If you love to travel and immerse yourself in new cultures and experiences, there’s a good chance you’re looking forward to traveling in retirement.
Once you’re out of the workforce, you’ll have more time to visit the places and people you’ve always wanted to see. You can reach your goals by budgeting for travel expenses in your financial plan. Planning for travel helps ensure you have enough financial resources for other costs, can enjoy a quality of life at home, and pay for travel expenses. Here are several tips to help you budget for travel during your retirement years.
Even if retirement is years away, it’s a good idea to consider what you might pay for housing, food, health insurance, and other expenses after you stop working. Once you know your monthly expenses, look for ways to lower or cut some of them to increase the amount of money you spend on travel.
Maybe you’d like to travel to a few different states yearly. Or perhaps you hope to explore a new country every few years. Design a travel itinerary for your retirement years with the understanding that it can change due to health concerns, financial emergencies, and other factors.
After you decide where you want to travel to during retirement, create an estimated budget for each trip. You may have to research online or ask a travel professional to understand what specific trips will cost. Don’t forget to include daily expenses such as rides to and from the airport and tickets to museums. You may want to work with a travel professional to make this step easier.
Once you know how much your dream trips may cost, build a buffer into each trip to account for unexpected expenses. For example, you may budget for a cruise to Europe with everything in one price but decide to enjoy some excursions at the last minute. Wiggle room in your travel budget can be beneficial in situations like this.
Since retirement can allow for time and flexibility, you can lower the cost of your trips. To do so, consider traveling during off-seasons or watch for online deals to score the best deals. Another option is to combine trips to save on airfare or visit family and friends to reduce the amount you spend on accommodations. Get creative and make the most out of your travel budget.
SWG 2306340-0722a The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.
For those who are looking for financial advice, there are many options. Deciding who to work with is a challenging problem. At The Whisler Agency, we know that it is your retirement, and you should have control over it. We offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!