How I can afford my dream vacations

A reader emailed me once asking about how I'm able to afford all my wonderful vacations; she even said in the letter that she thinks I probably have a ton of money in the bank and I must be making a killing with blogging.

First of all, I really wish I'm making a killing out of blogging (LOL). Second, I'm not a multi- millionaire, but I know how to find the money I need when I am planning my dream vacations every year.

My secret? It is not really a personal secret nor a magic trick; it's just the timeless, fool- proof technique of money management and acquisition.

I employ the following rules when I am saving up for my dream vacation:

1. THE 50/50 RULE- I got this from my husband who read it from a book; it's a good saving habit that I was able to practice and embrace when I started earning my own money. The rule of 50/50 states that whatever you save, 50% is for the item and 50% is for savings. For example, if my dream vacation is P50,000, I have to save up P100,000 because the other half must go to my savings. Traveling is such a money suck and I know a lot of people who come home broke or have very little money left after the vacation, which forces them to let go of items or borrow money just to make it to the next pay day. The 50/50 rule has always prevented me from coming close to these situations.

2. HUSTLING- For most people, their job alone is not enough to provide the vacation of their dreams, not unless you are top executive and you're earning a boatload of cash. This is where you unleash your talents and let them serve you; make money out of your talents or the things you're good at. What side job can you do in your free time that will help you earn more money? Make use of that and charge accordingly. As for me, in my free time, I conduct workshops, write papers for other people, and if there's opportunity and time, I play bit roles for my friends who work for the showbiz industry!

3. THE LAW OF VACUUM- The law of vacuum states that you must let go of things that no longer serve you. As humans, we always have the need to hoard and to hold on to things; we must realize that letting go is one of the best things we can do for ourselves and in this case, the most profitable thing we can do for ourselves.

Selling unused (but still good!) items is a great way to earn cash. I have a lot and I'm sure you do too.

There are a lot of ways to sell items: you have garage sales, bazaars, and everyone's favorite, online selling. Traditional selling will take time, not to mention effort so you have to do this ahead of time.

Another option is pawning.

My husband's birthday is coming up in a week and I want to take him to a staycation. Unfortunately, I don't have time to sell anymore and I'm about to invest in insurance and would rather not touch whatever money I have in my savings account at the moment.

I remembered I had a nearly unused pair of earrings and ring that I got on a whim. I realized, I'm more of a pearl person so I decided to let these go.

Pawning is as simple as going to a pawnshop, filling out the necessary forms, having your jewelry assessed, and boom! Instant cash!

Personally, I prefer Cebuana Lhuillier. For one, it's the country's largest pawnshop chain with over 2,500 branches across the country. They also have ISO 27001-2013, the highest certification of information security. I take these certifications and the reputation of the pawnshop seriously because I'm turning over some of my prized assets that I might take back one day!

Cebuana Lhuillier also provides microfinancial services such as money transfer, bills payment, e-load, and microinsurance; you can easily send money to a loved one for the holidays or pay the bills right after collecting your money in one place!

I'd also like to note another important reason why I go for Cebuana Lhuillier: they have the highest appraisal rate compared to others. The jewelry I just pawned, one pawnshop appraised it around P7,600; the other one appraised it around P7,400; Cebuana Lhuillier's appraisal is around P7,800. Interest rate of pawnshops varies also. To those new to pawning, pawnshops charge an interest rate that they withhold from the total amount of the appraisal; when it's time to return the money, you'll only pay back what you took home. Cebuana Lhuillier may have a high interest rate, but at the end of the day, the high appraisal balances it out and still, in the end, I get the biggest take home from Cebuana Lhuillier.

Aside from jewelry, Cebuana Lhuillier also accepts certain timepieces and gadgets; just inquire! Just visit CEBUANA LHUILLIER on Facebook if you have questions!

Pawning is a good way to instantly have cash when the need arises. But please note that I am in no way encouraging everybody to make crazy financial decisions! I'm still a big believer of spending within one's means! All I'm saying is when there's an instant need for cash for any of your needs, whether it's for a vacation, gift, tuition, medical or other personal financial needs or you need that final amount to complete your savings, pawning at Cebuana Lhuillier is a great instant option!

And just like that, I now have a staycation gift for the husband! :)

Hope you liked this post! How do you save up for your dream vacation/item? I'd love to know!