Saving Money VS. taking vacations?

[kandb]

Does anyone else feel a bit "unsettled" about spending money on vacations? We go to Disney every year and spend around $6-7K on our vacation. We are comfortable financially (own our own home and have no debt), but I am starting to feel like we shouldn't be going every year. We have 3 children and I worry about the future of the country regarding the economy and the price of college. Does anyone else worry about not saving enough money or having enough money for the future? How often or how much does your family spend on vacation? Any formula's out there that indicates what's a "smart" amount of money to spend on vacation yearly?

 

[disneymagicgirl]

I always wonder the same...what is a reasonable percentage of your income to spend. Problem is that it would vary depending on what kind of other bills people have. Interested to see answers, because your family and mine sound just alike!

 

[Gumbo4x4]

Go somewhere else next year. Aside from saving some $$$, you'll get to see someplace new

 

[Shelly F - Ohio]

Well if you are going every year it might be a good idea to invest in DVC. The ROI on a DVC timeshare is 5 years.

 

[crisi]

The question is, are you ALSO saving? We were able to have no debt, save for the kids college, set aside money for retirement, have a funded rainy day fund, and still vacation - although it wasn't always Disney at $6-7k a year (in fact, last year, it was two small trips for less than $1000 total). But, yeah, if I were spending $6-7k EVERY year, didn't have a rainy day fund and didn't have college funds for the kids on track to have whatever my goal was when they graduated, I'd feel unsettled.

And, please note, that I'm not saying you need to have the kids college fully funded to take a vacation, or that you must be completely out of debt, or two years of income put away, or anything like that - but do you feel like you are saving sufficiently to meet your goals. Those goals might be having enough saved to help your kids pay 1/4 of their expected college costs, doing two years at a community college. Or you might feel secure with three months of income stashed away - knowing opportunities in your field are good and that you can cut a lot of expenses if you needed to.

(As a percentage, we've probably spent 2-3% a year of gross income on vacations)

 

[eliza61]

go somewhere else next year. Aside from saving some $$$, you'll get to see someplace new

+1

Also different years brings different spending levels. I just spent 5000 on my doggie to get his cataracts removed. We maybe low budget next year.

 

[kandb]

We do have savings, $150K in cash, and we are both government employees, so we both get decent retirement penions (if the state we work in don't go bankrupt (NYC and NJ). We have a 4 year old and twin 10 year olds and we were going to try something different for vacation, but they all still love going (and so does mommy). We have gone for the last 8 years and have some great memories. We still go on other small trips to other places. Maybe we will go for a few more years.

 

[Luv Bunnies]

We did a big vacation to WDW this year, so our plan is to do something less expensive next year. We are fortunate to be able to take vacations and keep money in savings. As long as my boys are willing to go, we will take them to cool places. I'm sure the time will come too quickly when they either don't want to go or will be vacationing with their own families.

 

[ldo]

go to WDW and have fun. Of course, you could do WDW for cheaper than $6-7K. If you want to trim some $:
rent DVC points, as Old Key West and Animal Kingdom Villas allow 5 persons in a 1 BR. Then you also have a full kitchen for breakfasts and you could cook/assemble a few easy dinners to save a lot of $$--plus, coming back for an hour or two in the evening is relaxing.
have fun! Elaine

 

[NokOnHarts]

How often or how much does your family spend on vacation? Any formula's out there that indicates what's a "smart" amount of money to spend on vacation yearly?

I've thought a lot about this because it is really hard for me to spend money in general, I always feel we should be saving it. The best way I have found to save for trips is to NOT include our income money as much as possible into the vacation fund. What comes in the pay check does not go towards travel - it goes toward those "responsible" things. We are debt free except our home so I don't feel guilty about any "extra" cash going towards fun things. Any bonuses my DH gets, any money from selling items, money from surveys I do, goes towards travel. That way I know all the important things are covered (bills, savings, etc) and I can really enjoy the trip not feeling guilty about the cost. That said, I still insist on getting the best deals and traveling at times where the cost will be cheapest. It may take longer for the next trip, but it's the best way I found to pay for it.

 

[QVCshopper]

I used to hate spending money and saved constantly. But now, every time I turn around, it seems like people I know are getting sick, my kids are getting older, etc. and I want to spend my money on memories. I'd rather spend time with my family than have new clothes and fancy things. I guess we are redirecting our money?

Our new plan to save money is to go 2-3 times in a 12 month period and then not go for 12-18 months. That way, we can get the most out of our annual passes. We sometimes stay with my in-laws' DVC, so your $6-7k may last all 2-3 trips if we're careful.

 

[lisaross]

Totally agree with this post!

We do a "big" vacation which costs about 7000.00 or so every Other Year! Last year we took a cruise - the year before we went to Niagra Falls cost about 3000.00 this year we're driving to the outerbanks - which will cost about 3500 and 2015 we are doing Disney will cost about 8000.00 -

The question is, are you ALSO saving? We were able to have no debt, save for the kids college, set aside money for retirement, have a funded rainy day fund, and still vacation - although it wasn't always Disney at $6-7k a year (in fact, last year, it was two small trips for less than $1000 total). But, yeah, if I were spending $6-7k EVERY year, didn't have a rainy day fund and didn't have college funds for the kids on track to have whatever my goal was when they graduated, I'd feel unsettled.

And, please note, that I'm not saying you need to have the kids college fully funded to take a vacation, or that you must be completely out of debt, or two years of income put away, or anything like that - but do you feel like you are saving sufficiently to meet your goals. Those goals might be having enough saved to help your kids pay 1/4 of their expected college costs, doing two years at a community college. Or you might feel secure with three months of income stashed away - knowing opportunities in your field are good and that you can cut a lot of expenses if you needed to.

(As a percentage, we've probably spent 2-3% a year of gross income on vacations)

 

[sweetdana]

Like all budgets, you need both. If you can save and splurge. .. Why not. If it is either or, I'd put more time in between and shorten the budged when going.

Having a plan, and a back up plan.. Then enjoy the rest, life is short.

 

[snarlingcoyote]

My great aunt died at 102. Her husband died at 67, right after they retired.

She told me and DH once that they had scrimped and saved and done without their entire marriage on the premise that as soon as her DH retired, they'd go out and do things together - they'd travel and have a grand time.

Well, he died right after he retired and they never got to do those things together.

Her advice was to save, yes, have enough to retire comfortably and enjoy life after retirement, but don't forgo having fun and enjoying your time today as a family because no one is promised tomorrow.

 

[Valoric]

You better figure out the cost of college. You have three kids. If one of them has the chance to get into a fantastic school which costs $45k/year in tuition, and despite how little you earn as a government employee, you are still on the hook for a good chunk of that.

 

[lauradis]

Does anyone else feel a bit "unsettled" about spending money on vacations? We go to Disney every year and spend around $6-7K on our vacation. We are comfortable financially (own our own home and have no debt), but I am starting to feel like we shouldn't be going every year. We have 3 children and I worry about the future of the country regarding the economy and the price of college. Does anyone else worry about not saving enough money or having enough money for the future? How often or how much does your family spend on vacation? Any formula's out there that indicates what's a "smart" amount of money to spend on vacation yearly?

Op do you have the same guilty feelings when you buy your self something nice?

We do disney every 3rd year, but other vacations sometimes they are more or less.

I only have this problem when I come home from vacation, had great time, would do it again and then there are somedays im like I really couple do x and x with that money. what if what if

And Im not a worry worry kind of person.

I call it old broke syndrome. never had any money growing up, and now sometimes I horde to much of it saving for the don't ever want to be broke again fund. my sister said some thing really enlightening over this "Why do you make money?" I said so I can live in house and eat. She said really "whats the point you grow up in a house and ate as a child and you where broke!"

If your going every year get dvc it would be cheaper

 

[SGB13]

Her advice was to save, yes, have enough to retire comfortably and enjoy life after retirement, but don't forgo having fun and enjoying your time today as a family because no one is promised tomorrow.

I totally agree with this. I look at it as investing the money in memories for our family. My DH's father died when he was a teen, yet he spent a lot of time with him and has many wonderful memories. It doesn't have to be an expensive Disney vacation, but time away with your family is priceless.

 

[imsayin]

You better figure out the cost of college. You have three kids. If one of them has the chance to get into a fantastic school which costs $45k/year in tuition, and despite how little you earn as a government employee, you are still on the hook for a good chunk of that.

This! I would cut back on vacations to fund college. I''ll need over $200,000 to send my son to a private college in 2 years and around $100,000 if he goes to a state school.

 

[Colleen27]

I don't, but DH sometimes does. To be fair we do spend a lot on travel - as much as 25-30% of our income in some years - but we have built our life in such a way that we can do so without sacrificing planning for the future. It isn't so much that he's a saver, though; he just didn't grow up traveling and has a harder time spending on experiences over things. We talk about our travel budget and agree to spending that works on paper, but when it comes to actually spending that much he frequently has moments where he feels like we're being decadent or wasteful... And this is a pretty timely thread because he's having one of those moments this week. Just last night he brought it up to me. We have 4 trips planned between now and the end of Feb, and though it all comes well within our agreed-upon travel budget with enough left over for some tentative summer plans we've been tossing around he is questioning whether it is too much.

 

[Imhere]

When we were young many times vacations were visiting family and doing entertainment activities nearby. Or, maybe a 3 day vacation to a tourist destination in a budget hotel.

As time went on and we became more financially settled Disney vacations entered the picture. We'd many times stay at moderates, driving 10 hours to Florida.

As life goes on it lead to flying to Florida and staying at Deluxe resorts.

It seems that nowadays young people need to have all the things in their lives that people used to work years for. Young couples need the new house with the stainless steel appliances and new furniture. When we married and bought a modest house it was furnished with stuff we had and maybe a new piece added here and there.

It floors me that people now think they deserve the things starting off that their parents worked hard for years for.

Oh well, that was all completely off topic, but my point is that there is no answer except that there needs to be a balance between spending for current needs, saving for kids education and for our own retirements.

For us, vacations usually took a back seat to our having a healthy financial situation.

Everyone is different though.