When you're on vacation, the last thing you want is money problems distracting you. And missing out on a great trip or experience because of poor financial planning? No way. That's why on this week's episode, Josh and Austin share smart vacation tips that will lead to a better time. Whether you're off to Hawaii, the Himalayas, or Paris, make sure to tune in and get ready to unlock some serious travel wisdom – your future self will thank you for it!
For the full show notes, links, and resources, visit theinvesteddads.com/194
Sign up for our exclusive newsletter here!
The Invested Dads: Website | Instagram | Facebook | Spotify | Apple Podcasts
When you're on vacation, the last thing you want is money problems distracting you. And missing out on a great trip or experience because of poor financial planning? No way. That's why on this week's episode, Josh and Austin share smart vacation tips that will lead to a better time. Whether you're off to Hawaii, the Himalayas, or Paris, make sure to tune in and get ready to unlock some serious travel wisdom – your future self will thank you for it!
For the full show notes, links, and resources, visit theinvesteddads.com/194
Sign up for our exclusive newsletter here!
The Invested Dads: Website | Instagram | Facebook | Spotify | Apple Podcasts
Welcome to The Invested Dads Podcast, simplifying financial topics so that you can take action and make your financial situation better. Helping you to understand the current world of financial planning and investments, here are your hosts, Josh Robb and Austin Wilson.
Austin Wilson:
All right. Hey, hey, hey. Welcome back to The Invested Dads Podcast, the podcast where we take you on a journey to better your financial future. I'm Austin Wilson, Co-Portfolio Manager at Hixon Zuercher Capital Management.
Josh Robb:
I'm Josh Robb, Director of Wealth Management at Hixon Zuercher Capital Management. Austin, how can people help us with our podcast?
Austin Wilson:
We would love it if you'd subscribe if you're not subscribed already, so you get new episodes when they drop. And we would love it if you leave us a review on Apple Podcast or Spotify so that other people find us, and hopefully we brought some value to you. So today, Josh, we are talking about how to plan and enjoy a financially smart vacation.
Josh Robb:
That's right. Because as we're recording this and we're heading into the fall season, and for us, that is really a change of pace from going back to school, you're ending the primary vacation season of the year, I thought this would be a good time to start planning, talking about how do you prepare for and successfully execute a good vacation from a financial standpoint.
Austin Wilson:
Absolutely.
Josh Robb:
All right, but before we do...
Austin Wilson:
Before.
[1:22] - Josh & Austin's Favorite Vacation Memories
Josh Robb:
This could have been childhood, this could be just about anything, but some favorite vacation moments that you can think of.
Austin Wilson:
Okay, I'll go first. Childhood-wise, best vacation was probably Florida.
Josh Robb:
Florida.
Austin Wilson:
So we only went to Florida once I think when I was a kid on vacation, and we went to Gulf side, which is the best.
Josh Robb:
Oh, man.
Austin Wilson:
Why would you go to the Atlantic side if you can go to the Gulf? Gulf's the best. We did a bunch of areas on there. Marco Island, I think on the Gulf side, was probably our favorite.
Josh Robb:
Right next to the Polo Island?
Austin Wilson:
Exactly. Marco Polo. Well, we had just had a blast and it was beautiful down there. And it was the first vacation where we were all old enough to have fun and do things. And it was probably the first and maybe the only vacation until we were in college that we flew. So we were kids. I was a junior...
Josh Robb:
Ooh, yeah. Flying's fun.
Austin Wilson:
But it was a lot of fun. So that's probably the best one of the childhood. Grown-up wise, taken a few with my family. We took one with both sets of parents last year, and my family, and it was a hoot, so that was a blast. We had a house we rented in South Carolina on the beach, walked right out.
Josh Robb:
Oh, nice. Right there.
Austin Wilson:
It's the way to go. And then a couple, when Jenna and I were just married where our honeymoon was an all-inclusive in Punta Cana, that was a hoot, but we went to Gatlinburg shortly thereafter for a weekend, and that was a blast too. So lots of fun traveling. What about you?
Josh Robb:
Yep. Couple that stand out. We had lot of fun on vacations as a kid. Went to some of the same spots over and over, which was nice in that you were comfortable and familiar with it, so you knew what to do, the good spots. So memory I have growing up is we would go to Hilton Head Island-
Austin Wilson:
Love Hilton Head.
Josh Robb:
Yep, great place. But we would go there and we would be there with cousins and aunts and uncles and it was on my mom's side of the family, and the fun was hanging out with all of them because some of my cousins, they lived down in Florida, so that's about the only time of year we got to see them. So going to the ocean, swimming, doing all this stuff with them, great times. And then, more recently, we did a trip to the Outer Banks a handful of years ago. And similar, it was a family vacation with my extended family, parents, and brothers, sisters, and nieces, and nephews. And we got a house on the beach. You could walk right there, which was pretty sweet.
Austin Wilson:
Awesome.
Josh Robb:
Had a pool, good times.
Austin Wilson:
Oh, yeah.
Josh Robb:
One of the memories about that is, we had younger kids at that point, so my oldest, who's 14 now, was probably, I don't know, five to eight years old, somewhere in that range. And I remember that because he wasn't old enough yet to watch, and it was one of the Fast and Furious movies. So we had a theater room in this house, which was always cool. It was early on when we started doing those things. And so all the adult guys were in there watching and we told him, you can't watch this movie. So he was supposed to be out playing somewhere. Well, he had snuck into the theater room, it was dark in there so we didn't know he was in there and you got all that cool seating. So we're in there, we got the sound up, and car racing, high adrenaline, and you hear this little voice from the back corner sitting in a little chair, "This is amazing."
And so you turn around and here's this little kid just sitting there, eyes big like this is the coolest thing he's seen his life. Big screen surround sound going, car chases. And I just remember that to this day and we're like, we're kicking him out because we're like, hey, shouldn't be watching this, but we let him stay for the car race part. So that was pretty cool. But I just remember that memory and probably always will, so yeah. And it really is creating those memories with your kids. Another memory I have, we went to Disney World and this was back in the day when we just had two kids, so my oldest two. And my daughter, who is 11 now, she flew for free. So she was under two.
Austin Wilson:
Flew under two.
Josh Robb:
So a little while ago. Went to Disney, and the first day we're there, we walked into the Magic Kingdom, see the castle there in the background. And right when we walked in, there was Minnie Mouse standing there greeting people. My daughter loved Minnie Mouse. Went running up and gave her a hug. And from a parent, you're like, can't get any better than this. Right when she walks in, she sees everything excited, but there's this character that she loves. There was, at that point, no line to greet this person. Just happened that we came in right at a good time. And so just ran right up, gave her a hug. And so that was pretty cool, pretty cool experience.
Austin Wilson:
So here's a question.
Josh Robb:
Yes.
Austin Wilson:
Are you the kind of guy who needs a vacation from vacation before you get back to work?
Josh Robb:
It really depends on what we do. That was one of the things we're going to talk about at the end, but we could talk about it now. What type of vacationer are you? And that goes into this I think. Are you a let's go somewhere and relax, this is my shutdown, turn off, decompress? Or are you a let's go somewhere and experience everything there is to experience?
Austin Wilson:
I think I used to be more of option B. But the older I've gotten and we've had babies and been really busy and stuff like that, and I've become more of an option where I prefer to chill. However, the reality is that once you have kids and vacation with kids, there is no A.
Josh Robb:
There's no chill.
Austin Wilson:
There's no chill.
Josh Robb:
Nope.
Austin Wilson:
So it's just great. You just go and spend-
Josh Robb:
You do your thing.
Austin Wilson:
... a week of family time, which is usually chasing kids around or doing whatever, and it's great, it's wonderful. But I think if I had my way, we'd be able to just haa, but not quite there. One day, we'll get there. What about you?
Josh Robb:
That's where grandparents come in every once in a while. They give you little breaks throughout there if they join you on those type of trips. I actually like both, depending on where we're going, what we're doing. If we're doing a beach, like you mentioned Florida, if you're doing a beach vacation where you're going to the ocean swimming, I am A, just relax. And again, especially with kids, they could spend all day in the water. At least my kids just love the water. So those are the type of ones where it is very little planned. Just hang out, family time, relax. But we also did a trip this year to Tennessee, which was a lot of fun, and that was one where we did a lot more things, which was enjoyable. I'm a planner, surprising, that's what I do for a living.
Austin Wilson:
I'm shocked.
Josh Robb:
But I like to plan. I actually enjoy planning vacations if we're going to go with the mindset of doing a lot of stuff. So when we went to Disney, planned out the days, itineraries for the best way to ride everything we want to ride, where we should eat, getting the reservations. I enjoy that. And I had a nice little plan in place that everybody could follow.
Austin Wilson:
Spreadsheets.
Josh Robb:
Oh, I had spreadsheets.
Austin Wilson:
Little folder, had a folder out for Monday, Tuesday, Wednesday.
Josh Robb:
Color-coded, backup options, everything. And so, those are great. But if I have my choice, nowadays, I think it's more relaxeds like you said, just because it's fewer and far between when you get those opportunities.
Austin Wilson:
So vacation.
Josh Robb:
Yes.
Austin Wilson:
It's fun.
Josh Robb:
Fun.
Austin Wilson:
Can take them occasionally. We don't live on vacation. Why don't we live on vacation?
Josh Robb:
It's expensive.
Austin Wilson:
It's expensive, and you don't have unlimited time off.
Josh Robb:
That's right.
Austin Wilson:
So a couple of reasons there, but we talked on just a little bit, but it is expensive. Something that I have a feeling, when you look at how you live on vacation, it is usually like a multiple of how much it costs to live in your day-to-day life. So if your day-to-day, weekly expenses, all-in, would probably be a thousand dollars. I don't know, that's a round number. You'll easily spend two or $3,000 if you're doing it the way most people do it. So let's talk about how to balance enjoying vacation while also minimizing unnecessary expenses, making sure you're not putting yourself in a financially poor situation from vacation. So Josh, you put together 10 ways -
Josh Robb:
I got 10.
Austin Wilson:
It's a round number.
Josh Robb:
Always.
[9:00] - Setting Clear Goals, Determining Location & Setting Dates
Austin Wilson:
Got to love those round numbers. So 10 ways to really set yourself up for success financially when it comes to planning your vacation. So take us away.
Josh Robb:
So the first one, and this is true for a lot of stuff we do, is you need to set clear goals. What are we trying to accomplish? And so, when it comes to vacationing and planning is determine, one, how much your budget is going to be, because then that will dictate a lot of other things. So if you say our budget is a thousand dollars, you may not be able to do a three-week European tour. And so find your budget, and then look at things you like to do or what are you trying to accomplish with this vacation. Is it, like you said, experiences, trying to do something new? Is it relaxing, family time is... all those things determine those goals.
And so you first got to set the goals that way you know where you're going. Talk about is there down payments? So how soon do I need these things to be met? That'll affect your budgeting along the way. So some things when you book it, they require maybe 50% down. It just depends on what you're doing. And so when you're setting these goals, you need to set that timeline to when do I need to achieve certain points of savings or even just plans, when can I book this? Some things you can't book until a certain date out. So this is when I do that. Second one along with that, I have a budget, choose an affordable destination. So if I want to go to the beach, there are a lot of different beaches to go to.
Austin Wilson:
At varying price points.
Josh Robb:
Some cost more than others. Consider if we're going overseas, what kind of currencies? Is there exchanges? Does it cost more there? Alternatives to hotels. Airbnb, booking, those type of vacation homes are becoming a lot more popular. Are there resorts? What kind of amenities do they offer versus what would I pay outside if I didn't have it all grouped. And then look for discounts, sometimes if you book through travel agent, all that fun stuff.
Austin Wilson:
Absolutely.
Josh Robb:
So affordable destinations are key. And depending on what you're trying to accomplish, again, there's all different price points for that.
Austin Wilson:
See, I'm someone that I've traveled multiple places in the world and I like seeing different areas of the world, but when it comes to traveling with kids, in our situation, domestic is better and even closer than just the US, like eastern side of the US is typically going to be easy to get to for us. So Hawaii. I mean, it's on our list. It's America.
Josh Robb:
Yes, but that's a trip.
Austin Wilson:
That's a whole trip. And you talk about expensive places to go. There's a reason.
Josh Robb:
Oh, for sure.
Austin Wilson:
There's a reason.
Josh Robb:
Yep. So we're in the same boat as, especially with our kids' ages, international travel just is not appealing at this point in time for the whole family. So if you choose a destination, and then start looking at dates. So everywhere you go has probably some sort of peak season for tourism and an off season. And if your schedule allows, booking in the off season is a great way to save money and experience -
Austin Wilson:
Oh, absolutely.
Josh Robb:
But be aware of that. So for instance, if you're doing a Alaskan cruise, there are certain seasons you want to do that, certain seasons you don't want to do that. So just because it's off season -
Austin Wilson:
You might look outside and you're like, oh, it's dark all the time.
Josh Robb:
It's dark for 11 hours.
Austin Wilson:
It's almost free, but...
Josh Robb:
So just be aware of the impact of seasonal traveling to all the different places you go. But off-peak times are great. I know when we would do some vacations with my wife's side of the family, there was a big price point change come mid-August for the vacation place we'd like to go. And so, prior to our kids getting super busy in school sports, it was very easy for us to do a late August trip because our schools didn't start until after Labor Day, whereas down there, the schools had already started. So you could get great rentals, less crowded, beaches weren't busy, it worked out great in the off season. And the off season was we're talking a week or two right after prime.
Austin Wilson:
We used to do it the opposite end. So as school was getting out, as kids, that was a relatively okay time to either miss a couple of days of the last days of school because they're not doing anything, as kids anyway.
Josh Robb:
They don't do anything.
Austin Wilson:
Or go, hopefully our school gets out before the other schools get out, and then you're there, but off-peak anyway. So we would do the same thing.
Josh Robb:
That's good.
Austin Wilson:
I mean, some people might not like this, but take your kids out of school.
Josh Robb:
Everybody has their own opinions on that. We have done that in the past. Now, thankfully, my kids work hard and that's part of the caveat is that you need to be getting good grades and doing well for those opportunities. But you're right, sometimes that makes sense, or there's the opportunity for that based on what's going on.
[13:38] - Utilizing Credit Card Rewards & Budgeting Meals
Josh Robb:
Number four is there are a lot of opportunities through credit cards and different programs to accumulate miles or rewards, whatever you want to call them, based on what you have. And that may help reduce the cost, even so far as I know people. Disney is a great example. Very expensive to go to Disney. They would use certain credit cards and accrue points, and then take a vacation as those points build up. Or they'd buy gift cards or ask for them for birthdays and holidays and all that stuff. Accrue gift cards because you can actually use the Disney gift cards for those vacations. So there's a lot of ways to do that. Credit cards. We have episodes on our Thoughts on Credit Cards, how to use them and not use them. But as long as you're paying them off and not paying that 22% interest on your purchases-
Austin Wilson:
I like the rewards.
Josh Robb:
The rewards are nice, so that helps you. The downside is sometimes travel's limited. They may black out some of the more popular dates, things like that. But in the end, I've utilized that a lot. Accrue miles and can get some free flights and that seems a lot of money when you're not paying for your flight.
Austin Wilson:
Free flights are great. Absolutely.
Josh Robb:
Number five, and this is important. Meals. Food.
Austin Wilson:
We like to eat.
Josh Robb:
You like to eat. That could be a big piece of the overall cost of your budget when you think about it. And I like to try places where you go because there's restaurants you don't normally get to eat at, but if you plan it out accordingly, one, you could just start budgeting for that. Include that in your budget. Hey, we're going to be eating out a lot more. That's plan for extra money. Or two, you say, okay, we'll eat out maybe one or two nights, make sure it's special. But the other nights we're going to eat in. We're going to go to the grocery store, cook dinner, and you can save some money that way. Honestly, I like that. Again, family time, you don't have anything to rush off to. You could just enjoy time together. And if the kids are tired from a busy day, being at home instead of at a restaurant when they're grumpy, it's a better place to be for sure.
Austin Wilson:
Oh, my. I think, yeah. Both are totally good. Typically, what we do is we make breakfast at the house or whatever we're rented at. Often, lunch is the same thing. We'll go to the grocery, stock up on lunch stuff. And then maybe a couple of dinners, stuck up on some stuff or that. But then we usually pick up a few nights for dinner to go out because usually a lot of restaurants in most of these places. But then you're not eating out all the time because if you do that, it adds up quick.
Josh Robb:
Or we found too, sometimes eating out for lunch is a cheaper option than dinner. And so sometimes you do that. And then if you eat a late lunch, then maybe a light snack for dinner. And overall, it's not that expensive a day.
Austin Wilson:
Absolutely.
Josh Robb:
The other thing we do is when we're planning out meals, if we're going with a group, sometimes we each take a turn taking care of dinner one night, and so then you get different people cooking, you're not always working in the kitchen, and it works out.
Austin Wilson:
So Josh, I hate to interrupt this great conversation.
Josh Robb:
About food.
[16:21] - Dad Joke of the Week
Austin Wilson:
We're five down, five to go. But I have a Dad joke of the week and it might involve multiple, but you are an animal lover.
Josh Robb:
I do enjoy-
Austin Wilson:
You make jokes about animals, you know fun facts about them. I've got some good animal-related vacation jokes that may just make you laugh.
Josh Robb:
All right.
Austin Wilson:
All right. How do you know that elephants love to travel?
Josh Robb:
They always have their trunks?
Austin Wilson:
Because they always pack their trunk. That's good. How do rabbits travel?
Josh Robb:
Ooh, I don't know.
Austin Wilson:
By hareplane.
Josh Robb:
Hareplane. I like that.
Austin Wilson:
Where do sharks like to go on vacation?
Josh Robb:
I don't know.
Austin Wilson:
Finland.
Josh Robb:
Finland. Oh yeah, I could see that.
Austin Wilson:
Where do hamsters go on vacation?
Josh Robb:
I don't know.
Austin Wilson:
Hamsterdam.
Josh Robb:
Hamsterdam. There it is.
Austin Wilson:
Here's my favorite. Where do honeybees use the bathrooms on a long road trip?
Josh Robb:
Where do they go?
Austin Wilson:
The BP station.
Josh Robb:
Ah, BP. I like it.
Austin Wilson:
Your Dad Jokes of the week brought to you by the internet.
Josh Robb:
The internet.
Austin Wilson:
All right, we got five to go.
Josh Robb:
Five more.
[17:21] - Prioritize Financially Smart Activities & Transportation
Austin Wilson:
Josh, number six.
Josh Robb:
Yeah, and again, these are just things to think about to help save some money and make a good successful vacation plan. Activities. So again, when you have kids especially, you go somewhere, they don't want to sit in the house all day, they want to do stuff. And so prioritizing free or low-cost activities is a great way of doing it especially if you're in a new spot because it may just be a park, but it's not the park they're used to going to.
Austin Wilson:
It's a new park.
Josh Robb:
New slides. We did that. So we were in Tennessee, one of the days we went into Knoxville area and did some stuff. And one of the things we did is there was a downtown park, they had a giant slide. I mean, it was like this three-story play fort thing. You climb all the way to the top and then you go down this big slide. Just thought that was the coolest thing. Free park. We didn't use it because it was a little chilly that day, but there was a splash area. One of those just park these, walk right up, and water shoots out of the ground, and you can get wet.
Austin Wilson:
That's great. Hours of entertainment.
Josh Robb:
Oh, yeah. So look at those things, find out what's there.
Austin Wilson:
Beaches. Hello.
Josh Robb:
Beaches are free mostly.
Austin Wilson:
Usually.
Josh Robb:
Most of the time, or low cost. Again, the other thing is there's things that you can do that maybe aren't too expensive. Again, when we're in Knoxville, they had, back in 1982, they had the world fair there.
Austin Wilson:
That's what you said.
Josh Robb:
Ah, pretty cool. But they had this tower thing which you could go up and it was $5, but you could go to the top, see everything. They had all this history. It was cool and it wasn't that expensive. So it was pretty.
Austin Wilson:
One thing that we used to do when we were kids and was completely interesting is that we used to go tour historic sites, old homes, old mansions, things like that. It's so funny. There was three of us that were not very old. Maybe my sister was three, four, five. We were a few years older than that, my brother and I. And mom and dad would just drag us along to these old homes and we loved it. It was fun. We got to see some cool stuff.
Josh Robb:
Cool stuff.
Austin Wilson:
And it's really cheap compared to a theme park thing, so that was... and you're learning. It's historical, it's cultural, it's pretty fun.
Josh Robb:
When we were in Hershey, they had the factory-
Austin Wilson:
That has some fringe benefits.
Josh Robb:
But some of that doesn't cost anything to look at and go around. Some things do, some things don't. They have a guided tour, but you can walk through some of that stuff. So check out, there's probably a lot of places, especially if you're in new areas to find out, that would be exciting. I know this is probably more for adults, but downtown historic, like you mentioned, old buildings, churches, things like that, just seeing the architectures, incredible, especially those old buildings.
Austin Wilson:
Absolutely.
Josh Robb:
All right. Number seven. Transportation.
Austin Wilson:
Oh, very important.
Josh Robb:
Yes.
Austin Wilson:
Your chances are, okay, so we're living in northwest Ohio-
Josh Robb:
You got to get in something, go somewhere.
Austin Wilson:
There's nothing-
Josh Robb:
You're not walking.
Austin Wilson:
No one's coming here to vacation, so you got to go somewhere. How are you going to get there, Josh?
Josh Robb:
So first, how are you going to get to your destination is important. Driving, flying, trains, boats, there's a lot of ways to get places. Figure out the most efficient way, both cost and time, because that's part of the factor is.
Austin Wilson:
Time is money.
Josh Robb:
So if it's a three-day drive to get to the other side of the United States, and you account for hotels and all that stuff-
Austin Wilson:
Four-hour flight.
Josh Robb:
Can you fly even though the flights cost money? Is that overall better for you, time and cost wise? So how do you get there? Then once you're there, how are you going to get around? Because let's say you decide flying is the best choice. Once you land, you have no car. It was left at the airport when you went there.
Austin Wilson:
And having kids throws another wrench in this.
Josh Robb:
Car seats.
Austin Wilson:
When you think about car seats and strollers and all this stuff. And if you're traveling with one kid, you've got to have that. But multiple, you have multiples of these things and getting them through airports and then getting a rental car that fits everyone can add up quickly. And there's a lot of components that go into that, which is why we usually drive now.
Josh Robb:
Big cities. Getting around a big town is hard. So sometimes public transportation makes a lot of sense, or taxis, Ubers. Think through the whole process. Some beach resorts, you can rent a golf cart. Maybe that's your best way moving around. So don't just think about how am I going to get there, but how am I going to get around while I'm there? What's the most efficient way? Maybe you're an active person and renting a bike makes a lot of sense. Maybe you're going camping, so you get your big camper there, but what are we going to use to get around? And so make all those thought through decisions for it. I love flying. I enjoy it.
Austin Wilson:
It's the best way to get around.
Josh Robb:
Oh my goodness. I would fly just about anywhere if I had the chance.
Austin Wilson:
I know so many people that will drive to Florida.
Josh Robb:
We did and that was because of our stuff. But you're right. If I could fly-
Austin Wilson:
Save time and money for that matter because you can fly to Florida cheaper than you can put gas in your car to drive to Florida. Most of the time.
Josh Robb:
It was close.
Austin Wilson:
Now when you add multiple-
Josh Robb:
Family of six.
Austin Wilson:
But anyway-
Josh Robb:
I would fly.
Austin Wilson:
One or two people should be flying everywhere. Especially because we're 90 minutes from Detroit and that airport gets you anywhere.
Josh Robb:
That's a big help. Yep, I love it. I would do it when I can. But you're right. You're limited to what you bring.
Austin Wilson:
Which is great.
Josh Robb:
And you have to figure out transportation once you get there as well.
Austin Wilson:
I tell you what. With three of us, last time we went on vacation, there was only three of us. We hadn't had Whitley yet. And for three of us, we packed our van top to bottom, front to back for three of us. And you have six. And I can't even imagine. And now no van.
Josh Robb:
We don't have a van. We have an SUV. But we have a rack that goes on the back, that goes on the hitch-
Austin Wilson:
Rack at the top too.
Josh Robb:
No, not yet. That, so far, has been enough. So I have a waterproof bag that-
Austin Wilson:
Stuff gives you an allotment. It's a fanny pack worth of clothes for you.
Josh Robb:
You get one shirt and everything else. But it's been fine. And again, while the kids, especially when they're young, you could fit all their clothes in one suitcase relatively. All right. The last three are all money-focused.
Austin Wilson:
This is really what everyone's here for.
[23:02] - Daily Spending Limits & Insuring Your Vacation
Josh Robb:
Yes. And so all those are just thinking through the planning, the aspects of what makes sense. And there's money aspects to all those, like transportation, which one makes the most sense. But here we go. And this is a great way of thinking about it, especially if you're going to a place where you know will be spending money, is set a daily spending limit. Say, okay, per day, how much do I think I'm going to need for food and entertainment or wherever I'm at, wherever I'm going? You may do this on business trips if you travel. You may actually have a spending budget for your daily food allotment. So you may be familiar with this concept to say, okay I'm going to need $50 a day for all my food, and then times however many people with me. And you can start budgeting that way and just make sure you stick with it. You could front load it and say, I'm going to have a big breakfast and pay for it, but then I'm going to have all the bought food I already have, already spent, all that. The second thing, when it comes to budgeting, is plan for emergencies. We talk about emergency fund in your normal life.
Austin Wilson:
Guess what? Things happen on vacation too.
Josh Robb:
Yes. And it may not... When I say emergencies, it's probably just changes to your plans. Maybe a better way of saying that. It may not be emergency, but you get somewhere, and all of a sudden you realize, oh wait, we need this or this isn't exactly what I thought.
Austin Wilson:
I forgot this.
Josh Robb:
Yep, all those things, so plan outside your norm budget. And when it comes to that too, there are travel insurance. So when we go back to the emergency thing, if you're doing a big trip and it's going to be costly, getting insurance, although it costs money, may help cover you for certain things that are outside of your control. Now check with your credit cards. Some credit cards have this as a perk built in. So you may actually already be getting some coverage without even paying extra. But how bad would it be if you booked a big cruise that was a dream vacation, and your flights got canceled due to weather and you missed the cruise leaving? And then on top of it, you can't get your money back because you didn't buy the insurance. So I'm not a huge fan of insurance when it comes to, like if you go to the store and you're buying a new TV and there's a lot of those I think just aren't worth it.
Austin Wilson:
Rental car insurance.
Josh Robb:
But for large vacation packages that are reliant on things happening in order, and you don't have control, full control over that order of events, sometimes travel insurance may be worthwhile.
Austin Wilson:
We've done it both ways and we've gotten burnt both ways because even with the insurance-
Josh Robb:
Doesn't cover everything.
Austin Wilson:
It doesn't cover everything and you have to fill out a claim, and certain events, certain things aren't still covered at that point or whatever. It's not perfect. But a lot of times, even if it's uninsured for a small fee or sometimes free, they will let you change your booking to something else, which is a handy thing.
Josh Robb:
So just something to keep on your radar that it may be worthwhile, especially if there's some uncertainty to what you're doing, maybe get the insurance in case you need to readjust the plan. We flew once, my wife and I, and they lost our luggage, went down to Disney World while we went somewhere else. So I think our luggage had more fun than us. But it was great, everything worked out, but just plan for those. So what would happen if we got somewhere and didn't have it? So one of the things we always do is if we're flying, in my carry-on, I pack a couple of things that I may need while I'm waiting for things to get figured out.
Austin Wilson:
Oh, for sure.
Josh Robb:
So just little things like that.
Austin Wilson:
I actually watched this, there's this lawyer on, I don't know if she's on TikTok, but she's on YouTube videos, short videos or whatever. And her thing is that she reads the fine print so you don't have to. And some of the policies these companies have, like airlines, it's good to know because if they lose or delay your luggage, they are legally responsible for reimbursing you to replace what you have.
Josh Robb:
What you have.
Austin Wilson:
Even if it's only for a short period of time, you should be able to go get what you need, turn in a receipt, and they'll still reimburse you. So look into the fine print if you ever get into that situation.
Josh Robb:
And that was ours is we flew, we were going to a football game, we flew to Maryland and our luggage went to Orlando.
Austin Wilson:
I remember that.
Josh Robb:
Yes. So we went from Detroit to Maryland, it was an hour flight, and our luggage went all the way down to Orlando. So we land in Maryland, it's 11:00 at night, luggage isn't there. And so I reached out to, we flew through Delta, and they're like, yeah, get what you need, turn in receipts. I said, all right. I said, we're going to a football game, it's a little chilly, we're going to need coats. Everything is packed. I only wore what I needed to. Get what you want. I said, well you have my suitcase. I need my suitcase to pack all this stuff to come back. Because my luggage was not going to meet us there. It was going to meet us in Detroit. It's the end result. They couldn't get it to Maryland in time. So it was coming back to Detroit. Buy a suitcase. So I still have the suitcase.
Austin Wilson:
You ended up with a free outfit and suitcase.
Josh Robb:
I got a nice free, and they said turn the receipts. So I turned in my receipts. You scan it online. It was super easy. And then I was waiting for them to question. We didn't go crazy. We bought what we needed and even, I needed undergarments. And I didn't go buy a pack of 20, I just bought what I needed. And so they just said-
Austin Wilson:
One used pair from Goodwill.
Josh Robb:
That's right. They submitted all this stuff and they're like, good to go.
Austin Wilson:
No problem.
Josh Robb:
Perfect. And so you're right. In the end, it's like, I get it. Things happen. I don't expect anybody to be perfect. But when something happens, you would like it to be fixed.
Austin Wilson:
That's also why, pro-tip, especially when you can, carry-on only. So if I'm going for business or whatever, it is one carry on and a briefcase, and I am in and out and never need to check a bag. I can live for two weeks like that. Me.
[28:23] - Unnecessary Splurges & Souvenirs
Josh Robb:
Yes, that's the difference. All right, last one is avoid unnecessary splurges. Now, unnecessary splurges. Keep in mind we set a daily limit. That was what we talked about earlier. So that daily limit may include souvenirs or whatever you want. So I'm not just saying don't buy stuff. It's unnecessary splurges. So let's say you're traveling and they're saying, oh, you know what? You could upgrade your hotel to this and this and this if you do it. Well, if you would've looked into it, it may have been 20% cheaper before you got there. They do that all the time. Cruisers are that way. There's drink packages, that if you do it on the ship, it's way more expensive than if you did ahead of time. That's an unnecessary splurge because you could have thought through it and paid for it at a cheaper rate. And then, if you have kids and you go places, probably souvenir shops are appealing to the kids in that they're like, ooh, I want all this cool shiny stuff that we'll break in a week and won't care about.
And so again, it may be nice to have a cool thing to remember this by, but let's think through what that's going to be. Have a conversation. What we do with our kids, a lot of times we say, hey, if we're going to Florida, each of you can get something, but we're going to wait till the end of the vacation. That way you have a chance to see where all we're going, what all we're doing. And if they buy something the first day, and then three days later we go to this really cool place, they're going to be upset that they got something dumb. So unnecessary is the key there. Prioritize the cost. What I'm paying for this is there's something that this money could go better for. If you're going to a place and there's a waterpark, and then there's also a week-long pass to all the parks that are in the area, which of those two is a better bang for your buck?
Maybe for your family's it's the waterpark because you're just going to spend one day there and then you don't need any more waterpark stuff for the rest of the week. Or maybe for, it's you having a pass to go to different places, hiking trails, and for you and your family, that's the better bang for buck. So just don't quickly jump into it just because they're being offered. Souvenirs are great. But again, think back to the things you buy.
Austin Wilson:
They add up quick and they don't last most of them. I like to get a picture frame, then I could put a picture in and then have it. That was one memory from the trip.
Josh Robb:
One thing I started doing is I'm now getting pins and I put them on my book bag that I use for work.
Austin Wilson:
Oh, cool.
Josh Robb:
And different places I've been. And so again, it's a reminder of the things. That's a fun one. I know my wife for a while collected magnets. They were on our fridge holding up the normal day-to-day stuff. But you looked in that and you're like, oh, I remember when we were at Hilton Head or wherever. So to me, they're still little knickknacks, souvenir things, but they serve a purpose. They bring back the memory of the fun trip. And the other one, which I thought was a cool idea, and we haven't done this, but I knew somebody that would collect sand from the different beaches or places they went, and little bottles, and they had them stacked up. And I thought, that's a cool idea. And it doesn't cost anything more than having the bottle, but you collect the little sand from all the different places.
Austin Wilson:
I also think just, at the end of the day, the pictures you take of your kids and yourself and your wife doing what you want to do, enjoying that vacation, are going to be worth way more than the trinkets you bring back. So take a lot of pictures. Those are free. Store it to the cloud. You can have them forever.
Josh Robb:
Unless you have to pay for all this cloud storage they have.
Austin Wilson:
Oh, man. But that's my preference. It's pictures of trinkets.
[31:51] - Key Vacation Financial Planning Takeaways
Josh Robb:
So in the end, as we wrap up, all this is planning. That's the theme. That's the key. The best way to have a successful vacation is to plan ahead. You're going to want to budget for it. It's better to have saved up and plan for it than to put it all on a credit card and hope you can pay it off because you're going to be accruing interest in, it's easier to save money for something than after you've already done it. And so as you're looking forward or towards something, it's easier to say, hey, instead of buying that whatever, new pair of shoes or whatever it is you're looking at-
Austin Wilson:
Put in the vacation fund.
Josh Robb:
I would rather save this to get closer to that trip I want to do. So that's the big takeaway from all this. But to do that, you got to know what you're trying to do, where you're going, how much it's going to cost. So plan it out and then work backwards. Because if I want to go eight months from now on a trip, that's a lot of time to start getting that money saved up and so I can start planning ahead. That's where we're at. Planning ahead, thinking through it. Any last thoughts?
Austin Wilson:
No, I totally agree. I mean, my family and I are actually planning a vacation for September of 2024.
Josh Robb:
There you go.
Austin Wilson:
Already. So we're getting a headstart. Then you can fine tune and get a better deal potentially on lodging. That's the biggest chunk of probably what you're going to be spending on. So then we're going to be able to back into an estimate of what it'll cost, book things in advance, pay things off in advance, if it's buying plane tickets or putting part of a house or whatever. Then when you get there, it's really just going to be food and gas or whatever. So planning ahead is key. If you don't plan ahead, like you said, you're going to be playing catch-up for a while. Not many people in their normal, weekly, monthly budgeting life can absorb a vacation without having an issue. It's expensive.
Josh Robb:
And I'll say too, it's easier for me to enjoy a vacation when I'm not worried about the spending piece of it.
Austin Wilson:
Because you've already taken care of it.
Josh Robb:
If I've already budgeted and know or it's already paid for and we're just enjoying it, man, it's so much easier to just kick back. And then if I know I already set aside X amount of dollars for this, whatever that is, and the kids come, hey, can I do this? Yeah, we already planned for it. It's not a stress... So for me, it's huge. Makes me enjoy the vacation more because I've already removed that financial aspect from the concerns.
Austin Wilson:
Absolutely.
Josh Robb:
All right, so remember, financial planning for vacation is a great way to keep you from getting off track for your overall goals. If you need help planning and this fits in with your financial picture, shoot us an email at hello@theinvesteddads. We'd love to talk with you and see if we are a good fit for helping you.
Austin Wilson:
And maybe you had someone talking about planning a vacation or talking about the stress that they were under from a financial perspective. And hopefully this episode can help give them some direction on some ways to direct their plans and their money for that. And until next Thursday, we hope you have a great week.
Josh Robb:
Okay, talk to you later.
Austin Wilson:
Bye.
Thank you for listening to The Invested Dads Podcast. This episode has ended, but your journey towards a better financial future doesn't have to. Head over to theinvesteddads.com to access all the links and resources mentioned in today's show. If you enjoyed this episode and we had a positive impact on your life, leave us a review, click subscribe, and don't miss the next episode.
Josh Robb and Austin Wilson Work for Hixon Zuercher Capital Management. All opinions expressed by Josh, Austin, or any podcast guests are solely their own opinions and do not reflect the opinions of Hixon Zuercher Capital Management. This podcast is for informational purposes only and should not be relied upon for investment decisions. Clients of Hixon Zuercher Capital Management may maintain positions in the securities discussed in this podcast. There is no guarantee that the statements, opinions, or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses, which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.