I know what you are thinking. "Who are you to tell me I don't deserve a vacation?" Before you tune me out, let me explain. Millions of Americans are living paycheck to paycheck which means a lot of people are not able to save or invest. Furthermore, if a person cannot afford a vacation, how are they going to fund that trip to Florida? Debt!
According to a recent survey conducted by Bankrate, 53% of Americans are planning to take a summer vacation in 2024. Of those who plan to travel this summer 1 in 3 (36%) are willing to go into debt to pay for it https://www.bankrate.com/credit-cards/news/survey-summer-vacation/. However, six percent of those who plan on taking a vacation this summer are going to borrow money from friends and family. In fairness to the responsible adults out there, nearly 3 out of 10 (28%) American adults are skipping a summer vacation due to affordability. In my opinion, getting on a written budget, paying off your debt, and breaking the check to check cycle is more important than a vacation.
If you are going to get your finances in order, you have to stop doing things out of order. Someone much smarter than me created the Order of Operations in Math (Parenthesis, Exponents, Multiplication, Division, Addition, and Subtraction). If you follow the Order of Operations, you are more likley to get the correct answer. Personal finance is no different. If you put your wants over your needs, you are going to always get the wrong answer. A vacation is a want NOT a need.
Pro Tip: "I deserve a vacation" is a very exspensive phrase.
What is the solution?
If you are sick of living check to check, the solution is simple. Don't go on vacation! I learned from experience that debt-free vacations are the best. When my wife and I paid off $32,000 of debt in 5 months back in 2018, a vacation was not on our radar. Why? Our priotities were simple. We needed to buckle down and clean up our financial mess. We wanted to pay off our debt and have a fully funded emergency fund. By the grace of God, we were able to accomplish both of those goals. In 2019, my family and I took our first debt-free vacation to Sunny Isles, Florida and it was amazing. I can honeslty say we earned that vacation. We created a sinking fund (money set aside over a period of time for a particular purpose) for that vacation. Not to mention, we did not have to worry about a credit card bill 30 days later after we got back. Lastly, I am not saying don't have fun. However, if you continue to place vacations over financial priotities such as savings and investing, your financial future is going to be bleak. Eat your veggies first and the dessert will be much sweeter.
Pro Tip: "Staycations" are a great alternative to an expensive vacation that you can't afford.
Take care. God Bless. Change your mindset, grow your money.
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