Should I vacation now when I'm young or later when I'm old?

[tcatsninfan]

Like the OP, I think about this a lot too. Every dime I use on a vacation could've been saved and turned into a much larger amount.

But you can't think about it that way. In my opinion, everyone should take at least one "decent" vacation per year, or possibly 2-3 smaller trips throughout the year. You should treat vacation money like rent or utilities: it's something you have to pay, and in return you get something out of it. In this case it would be improved mental health.

I'm struggling to save for retirement because I don't make a ton of money, but you know what? My dad had a stroke at 52 and now his left side is permanently paralyzed. 52, before he was even ready to retire!

Another anecdote. My grandparents, they were teachers so they didn't make a lot of money. They saved a lot and didn't take many vacations, and that paid off for them. They have a nice big house with a pool in Florida and everything is dandy. BUT, they now try to take big overseas vacations every year and half the time their health won't allow it. They took plenty of trips, probably 10-15 where they didn't have any health problems, but there have been 3-5 bad ones that have basically put an end to their international trips. The worst one was when they were on the 3rd day of a month long trip to Europe and my grandmother fell down some steps and broke her arm.

I digress. Here are a few simple things to keep in mind:

1. Don't go on vacation if it means racking up credit card debt. It isn't worth it...you might feel good during the trip, but that financial hole it puts you in is gonna make you feel a lot worse later.

2. Mix it up. You don't have to take a huge month-long trip to the Bahamas to have a nice time. You say you're a contractor and are worried about missing income. In that case, think about some nice 2-3 day trips that can get you out of town. Maybe some kind of festival or convention in a neighboring state. Do those a few times a year and you'll feel a lot better.

3. Cut costs where you can. Try to take "frugal vacations." I don't mean eat out of dumpsters, I mean think about how much pampering and hand-holding you need and how much that stuff costs. Spend a few weeks researching a trip and make your own itinerary rather than going with a tour group. Book a $100 per night hotel rather than a $150 per night hotel.

4. Consider whether there are material things you could avoid buying, and then the cost of those things would help pay for your vacation. Eat out a few less times per month, and maybe avoid any restaurant that charges a lot of money. Buy booze at the liquor store and throw a potluck party at your house rather than a night on the town. Replace your computer every 3 years instead of every 2 years. Stuff like that.

5. Vacations will dramatically improve your mental health. You'll come back and be in better spirits and work will go more smoothly for you. They're totally worth the expense.

[avil_saver36]

I know I've been posing a lot of vacation questions lately but I've started doing this thing where I try to live without regrets. I'm trying to experience life more. It's probably because I went to 2 funerals last month. Anyway.

The obvious answer from a financial perspective is to save up while young, let the interest compound, and travel when older.

But I've had a lot of older guys say, "The time to travel is when you're young. You get to do more stuff." But those are all rich guys who have never had to worry about money before. I'm doing alright financially but I'm by now means 'set'.

I guess the upside (financially speaking) to traveling when young is you're more able to cut costs like walking instead of taking taxi's, sleeping in airports, and using things like Airbnb without real safety/well-being concerns.

I guess right now I'm just annoyed because a $3,000, 2-week trip means a few things:

A) I have to spend $3,000
B) That money is gone forever - means no turning into 5 figures by the time I retire
C) Opportunity cost. I work freelance so a 2-week vacation means my income dries up for 2 weeks.

What do you guys recommend? What have been your thoughts?

You are absolutely right that $3000 goes a long way when invested instead of when spent on trips. The thing when money is that when you are young, you don't have any, but money invested THEN is worth much more to you down the road. The only exception is the situation when inflation is high and the value of money is going down all the time - which isn't the case in the US, it's quite opposite really - so you would rather just spend it now.

To put the trip in perspective, how much is your annual income? I will tell you my threshold - if my income was anywhere close to $100K, only then, I would consider that trip given all the other factors were under control - which means I didn't have significant debt.

It's a double whammy for you because you also lose 2 weeks of pay. You should consider taking 2 weeks off only when you have a full time employment with paid time off.

About living life now and regretting later - the thing is, it is highly likely your regret will be not having money in your retirement. It has happened to several family members of mine. My own parents in contrast NEVER took a vacation, saved all their money on meagre salaries, and started traveling in their 60s. Did they miss vacations? Who knows. The question really is do expensive vacations really give you happiness and joy in life, and whether you can find that happiness in everyday small things in life. Can you be content being born at all and experiencing the wonders of nature every day in the morning? Can you be content hiking, following unknown trails, visiting local museums, catching up with friends and reminiscing old times, playing fun board games, having movie night, etc. etc.? There are several cheap and downright free ways to find entertainment and develop meaningful hobbies. Try visiting the local library and start reading - it's totally free.

I will give you comparison points: I took my first major vacation when I was 33, when I was married and I had a child. I still haven't gone anywhere other than places nearby to the US and my native country. Never visited Europe, South America, Australia, or the like. Been to the US West Coast only twice (and once for work). I have a set budget for vacations and no matter what, that budget will not be exceeded - and my vacation budget exists because I don't eat out in restaurants. I am currently 36, spouse is 33, we have one child and our house hold income is in the $150K+ range. If I got $3K extra outside of my set vacation budget, I would probably invest that money and not regret not living "life now". I view life itself as a gift, and in order to live it, I don't consider traveling the entire world a necessary thing.

Having said this, some people are in fact travelers, love to tread waters, go to unknown places and experience the fun in "discovering". Yes, if you are one of those people who genuinely loves travel, you should do it, but really, look for cheap ways to do it and look for nearby places to travel to first.

I am just giving you an alternate point of view. Judge for yourself. Good luck,

[LivingAlmostLarge]

I think everyone has their own choices to make. As long as you aren't charging up a storm and can afford your decision it's not the wrong one. I had a post about our most recent road trip and it was a doozy. Lots of money, lots of fun, and lots of memories.

We also just left a job for no job and the unknown. So I guess my point is perhaps it seems crazy to others but sometimes decisions are only make sense to those who make it. I mean spending $X on our vacation when we just are about to leave income seems nut. But to us it made perfect sense.

[dawnwes]

I did most of my overseas travel before kids. It was well worth the money/cost. I did it as cheaply as I could. I had family overseas, so that helped. Many times I didn't need much in the way of hotels (stayed in hostels or with family), and traveling as a courier, I was able to do things very frugally.

In fact, once I traveled to Hong Kong for less than $800. I also got miles that allowed me to take another cross country flight for free. I stayed with a friend while there and eating out there is quite cheap. I think the entire 2 week trip was less than $1000.

I could tell you about trips to Europe and parts of Africa for much the same cost.

If you don't have people to stay with, find a friend to go along and share the hotel costs.

You can do a LOT for less than $3000.

[wincrasher]

It's important to have a variety of experiences over your lifetime. A great vacation or trip doesn't have to have a great price-tag. Some of my best, most memorable trips were ones where I spent very little money.

The hard part is having the time. Time enough to immerse yourself in whatever you are experiencing and detach from your regular life. You can always make more money, but you can never get the time back.

I used to look at things similarly as the OP, as I'm self employed - taking a week off is a $10k loss, amortized over time ends up being $x in 30 years. You can't dissect all things in life this way. If you did, you never buy anything. You'd certainly never have kids, or a new car, or a house. Or a vacation.

Take some vacations. Just be smart about how much you spend, and what you are getting for it. Spend for experiences, not first class accommodations.

[disneysteve]

You can't dissect all things in life this way. If you did, you never buy anything.

I was thinking that, too. Yes, the money you spend on vacation could be invested instead, but so could the money you spent to put in new carpet or to go out to eat or to see a movie or to catch a Broadway show.

I believe it was Chase bank that used to have a great billboard: It said something to the effect of "Build a nest egg but don't forget to have some omelets along the way". In other words, save for the future but don't be afraid to spend some money along the way to enjoy life.

[snafu]

You've offered limited information about your plans. Hope you'll save and fund your trip without CC balance that results in interest costs tacked on.

DS2 took a gap year having completed 3rd year, took money saved from summer employment and took off, backpacking through Asia. He got jobs teaching English at the private schools to pay expenses and room and cafeteria meals were part of his benefit package. He had a blast even though 'work' interrupted fun plans. He did 2 small towns, Bangkok and two resorts. He spent nearly a month in HKK, washed dishes in filthy conditions. India was his focus so he saved enough to cover expenses, lived like the locals and managed experiences.. Eventually joined a group to Australia, 8 guys in a house share, worked full time regular job, evening PT selling pies.

If you're willing to backpack, live like the locals, and spend on experiences, you will see/do things that middle aged or retirees would never do. Middle aged, western travellers seem to prefer to look at other cultures and other way of doing things but are not very participatory. Far more conservative, I've heard them complain that the service folks they are mostly in contact...'don't speak English, can't understand what they say' ! They don't make any effort to learn a few words in other languages and start sentences with ' In America we.......'

Are you better to explore your own state, state capital or possibly adjacent state? Small bites to be comfortable in new environment. Backpack in Fl. get a pt job as dishwasher in a classy restaurant where they tip-out? Pay as you go vacation.

[ua_guy]

If you want to take a vacation, you should, provided you're not putting other goals in serious jeopardy. Don't take vacations on credit if you have no way to pay for it.

With my generation (Y/Millenial) there's this idea that you "should" travel, and that travel is one of the keys to fully enjoying one's youth (especially international travel). I don't buy it personally, but I hear some people really get into it. If you want to, that's one thing, but you shouldn't feel like you "have to" just because everyone else is. It's one thing to be somewhere cool, totally broke, can't afford to do anything, and where your "deluxe accomodations" are akin to couch surfing. But hey, at least you've got Facebook bragging rights, right? It's another to plan, save, and be able to really experience things while on vacation and that's where I'd give my "thumbs up". I don't think old age is a prerequisite, but I definitely think you'll get more out of your vacations if you save/plan so that you get everything out of these trips that you want to.

[avil_saver36]

Let me add one more angle to it. If you are planning on getting married and raise a family, take vacations WITH THE FAMILY.

In my ideal scenario, a person works from 22 to 35 accumulating/investing everything. Those years of hard work means you have already ascended to a top position in your field commanding high salaries and perks, and ALSO, you have plenty of cash. Your spouse doesn't even have to work!

In your 30s, you have a family, and then, you travel the world with them. This way, they get to enjoy the fruits of your labor and don't simply have to satisfy their curiosity by listening to your stories of the wonders of the world that they have no chance of seeing.

This was pretty much my goal. Even today, I am in no position to take trans-Atlantic trips, but within 3-4 years, I will be, and my daughter will already be old enough to appreciate visiting new places. I will travel with my family, and we will see all the wonders of the world together.

[ronb]

Let me add one more angle to it. If you are planning on getting married and raise a family, take vacations WITH THE FAMILY.

In my ideal scenario, a person works from 22 to 35 accumulating/investing everything. Those years of hard work means you have already ascended to a top position in your field commanding high salaries and perks, and ALSO, you have plenty of cash. Your spouse doesn't even have to work!

In your 30s, you have a family, and then, you travel the world with them. This way, they get to enjoy the fruits of your labor and don't simply have to satisfy their curiosity by listening to your stories of the wonders of the world that they have no chance of seeing.

This was pretty much my goal. Even today, I am in no position to take trans-Atlantic trips, but within 3-4 years, I will be, and my daughter will already be old enough to appreciate visiting new places. I will travel with my family, and we will see all the wonders of the world together.

A different angle, indeed! I was about to consider this post closed until you chimed in... hmm.

[disneysteve]

Let me add one more angle to it. If you are planning on getting married and raise a family, take vacations WITH THE FAMILY.

I love traveling with our daughter, and we've taken her many places, but my wife and I also enjoyed traveling before she came along. Now that she's in college, we've started traveling without her again and are greatly looking forward to an upcoming trip just the two of us.

So I'd say traveling as a family is great, but it's entirely different than traveling as a couple or as an individual. I wouldn't forgo one in favor of the other. I would do both.

[LivingAlmostLarge]

I fully agree with DS. Traveling without kids is completely a different experience. And personally I treasure time with my spouse without kids. We had a solid 10 years together traveling and living without kids. And we treasure those days and memories. WE love our kids and our life is different and I wouldn't trade it. But we both also look forward to doing things without our kids and traveling is something we want to do without them. And yes we do travel A LOT with our kids. Hawaii 2x/year and usually other places. But I have missed my 5th and going on my 10th (in about a month) anniversary. I am dying for a vacation without my kids and just my spouse.

My relationship with my spouse is something to be worked on and treasured. My kids will leave and grow up, in another 15 years or so. Then there is me and my spouse. At that time I don't want to find out that we just raised our kids and forgot about us.

This past year we've made a conscious effort to spend more money on our relationship meaning we went out to dinner, movies, activities without the kids and hired a sitter. NOT a cheap night out any way you cut it. BUT important.

[avil_saver36]

I love traveling with our daughter, and we've taken her many places, but my wife and I also enjoyed traveling before she came along. Now that she's in college, we've started traveling without her again and are greatly looking forward to an upcoming trip just the two of us.

So I'd say traveling as a family is great, but it's entirely different than traveling as a couple or as an individual. I wouldn't forgo one in favor of the other. I would do both.

I agree that traveling without kids - if you could afford it - is different. The problem in my case was that I had absolutely nothing when I came to this country. I am a first generation immigrant. At 24, I had a Masters degree, no debt but no money. I had to create all of my wealth from scratch.

I did do a backpacking trip across Europe. But most of it was sponsored by my University as I was presenting a research paper in a conference, so airfare was paid for. I also had friends throughput Europe and I stayed in student hostels whenever possible. My entire trip cost me less than $1K and it was very memorable. If something like that can be done, that's great!

Other than that, I valued accumulating my money and create wealth. When I was married, I already had decent wealth, and I was able to sponsor my wife's graduate studies from my own cash. We also conceived our daughter when we were relatively young (I was just turning 30), but I managed to get out of the expenses without any debt and bought a house within 3 years. In the next 5 years, I will reach the "debt free" point.

None of this would have been possible if I had traveled and spent money on it. My wife and I were also not in position to travel in my view. I mean we could do it, but it would have cost us in terms of what we could do in future.

I guess every person needs to define what's affordable to him/her and draw the plans accordingly. As I was a first generation immigrant with nothing, it was a straight decision for me. My daughter will not be in my position and she will be able to do what I couldn't do. But just because some people can do it, everyone can't. Unless you have strong family backing, and absolutely no/very low debt, you should not do it. That's my opinion.

[LivingAlmostLarge]

Not really and I have to respectfully disagree. You can have nothing and still prioritize stuff like traveling and fun. It may mean working longer. It might mean working at a job you hate. Life is about priorities. You can't sit there and say only with strong family support and no debt should you be traveling. That's just ridiculous.

My biggest childhood memory is a trip I took at age 5 and yes we went into debt. My mom will be the first person to admit she saved and borrowed the rest. It was not an expensive trip and it was with FAMILY. But at the same time she was a single parent working hard. I refuse to apologize for her decision and say it was wrong. It was for us the right decision.

By the way she's never been a spendthrift. Didn't raise a spendthrift and retired early with lots of money. And till today she's very money conscious.

Everyone makes choices. And deeming people unworthy of a vacation, traveling, or enjoying life until debt free and with a solid financial footing is nut.

I am going to guess she probably shouldn't have tossed the loser ex husband out because divorce doesn't make financial sense. But you know until you are in that situation you wouldn't be able to judge someone for walking away money in line or not.

[avil_saver36]

Not really and I have to respectfully disagree. You can have nothing and still prioritize stuff like traveling and fun. It may mean working longer. It might mean working at a job you hate. Life is about priorities. You can't sit there and say only with strong family support and no debt should you be traveling. That's just ridiculous.

My biggest childhood memory is a trip I took at age 5 and yes we went into debt. My mom will be the first person to admit she saved and borrowed the rest. It was not an expensive trip and it was with FAMILY. But at the same time she was a single parent working hard. I refuse to apologize for her decision and say it was wrong. It was for us the right decision.

By the way she's never been a spendthrift. Didn't raise a spendthrift and retired early with lots of money. And till today she's very money conscious.

Everyone makes choices. And deeming people unworthy of a vacation, traveling, or enjoying life until debt free and with a solid financial footing is nut.

I am going to guess she probably shouldn't have tossed the loser ex husband out because divorce doesn't make financial sense. But you know until you are in that situation you wouldn't be able to judge someone for walking away money in line or not.

Really? You are saying life is about priorities and yet calling my priorities ridiculous?

So in your worldview, only your priorities are right? So everyone must take vacations because it somehow creates "great memories"?

No. In the life I have lived, I have been very happy. I don't need to travel to point B on the Earth when I live on point A on the Earth to feel happiness. Every day, there are lots of activities we do together as a family that bring us closer and give us a fantastic time - even if it's something as easy as taking a hike on the trail behind our house. There are still many trails which we haven't gone to.

I am only putting an alternative viewpoint for the OP. You do not have to travel to be happy. However one sure way to be unhappy is to be in debt. It's a very easy equation to work out.

Edit: How the finances worked out for your mom - I cannot say. But for every person like your mom who has their act together, there are probably 10 others who don't. So just one anecdotal family example does not make a point. People travel (and even get married) on credit. Even if you could travel on cash (like we can), it can deplete our reserves by a large percentage so we choose not to blow our money. I don't know what's an appropriate vacation, but in my view, it should cost something like 1% of your net worth (that's my rule - all my vacations are around $3-4K because my net worth is $350-400K). These are the rules I have created for myself, and they serve me well. I am putting them out for others so they can choose to follow my rules/create their own rules.

You cannot say blindly that the choices of others are ridiculous. I beg to differ. As I said, I am a first generation immigrant who came to the US with nothing, and will probably be a millionaire within the next few years so my ways cannot be entirely ridiculous.