How to Use a Penny to Travel the World

by Jeremy Garcia

Getting out into the world can sometimes seem like an expensive ordeal, but I’m here to tell you it really isn’t.

If you have ever desired to go on a far away trip, you may be put off when you realize the cost of what this trip will actually cost you.

You may have estimated how much it would cost or maybe you did minimal research and get distressed by the cost. Either way the price stands firm, you have to make the decision of going or putting it off until you have more cash.

This type of choice is hard, you’ve wanted to travel to       X        for so long and now due to a price, you will have to put off the trip.

Well there is a way to avoid this disappointment altogether, it’s a tip I’m sure many travelers already partake in, and I would like to share it with you.

You ready it’s going to blow your mind…

 

Are you really ready for what I’m about to share…

 

I mean this might change your existence!…

 

START A TRAVEL FUND

It’s as simple as that. Start a second savings account with your bank and prepare to enjoy the world. The great thing about this account is how simple it is to use.

This account is not salary biased, you can earn a lot or not. I share with you a little scenario that can be applied to this account or really anything when its come to saving money.

The Power of a Penny

(Various incarnations here’s one I like by Sharon Michael’s)

One day a rich merchant said to his young son, “Son, I have an important question to ask you. Think carefully before you answer.”

“Yes father.” replies the eager son.

“I will give you the total amount of one penny doubled each day for one month or a million dollars cash right now. Which will you choose?” the father asks with a sly grin.

The son answers without hesitation, “The million dollars of course father.”

The wise father looks at the boy and with a knowing smile takes out paper and pen. “Son,” he said quietly, “Come sit next to me and learn a lesson about wealth and patience.”

Faced with the same question, which would you choose the million dollars cash or the total amount of a single penny doubled each day for 30 days?

Let’s study the power of a penny doubled.

We’re going to take that one shinny penny and double it each day for 30 days. Believe it or not, we’ll end up with much more than a million dollars.

Day 1 – $.01
Day 2 – $.02
Day 3 – $.04
Day 4 – $.08
Day 5 – $.16
Day 6 – $.32
Day 7 – $.64
Day 8 – $1.28
Day 9 – $2.56
Day 10 – $5.12
Day 11 – $10.24
Day 12 – $20.48
Day 13 – $40.96
Day 14 – $81.92
Day 15 – $163.84
Day 16 – $327.68
Day 17 – $655.36
Day 18 – $1,310.72
Day 19 – $2,621.44
Day 20 – $5,242.88
Day 21 – $10,485.76
Day 22 – $20,971.52
Day 23 – $41, 943.04
Day 24 – $83,886.08
Day 25 – $167,772.16
Day 26 – $335,544.32
Day 27 – $671,088.64
Day 28 – $1,342,177.28
Day 29 – $2,684,354.56
Day 30 – $5,368,709.12

The power of a single penny doubled is amazing isn’t it?

The lesson in this story is to understand that even small amounts of money no matter how small add up, be patient and you will soon find out for yourself.

Benefits of a Travel Fund

I’ve had a travel fund for years, and my earnings have been different each year since starting one. Nowadays I don’t earn nearly as much as I did a couple of years ago, but the penny story always pays out.

I get paid on a monthly basis so I must divide my earning into a weekly basis to keep my finances in order. I am by no means a math person, but accounting for my money and where it goes is extremely beneficial.

Once all my monthly expenses are accounted for, I throw money into my Travel Fund. It can be $1, $5, $10, $20 no matter the amount I make sure to put something in.

Within a years’ time you truly see how much these small amounts add up. I use my travel fund to take one big trip or smaller trips throughout the year.

If you want to see the world and finances always seem to be a problem I hope by reading this you can see how simple it truly is.

Tip: next time you see a penny on the ground, don’t assume it’s worthless, pick it up; it could be your next ticket to see the world!

 

About the Author:

Connect with IHeartTravel:

JeremyJeremy runs IHeartTravel a website where he shares his positive attitude with the world. He aims to live life to the fullest and contribute to the world “that has given me so much.” At the moment he is involved in volunteer work both locally and abroad.

He is also in the process of starting a new apparel line which encompasses his passion of life. Currently living in the Northeast he is raising his little Global citizen while enjoying life as it comes.

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About the author: Carrie Smith is the financial artist and editor behind Careful Cents. She helps creative entrepreneurs make a living with their creations, and reach financial freedom through systems and financial organization. She’s been featured in The Huffington Post, Glamour Magazine, Kiplinger Finance and several other business websites. In May 2013 she quit her full-time accounting job to pursue entrepreneurship and blogging. You can find her on Twitter or Instagram @carefulcents.

Comments on this entry are closed.

  • Andre Brown March 7, 2013, 10:11 am

    I will never look at a penny the same again! Great post and information! I love the idea of a travel fund. We have been using one for the past 2 years and it’s how we save for all our trips. Once a trip has been established, we start saving for it one buck at a time! Instead of an envelope system, we have a “box” system. It’s been working and keeps us on track!

    Great post and thanks for sharing!

    • Carrie Smith March 8, 2013, 10:15 pm

      I use a travel fund too Andre, and it’s such a nice thing to have because it enables me to travel much more than I would if I didn’t have it in place. Totally worth it!

  • Tony@WeOnlyDoThisOnce March 8, 2013, 1:42 pm

    Great post! Absolutely true. We often don’t realize how much impact a small well-invested sum can have on our lives. Thanks for this.

  • Grace March 10, 2013, 9:14 pm

    I also use a travel fund. I fund it by riding my bicycle. On days that I ride my bike to work, I put $5.00 into my travel fund. That is the amount I would normally pay for a round-trip bus ride. It has worked out well: I have gained the benefits of bike commuting, and I have saved enough to fund a short vacation later this month.

  • Jessica March 13, 2013, 9:28 am

    Whenever I see a penny on the ground, I ALWAYS pick it up. I tell my children this story when they see one too. The money found always goes into a savings bank. I have a very small travel fund but hope to grow it into something big someday. I want to see and take my kids to see the world and it started with that first penny I ever picked up!

  • The Norwegian Girl March 13, 2013, 12:38 pm

    I also have a travel savings account! I always make sure to add some money every month, some when I get money, and some at the end, if there`s anything left. A little goes a long way! :-)

  • parlOp March 22, 2013, 12:37 pm

    The problem is, how do you double it every day! The best feasible investment in financial products would give you 7 % p. a., but for the best security, just 1 % or even below! With this, you need a bit more patience: log(1000000/0.01)/log(1.07)=272.26 years or log(1e8)/log(1.01)=1851.26 years… If you’re not investing that money, but just adding the same amount of money every day, it of course takes 1e8 days=273785.08 years. The example is good to show how fast the exponential function grows, but is not really practical. Even the exponential-ish growth of bacteria has natural limits as has everything in this world with limited resources… Yet, I do agree with you that continuous systematic saving is the key to build up fortune.

  • Vanessa @ cashcowcouple.com March 28, 2013, 10:54 am

    I like the idea of a travel fund. However, until my husband and I pay off our student debt, all extra cash goes towards that. Someday though, a travel fund will be necessary. Just like everything else, a little bit every day really adds up!