Sunday, 25 November 2012

In Medias Res - Money money money

About three months ago I finalised a draft budget.  It was perfect, giving me a 10% buffer for the entire four month trip, 50 euro spending money every day for the 3 month backpacking portion and an amount put aside for accomodation.

This morning, it being the first morning I've not been rushing out of the house in about a month, I decided to get the prepaid travel card that will be my lifeline for the next however long, and I discovered the first few cracks in my perfect budget.

Firstly, tax.  Despite the fact I am well under the tax threshold, try telling the tax department that.  I will be.  Unfortunately, I will be telling them at the end of the tax year, a good two to three months after I finish my trip.  So from the very beginning I'm a good $750 down on my expected income.

But that's alright.  I mean, that's what I had a 10% buffer for.

Then along comes currency exchange.  My only weakness, besides fire, bullets and chocolate.

I looked at the numbers, not really understanding whether they were good or not.  In the end, it was about 1 cent per dollar off what I was expecting.  "Well, that's alright" I thought.  Then I did the calculation.  I was likely to lose about $80.

"I guess this is what my buffer was for," I nodded sagely to myself.  "And that just accounts for their 1% commission."

I go to the next page where they tally up the final cost.

It's 1% higher than the previous page.

"Oh, guess that didn't account for the 1% commission."

There goes another $80.

"Thank God for my buffer," I muttered to myself as I calculated how much I had left over.  Turned out my buffer had gone into the red about $150.

There go my dreams of being an accountant.

On the plus side, who really wants to go on a balls-to-the-wall backpacking venture with plenty of money, right?  Injecting a little risk into proceedings will make things far more exciting.

The moral of this story is making a budget is pointless since it'll just make you feel bad when you don't keep to it.  Oh, and screw exchange rates.

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