Lately my husband and I have been known as, “The World Travelers” among our friends and family. Our recent adventures around the world have left many of the important people in our life asking, “How do you guys do it?”
The answer is complex yet so simple: We budget. I believe that my husband and I do well for ourselves, but we have bills just like everyone else. My secret is that I have a detailed budget for each of us and we follow that budget 98.5% of the time (sometimes you have to be flexible). Some people find budgets restricting or overwhelming, I find them liberating, reassuring, and empowering. A budget allows you to see and understand where your money goes each month, and it also allows you to set up a plan of action for whatever financial goal you want to accomplish.
For my husband and I, we have decided that we want to travel. Each month we put money into a vacation savings fund, even if we don’t have a specific destination in mind. That way, when we do decide on our next vacation, we are already on our way to making our dreams become a reality.
There is also a magical phenomenon that happens twice a year, known as the “extra paycheck.” 🙂 Typically, at least part of this magical phenomenon is dumped into the vacation fund as well.
One of the most important components of our world travels is the fact that my husband and I are on the same page when it comes to traveling. If one of us didn’t enjoy it as much, it would be much harder to save, rather than spend, the monthly vacation fund. We also agree on the amount saved each month. Sure it leaves us with less spending money, but we are willing to sacrifice the material possessions in order to create life-long memories with each other.
Side note: Savings is a major factor in our budget. Not just “vacation” savings, but our “rainy day” fund, as well as our 401K retirement funds. If our savings happens to dwindle too low, increasing that would come first and foremost before our world adventures. You can never be too prepared, in my opinion.
Do you have a magic trick when it comes to your “vacation money tree”? Please share!