Travel Archives - Keeping Up With The Bulls

Every day we’re getting more and more good news. Vaccine production is ramping. More shots are getting into arms. We hear that everyone that will want a vaccine in the United States can get it starting May 1st. We’re still a little bit away from that but there is a chance we could actually have a normalish Fourth of July. Summer 2021 could kick off our Roaring 20s.

All of those things you’ve wanted to do the last year – see your family, see your friends, go out to eat, go on trips and more can get pretty expensive pretty quickly. So, how do you celebrate the roaring 20s and plan your spending before it gets out of control? Prioritize what’s most important to you, look for the best deals and make sure you spend within your meals.

Know What Your Means Are

It’s important to live within your means. What your means are may be different than before the pandemic due to job changes or being able to save up extra over the past year. Whatever it may be, know how much money you’ll have available to spend over the next 6 months – 1 year. Then, know how much money you’re willing to spend over that same time period. These two numbers may be different. You may have more money available to spend, but you may want to now have a bigger emergency fund, pay down your student loans or increase your investments. Alternatively, you may have other life changes on the horizon (starting a family, starting a career) and have plans that are now or never opportunities and it’s worth it to save less than usual.

Prioritize What Is Most Important

You’ve given up a lot over the past year. Once things are safe again, where do you start? It’s not just about money, it’s also about how you’ll prioritize your time. Prioritize the most important things to you and then spend money on doing those things first. We’ve also been reminded over the past year that some of the most important things are really free. Being able to hug your parents, or go to a playground without worry for example.

Also consider, what did you used to spend money on that you should continue to not spend money on? For example, perhaps you used to spend a lot of money commuting. Can you go full time remote or hybrid so that you don’t have to spend as much money commuting as you did in 2019? This past year has taught us all how to spend more consciously and how easy it is to save money when we can’t travel, eat out and go to concerts. As life gets back to normal figure out what expenses shouldn’t come back. Similarly, don’t forget to budget new expenses you have that didn’t exist in 2019. About 33% of Americans considered getting pets in 2020 and according to CNBC dog owners spend an average of $1,200 a year on their dog.

Opening up safely may come gradually. That international trip you wanted to go on may have to wait a little longer. For anything that’s your top priority but can’t be done yet set aside some money for that so you don’t find yourself in a situation where you don’t have enough money to do the thing you really want to do.

Restart Your Life How You Want It

The pandemic didn’t just put our spending on hold, it put our lives on hold in other ways. Many parents had to juggle home schooling with working, and some had to put their own career plans on hold to survive the last year. Reassess your own goals, and what it will take to achieve them. These may look wildly different than what they were in 2019 and that’s ok. Where do you want to live? Where do you want to travel? Who is most important to spend time with? What do you want your career to look like? What do you want your usual weeks to look like? This may mean a promotion and more money, this could mean taking a step back and making less money. It’s something you’ll have to weigh as you reassess where your time and financial priorities lie in the post pandemic world.

Don’t Forget About Your Mental Health

The pandemic has been pretty traumatic and has affected everyone differently. In May 2020, the US Census Bureau found that about one-third of clinical anxiety or depression. If you run a marathon, do you immediately continue your pre-marathon training schedule the very next day? No, you take time to assess what you need for your physical recovery and do just that. We need to do the same as we emerge from the pandemic. There are plenty of resources to help with your mental health. Know what is covered under your insurance and make sure you take the time you need to heal your mental wellbeing.

Don’t Forget Sometimes The Most Important Things Are Free

You don’t have to spend a lot of money to make up for all of the things we lost over the past year. And while the year has been tough, we did gain a lot like appreciation for the simple things, the ability to slow down for a little, not having to spend a ton of time commuting and more. Hugging your parents or catching up with a friend doesn’t have to come with the expense of a $200 dinner. Remember, people are just happy to be with you in person again.

Find Deals On Housing

One of your largest, if not largest, expenses is housing. The less you can spend on housing the more money you have to spend on other fun activities or increasing your savings. If you rent, there is an opportunity to find a better deal on housing. Over the past year, what have you learned about where you want to live and what you want in your home? With many people moving back in with parents or leaving the city rents were in free fall in many cities in 2020. While rents have started to rebound there are still plenty of deals on renting in the city in 2021. In Boston, rents are down over 8% and in San Francisco rents are down over 12% for example according to the Home Buying Institute. As interest picks up landlords will have less incentive to offer these deals so signing a lease sooner than later will leave you more likely with a rent reduction or even a couple months of free rent. Waiting until later could cost you hundreds of dollars a month.

Find Travel Deals

Now that you’ve prioritized what’s most important, how do you still find good deals for vacations, seeing family and more? If you’re prioritizing seeing family or traveling book your travel ASAP. Many of the best deals were already 6 months ago when there was still a lot of uncertainty. Because there is still some uncertainty though your best bet is to start booking refundable flights and lodging now while the hospitality industry is still trying to lure people back. Make sure you know what the policies are to cancel or reschedule in case you do have to push it back.

See Also: 5 Tips To Save Money On Travel

Find Deals for Clothing And Other Physical Goods

Most people that have been able to work from home the past year have spent most of their time in the same loungewear outfits. With most people spending more time at home than usual many have taken the opportunity to organize their closets. They’re donating clothes and also selling them. This has led to a lot of great finds at thrift stores, Poshmark, The RealReal and local consignment stores already. For the best deals, buy secondhand or buy clothes when no one else is buying.

The Roaring 20s are Coming Back – Plan Your Spending Before It Gets Out of Control Summary

It has been a long year and we’re all excited for things to get closer normal. We’re excited to see friends and family, be able to travel again, pick up the hobbies we’ve had to put on hold and more. Before you spend all your money make sure you know what your financial limits are and what is most important to you. Prioritize your money, prioritize your time and remember, don’t feel guilty about spending money. We’ve sacrificed a lot over the past year, enjoy seeing the people you’ve missed, the places you’ve missed and completing your bucket list.

fear of spending money, ok to spend money, don't feel guilty spending money

Spending more than you earn is a problem. And, it’s easy to look at debt amounts and realize when something needs to change. On the opposite end there are super s avers, saving more than 20% of their income. There are a lot of benefits to building financial independence; however, saving too much money may be a problem as well. Do you fear spending money? Do you avoid spending money at the expense of your health or happiness? This year especially has taught us that we won’t always have the opportunity to go on that dream trip, see a Broadway show or see a sports game. We’ve seen firsthand how many people and businesses are struggling and that we’re in a position to help. Here are 7 reasons why it’s OK to spend money.

Your Favorite Small Businesses May Not Be Around In A Year

This year has been incredibly difficult on small businesses. Many of them had to close for months and are struggling to barely get by, if they’re even still open now. According to a small business survey by PNAS the median firm with over $10,000 expenses a month only had enough cash to last roughly 2 weeks. Small Business for America’s Future polled 1,500 people and 34% said they can’t make it to the end of the year without some help from the government.

That restaurant or bakery you only go to for special occasions or a rare treat? They may not be open when that special occasion comes around. Now more than ever small businesses need our help to stay in business. With the high unemployment numbers many people can’t afford to support local businesses right now. If you’re employed and have some spare cash any business you can give to local businesses will help them avoid closure.

Your Health Is Priceless… And, Being Proactive About Your Health Will Always Be Cheaper

It is always ok to spend money on your health. A healthier diet cost $1.50 a day more than an unhealthy diet on average. This ends up being $550 a year. An unhealthy diet is one of the leading causes of poor health and accounts for up to 45% of cardiometabolic diseases. Now, more than ever it’s important to be in your best shape. Obesity and diabetes are two of the highest risk factors for disease severity and mortality rates now.

There are also plenty of benefits attributed to regularly working out. Gym memberships may even be partially covered by your health insurance driving the cost down.

Don’t feel guilty about the money you spend on your health and staying healthy. It may seem like an area to cut costs but don’t lose sight of the long term high costs of being unhealthy. Your life literally could depend on it.

Your Charitable Contribution May Change A Life

In 2018 an estimated 1 in 9 Americans were food insecure which amounts to over 37 million Americans including 11 million children. If these 11 million children weren’t going hungry, what would they be able to accomplish at school? Unemployment is high right now, and there are countless stories of how long food bank lines are now. Helping these families during these incredibly difficult times makes a huge difference. And, you can possibly quadruple the impact of your charity donation with these simple steps.

Charity Choices shares some statistics on charitable giving in the United States. For example, they share the average adult gave $1,050 and the average household gave $2,030 in 2014. They also found that on average Americans give 2.1% of their disposable income to charity. Now, think about your own charitable giving and consider the amount of money you spend on yourself and your savings rate. Can you afford to give a little more?

You Can Always Make More Money But You Can’t Make More Time

The F.I.R.E. movement (financial independence retire early) talks about making sacrifices now so you can become financially independent and retire early. You either work a ton to make more money early or become frugal so that you can retire on less (or perhaps both!). Sacrifices you make in your 20s do pay off in your 20s and beyond. But, you’ll never get that time back. What are you giving up so that you save money?

Everyone gets 168 hours a week. If you get the recommended 8 hours / night of sleep you’re down to 112 hours. If you work and commute a total of 50 hours / week you’re now down to 62 hours a week. In that 62 hours you have to shower, eat meals, run errands, workout, take care of kids / dog (if you have them). The more responsibilities you have the faster that “free time” dwindles.

Map out your week. How many hours each week you truly have as free time when you’re not working, sleeping, eating, showering, taking care of kids, etc. Now, how much is each of those hours worth for you?

Now, this doesn’t mean to “YOLO” and rack up a ton of debt outsourcing things you don’t enjoy like cleaning and traveling the world. But, you shouldn’t act like money is finite and time isn’t. Just like you create financial goals and plans create plans to manage your time. It’s much easier to make more money than it is to buy more time.

Opportunities Don’t Last So Take Advantage While You Can

You shouldn’t act like every single opportunity will only come by one time. If you can’t go to a dream destination next year you can likely save up for a few years and go at that time. There are certain situations though that will only last for so long, or will only happen once and you should think harder if it’s worth skipping these moments because you want to FIRE.

It’s a lot cheaper to go on vacation with a bunch of friends in your 20s- rent a house, carpool because you all live close together. People grow up, they move away, they have kids. You may be in a financially better situation in your 30s but the opportunity to travel with a huge group of friends cheaply may not be there anymore. This doesn’t mean spend like YOLO, but you shouldn’t say no to a once in a lifetime trip to save $500. Especially if spending that money won’t put you in debt and there are plenty of ways to travel for less.

If you absolutely love a band or love a sports team go to their concert or go to a game. You don’t have to buy the most expensive ticket to get the experience. It’s just as exciting being in the cheapest seat in the house as it is being up front and center. You still saw the concert or sports team live.

If Pictures Are Worth 1,000 Words What Are Experiences Worth?

11% of Americans have never traveled outside their home state. 40% of those questioned have never left the country according to Forbes. International travel helps broaden your creativity, become aware of other cultural values and helps you develop a broader view.

There are plenty of free attractions, including these free attractions across America. Even if the cost of the experience itself is free, often you need to spend money to get there. It’s ok to spend money on experiences that will enrich your life.

Items That Bring You Joy

For years I wanted a quilted Burberry jacket. I convinced myself I couldn’t afford it (I could have) and I needed to invest that money. When I finally bought it (on sale!) I loved it and frequently wear it every spring and summer. I’ve now had it for almost 4 years and it’s still in near perfect condition. I’m sure I’ll have it for at least a decade, if not longer. Looking back, what was the point of delaying this purchase? I still needed a jacket so I bought a jacket I didn’t love instead of this. I ended up spending more money than if I had just bought the jacket I really wanted in the first place! Sometimes by delaying a purchase you end up saving money- for example not having a car for a few years- but in this case I just delayed joy.

Obviously there is a limit to this. If the purchase will put you in debt you should go with something that brings you less joy and is much cheaper or wait to buy. Feeling guilty after buying something expensive is completely normal. Remind yourself that you shouldn’t feel guilty on buying expensive things you can afford that bring you joy.

A Reminder That It’s OK To Spend Money Summary

When you’re a super saver, you may have a fear of spending money. Remember, tomorrow is never guaranteed. So, make sure to enjoy the moments you live today. Set goals for how much you want to save, how much debt you want to tackle this year, how much you want to invest. Automate your savings directly from your paycheck into your savings account so any money in your checking account you’re free to spend. Once you’ve hit those goals, don’t feel guilty about spending money.