Saving For Future Travel

Everyone looks forward to retirement, mostly because they hope to travel. Whether that means driving cross-country to see your grandchildren or taking a cruise around the world, you will need some money. How much money depends on your destination. A rule of thumb is that you’ll need 70% of your annual pre-retirement salary to live comfortably or more if you plan to travel. First, you must be realistic about your routine expenses. Your mortgage may be paid off and your commuting expenses reduced, but health care costs will probably rise.

You already have your budget for most of life’s necessities as well as some luxuries, so why not budget for retirement travel? Of course, travel costs can change from year to year, but it makes sense to envision a trip you’d like to take and estimate the cost. Then divide the cost by the number of months you have until retirement. This should give you an approximate idea of how much you’d like to set aside monthly to finance the trip of your dreams. Some people are satisfied to put their pocket change in a jar every day, while others establish a goal such as $100/month and put it in a separate savings account.

They say half the fun of a trip is getting there. You might equally say half the fun is planning the trip. Many couples make a hobby of collecting books and brochures about their dream destination. It can also be fun to research cut-rate air fares and hotels.

Saving for a trip in the future can be difficult but there are ways to make it fun. For instance, instead of dining out, have dinner at home and set aside the money you save in your travel account. Instead of going to a movie, save the money and take turns talking about the places you’ll see. There are dozens of ways to save now and enjoy the future.