Vacation budgeting

[ShokWaveRider]

We do not budget, we just do what we want to do and pay for it. Saying that we are not avid vacationers and go away 2 - 4 times annually.

[brett]

After retirement we changed our lifestyle to facilitate travel. Large home replaced by east care lock and leave duplex in a 55 plus development. All mail to the web. No plants, no pets, no lawn are, no snow removal. We spend what we spend. Last four nights were small, family hotels, next five will be all inclusive resorts. Huge mix.

If I were to make guess it would be as much as 30-40 percent covering two international trips per year, 7-8 weeks each, plus some shorter trips in between.

[W2R]

Quote:

Originally Posted by Twize I would like to know from people already in ER, how much of their budget is allotted to vacationing/travel. Not in $$ amount, but in percentage of their whole monthly or annual budget. Just trying to get an idea of what others consider a reasonable amount.

This is my 11th year of retirement. My sweetie and I really have no desire to travel, so we don't. We traveled a lot for work and our retirement dream was staying home. I love awakening in my own bed each morning, in my Dream Home that is everything that I ever wanted. We live in New Orleans so there is always something interesting to explore or do or discover right here at home.

So for me, it's $0.00/year, which is 0% of my annual budget.

But more important, what is a reasonable amount for you? A lot depends on how much you want to travel and how much it means to you. There are no rules about this. Some people blissfully spend their retirement on an eternal vacation, for example traveling in RV's 24/7/365 with home being nothing more than a post office box. Others, like me, seldom if ever go more than 5 miles from home. Given all that you have said, I'd budget a hefty amount for travel. Then if it turns out that you don't want to travel that much, you can use it for something else that is more fun for you.

[racy]

Quote:

Originally Posted by Twize ...how much of their budget is allotted to vacationing/travel....in percentage of their whole monthly or annual budget.....

It varies by year; average since retired in 2013 is 14%. This year it'll be about 20%. (This is percent of spending; not a budget).

[Music Lover]

What other people spend is irrelevant...they all have different budgets, needs and wants, comfort levels, destinations, and expectations.

Spends as much (or little) as you like as long as it doesn't negatively affect your finances.

[2017ish]

We retired to travel. 50% is the target, but DW has tended to overshoot. We are gone more than not and do about 50/50 time split between international and domestic.

Most people aren't interested in traveling like we do, so as noted by others, that percentage isn't that useful....

[morriss003]

About 20% of which half is for our annual 2 month world travel. The rest is my wife going to Vegas with her girl gang.

[Karl]

DW and I have both been retired 5 years. We have spent about 45% of our annual income on travel during that time period. This is overstated somewhat. We tend to Airbnb and I include any food we buy as a travel cost. Obviously we would spend money for food if we were staying home. We take trips not vacations. All total we are probably gone 5 months each year. I anticipate this will continue for another 5 years, health permitting, and then we will revisit our travel plans.

[GenXguy]

I don't budget specifically for travel, but after taxes, my budget allows about 67% for discretionary spending. And a future used car and long term home maintenance are not discretionary and come out of a separate sinking fund. So theoritcally, I could spend up to 67% of my post-tax spending on traveling, but it will probably be closer to 10% because I'm not that excited about traveling, especially overseas.

[Sunset]

Quote:

Originally Posted by Karl DW and I have both been retired 5 years. We have spent about 45% of our annual income on travel during that time period. This is overstated somewhat. We tend to Airbnb and I include any food we buy as a travel cost. Obviously we would spend money for food if we were staying home. We take trips not vacations. All total we are probably gone 5 months each year. I anticipate this will continue for another 5 years, health permitting, and then we will revisit our travel plans.

I used to record all expenses when traveling as a travel expense, but last year I thought about it a bit and decided groceries at home or away are still groceries, and gas is gas, and restaurants are still restaurants.

Granted, when on a trip we will spend a lot more on restaurants and gas if driving than normally would be done.

[RobLJ]

It ranges from 10-20%, depending on whether we do a big Euro trip like in 2019 (hiked Kerry Way with a week in Dublin + other shorter U.S. trips + wife just spent a week in Yellowstone cross-country skiing + visits to the grandkids) or just stay in the U.S. I also fly 3-4 times/year to check on my AgedP.
But this year or next, it might go up to 25%, since we have several possible 2 weeks trips as possibilities.

[Dtail]

Quote:

Originally Posted by Sunset I used to record all expenses when traveling as a travel expense, but last year I thought about it a bit and decided groceries at home or away are still groceries, and gas is gas, and restaurants are still restaurants. Granted, when on a trip we will spend a lot more on restaurants and gas if driving than normally would be done.

I do record every expense on vacation as vacation expense, as it is just easier that way and it indirectly allows me to relax more about those expenses.

[Ferd]

Do you count foreign summer home expenses in vacation budgeting? That is far and away my biggest cost. Taxes and insurance cost more than my primary residence. Maintenance and upkeep can vary a lot depending on what winter storms do. Then there are the costs of getting back and forth. But it's a property my grandfather bought before I was born and I've spent time there every summer of my life and I plan on leaving it to future generations.

[Rustic23]

about 14%

[Sunset]

Quote:

Originally Posted by Ferd Do you count foreign summer home expenses in vacation budgeting? That is far and away my biggest cost. Taxes and insurance cost more than my primary residence. Maintenance and upkeep can vary a lot depending on what winter storms do. Then there are the costs of getting back and forth. But it's a property my grandfather bought before I was born and I've spent time there every summer of my life and I plan on leaving it to future generations.

I track the costs of the foreign home in a separate category as these costs (taxes, maintenance, insurance) are present even if I don't use the place one year.

The costs to travel to it, and be there, I track like I would for a vacation.

[gretah]

I was listening to a Retirement and IRA podcast this morning. Jim and Chris say plan to spend more on travel in early retirement years. And plan to spend more on medical and housing in later retirement years.

Not assigning flat percentages makes sense to me. My knees are starting to go and I'm glad I climbed the Duomo when I was young. I couldn't do that now.