People’s thoughts are turning to summer as more venues reopen, the temperatures rise and the vaccination rates increase. A vacation can seem expensive for those who are on a tight budget or trying to repay debts. However, some smart planning will allow you to enjoy some much-needed relaxation.
These tips from a CERTIFIED FINANCIAL PLANNER™ professional can help:
Prioritize. You should ensure that your basics expenses are covered before you consider how much money you will need to pay for summer activities. You can set a budget to avoid overspending and you can cut back in some areas to make more money for the summer fun fund. Summer can be fun, but it shouldn’t derail your smart financial goals.
Find great deals. Take advantage of flexible bookings offered by many airlines and hotels in order to save money on travel. You can also save money by using your rewards points or traveling off-peak hours. You can also take advantage of local festivals, parks, trails and museums that are free to you. More are being opened every day.
If you like to summer in the same spot, and know that it will be a longtime family tradition, consider the financial pros and cons of investing in a vacation home, says CERTIFIED FINANCIAL PLANNER™ professional Joshua Charles CFP®.
“Many people will purchase the second home with the idea of renting it when they are not using it (Vacation Rental by Owner – VRBO), or use a management company to find renters and manage the property,”Charles. “This can help offset the monthly expenditures, but be careful as you might be dedicating more money, time and energy than you expected to for the venture,”He cautions.
There are other ways to invest in your favorite getaway, without all the hassles that come with ownership.
– Timeshares. Charles says that while timeshares are less labor-intensive than homeownership, they can have expensive recurring fees.
Fractionals. The upfront cost of a vacation house is lower if you purchase it with friends, family, and investors. There is no need to rent the home out in the off-season. You may also be eligible for tax deductions.
A CFP® professional can provide guidance and advice to help you plan your best summer ever, whether planning this year’s vacation or setting the stage for years of memories.
Visit LetsMakeAPlan.orgFind out more about vacation planning or vacation-home investment.
