Winter Vacations

Oh yes, a winter vacation away from the cold!  But wait - did you save for it?

If you did save, then great; go ahead and have a great time, but do stay on budget.  Only use your credit card if the cash is there to pay when you get home. Otherwise, regret may set in and ruin the memories of your vacation.

If you have not saved for a winter vacation, then staying home may be the best option.  Consider visiting relatives, or find a local activity to enjoy.

I have crunched some numbers to show what that impulse vacation could cost.  As always, the numbers are conservative.

$1500.00 for a week in the sun on a credit card at 19%, paid off in 12 months (138.31/ month), equals interest payments of $159.72.  The total cost of the vacation will be $1659.72.  If you can afford $138.31 every month after your vacation, then consider saving the $138.31 before the vacation.

If we take that same vacation and pay it off at $100.00/ month with 19% interest, it will take 18 months, and cost you $226.22 in interest. My question to you is, could you not have saved the $100/for 18 months and had $1800.00 at the start of the vacation?

When you get home from that vacation you have saved for, start to save for the next one.