Have you ever looked at your bank statement and wondered, “How did I end up spending this much on Zomato again?”
Welp, you’re not alone! It’s a pandemic where everyone is struggling and there is no cure. Or is there?
If someone were to make a TL;DR of my finances, it would surely be overspending on food and underspending on travel. I say ‘underspending’ because that’s where I wish to spend a bit more of my guilt-free balance. But why does this happen, and how can you fix it?
Let’s roll up our sleeves and dive into the numbers and strategies.
The Big Spending Gap: Food vs. Travel
Data reveals an interesting trend:
Millennials spend about 23% of their budget on eating out, but they’d rather keep it at 14%. Meanwhile, they wish they could spend 21% on travel, but currently allocate only 7%.
Older Adults follow a similar pattern, with 19% of their budget going to eating out, exceeding their desired 16%, and 11% spent on travel instead of their desired 22%.
Source: Are We Eating Our Dreams?: The Common Cents Lab
The problem is as clear as day: momentary cravings like Friday night takeout or impromptu cafe runs are eating away our long-term goals like exploring new destinations or booking that dream vacation. Which, to be fair, feels far more fulfilling.
Why does this happen?
- Instant gratification > Long-term goals
Eating out offers immediate satisfaction – comfort, convenience, or social experiences. Travel, on the other hand, feels like a distant reward requiring months of saving and planning. - Peer influence & FOMO
Viral reels and group plans often nudge us into spending more on food outings than we intend to. Who wants to be the person saying no to brunch plans, right? - Budgeting isn’t fun
The thought of setting aside money for a future trip seems boring compared to swiping your card for a plate of cheesy fries today. - Lack of clarity in goals
Many of us don’t realise how much we’re overspending on daily pleasures until it’s too late. Without clear financial goals, it’s easy to let small expenses pile up.
How to calibrate your spending?
- Get honest about your spending habits
Take a close look at where your money is going. Tools like Galgal’s auto-budgeting feature can help you identify patterns and figure out where you’re overspending. A visual breakdown of your spending might be the wake-up call you need. - Set Custom Goals (and stick to them)
Galgal’s customizable savings goals let you allocate money for specific categories, like travel. Every time you overspend on food, you’ll see how it impacts your travel savings – a great way to rethink those extra cappuccinos. - Build small rewards into your budget
Saving doesn’t have to mean depriving yourself. Use the 50/30/20 rule: spend 50% on essentials, 30% on guilt-free spends (such as eating out), but leave 20% saving. The trick is to make eating out an occasional treat, not a routine expense. - Use “Sinking Funds” for travel
Instead of waiting to save a huge chunk all at once, create a travel fund where you set aside small amounts regularly. When you see this fund grow, it’ll motivate you to choose your travel dreams over that second burger order. - Make saving fun
Saving doesn’t have to be boring. Think of it as a challenge! Set weekly spending limits for eating out, and reward yourself (maybe with a cool travel accessory) if you stick to it. Galgal’s tools make tracking this easy and, dare we say, fun.
The Power of Small Changes
By tweaking your spending habits, you can align your expenses with your true desires. Imagine finally booking that trip you’ve been dreaming of or exploring a new destination – all because you shifted your mindset and prioritised what matters most.
Galgal can be your partner in this journey. With features like automated expense tracking, TrendZ, and customisable goals, we make it easy for you to take control of your money and channel it toward what really brings you long-term joy.
Your travel goals don’t have to be “someday” dreams. With a little consideration and discipline, you can make them happen in a snap. So, are you ready to trade those extra takeouts for experiences that’ll last a lifetime?
Start today with Galgal.
