Post # 1
In the last 3 years, we’ve averaged 13% (per year) of our combined income on overseas trips. This year we’ll be in Europe for a month.
My husband is starting to panic with the fact that I’ll end up doing something like this every year. I promised I won’t. Then suddenly, for 2015, my best friend has decided to have her wedding in France and my husband’s best friend has decided to have a Bachelor’s week in Las Vegas. We’re still deciding whether to go to either trip (seperately if at all).
So far we are still able to pay our mortgage, put food on the table and save a little…so I feel we only have another 2-3 years to enjoy our freedom before we have kids (I’m 31 years old).
Are we going over-the-top on our vacation spending habits?
Post # 3
What do you mean by “saving a little”? Are you saving each month more for vacations than you are for your future – retirement savings, emergency fund, regular savings account? If you are funding all of those things at a robust rate then I say knock yourself out. If you are going full steam ahead on vacay funds and not on the other, that wouldn’t work for me.
Post # 4
@Berry-b.: Travel as much as possible before kids is what they say. Not that you can’t travel when you have them…But it makes it much harder.
Post # 5
I mean sure that’s a lot to spend on vacations, but it’s all relative. If you are able to pay your bills, don’t have debt and hopefully have a retirement plan in place, you should do whatever you want with your leftover money. At least for a little while.
We have a child, but we generally spend about $5000 per year on vacations…I don’t know what percentage of our income that is off the top of my head, but it’s less then 3-4% I think. Sometimes we spend more sometimes less, but we have a great retirement savings plan and we save for our sons education, we don’t have debt and we pay out bills on time.
Post # 6
@Berry-b.: not at all, now is the time! We did cruises, islands, tons of road trips, followed our fave band around with girlfriends. Life is for living, tomorrow is not promised and you aren’t being reckless.
Post # 7
I’ve never calculated what we spend on travel per year but the last few years we have done some big trips (Europe for a month, USA for 3 weeks, honeymoon will be soon and then we are doing 3-4 weeks in South America which will cost a lot) and have spent a fair bit of money on that. Doing some quick math I would say about 12% pa of our gross income (before tax) has been spent on these holidays. I think it’s worth it. We don’t plan on taking trips like this forever, we want to start TTC after South America so they will stop for quite a few years and we’ll stick with shorter/cheaper options that are closer to home. We are only young once, travel is very important to us, we earn a decent income, have little debt so why not. Everyone has stuff they splurge on – we don’t go for designer clothes or accessories or super fancy dinners out very often, or jewellery etc. This is our thing!
Post # 8
@Lollybags: Definitely agree we hardly splurge on anything else e.g. designer means nothing to us, we own 2 cars and the only debt is our mortgage).
Well the first extravegent trip was our honeymoon to Japan but that didn’t feel like a honeymoon as it was so fast paced and we got sick halfway.
Then the following year we did Fiji and Vanuatu for a friend’s wedding but we found it boring and both of us got sick…again (bad timing, bad weather!).
I guess that’s why I sort of do feel it’s justified to do Europe as a last hoorah.
Post # 9
@hermom: You’re definitely putting this in perspective with the savings vs spending. We usually put some savings away followed by whatever we need for bills.
Then whatever is leftover, in the past year I’ve been putting it all towards this Europe trip.
Post # 10
@Berry-b.: Are you saving for retirement and at least 10% of your income toward general savings? Do you have 3-6 months worth of expenses in savings? If so, I wouldn’t worry too much. If you don’t, it may be time to re-evaulate your spending.
Post # 11
Everyone is entitled to a luxury. My relatives back at home will spend their money buying new cars and things all of the time, but I don’t have any need for that. I don’t think you can splurge in every aspect of your life, but if you love to travel you should indulge while you stlll have the freedom to do it. DH and I are having a baby this year and are wishing that we had traveled more.
Post # 12
I’m voting YOLO 😛 As long as you’re making your future a priority for your savings – not only vacations.
Post # 13
13% doesn’t sound bad at all. As long you can afford it and still save, go for it. You’re only young once. We like to take (at least) annual vacations too.
Post # 14
@Berry-b.: The way I see it, people choose to spend their extra money in different ways. One challenge I’ve had as I’ve been spending more time around FI’s family is that I often feel very judged about where I choose to spend my extra cash (clothes, hair, nails, spa, jewelry) when they choose to spend it on travel and cars. As long as you are happy and comfortable with your decisions, it’s no one business! Plus if you are planning on having kids in the next few years, I’d travel all you can before. Not to say you can’t travel with children, but the dynamic will definitely be different.
Post # 15
@Berry-b.: i think if you can comfortably afford it, it’s okay but like you said, in a few years you will be starting a family. now is the time.
our first year together, my dh and i spent about 12 weeks total travelling. not all at once but throughout the year. we still travel a bit but have settled down a lot.
Post # 16
To me.. you are. But that’s because I’m super frugal and vacations just aren’t a priority for me. I’d much rather use that money for other things. But vacations might be a priority for you.. if you are still making your bills and have plenty to eat, I think that’s all that matters. Although, I would think about retirement if you aren’t already.