The MaD Method to Save for Your Next Trip (Infographic)

The MaD Method? Are you Mad?

First of all, let me be frank. I am a nerd, always have been, always will be. And, being a nerd, I like to add formula and have logical methods to do most things in my life. Saving money for my holidays is no different. I have different methods to save for my next trips that do not hurt your pocket and can start for as much as €1 per month!

Most of us only have holidays once a year. This method will work perfectly for you!

The MaD Method for saving money

We, the people from Mochilão a Dois, decided to share with you our method to save for our trips.

The money we save with this method is targeted for a particular trip so that we know exactly how much with which to start our savings.

The method is exponential: This means that you will save double of what you saved in the previous month. It can start with as little as US$1/€1/£1 and, after 10 months, you will have enough time and cash to take a nice trip to that place you always wanted to go!

The MaD Formula

Of course, there is a formula! Nerds don’t half-ass their maths!

E = I x 2^m

Where:

• E is your monthly savings;
• I is your initial investiment, e.g. €1;
• 2 is just the number 2 (no hidden meaning behind it, don’t worry);
• m is your month, starting at your zeroth (0) month;

To make things simpler, we from Mochilão a Dois made an infographic to show you how to plan your savings:

How to save using the Mad Method

First of all, decide on your initial savings. For a short-haul trip, you can start with as little as US$1/€1/£1 (way less than you’d spend with a beer unless you live in Germany). All the money will go into your “MaD Fund”

In your zeroth month (your zero milestone marker), which usually starts after your last holiday, you only need to save US$1/€1/£1. On the following month, you save US$2/€2/£2, then US$4/€4/£4 etc.

If this is your decided initial amount, after 10 months, the grand total comes to 1023 moneys in whatever currency you are working in. See the example on the infographic

Where can I go with this amount on money?

It all depends from where you are starting your trip, of course!

If you are starting in London, for example, you can spend three weeks pretty much anywhere in Europe reachable by low-fare airlines.

If you budget your 20 day trip at, say, £40 per day, your budget comes to £800 for accommodation, food, transport and entertainment and £200 for your return ticket. As you know, you can pay less for your tickets and budget a lot more, to stretch your days at the said place (even doubling your holidays. Not bad, right?).

Why should I need a method to help me save?

If you are one of those people naturally good with money, well done! You do not need anything to help you! But if you are part of the 90% that cannot control your money, the MaD method is perfect for your planning.

Let’s put the monthly costs into perspective (for the above example, in €):

• Zeroth Month: €1 – Price of one ice-cream cone;
• Month 1: €2 – Average price of an espresso at a local coffee shop;
• Month 2: €4 – Price of a pint of beer;
• Month 3: €8 – Packet of cigarettes (if you smoke! Don’t smoke!)
• Month 4: €16 – A burger at a pub
• Month 5: €32 – Dinner at a nice restaurant
• Month 6: €64 – The daily amount the Greeks could withdrawal during their economical crisis (€60);
• Month 7: €128 – A pair of runners;
• Month 8: €256 – Beats by Dr. Dre Studio3 headphones;
• Month 9: €512 – 60% of the price of the latest iPhone.

Saving yourself from some temptation can buy you one month holidays!

Why did you develop a method?

That’s a great question! Thank you for asking Dr Nogueira!

I get sick and tired of my drinking, 1 pack a day smoking, latest fad and trends, iPhone buying, nightclub frequenters, online poker addict, Carnaval crazy friends telling me “Man, I don’t know who you get to travel so much… I am always broke… I wish I got to travel as much as you do! It must be so cool”… grrrrr!

Life is made of choices… I choose to travel! And I use the MaD method to help me with it!

The “Twice as MaD” Method for Saving

Do you need more time to save? Do you need more money for a longer trip? You can then use the “Twice as MaD” method!

It is simple! You can start over the MaD Method after 10 months!

Here are some examples of possible trips you can take if you use both the MaD and the Twice as MaD methods:

Trips we took using the MaD Method

Here is a list of some of the trips (and the starting point and initial savings), we did using the MaD Method (I = Initial Investment):

• Nobres at I = R$1/€0.25 (from São Paulo);

Nobres is a fantastic place, still unknown even in Brazil. It has pristine rivers and fantastic nature all around. It is still cheap to travel there, as most tourists prefer the more trendy “Bonito”, another fantastic destination. Saving for this trip is easy enough, you can almost use the method twice in parallel;

• The Amazon at I = R$3/€0.75 (from São Paulo);

Going to the Amazon is still strange for Brazilians. More foreigners visit the capital of the Amazon than Brazilians. It can still be cheap to visit it! The largest expense is the airfare. Everything else is pretty cheap, so your money can go very far!

• Mount Roraima Trek at I = R$3/€0.75 (from São Paulo);

Mount Roraima is a fantastic trek. It is not too easy, but it is also not so difficult. Saving money for it over time is very reasonable, and it will give you a ton of fantastic experiences in one of the most surreal places on Earth;

• Thailand at I = US$1 (from Paro, Bhutan)

Don’t be fooled! We are close to Thailand, but tickets are not cheap! We paid US$400/person for a return ticket! Around the same price as anyone from Europe and maybe the US would pay to go to the City of Angels. Nevertheless, it is still quite easy to save money for a three week holiday to Thailand! The country remains quite affordable!

MaD Method Limitations and possible solutions

Are months 8 and 9 going to be a bit tight? Have you not yet reached those kinds of salaries? Well, join the club!

But don’t worry! As someone who wants to make this work for you, here are some possible solutions to the possible shortcomings of the MaD Method:

• Spread the last one or two months from the beginning: Save smaller amounts from month 0 in equal instalments. This will make it easier to save;
• Extend the 10 months plan, so you can save the last month over 2-3 months. This also works very well if you are not in a hurry;
• If you are not planning to travel within the year, use the “Twice as MaD” method with low amount. This will give you time and you won’t even notice that you are saving money;
• Start from the end: If you have some money already, put the last month upfront into your “MaD Fund” and start from the end. The savings will only get easier!

We managed to do it, I am very sure you’d be able to do it too!

Please share it!

Posted by Wagner Nogueira

Wagner studied Theoretical Physics (B.Sc) and Climatology (M.Sc) at University College Dublin, in Ireland. He has Ph.D. in Meteorology from the University of Reading the Post-Graduate Certificate in Education from the University of Oxford. Today, he teaches physics and maths in Bhutan. He has a passion for history, animation, gardening and has visited 52 countries.