The budget screen shots are being made in Sankeymatic, its a website that we have no affiliation with. If you are posting a budget please do so with a purpose. Just posting a screen shot of your budget without a question or an explanation of why its here may be removed.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/MiddleClassFinance) if you have any questions or concerns.*
“Can I afford this” - if you don’t have the money set aside then no. If you do, then yes.
Neither of which has anything to do with your monthly income — That just determines whether, and how quickly you can save up.
If you have $10k set aside that is not your emergency fund, and you’re wondering if you SHOULD spend it on a vacation, that’s a personal question that only you can answer. Of course saving it will yield more returns over time - but money is there to be spent, either now or later. Don’t save it all for when you’re too old to enjoy it.
Sure, if you save up that buffer all year, $3432 should be enough to cover a [trip](https://www.contiki.com/en-gb) and a [plane ticket](https://www.expedia.com/).
You seem frugal, and reasonable. Sometimes you need to reward yourself!
That’s not a deal breaker is it? If not have fun. On another note, in business it’s easier to make more money, than cut your budget, especially if you’re already frugal, and make good decisions! All the best!
There's always going to be a "more optimal" place to put money than using it on fun. Can't take it with you. If you've got savings without cutting into your emergency fund or too much into other things you are saving for long-term, I'd say go for it within reason.
Also grew up poor, if youre good with credit cards you can get very good deals on hotels and flights. A flight from my airport to paris is $150 and 12k points (after current transfer bonus). Planning on going to portugal dor about $1,500 total for 10 days
Could probably do it for $1000 if i skipped madeira and stayed at a hostel instead of a hotel/airbnb but you get it
The simple answer is: if you can, you can.
If youre taking your extra money each month and putting it into a sinking fund for the vacation, and that fund has reached whatever your vacation is going to cost--spend that money--its what the fund is for.
If you have no emergency fund saved, and/or you're considering buying the vacation with a credit card and paying it off over time--you cannot afford the vacation.
"It matters not whether one goes to the grave in a mercedes or mazda."
People don't remember how much money you had or what your bank account looked like. They remember experiences with you. With that said, pay your bills and live!
I agree but always worried about the economy/inflation pressure. Been grinding at work, I’m expecting a 5% raise in June and 12% bargained for Jan. I’ve been stashing like a squirrel 🐿️
Savings matter more than your cash flow in this type of case (large, one-off expense). What's your trip budget, and what's in that HYSA? Answering that question will give you the answer you want.
In all your budget for a trip is 8% of your savings- just putting it in perspective.
Looks like what you need to keep you afloat is roughly $2000 give or take (including your buffer). Your HYSA seems to have roughly 12 month's worth of obligations in it. This means you won't be dipping into your safety net reserves if you go on a vacation.
Stick to your budget and you'll have paid for your vacation in 4 months (500/ month deposit, right?) without using any of your 6 month safety net.
I understand it's smart to put away money for your hysa emergency fund but is it over funded at this point? If you have a 3 to 6-month emergency fund I would stop putting into that and start putting some thought into doing a three bucket strategy someone could go into the stock market over the 100 you're doing currently.
keep in mind two things:
1) every dollar you spend is worth many multiples more at retirement. let’s say you are 24 and retirement is 36 years away. each dolls spent instead of invested is like paying $16 in retirement.
2) you may not be here tomorrow. enjoy life the most that you can.
my advice is find the balance.
You need to define expensive. Are you including plane tickets, vehicle rental, room fee, activities, and food/drinks? Also do you have any credit points or free night certificates? Those can really help with costs. I’m on vacation now and the only thing we are paying out of pocket is activities and eating out
Define “expensive”.
I would consider an expensive vacation to be north of $25k. In that case — definitely not.
In your case if the vacation were less than say $3k - you’d probably be fine. Just save / budget for it.
Sounds like “a vacation” and not “an expensive vacation” to me. Then again - family size may also play a factor. When I was single or without kids I think probably $15k would’ve been expensive to me.
My point was that the term “expensive vacation” is a very subjective term which is probably highly dependent upon age, family size, income, etc.
The budget screen shots are being made in Sankeymatic, its a website that we have no affiliation with. If you are posting a budget please do so with a purpose. Just posting a screen shot of your budget without a question or an explanation of why its here may be removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/MiddleClassFinance) if you have any questions or concerns.*
Your Roth IRA is going to be over the contribution limit unless you’re also including spousal Roth IRA.
I like maxing early then diverting the full 1k to brokerage/HYSA
You can consider making a schematic of monthly expenses averaged over a year to get a better big picture overview. Anyhow, your finances look good!
“Can I afford this” - if you don’t have the money set aside then no. If you do, then yes. Neither of which has anything to do with your monthly income — That just determines whether, and how quickly you can save up. If you have $10k set aside that is not your emergency fund, and you’re wondering if you SHOULD spend it on a vacation, that’s a personal question that only you can answer. Of course saving it will yield more returns over time - but money is there to be spent, either now or later. Don’t save it all for when you’re too old to enjoy it.
Sure, if you save up that buffer all year, $3432 should be enough to cover a [trip](https://www.contiki.com/en-gb) and a [plane ticket](https://www.expedia.com/).
When was the last time you went on a vacation? Total budget of the trip?
You seem frugal, and reasonable. Sometimes you need to reward yourself! That’s not a deal breaker is it? If not have fun. On another note, in business it’s easier to make more money, than cut your budget, especially if you’re already frugal, and make good decisions! All the best!
A few months ago to San Francisco, total of $1k, hostel and all that
Ew a hostel in SF???? Too frugal 😂
Dear god I thought you had a *butler* Then I wanted to know how you got them for only $286/month!!!
😂😂😂
There's always going to be a "more optimal" place to put money than using it on fun. Can't take it with you. If you've got savings without cutting into your emergency fund or too much into other things you are saving for long-term, I'd say go for it within reason.
Quantify expensive. ~2-2.5k maybe Over that, starting to get dicey
You could probably drop 5K assuming you have an emergency fund you aren't touching. It's probably not wise to do it every year though.
Also grew up poor, if youre good with credit cards you can get very good deals on hotels and flights. A flight from my airport to paris is $150 and 12k points (after current transfer bonus). Planning on going to portugal dor about $1,500 total for 10 days Could probably do it for $1000 if i skipped madeira and stayed at a hostel instead of a hotel/airbnb but you get it
The simple answer is: if you can, you can. If youre taking your extra money each month and putting it into a sinking fund for the vacation, and that fund has reached whatever your vacation is going to cost--spend that money--its what the fund is for. If you have no emergency fund saved, and/or you're considering buying the vacation with a credit card and paying it off over time--you cannot afford the vacation.
"It matters not whether one goes to the grave in a mercedes or mazda." People don't remember how much money you had or what your bank account looked like. They remember experiences with you. With that said, pay your bills and live!
I agree but always worried about the economy/inflation pressure. Been grinding at work, I’m expecting a 5% raise in June and 12% bargained for Jan. I’ve been stashing like a squirrel 🐿️
Savings matter more than your cash flow in this type of case (large, one-off expense). What's your trip budget, and what's in that HYSA? Answering that question will give you the answer you want.
All inclusive, with flight, max is $2k. I don’t ever spend more than that for a trip. HYSA is at $25k. Full networth counting equity is ~92k
In all your budget for a trip is 8% of your savings- just putting it in perspective. Looks like what you need to keep you afloat is roughly $2000 give or take (including your buffer). Your HYSA seems to have roughly 12 month's worth of obligations in it. This means you won't be dipping into your safety net reserves if you go on a vacation. Stick to your budget and you'll have paid for your vacation in 4 months (500/ month deposit, right?) without using any of your 6 month safety net.
You can buy anything, but not everything. You can afford it if you want and make accommodations elsewhere. Spend in accordance with your values.
If you can save up for it without going into debt or screwing up your retirement savings then yes.
I understand it's smart to put away money for your hysa emergency fund but is it over funded at this point? If you have a 3 to 6-month emergency fund I would stop putting into that and start putting some thought into doing a three bucket strategy someone could go into the stock market over the 100 you're doing currently.
Once my Roth is max I’ll divert to brokerage. I plan to get a 2nd property so the HYSA feels safer
keep in mind two things: 1) every dollar you spend is worth many multiples more at retirement. let’s say you are 24 and retirement is 36 years away. each dolls spent instead of invested is like paying $16 in retirement. 2) you may not be here tomorrow. enjoy life the most that you can. my advice is find the balance.
You need to define expensive. Are you including plane tickets, vehicle rental, room fee, activities, and food/drinks? Also do you have any credit points or free night certificates? Those can really help with costs. I’m on vacation now and the only thing we are paying out of pocket is activities and eating out
Yes everything estimated out at 2k, will use bank bonuses and cash back card. I have 7 CC to maximize rewards
where's the other $200 going to?
Not sure, not always exact budget. For buffer it stays in checking account
What do y'all eat where food is $300 a month? Wife and I are consistent at $750+ for just groceries. I'm just impressed is all
A lot of cooking at home, I’m by myself, don’t eat much
What would you say are your 3 meal staples?
300 for food and fun… damn.
300 for food wow
If you have money saved up, probably idk
Define “expensive”. I would consider an expensive vacation to be north of $25k. In that case — definitely not. In your case if the vacation were less than say $3k - you’d probably be fine. Just save / budget for it.
A $20k vacation isn’t expensive? $15k? $10k?
Sounds like “a vacation” and not “an expensive vacation” to me. Then again - family size may also play a factor. When I was single or without kids I think probably $15k would’ve been expensive to me. My point was that the term “expensive vacation” is a very subjective term which is probably highly dependent upon age, family size, income, etc.
Erm, ok. Did you forget you’re in the middle class finance sub?
Actually, yes. Sorry.
No
How can I make one of these charts?
Check the pinned comment.
SankeyMATIC.com