|Published: July 2010
Is There A Recommended Vacation Percentage?
Should you skip vacations when youíre getting out of debt? Also, once youíre debt-free, is there a rule as to what percentage of your income you should use on vacations?
I think you should put vacations on hold while youíre trying to get out of debt. My family and I didnít go on vacation for nearly 10 years while we were getting out of debt. Why? Because we had work to do! We had bills to pay and kids to feed. Thatís just the way it goes sometimes.
Iím not sure that thereís a specific percentage involved on vacation spending. It definitely shouldnít damage your financial foundation, or put you back into debt once youíve worked your way out. You donít touch your emergency fund to go on vacation, and you donít stop funding your retirement or saving money so the kids can go to college. You just save up, and pay cash!
In most cases, this kind of plan will almost force your vacation spending to be a reasonable percentage of your income.