Someone talk me down!

[RachelsMommie]

Okay, we've had a really stressful couple of years. We went to WDW last May and had an AMAZING time relaxing and recharging. But it's been a rough year financially and we unexpectedly had to buy a new car when the old one died a tragic death.

So we're paying aggressively on the Honda and it is scheduled to be paid off in August. We are getting a tax refund (just adjusted withholdings again) soon and we had planned to throw that towards the car. We are putting all extra money towards the car right now. We have 3 months of expenses in savings, and will have that beefed back up to 6 months by the end of the year (lost my job last year and found another one quickly, but refuse to go below the 3 month mark even though I'm a DR follower).

So, here's the dilemna. The entire family is exhausted and stressed. We had planned to skip our annual vacation this year and go back to Disney next year. Problem is, I NEED A BREAK! Our tax refund is going to be $800 more than I expected, so I could throw that towards the car and get it paid off a few weeks early, or I could use that money plus another $500 to take a budget vacation in May.

I've found a condo at the beach we could rent and I could cook breakfast and lunch there. If we eat out at night plus the cost of gas and meals on the road, we would be able to do this trip for $1200-$1300. I just feel guilty for spending that money. I could avoid taking the $500 that the tax refund won't cover out of savings by saving the money up between now and then, I think.

Should I take the cheap vacation and give my family a break this year? Or be good and throw it towards debt? Help! I'm having a Dave Ramsey guilt attack!!

 

[maddiesmom0116]

Okay, we've had a really stressful couple of years. We went to WDW last May and had an AMAZING time relaxing and recharging. But it's been a rough year financially and we unexpectedly had to buy a new car when the old one died a tragic death.

So we're paying aggressively on the Honda and it is scheduled to be paid off in August. We are getting a tax refund (just adjusted withholdings again) soon and we had planned to throw that towards the car. We are putting all extra money towards the car right now. We have 3 months of expenses in savings, and will have that beefed back up to 6 months by the end of the year (lost my job last year and found another one quickly, but refuse to go below the 3 month mark even though I'm a DR follower).

So, here's the dilemna. The entire family is exhausted and stressed. We had planned to skip our annual vacation this year and go back to Disney next year. Problem is, I NEED A BREAK! Our tax refund is going to be $800 more than I expected, so I could throw that towards the car and get it paid off a few weeks early, or I could use that money plus another $500 to take a budget vacation in May.

I've found a condo at the beach we could rent and I could cook breakfast and lunch there. If we eat out at night plus the cost of gas and meals on the road, we would be able to do this trip for $1200-$1300. I just feel guilty for spending that money. I could avoid taking the $500 that the tax refund won't cover out of savings by saving the money up between now and then, I think.

Should I take the cheap vacation and give my family a break this year? Or be good and throw it towards debt? Help! I'm having a Dave Ramsey guilt attack!!

You just sound stressed by reading your post. I personally would take the vacation, it sounds like you have a good handle on your financial situation and that your family could use a break. I am a big believer in vacations as long as you don't go into debt to finance them, which it sounds like you wont. They help me recharge and refocus.

 

[roscoepc1]

As much as I appreciate Dave Ramsey, I DO think there are times when mental health needs to take priority. And it sounds like this is one of those times. I wouldn't go into debt to go somewhere, but if you can find a reasonable location and price, I would go.

 

[Where'sPiglet?]

Suze Orman's key phrase is "people first, then money, then things".

 

[DVCBELLE]

Since the tax money is "found" money and will not be throwing your plans off - I vote for the vacation!!

I guess we aren't helping since you asked us to talk you down!

 

[RachelsMommie]

Thanks, everyone! Yes, it's been a stress-filled year and my DD5 told me she wants to go to the beach. She LOVES Disney, but she said she really just wants to go have fun on the beach and swim. The resort I found is beautiful and has 4 pools and private beach access, and the condo is 2 bedrooms/2 bathrooms so my DH and I won't have to go to bed at 8pm like we have to in a hotel room. I negotiated a really great rate of $99/night for 5 nights plus tax and cleaning fee. Just got the contract and I just want to feel comfortable with my decision.

I love Dave, but my justification is that it's not impacting our debt-free plan, plus it is WAY cheaper than therapy. I just need to hear that it's okay to do this and I'm not making a terrible financial decision. I know, it's not a lot of money, but it's DR-guilt.

 

[lovealatte]

Take the vacation. Sounds like you need one and you could do some searching to find something reasonably priced, maybe an opportunity to do something non Disney.

Think of it as necessary for your mental health!

 

[luvdisney00]

Take the vacation, life is short and stressful, we all need a break. I am a big believer in needing vacation to recharge and relax and strenghen family bonds. Saving money is great and being debt free is great too, but we have to LIVE too because the future is uncertain, kids grow up fast and we never know what's ahead.

We just paid our car loan off in October and we could have paid it a long time ago, but we opted for taking vacations these last few summers (it was our only debt other than mortgage and it was a 1.9% financing deal) and paying it more slowly. Some would say it wasn't smart financially, but I wouldn't trade our vacation memories for anything. We are now putting money aside for when we need a new car (hopefully not for a while) and adding to our EF, but we are still taking a vacation this summer.

 

[Blessed_wth_Triplets]

I was in the same boat as you...similar at least...we don't have 6 months salary saved! We have no debt but our mortgage, but again, not enough in savings IMO. But..I too didn't know if we should skip this year or not. DR would probably (and for sure Susie!)say we should. But yes, life is short, kids grow up fast, and you just never know what tomorrow will bring. In short...the money we spend on the trip should be going to savings...but it's going to making memories!

 

[Jeff_G]

ok I will be the lone Dave Ramsey dissenter , first tax return is not “found” money, you just gave the government an interest free loan for the year. Look at how much your par payment is, it’s not just paying off the car payment a few weeks early, you will be eliminating that entire monthly payment. Take the monthly car payment after its paid off save it each month and take the vacation next year paid in cash without a car payment… It’s one year…

 

[Marionnette]

Okay, we've had a really stressful couple of years. We went to WDW last May and had an AMAZING time relaxing and recharging. But it's been a rough year financially and we unexpectedly had to buy a new car when the old one died a tragic death.

So we're paying aggressively on the Honda and it is scheduled to be paid off in August. We are getting a tax refund (just adjusted withholdings again) soon and we had planned to throw that towards the car. We are putting all extra money towards the car right now. We have 3 months of expenses in savings, and will have that beefed back up to 6 months by the end of the year (lost my job last year and found another one quickly, but refuse to go below the 3 month mark even though I'm a DR follower).

So, here's the dilemna. The entire family is exhausted and stressed. We had planned to skip our annual vacation this year and go back to Disney next year. Problem is, I NEED A BREAK! Our tax refund is going to be $800 more than I expected, so I could throw that towards the car and get it paid off a few weeks early, or I could use that money plus another $500 to take a budget vacation in May.

I've found a condo at the beach we could rent and I could cook breakfast and lunch there. If we eat out at night plus the cost of gas and meals on the road, we would be able to do this trip for $1200-$1300. I just feel guilty for spending that money. I could avoid taking the $500 that the tax refund won't cover out of savings by saving the money up between now and then, I think.

Should I take the cheap vacation and give my family a break this year? Or be good and throw it towards debt? Help! I'm having a Dave Ramsey guilt attack!!

I would be the first one to tell someone in serious debt to forget about vacation and take care of business. Even I am telling you to take the trip. Life shouldnt be all about sacrifice and pain. You are on target to get things paid off in a timely manner without the tax refund. Go on your beach trip and have a good time!

 

[tkitty]

Breath....then take the vacation! Life is so short.

 

[Happiest mommy]

great deal on the condo, I say just go and enjoy the beach with your family

 

[Disneycrazymom]

I think the beach is a nice compromise to a vacation. You said you would cook so your grocery budget would be the same home or away. You could even do some dinners at the condo. We often don't feel like getting dressed and going out after a day on the water. Can you save a little on your entertainment budget from now until then? Would you be happy going to the water each day? Swimming, flying a kite, playing in the sand? You would not be spending anything extra to do that. I think it could be a great inexpensive get away. Just be careful to only do what you budget for while you are there.

 

[MistressMerryweather]

I truly feel that yearly family vacations are top priority. They don't have to cost much, but they have to happen. Families need time to relax, unwind, and only focus on each other, reconnecting and making memories. I'm all for paying down debt, but you sound like you have a good handle on it right now and a vacation can make all the difference in having a good deep breath and heading on into the next year together.

 

[RachelsMommie]

Thanks, everyone, for the support!

I wasn't expecting to get a tax refund as I changed my withholdings last year, but my DH quit his job to be a SAHD and that affected it more than I expected. When I ran the projections in November, I thought it would be a $3K refund, but running it with the actual data is showing $3800 back. $3K was already planned to go towards the car, but the $800 was unexpected. I changed my withholdings for 2011, so we'll I'll have more money to get the car paid off.

The $800 will cover the condo plus the gasoline to get there and back. You're right, our normal grocery budget will cover breakfast and lunch and maybe a dinner or two. We're not doing anything besides go to the pool and beach, which are obviously free with the condo. So I'll probably just need to save a few hundred dollars in the next few months for eating some dinners out...no big deal. I can definitely cut some corners in the next few months to save up the money so nothing comes out of savings and debt pay-off will be on schedule.

We paid off our 2nd mortgage this month, so that was SUCH an awesome feeling! It had a balance of $33K this time last year and now it's GONE! I've just gotten so gazelle-intense lately that I feel bad spending money on a trip...the car was unexpected and we had not saved up enough yet for a replacement. We're paying off the new car this summer and will start aggressively saving next year to replace car #2.

Thanks, everyone! Just e-mailed the agreement!

 

[Ning Ning]

Do you mind telling me where you found such a good deal on a condo? I don't think I'll be able to swing a WDW trip this year, but I'd like to go away for at least a few days this summer. Thanks.

 

[Pembo]

I'm glad you decided to take the budget vacation. As a brain tumor survivor, you never know what life is going to throw at you. Your kids won't remember that you paid off your car early, but they will remember a beach vacation with the family.

I agree with Suze, people first.

 

[RachelsMommie]

Sure, this is what we rented: www.waveofmemoriesgalveston.com

We live in the Dallas area, but the only beaches we have ever been to (since adulthood) have been in Florida, California, and the Caribbean. This is our first time as adults to Galveston. It's a 5.5 hour drive for us, so why not try it and see if we like it.

We try to do a big Disney trip every other year and a budget trip every other year, but this year the budget trip was going out the window because of the unexpected need for a new car. My DD5 wanted to go on a Disney cruise this year, but when asked why the cruise was what she wanted to do, she said she liked swimming in the pool, hanging out, and playing in the sand on the beach. So this satisfied all of those requirements without the high cost of the cruise. Showed her the pictures and she is totally psyched! The 18-month-old doesn't really know what to think, but this will be her first time on a family vacation and I know she'll have a great time!

 

[disney*mom*82]

Good for you on deciding on taking the vacation, Im also big on family trips. Im defiently NOT a DR follower, but know how to budget and keep within our means.
I just want to mention that to save money on those meals out, you can start looking for online coupons, daily deals, kids eat free nights, or use restaurants.com and see what they have available for that area. I know they always have some kind of deal on certificates (70-90%off) and the certificates never expire. We have used many of these when away and even House of Blues at DTD and Swan Dolphin are on there. I know your not going to WDW, just FYI.
Have great time!