‘I really want to give myself time to enjoy my life while I’m still young’: Should I book my trip or save for a house?

Hey Money Minder,

I’m in a bit of a pickle. I have around 86k (USD conversion: ~86k USD) coming in each year but I can’t decide whether to splurge on vacations or start saving for a house. Just finished off paying my student loans so now I have around 5k in savings and my car is fully paid off. My expenses are around 1k for rent and utilities, 500 for food and groceries (yep, I eat out a lot), and another 300 for hanging out with friends and going out.

I’m also pursuing my masters (my employer’s footing the bill) and this fall will probably be my last break from school for the next few years. I’m planning on traveling for the next couple of months. Already have two trips lined up but itching for a third one, which would cost me around 1k after redeeming my credit card points for flights (without the rewards, it’s about 2k). It’s like giving up just one week’s worth of pay for a two-week getaway.

My savings aren’t that high right now and I know I should start socking some away for a house. But my folks keep warning me that this trip isn’t the best move financially considering my meager savings. I get where they’re coming from, but I want to live a little while I’m young and lucky enough not to be living paycheck to paycheck. I’m thankful for that. I plan to trim down my other monthly expenses to make up for it.

Cheers,
Sprightly Voyager

Response from THE MONEY MINDER:

Hello There,

Hello 24M,

Firstly, congratulations on paying off all your student loans and on your successful career path with a comfortable salary. It’s great that you are considering your options and thinking about both travel and saving for a house. It’s understandable that you want to enjoy life, especially with the opportunity to travel before going back to school for your masters.

Given your current financial situation, it might be wise to find a balance between enjoying your youth and being financially responsible. Taking trips and exploring the world is an enriching experience, but saving for a house is also a crucial long-term goal. One practical approach could be to prioritize your savings for a house by setting aside a specific amount each month dedicated to building up your savings. You could also consider cutting back on unnecessary expenses, such as eating out frequently, to allocate more funds towards your house savings.

Regarding your upcoming travel plans, since you already have two trips booked and are considering a third, it might be a good idea to reassess whether going on the third trip fits within your current financial goals. You could potentially postpone the third trip and use that money towards your house savings, ensuring that you are making progress towards your future home.

In the end, finding the right balance between enjoying your present and planning for the future is key. It’s essential to be mindful of your financial goals and make informed decisions that align with your priorities. Remember that it’s possible to enjoy life responsibly while ensuring financial security for the future.

Best of luck with your decision-making process and your future plans.

Farewell from THE MONEY MINDER.