Vacations are my favourite. Who doesn’t love a vacation? Time to escape every day, kick back and enjoy a break in your regular routine. Peace of mind, piece of serenity, these are a few of my favourite things… The one major issue with Vacations is they cost so much money…. The worst part is while you’re away enjoying the fun times and racking up bills living the viva loco. Your obligations back home are still piling up. Meaning you still have a mortgage to pay, utility bills to pay etc. so, the question is how one can enjoy the time away when you still have these things glooming over your head.
There is only one way, save, save, save… my advice to my clients is to at minimum have 3 months’ worth of mortgage payments in a savings account. This is called for rainy-day savings. This is something that I coach my clients prior to embarking on the conquest of homeownership. For those that are renting I usually tell them to open a new account and start putting in “x” amount per month, that amount we would pre-determine based on the mortgage that they can qualify for plus living expenses, then I say start putting that amount in there every month, and only deduct your rent from that account. Then that will give a good inclination if and so you can survive to be a homeowner. As well it will mentally prepare and condition you for the journey ahead. The best part is that every time you make a payment you are making an investment into your immediate future. By paying down the mortgage balance and benefiting from property appreciation.
In order to get yourself some fun in the sun, the same principle has to be applied. You need to open an account specifically for the purpose of saving for vacations. Then you work yourself backwards… meaning look at a few trip ideas you have in mind, do your research and determine a set budget for what it would cost to go on your expedition. For example, if it will cost you $6,000 to go on a vacation that means you would need to start putting aside approx. $116 / week. You might want to be adventurous and if your budget allows you to put aside $150 – $200 / week, the best way to save money is to put things in automation. Meaning with your bank you can easily set up automated transfers that will occur when you get paid and go directly into the account of your choice before you know it, you will look in your account and you will see the funds needed for your getaway.
Believe it or not, it’s been scientifically proven that vacations increase one’s vibrations, recharge your batteries and gives vitality to your soul. So my advice is to budget, make reservations, and climate your wants. It’s safe to sacrifice short term for a huge benefit.
Alternative ways to save for vacation
- Use your credit cards that have points and rewards. Run all expenses through credit card and pay off prior to month-end… to avoid interest, while earning reward points in the interim. Before you know it you will have funds to put towards your getaway.
- Get a 2nd job
- Sell things you don’t need or use anymore
- Instead of buying lunch. Eat leftovers or bring your lunch from home.
Whatever it is you need to do. Make sure you get your vacation time. It’s good for the soul.
Let’s discuss your finances, call me.
