You deserve a vacation! And the best vacation is one you can afford. Before packing your bags for your next journey, make sure the numbers add up in your favor. Sill uncertain? Financial advisor Greg Long of Edward Jones has some helpful hints.
How to budget for your vacation
1/Save in advance
“In my opinion, budgeting is a premium, but what’s considered ‘normal’ is different for everyone. If it’s a short timeframe, hold your money in cash, like a money market account or a CD. If you’re planning something big that’s several years, you can look at some investment options that are consistent with your proclivity for risk.”
2/Pay in cash
“You can put the expenses on your credit card if you so choose but pay it off immediately. Heavens, no, I do not believe in taking on debt to pay for a vacation. That goes for your HELOC as well. I want my clients to consistently have compounded interest working for them, not against them.”
3/Take the vacation
“You’ve worked hard to accumulate your wealth, but at some point, you have to ask, ‘what’s the money there for?’ Vacations are among the best ways to create lasting memories. So, stay within your budget. Don’t go into debt. But if you have the means, my best advice is to book the trip.
Greg Long has been an Edward Jones Financial Advisor since 2010. He and his wife, Stacey, live in Mt. Juliet with their three daughters. His office is located at 2512 North Mount Juliet Road.
