what
they saved in two years:
Vacation Savings | $4,800.00 |
Coffee Savings | 1,680.00 |
Eating Out Savings | 3,360.00 |
Grocery Savings | 3,600.00 |
Gas Savings | 2,400.00 |
Cable Savings | 720.00 |
Total Savings | $13,560.00 |
*Trip assumptions used: $2,199.00/ adult ($1760 per child) for the 15 night Panda Heritage Tour, $100/day ($1,500.00) for meals, tips, souvenirs, orphanage gifts, and other incidentals, $3,514 for three international airline tickets. Estimated trip cost: $11,172.
So, we hope you’ve enjoyed our budget
planning overview with
the Jones family. We
trust this
information can be useful to you in achieving some of your financial
goals,
whether saving for retirement or saving for a homeland trip.
If you have already started your
savings plan, check out the
winter promotion tours
(www.lotustours.net/heritage/china/WinterHomelandTours.shtml)
with the best travel rates of the year.
For example, if the Jones family travels this December on
Lotus Travel’s
China Winter Discovery tour, they would need $3,728 plus airfare and
incidentals. If they held their incidental costs to $75 per day, a
total trip
estimate would be $8,153, or savings of more than $3,000.To check out if
one of
these tours is a fit for your family this winter, contact tour
specialist Louie
Yi at: louie@lotustours.net. Or, for more information
on budgeting
aspects discussed in this article, contact Iris Culp, Lotus Travel’s
Homeland
Programs Coordinator at iris@lotustours.net.
See our new payment plan option for your convenience.