So far 2021 hasn’t provided the fresh reset we were all hoping for, but the year may still inspire people to start healthy new habits. And for those with the privilege to do it, budgeting for future trips could be that new habit.
Jill Schlesinger, CBS News business analyst and author of the book “The Dumb Things Smart People Do With Their Money: Thirteen Ways to Right Your Financial Wrongs,” says that while everyone wants an easy answer to the question of how much one should spend on travel, it’s not that clear-cut.
Unlike fixed costs like your rent or car insurance, travel is a discretionary item, which means it’s not one of the essential parts of your financial responsibilities.
“There are no hard and fast rules about what percentage of your budget should go to travel,” Schlesinger says.
She says you can figure out your discretionary spending by subtracting your rent, bills and groceries from your income then put whatever, if anything, is left over toward future adventures.
Aside from how much you need to save, there’s the question of how, exactly, to save it. Of course, experts such as Schlesinger have their strategies, but we also wanted to