I want a holiday but I’m supposed to be saving for a house

Is this you? Do you feel like you should be putting all your money towards buying a house because everyone tells you that you have to?

Do both.

No really, you can do both.

When I create budgets for people, I will usually factor in savings and a holiday. It’s just about allocating certain amounts on a regular basis. In fact, I encourage all of my clients to have an allocation towards their holidays each year. This may not mean that you get a 6 week European holiday, but it may mean that you get to have a week up the coast in a nice hotel.

I think that holidays are the bomb, and if you have been reading here for a while then you will know that I tend to take at least 1 holiday a year. They make me very happy, revitalise me, satisfy my sense of adventure and put things into perspective.

We are all for saving, planning for your retirement, tax reduction and investing, but we are also all for living your life now too. Every budget that we put together factors in the following ‘discretionary’ spending:

• Holidays
• Weekly Fun Spending money
• Gifts
• Clothes
• Haircuts

Depending on your actual lifestyle there are so many more things that could be factored in and have included the following for many clients: Gym, massages and beauty appointments, sport and other activities, pet costs, golf, music expenses and craft just to name a few.

There is no right or wrong, but it is important to get a good mix of the essentials, savings, and then of course the fun stuff. If you are saving for a house and want to plan a holiday, then do both. Work through the figures and make it happen. It might mean that you have to wait a little longer to buy a house than you were planning, but if you are happy with that, then it shouldn’t be an issue.

Like a diet, a budget only works if it is realistic. If you realistically think that you will raid your house deposit for a holiday anyway, then just adjust a few things and put it into the plan. That way you don’t have to feel guilty because you are having your cake and eating it too.

You’re welcome.

If you want to go into more details about how we create realistic budgets for our clients, then let me know. We have a free calculator for you to use and share as much as you like. We are generous that way.

 

This post is from our resident Financial Planner Cara Brett, check out her details in the About Us section.

Posted in: Cara Brett, Financial Planning