Saving for Vacations

One of biggest problems with reading so many blogs is travel envy. Most of the bloggers I follow take these over the top trips. After a while, you start wanting to mimic those trips. Travel Envy is Dangerous!

Photo Credit: Intercontinental Tahiti 

My problem is that I have a limited number of points. Also, some trips can not be paid for solely by airline miles and hotel points. Next year, I hope to travel to Antarctica to finish my 7 continent goal. Airline miles will only get me to and from Argentina. The cruise portion will need to be paid in cash and it ain't cheap.

Photo Credit: Quarkexpeditions.com

I always knew that Antarctica trip was going to be expensive, close to $10,000. Luckily, I have been saving for this trip for over three years. A little each paycheck goes into a savings account. At the moment, I have a little less than 1/2 of the trip saved.

As a mortgage loan officer, I get an opportunity to peer into the financials of hundreds of people a year. I dig through their credit card debt and peer into their savings habits. By the time my borrower's sign the paperwork for their new mortgage, I typically know more about their financial health than they do. One area that shocks me is that lack of savings for vacations. Less than 10% of my borrowers have a dedicated savings account for vacations.

Earlier this month, the Transamerica Center for Retirement Studies (TCRS), in a collaboration with the Global Coalition on Aging and the U.S. Travel Association, released a study that looked at how people plan and save for their retirement travel dreams. While the survey was tailored to talk about travel during retirement, the survey results produced some interesting insights into people's mindset towards travel:

70%  say travel is an important goal worth saving for,

15% place a high priority on saving,  50% place high/medium priority,

Nearly two-in-ten have explicitly factored travel into their savings plan, 

4% have dedicated savings account

Only 4% of survey respondents have a savings accounts devoted for vacations. That is kinda sad. Yes, the question was about a savings account devoted for travel; instead of savings accounts overall. Generally, most people have some type of savings account. That savings accounts becomes a catchall for emergencies, travel, Christmas gifts etc. I strongly believe you should have individual savings accounts for your goals. Without separate accounts, its hard to determine if you ever accomplish your goals.

Regardless of what others might write, trips cost money. My airline tickets to Australia & New Zealand that I recently booked with US Airway's miles came with $200 worth of taxes and fees. That's just for the airline tickets. I haven't even started booking lodging. Then there is the local transportation cost, activity costs and of course food and booze. Two years ago, I took a trip to Tokyo and paid for all the airfare and all hotel nights except 1 night with points and miles. However, I still spent $1,500.

Saving for vacations is simple. Here are three easy steps to making it happen:

   1) Open a savings/checking account devoted solely for vacations

   2) Set-up an automatic transfer from your checking account to the savings account monthly

   3) Review every few months to see if you can increase your contribution

Within a short time, you will have a small pot of money to spend on travel.  The hardest step is opening the account and making the decision to start saving for trips. After a while, you won't miss the money being transferred from your savings account. If you want to start traveling the world, start saving your money. Points and miles will only get you so far, cash will be needed to make up the difference.

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2013: A Look Back

Overall, 2013 was a great year. It was filled with tons of travel, earning lots of points/miles and Do It For The Points turning 1.

Even though I had a great year, I wanted 2013 to end. Staring at the beginning of November, I had this strange desire for 2013 to end. No real reason for this desire, but just this urge to start 2014.

Before closing out 2013, I have one last things to do. Its time to look back on what I accomplished in 2013. I know people don't like these posts, because its people bragging about what they did. However, this post isn't for you. Its for me. Frequently, I write that this blog is a journal for the future. So future JD, here is what you did in 2013:

In 2013, you wrote here that your travel goals for the year were as followed:

1) Visit either South America or Australia in Business Class 

2) Revisit Europe or Africa (in any class)

3) Try at least 1 new airline

4) Visit one state, in the USA, that I have never been to

5) Do one thing I haven't done in Washington, DC each month and report back

6) 600,000 miles/points earned

7) Create and stay within a travel budget


How did I do, not to well:


1) Visited South America With Mom - Win!

2) Revisit Europe or Africa (in any class) - Fail!

3) Try One New Airline - Fail!

4) Visit One State, in the USA, that I have never been to - Texas & Colorado - Win!

5) Do 1 Thing I haven't done in DC each month - Fail!

6) Earn 600,000 Points or Miles - Smashed it ~ 865,000, this year

7) Create and stay within a travel budget - utter fail!


Accomplishing 3 out of 7 goals isn't a great record. However, I believe I accomplished much more than the my goals show. For one, I boarded an  airplane each month of 2013 and flew just under 40,000 miles. Not a huge number compared to other frequent flyers, but I paid for each of those flights with my own money or points/miles.

Another major accomplishment was taking my mom to Buenos Aires. This was her first trip outside of the United States and her first time in Business Class. She had an amazing trip. My favorite moment was when my mom said, "I have never stayed in a hotel that gives you bathrobes." That one little statement made me smile and knew the trip was well worth it.

Finally, 2013 was a full year of blogging. Never though I could write this much and so often. The strange thing is that I love doing this. I don't know if I have a niche yet or even a voice people want to hear. However, if you are still reading this, then you must find me either interesting or feel bead for me.

Time to close 2013 and move on to 2014....

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HELP! Going to Buenos Aires

I just noticed that I am headed to Buenos Aires in less than 10 days.

http://snowbrains.com

Yup, this trip kind a crept up on me. I am taking my mother on her first international trip. However, I have failed to do research on what do there, where to eat or see.

So, I am asking for some help....

Have you been to the Paris of the South? Know of some great resource.

Any guidance would be appreciated!
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