This year, my family was not able to go for a summer outing because of some family financial issues. Something came up. My sister and I talked about this and decided that we should have one next year. We have decided to go somewhere in Tagaytay for an overnight stay. The estimated cost is ~ 18.5K. We decided to divide the expense between us. This means that both of us needs to shoulder 9.25K next year.
My sister suggested that we start saving this year so we did some math and here is what we have come up:
Outing Cost (Accomodation & Food for 10pax) = 18,500
Individual Commitment = 9,250
# of Paydays before the outing = 24
Need to Save every Payday = (9,250/24) = 385.42
An outright cashout of 9250 is quite heavy for our pocket vs. saving ~ 390 /payday. I salute my sister for this brilliant idea. This saving scheme is not only applicable for our summer outing but also for other future big expenses like travel, tuition fee, appliance or furniture purchase, insurance premium, etc.