So, I've been struggling with something lately. This past weekend was our 6 month anniversary. (No, we're not one of those couples that celebrate every month, I just happened to notice.) In the back of my mind, I keep thinking that we'll go back to Mexico to celebrate our 1 year anniversary. Lately however - I've started to feel a little guilty about the idea of planning a vacation while we're in debt...See our budget works like this, basically I get paid every 2 weeks and one of my checks goes to our debt and one goes to our rent and other bills. My hubby gets paid weekly and that's the money we live off of for food, gas, and other misc. items. Although I've budgeted for 24 paychecks, I'll actually receive 26. I was hoping we could use the other two checks on things for us. We could plan a fully "paid in cash" vacation with these checks!
I'm of the mindset that you need to budget in some fun stuff along the way or else you'll go crazy. I work better and I'm more productive when I have something enjoyable to look forward to and as much as being debt free is a great goal to work towards... Mama needs a little vaca once in a while! Even with these little trips planned along the way, we're still on target to get out of credit card debt by December 2012. Sure, it could be a few months sooner if we skipped the trips, but I don't think we should. What do you think?
Question : Do you think it's wrong to vacation while you are in debt? Should 100% of your money go towards debt repayment and vacations and fun stuff be put on hold until you are completely debt free?
I don't think it is wrong, but you can't do a huge blow out all the time.
ReplyDeleteWe are taking the kids on a mini-vacay next weekend. It will be under $500 for the whole thing (probably closer to $400).
I don't think there's any right answer here, but there are definitely a lot of factors to consider, particular how much debt you have and what kind.
ReplyDeleteMy husband and I just returned from a ten day trip to Europe even though we have a combined $60k in student loan debt between us. Should we have used the $3500 we spent on our vacation to pay off our student loans more quickly? Maybe. I mean, that definitely would have been the right decision for some people, but it was not the right decision for us.
If I had $60k in credit card debt, now I might feel a little bit differently.
i LOVE traveling. LOVE it. I don't care how much debt I'm in, if I have the opportunity to travel and it's a good deal, you can bet that I will be there. Of course, I'm grateful that our debt isn't HORRIBLE, but I think some vacations are worth it for your sanity.
ReplyDeleteWith your debt I sure as heck wouldn't take a vacation to Mexico. Three credit cards and a car loan? That's insane. You wouldn't really be paying with cash, you'd be paying with interest on the debt you're not paying down. There's budgeting in fun stuff and there's ridiculous. A trip to Mexico using two paychecks with the debt you have is ridiculous. Do something small but fun to celebrate your anniversary this year. You will thank yourself later and the next trip will seem all the more special.
ReplyDeleteYou don't NEED this and it isn't a little trip. Do you have an emergency fund? What if one of you lost a job? Your payoff wouldn't be Dec 2012 anymore. Plan a bigger trip for 2012, then you can really look forward to it for real.
Well, I can see how this would baffle people, but I love to travel and I love the memories I have of vacationing with my family. To me, they're priceless. As long as you're paying cash, I say go with what makes you comfortable and enjoy!
ReplyDeleteSarah
I don't think it's wrong... just got to balance the pay off part.
ReplyDeleteStaycations are always cheap and sometimes fun right? :)
Sam
I really think it depends, if you do something small and can save those two paychecks towards it so you have no new debt I think do it.You're like me, you've got a big number to pay down, If you don't schedule in a treat somewhere then it makes it even harder to keep going.
ReplyDeletea friend at work has just taken out a second mortgage to take an overseas holiday!
... and I love reading people blogs about their travels... :)
Could you split the difference? Maybe only use one paycheck and go somewhere less expensive.
ReplyDeleteI understand that feeling of we need to get away, I need to get away, but this might start a slippery slope of spending more or not paying as much of your debt down.
We are planning something small for the summer, but we are only going to be using a fraction of a paycheck. I like the idea of doing something big once all the debt is paid off. We are going to the Wizarding World of Harry Potter. Having that goal helps keep my priorities too.
In my opinion, sometimes you need a break. But then you start thinking - what if's and that brings up more questions. What about if you just take a weekend away and set a very firm budget for yourself or even splurge on one thing in particular say maybe a fabulous dinner or something like that. If you restrict yourself too much then you're not enjoying life. Let your readers know either way, k? :)
ReplyDeleteYou said you have a plan to pay off your debt by a certain date, right? And you can pay for the vacay in cash and still stay on that plan?
ReplyDeleteGiven that, on the face of it, I'd say there shouldn't be any problem going on the vacation.
However ... looking at your sidebar I see that you have NO savings. I think in that case, going on vacation would be incredibly foolish on your part. Traveling away from home when you don't have ANY cushion if something goes wrong is bad enough. Traveling outside of the country and having no savings cushion is ... well .. verging on stupid. Think of all the things that could go wrong. What happens if one of you becomes sick or is injured and you have to pay for health care out of the country? Most likely you're not going to be able to just pay a co-pay in Mexico. You'll have to foot the cost of the bill and get reimbursed. What happens if you're in a car accident? What happens if your flight is delayed or canceled and you have to stay an extra night or pay for a different flight? What happens if there's any kind of natural emergency or disaster? What happens if your cash or traveler's checks get stolen? Or your passports get lost or stolen?
Can you afford any of that? What will happen to your debt payment plan? Will you have to go into more debt to cover those costs?
I think if you had a cushion set aside and were on track with your plan, a vacation (even one out of the country) would be reasonable. I think in the situation you're in, you'd be better off waiting.
hmm my first thought was the same as Nicoleandmaggie...but this is from someone who is so scared of debt after having so much and feeling how GOOD it feels to have the credit cards paid off each month and almost there with the car loan..plus my family growing up took a few vacations but mostly they were used for doing stuff non-fun (like my parents doing stuff around the house)actual vacations were a real treat and not a yearly thing. I was in my 30's before I started vacationing with my parents and they paid for the trips pretty much otherwise I'd have had to budget.
ReplyDeleteThis is me speaking after spending yrs indulging myself. my weakness is food and I've used your reasoning for vacation-taking for years now only with food and I'm still fat! I dont know your salaries,etc but your debt total is giving me a panic attack! and the thought of no savings doubles them.
ok here's my thought after my partial dave ramsey class - if and I mean IF travel to mexico is important to you then I'd save for it intentionally - not a spur of the moment deal- and I'd honestly set a realistic budget - not $100 to the cards and $500 to the trip you know?! in the long run I think having no debt would have better memories than a trip to Mexico that delays this. I know there are probably some great travel deals though and if you can find one of these then I'd say go for it and see how back on track you get but as for a vacation being necessary to celebrate then no I don't think it is because it wasn't a big deal with us growing up..being together as a family was important and I still remember from the vacations(a few to a city 2 1/2 hours away where we went to six flags over texas and a nightmare trip to a family reunion in kansas -gag- and a trip to newly found Branson MO (no food at the time if you can believe it!)and our simple family picnics at the local parks - esp with m y mom's fried c hicken, baked beans and potato salad and gallon of sweet tea - and a playground well hands down the park has the BEST memories EVER in my mind.
Susanna
No, I don't think it's wrong to go on vacation when you're in debt. It may just as well be that vitamin injection your motivation needs. But it can be done cheap. You don't have to go far, and you don't have to stay long. However - you really need savings too. Some small buffer.
ReplyDeleteWow! I appreciate all the comments and feedback. I will definitely keep you posted with what our final decision is. Some of you really made me think whether this is the right decision for us right now, given our financial situation. I'm still uncertain. I like the idea of a staycation too! We certainly have lots to talk about before any decisions are made. Thanks and keep the comments coming :)
ReplyDeleteLOL I was talking with my coworker and she's like 'heck yeah I'd take the vacation. what's the girl supposed to do have no fun til all that debt is paid?! are you nuts?' ok so she's on the take the vacation side! she wanted her vote counted too!
ReplyDeleteSusanna
Sounds like too many materialistic women (and men) in this debt ridden country. First things first.....My mom raised me to work hard then play hard. That includes being smart with money. Now she's retired and traveling the world non-stop. Your coworker doesn't' sound too smart.
DeleteThanks Susanna! Please thank your coworker for weighing in too :) LOL!
ReplyDeleteWell... ? Did you take the trip to Mexico or not?
ReplyDeleteWe haven't taken any trips yet. If anything, we're thinking later this year in the fall but we still haven't decided if it's right for us or not. Will update once we decide for sure :)
ReplyDeleteJust an update, prompted by a question from Tiffany, we did NOT end up taking a vacation. We decided to push forward and put all of our "extra cash" towards our debt repayment. As you can see from our progress, it was the right decision for us. We've moved up our debt repayment date significantly. We do plan on a getaway when we are out of debt, but it will not be anything expensive. Cheers!
ReplyDeleteGood for you!
ReplyDelete