Case study: 2012 China vacation one month

Dec. 22, 2018

Introduction

I spent more than one hour to go over the expenses I spent in China one month vacation in 2012. I just could not believe how much I spent. I had debt in USA over $30,000 US dollars in 2012. I like to write a case study on this one.

Case study of my vacation in 2012

Beside the above expenses, I paid for $7000 yuan for airline ticket, $3000 - $4000 for two long distance road trip, and also all other expenses.

I also gave out cash gift over $2,000 yuan called red packet in Chinese new year to relatives. My asset in China is zero, I took out cash from Scotia debit card every day at most $400 Canadian dollars.

I like to go over those purchases and find all kinds of decision making. Why I made the purchase decision, what problem I need to look into solve.

Vancouver airport clothing Hudson

I came cross the jacket with Canada on the sleeves, so I made purchase four of them, giving away as gifts to four sisters. $100 dollars for gift. Do I plan it or not? Have a budget?

Why I paid for expensive medical exams?

I like to go over my decision process. Do I apply 10 hours rule if I decide to spend over near $600 yuan to do medical exams? What is impulsive shopping for medical service? My sister told me that she got annual free exam, and then she shared the exams she had. I immediately went for the exam, and I did not care if Shenzhen is most expensive city compared to my hometown.

Why I chose to spend vacation in January?

The airline ticket costed me over $1000 Canadian dollars. I chose to purchase those foods from Costco. I spent over $100 Canada dollars for extra bag, and then I ended up to pay for all gas $1 yuan/ km to China. Since the train ticket ran out in Chinese new year.

The Air Canada round trip in slow season can be half of the price, I only need to pay less than $3,000 yuan.

Why I purchased expensive leather coat?

Since my sister told me she paid $5,000 RMB for a leather coat, usually she told relatives fake price. I ended up to spend hours to shop the leather mall to purchase a $1200 yuan leather coat.

Looking good but going no where. I need to learn this principle related to personal finance.

Here is the leather coat's receipt.

Healthy food or all kinds of snacks in China

I spent near $1600 yuan in Canada to bring to Yichun, and aslo spent over $2400 yuan on food, all kinds of gourmet food. Food is the biggest waste as well. I paid over $4,000 for one month vacation.

Here is the Costco receipt.

Why round road trip from Shanghai to Yichun?

I prayed the road safety for the trip. My brother was the driver. I came out the idea to purchase food over $500 yuan for road trip, all kind of fresh vegetables etc. to help the driver to stay alert. That was the first day road trip from Shanghai to Wuxi, and then Wuxi to Yichun. 

I paid for all gas and tolling fee from round trip over $2000 Yuan. I also stuck on the highway overnight and slept inside the car on rest stop on highway overnight when my brother drove from Yichun to Shanghai. There was a car accident and we got stuck early in the morning from 1 AM to 3 AM.

The road trip was not safe at all. A lot of speeding and all kinds of issues.

Why round road trip from Yichun to Shenzhen?

Actionable Items

I need to learn how to plan, budget in my personal finance every day. All problems came out and I noticed the danger everywhere. Road trip safety, food safety and all other issues. I tried to cash out crazy with so many $2000 Yuan withdraws.

Do I have to take vacation in Chinese spring break? 2014 I took the vacation again in spring festival, again, I spent over $4,000 Canadian dollars again. In 2014 December I became a Canadian citizen. My coworker as a sales manager told me, Julia, you are a Canadian citizen now, we just had one week break in December. All projects just started in New year. I listened and understood that it is not a good decision for me to a full time programmer to take two weeks a break in Chinese spring festival.

I no longer took my sister's advice to take vacation in spring festival. But not for financial problems of spending problems.

With the above review, I did show poor planning, no budget, impulsive shopping, indulge in food, solve problem without carefully considering the cost, under influence. The vacation was too long, I spent money on the road trip.

Ideas to cut expenses

1. Do not purchase food from Costco, $1600 yuan saving, plus extra bag fee charged by airline;
2. Avoid road trip, it is expensive and not safe. I should not choose to pay fee on road trip over $3000 yuan.
3. Avoid time in Chinese spring festival. Choose April, make it short as one week. Airline ticket saving is $3000 yuan.
4. Do not purchase clothes in airport Hudson, $800 yuan saving. Do not give gift to others, they all are adults.
5. Use vacation day to spend time to go over medical exams if need in Canada. Saving is $950 yuan, I should not choose to do exams in Shenzhen. Choose to study some youtube.com video, learn something cheap.
6. Do not need so many coats. I purchased expensive leather coat $1600, one coat full retail price $400 yuan, three on sale, $100 dollar each. Two other coats for myself, two for my mom as well.
7. That is the last chance that I can purchase a home in China as a Chinese citizen. I do not make my sisters and brother as a business partner, I wasted time on parties on food and nonsense.
8. I am not a good role model for young generation. Discipline, hard working, and self-control on personal finance.
9. Red packet to give out cashes, pay all road trips cost even my brother has to take the road trip by himself for business. This is time for me to negotiate to share the cost.
10. I allowed the relative to act financial irresponsible through road trip. I got into highway and stuck in the middle of night on the highway.
11. Get the salary in the city of Yichun university, a teacher over 20 years annual base salary. Use that to determine how much I should spend in a month.