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Is it better to save money or go on vacation?

Spending money on a vacation isn't inherently irresponsible, but spending money instead of putting it aside in savings can sometimes cause guilt. Although building your emergency fund is a top priority during economic uncertainty, that doesn't mean you have to sacrifice discretionary spending or vacations.



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Many people set aside 5-10% of their net yearly income for leisure travel, but this can vary greatly based on the type of vacations they're planning. Another popular budgeting option is the 50/30/20 rule: 50% of net income is spent on things you need. 30% of net income is spent on things you want.

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“In general, people should budget around $1,000 for a long road trip,” said Kyle Kroeger, the founder and CEO of the travel website ViaTravelers. “This will ensure that you have enough money to cover all your expenses and have some leftover in the budget for souvenirs.”

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On a $5,000 budget, you'll be able to spend a week at a nice all-inclusive resort while still having extra cash for airfare and day trips.

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Staying at home offers extra time for favorite activities that people do on a daily basis, but traveling allows people to learn and take part in new activities. Although the phrase “home sweet home” brings feelings of warmth and safety, new memories and atmospheres from traveling is refreshing.

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Deciding where to go and what to pack is stressful enough, let alone trying to determine how much money you need to bring. The general consensus is that you should have $50 to $100 in cash per day for each traveler.

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That 20% is an average, and what it represents can vary dramatically by career, so make sure you ask your hiring manager to tell you exactly what the travel percentage means for the position you're applying for.

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