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Bowl Leader
That seems crazy high to me (especially compared to your other expenses) but as long as you are saving enough for retirement which it seems like you are no judgement here and spend what's left on what brings you joy.
We are mostly points/miles based travelers so the bulk of our travel expenses are food and entertainment and not material enough to warrant a sub account/separate budgeting.
Thanks for the insight! Yeah, we’re maxed out for retirement and we invest a good chunk on top of that. It’s basically a choice between saving/investing 50% of our income or continuing to save/invest the 40% we’re at now.
Appreciate the feedback y’all! I’m also curious to know how you and the folks you know tend to save for family vacations as well. We have a baby on the way and want to make sure little guy has some great travel experiences with the fam. How do you all typically financially plan for family vacations?
Rising Star
You are probably over thinking it. You are doing well already by saving/investing 40% of your income. If y'all want to take a vacation, take it. How you fund it is potatoe poh-tah-toe whether you do it from current income or savings - money is fungible.
Helps if you have an annual budget you intend to spend.
Rising Star
It’s always good to have a sinking fund for things like vacation.
what is 10% equal in dollar amount?
Pro
It could matter...if your combined income is 500k, do you spend 50k on vacation? Or are you saying you’d save 10% of half your income, so 25k?
Rising Star
That doesn't sound crazy to me, if you already feel like you are saving much more than you need for retirement and other goals
I appreciate that!
How much are your vacations that you specifically have to save for it? If it’s only a few k, could you just not save that for whatever month?
It seems like you’re asking why save for vacation and then proposing to save for vacation as an alternative... Can you clarify exactly what you mean?