How to manage your finances while you are on a break
NEW DELHI: Some family stories do not die. They evoke the same delight every time they are told. For a stranger, the stories are too innocuous to demonstrate this kind of reaction. But for the family they are precious. Holidays they are destined to collect memories so easy that they last a lifetime. The painful personal finance stories About the holidays, however, this is creep lifestyle. The family wants new party items. The brats are constantly hungry and do not settle for anything more than expensive options. The man feels indulgent and decides to reserve the family in a hotel that is above the league, and can not stop sighing as he signs every bill that arrives.
Is there something like spending too much on a vacation? Think of vacations as an annual reward, bonus or incentive. Link to your annual income and assign a percentage of it as the budget . Fit your plans within that number. If you are allocating more than 10 -15% of your annual income , you may be sacrificing other goals.
The joys of vacation are severely affected if money and math are entered before each decision. Bring the family together to discuss basic issues and large ticket expenses in advance. Nothing too detailed, but a broad sense of compensation that helps establish some rules and reject arguments later. Hotel or air-bnb? Business or economy? Taxi or public transport? Large decisions taken together evoke a sense of responsibility and if 60% of expenses are due to agreed rules, the rest is relatively easier to administer.
Even with the best presented plan, you will find that the experiences do not match expectations. The hotel may not be as good as the photos show; the food may be too strange to enjoy; the highly touted wild safari can not give sightings; and free spa points can produce a 20-minute manicure. Do not expect to fix all the ills of the trip with money; take them at your pace.
When you return from the trip, you become obsessed with the exotic places you saw; you boast about things you bought; And you surf and share images addictively. There is a desire to remain with these experiences and the feeling of having achieved something that others in their circles have not yet done. Or, what's worse, a comparison of notes in a competitive single-skill vacation setting. All this does not matter.
Consider the vacation a year later and think about what's left in your memory. That's why stories and laughter are important. They are the true dividends that a party pays. The photos are forgotten, except for a couple of sincere jewels.
You can not cure a holiday because of the stories it produces. They just happen. You can provide a supportive environment by making sure you gather a large quotient of experiences on your vacation, without suffocating it with wish lists and strangling it with preconceived expectations. Free the money that goes to the things that will not last, and divert it to simpler joys. Instead of waiting in line for hours to reach the top of the monument that everyone asked you to see, sit with your legs dangling from a ledge, eat ice cream and watch as people move in the ranks.
When you leave home to the great big world, you have to maintain the faith that experiences that you do not control and predict, await you. When the family makes fun of you for life to take them three hours before to the airport and to harden themselves in the control of security, already knows of what the vacations are treated. You let the family see your true joys, fears, anxieties and aspirations, which will be shown despite your best efforts.
Then they will make fun of you throughout your life, so that you feel comfortable with their peculiarities and accept that it is okay, even if it has sharp edges. They will hold the mirror in your face, when they mention the mistakes you made with honest righteousness. Go on vacation to find yourself. Do not make it into a meaningless ritual that money can buy and do not establish a high right for you and your family.
(The author is president of the Center for Investment Education and Learning)