So, one of my friends from middle school (who doesn’t have a steady job) just emptied her bank account (“took every penny” is how she put it) and went off on a trip to Asia with her boyfriend. The pictures she took were amazing.
It’s things that like this that makes me wonder, um, am I not adventurous enough? Am I not taking advantage of the freedom that youth affords me?
‘Cause, seriously. If we both die tomorrow, who’d get the last laugh? The one with a job with health insurance (don’t get me wrong, I LOVE my health insurance), or the one who just spent 3 weeks exploring the monastaries of Cambodia and enjoying authentic curry in India?
Good things come to those who wait… you will be able to take those trips to Cambodia, eat curry in India, and sip margaritas in Mexico over and over when you are able to retire early due to your well-disciplined financial approaches here-on-out – all while watching your friends still “struggle” because of there “amazing trip to Cambodia” when they were 25. Obviously, if they have no debt, it may be a different story, but I highly doubt it.
I’m 24 and I have the same struggles – my older brother goes on trips left and right, yet I know he is in debt just to maintain that “lifestyle.” I feel bad for people that feel like they need to be adventurous just to feel good once NOW, rather than feel good OVER and OVER LATER. That’s my take on it…
In fairness, I think travelling to see the world in your 20s and 30s is a different experienece when you are in your 50s/60s. In your 20s/30s, your mind is relative fresh and you’re relatively inexperience in many things, so travelling to a foreign place opens up your mind and can unleash many potential. When you are in you 50s/60s, you have more life experiences in your pocket, I think by then when you travel, your travel experience and feelings toward it will definitely be different. (However, I am not saying either one is better than the other.)
When you are young, generally speaking, you are more phsyically able to hike, climb, walk. I think you’d have a much easier time hiking to Machu Picchu.
For me, I want to experience the world in my 20s/30s. And when I retire, I like to visit the world with more life experience.
Of course, one shouldn’t break his/her bank account in pursuing this. On the other hand, if you are in 20s, you still have a whole life ahead of you to build your wealth. This all goes back to the word – Balance.
I’d travel. You’re doing relatively well financially, and you have good habits. You can only travel like this when you’re young, can take advantage of hostels and youth discounts, and really have the perspective to let this change your view of the world.
I’d say work on balancing the two desires (youth and adventure, and money and security) in order to maximize your happiness.
I worry about this, too. Every now and again, I’m tempted to just take my “travel fund” and roll it into my emergency fund, or plan to work all the way through the summer before I start grad school, or something like that–I say to myself, “no big deal; I’ll take my trip another time.” But I haven’t done it yet.
I don’t think it’s a good idea to focus on getting ahead financially to the exclusion of experience and adventure. Obviously, incurring debt to travel isn’t smart. But I don’t have any debt, and I’m young and relatively carefree, and I don’t want to look at my life when I’m eighty and think about the places I could have gone but didn’t.
I’m a big traveller, but it is my one luxury. I don’t mind giving up the little stuff- expensive haircuts, clothing, eating out- if it means I get to go explore. I have a per diem job that I work at to fund it, and I hunt around for good deals. Sometimes just taking a weekend trip to another part of the country can be really relaxing and inspiring.
I think there can be a fair compromise between seeing the world and saving for the future. You don’t have to empty your savings accounts to travel. Yes, you could both die tomorrow, but you could also both live to be a hundred.
I worry, too. How much longer will I be footloose and fancy free? Married, kids, mortgage, no babysitter in sight?
A really good friend of mine called me yesterday to tell me that she’s going to Canada, Napa and the Hamptons… (She’s a personal assistant to a ridiculously wealthy family in NYC and gets to travel along, for free.) MissGoldBug, what’s new with you? “Uh… I got a great pair of jeans at the Gap for $25!”
Couple that with running into my cousin (at the Gap) who is very excited about going to NYC for a year to study at F.I.T. and I could feel myself turning green.
I can’t help but ask myself where have I gone wrong? Killing myself working 60 hour work weeks so I can invest and save, for what? So I can afford good nursing home care and look back on my hard working youth?
I can’t help but think life’s got it all wrong… you have no money in your youth when you want/need it and when you do have it in old age there’s nothing you care to spend it on.
If I were to take a stab at a good compromise it would be BALANCE.
Take the trips, but save up for them…. My next one will be to New Orleans in October.
Perhaps we should approach it like investing and saving. Look at travel as a return in personal harmony and happiness. I need to do more of this, and perhaps it would quell some of my jealousy/desire of my friends’ travel plans.
Also, one last thing. Be grateful. We both have a lot to be thankful for. I look at my BF and I am grateful. My healthy, happy, thriving family. My little condo. My job(s). The food in the fridge. Savings accounts. Investments. *A snuggly new duvet from Anthropologie.*
We have it better than 90% of the people in the world… just being born in the U.S. Add to that a private education and some serious intelligence and you’re way ahead of the game. Its hard to keep things in perspective at times- give thanks-you have so very much, we both do.
For What Its Worth,
MGB
Neither, you’d both be dead. *groan* Sorry, someone just had to say it! It’s all about striking that balance, as Katie et al. are saying, between being financially responsible and a fuddy-duddy whose only goal are financial goals.
I know the temptation to make that stark comparison of: “Me: Roth IRA, no fun. You: travel, fun, no money” but it’s more nuanced than that. For example, when she returns, she’ll have no money in the bank. Perhaps she’s at peace with that, but would you be? And would you be ok with having either spent all your emergency money and starting your savings all over? If you are, perhaps it IS time for you to go play! If not, then don’t feel bad about holding out a little longer.
Good point… I’d probably be scared that I have no $$ in the bank.
But… mmm..curry..
I think that the middle ground is probably best. You want security to know that you won’t be living on the streets, but at the same time, be a little reckless occassionaly and you’ll be happier. You don’t have to do a luxury trip across Asia to satisfy your travel bug, you can do things a lot cheaper.
I do strongly advocate traveling when you’re in your 20’s, though. It opens up your mind and gives you stories to tell for the next 30 years until you retire and can get some other travel stories. =)
I did my traveling in small bits. In high school I took a week long trip to the East Coast to visit friends and colleges. In college, I did almost no traveling. In grad school, I got to do some traveling for conferences (free travel!). I was lucky in that one of the conferences I went to was in France. All during grad school, I saved money (on a $14k income living in San Diego) and took a month in Europe when I graduated. I then spent a year working in another country. I came back, spent a few years finding the right girl, and then got married and took a three week vacation to Thailand for our Honeymoon. So I feel like I’ve done A LOT of travel, but it’s been over the past 10 years or so.
In places like Thailand, you can live so cheaply and still to great things that if you can find a cheap flight over, that’s probably 50% of your cost for a two week vacation.
You can do it. Just plan it in and make sure it happens!
Do the 2nd- and 3rd-world countries now, while you’ve got the youthful energy and tolerance for the ‘charms’ of the less-developed places…and while the cool ones are still relatively cheap.
Save Western Europe, Canada, etc. for when you’ve got kids in tow – you’ll need the amenities a westernized country can supply.
I’m Cambodian, I want to go to Cambodia! I wouldn’t want to wipe out my account to take a crazy trip, because sooner or later, you’ll have to return from that trip. However, I would save money and plan for a trip accordingly. It doesn’t have to be spontaneous to be fun.
Go sky diving on a whim, thats spontaneous enough for me, lol.
Balance, I am sure Cambodia would be fun but there there are some pretty neat places here in my own state I haven’t been to yet. Half the fun is being off without having to go to work. But I am pretty boring. I rather have the lake house at 45 or if I die, my family has the lake house and can thank me. đŸ™‚
I am having an issue with that now. I came into some extra money but I am so scared to spend it on a trip. My friend’s are going to Vegas in August and want me to come. The trip would cost me at least $600. But I can’t seem to bring myself to spend so much when it would look so much better in my high yield savings account or wiping out 3 CC balances.
Some say to work hard now so that you can reap the benefits later. Others says enjoy it now because tomorrow is not promised. I think the logical thing would be to find a medium. Work hard but schedule a little play time here and there.
I just need to find a more inexpensive play time. LOL
Dimps
I travel ocassionally, but what I don’t get is the people that talk up their travels all of the time and never really explore their current surroundings. Portland has so much to offer and everyone I talk to is more prowd of the wave that was handed to them in Hawaii or the experience in Laos, while their current environement is almost never explored. Go take advantage of your immediate surroundings first is my advice.
I’m one of those people (at 28) who chose security over fun and adventure. I think you should travel if it really calls to you. HONESTLY! I have spent the last 7 years of my life being responsible and I sometimes have regrets.
I think my DH has no regrets but he’s not one to adore travelling and seeing the world. I am. But I love him way more than seeing any world, so I instead of taking my savings and spending a year travelling, I bought a house with him.
I have no regrets because I love my DH, but I sort of wish I had just risked a bit of our financial security for fun and enjoyment. Truth is travelling in your 40s and 50s is not the same as travelling in your 20s. You do not get the same experiences. You will not stay in hostels, you will not go anywhere on a whim.
For example DH’s best friend moving in with us this summer (until he finds a place), is 30 but has travelled the WHOLE world. He doesn’t have any money or retirement but he doesn’t care. He’s happy and single. He’s seen most of Europe, lived in Singapore and travelled asian. He’s backpacked in India, Pakistan, Turkey, and other parts of the middle east. Spent 3 weeks in Russia. Gone on a month long safari in Africa. He’s also backpacked in Mexico for 2 weeks, gone to south america for 1 week, been to hawaii for 3 weeks (our wedding), been to japan for 2 weeks. He’s seen pretty much a lot of the world, but still has ton of places left.
What has DH got? He’s married, settled, job, possibly a kid in a few years. We’ve travelled but not as extensively. We have retirement, a house, savings, cars, but I think what we traded was each other.
If I were single I think I would have travelled to my hearts content and used my money all up. But I couldn’t have given up my DH. So I’m pretty happy but I do realize what I gave up.
So maybe you should consider doing it before you get tied down by other things. FWIW, as a married woman i’ve been to china for 3 weeks, japan for 3 weeks, Switzerland for 1 week, 2 weeks in Florida and the caribbean, and gone on weekenders here and there in the US.
According to our friends who are married with kids, we’re really living a DINKS lifestyle. Way higher than normal couple with kids. So it’s all relative.
I thought about this too recently given I have limited money and vacation days. Many of my friends have studied abroad for a whole year or even taught English in some rural parts of Asia. Another friend just left to teach English in Japan.
I contemplated emptying my bank account and becoming a vagabonder (http://www.vagabonding.com/) trekking the globe. But it’s really about balance. Right now there’s so much I want to learn about international business and I’m hoping my next job will allow me to travel and apply the skills I’ve gained. That’d be a nice tradeoff for now.
While you’re young you should travel. Less commitments like family, children, relationships, and things of that sort. Someone once said when you’re young the world’s at your disposal because once you the 30s it’s alot harder to travel – you’re comfort zone isn’t as high as it used to be making it harder to tolerate certain locations and travels.
So lots of replies b/c you’ve asked what is essentially THE fundamental question.
“What the heck am I doing with this money???”
You can’t take any of it with you, but you also can’t live without it. So it seems to me that the goal should be to have “just enough” and then a little more.
If you don’t know what you’re doing with the money, then at least you can save the money that you make. But fundamentally, you should know this answer.
Look, you’re 20-something right now, average age is going to be late 80s by the time we get there (I’m 26). So what are you going to do at 65? retire and live for 20 years without working? Are you going to try and “retire early” with two million bucks in the bank at 55? What are you going to do for 30 years?
But then, if you have something in mind for 20 years of retirement, how does that differ from what you’re doing now? Unless you plan on spending 20 years doing nothing of a monetarily productive nature, then you could be saving a lot of money just so you can die of boredom.
Everyone here is saying “balance”, but moderation is an obvious side-effect of long-term self-preservation, what’s really important here is “purpose”. Do what you want to be doing every day. And if that doesn’t work, do the minimum of the other stuff so that you can spend as much time as you possible doing what you want to do.
If this is your purpose, then you won’t be asking silly questions about “who gets the last laugh”. There is no last laugh, you both die, all you get is the time in-between to be whatever you want to be.
If you want to travel in your 50s, there is nothing but your own ego stopping you from living it like you would in your 20s. Youth does not offer any inherent freedoms, money offers you freedom. People feel “less free” at 50 b/c they’ve made all manner of lifestyle decisions that limit their money (kids, house, car) and make it tougher and tougher to work outside of their comfort zone.
So find your purpose and do it. If that means working 60 hour-weeks until you have kids and then 40 hour weeks until they graduate and you retire, then that’s what you want to be doing. You didn’t miss anything.
I think this question crops up quite often on money-related blogs. You should definitely travel in your 20s. You can stay in youth hostels and travel cheaply. I’m so glad I traveled when I was younger. By the time I was 30, I had backpacked through Europe (twice to Italy) and also to Hong Kong, China and Brazil. I’m pretty financially secure now and never made a huge amount of money so it’s do-able. It’s not a trade-off between seeing the world or financial security. You can do it!
I don’t think it was his originally, but my father-in-law has said the following prhase to me a number of times:
“When I was younger, I had the time, but not the money. Now that I am older, I have the money, but not the time.”
Based upon my own experiences, I think this is generally true. In particular, with young children, I have not found it to be very practical or feasible to take them on vacations around the globe.
I find that as you get older, you get more philosophical about life. If you are already doing the right things, you will continue to do so (you can not easily run away from yourself…although you will try from time to time). So, in the end, no matter what you do, you will be fine.
However, if you have the means, I would encourage you to take those trips. That is not to say you should “empty out your bank account”, but life is indeed short (this saying exists for a reason) and those experiences will enrich your life in ways that are measured beyond dollars and cents. Alternatively, seek out roles / assignments in your job that will give you those opportunities. Although I did not take advantage when I was in my 20’s, I have been afforded the opportunity through work in my 30’s.
Anyway, good luck!
OK, if you die young your friend will have the last laugh. But what if you live to 85? Byt the time your friend is 35 she will have to be putting an enormous amount in her retirement plan if she doesn’t want to end up eating dog food rather than Thai food in her old age. Mean while, you will be well on your way to a comfortable retirement, and able to spend your income on the luxuries in life. You are clearly making the right choice! But, travel isn’t that expensive so see if you can squeak in a few trips to exotic locations while still funding that Roth.
I agree with other commenters that it doesn’t have to be absolute. But also that there are advantages to traveling while you are young. The younger you are, the less debt you have, the easier it is. I traveled to Guatemala when I was 21. I had dropped out of school and been working. I had a student loan that I was paying but it wasn’t that much, I think I prepaid it. I was there for 3 months doing an intensive language program and I picked up fluent Spanish. I’m abroad now too, I am doing a master’s program in desert studies in Israel on a full scholarship and have been here for a year and a half, meanwhile I have studied Hebrew. Incidentally my school gives full scholarships to almost all of the international students.
A lot of Israelis travel after the army–they save money for 6 months or so and then head off. I think it would be a good idea for American middle class kids to delay college, work to earn money, and go travel. Then they can go to college a little older maybe with more of an idea of the world, with another language or with a better idea of what they want to do. Especially because most of us go into debt for it.
Before I came here I paid off my student loans. I didn’t want to, I wanted to pay them off gradually and have a slush fund for travel, but my (now) husband encouraged me.
I am happy with how I spent my 20’s. When I was 20 I made a list of what I wanted to achieve before I was 30. Net worth simply didn’t figure. I wanted to spend some time living in a foreign country, to learn another language or two, to write a book (I’m counting my thesis!), to help people (did a lot of volunteer work and worked at nonprofits for 4 years). Now that I am 29 and married my list would probably look different for my 30’s. Now I am interested in developing a career and starting a family, buying a house at some point, developing financial security. I would love to travel more, write books, but those ideas come in second place now. I look at other people with whom I went to high school and they have a career already, some have a house, some have glamorous careers. But I have what was important enough for me that I wrote it down on a list at 20 years old.
If you find that traveling is really appealing to you, I recommend that you find a way to make it happen, but thoughtfully. Think about why you want to travel, can you get it out of work travel, are your career goals more important to you right now? I met a guy in Guatemala who had quit an investment banking job and gone down there to study Spanish. You could do the same. Could you combine it with studies somehow? There are groups that give scholarships to certain language learners, Spain has the best school for international business (MBA). Do you want to work at a company that could transfer you overseas? If you just want a long vacation, plan it very thoughtfully. Good luck!