Do you love to travel as much as my family does? For some people, travel is icing on the cake. For others, like me, it gives me life blood and makes everything else I do worthwhile. Long week teaching? That’s okay; our trip in a few months will give me time to rest and see new sites. But how much should you spend on travel each year?
There are so many rules of thumb for other expenditures: 10% of your income on food, 20% on savings (ha! laughs the personal finance community–we know that number should really be 50-70%!), 10% to charity. But there are no good rules of thumb for travel budgets.
Like most expenditures, how much you should spend on travel is highly personal. If you’re still paying off debt, should you allow yourself to travel at all? How much debt do you have? Should you travel if you’re working towards early retirement? Let me just say, to get it out there, that I am assuming you’re able to pay for the vacation outright with cash. Putting a vacation on a credit card is probably about the worst idea ever (although Mr. ThreeYear and I did just that on our honeymoon to Greece. Yes we did. We were dumb).
Full disclosure: Mr. ThreeYear and I have always traveled, even when paying off our $38,000 of credit card and car debt. Continue reading “How Much Should You Spend on Travel?”