It used to be keeping up with the Joneses. Now, social media is causing people to go into the poor house to have stellar, and post-worthy, vacations.
You might've seen an increase in your paycheck since the new tax law took effect. Klecka Tax Resolution’s Mark Klecka said people need to look at their withholding and make sure you can actually afford that vacation.
“Now, the IRS is coming back and saying you really need to make sure that your withholding is proper, so that you’re not coming up short on April 15 next year. So, you really need to make sure that you’re taxes are going to be paid so you’re not having a big problem and that ruins your Spring Break,” said Klecka.
He said a vacation might seem like a short term solution to problems. But when you get back, you face the harsh reality that spending all that money, didn't help your financial problems.
Klecka said don't go broke on a vacation. Instead, make a goal of how much you want to save and put that money aside for a vacation.
“You really need to face reality. If you can’t afford what you do in your lifestyle, you don’t really need to get yourself in financial trouble by having expensive vacations to cause you more financial pain,” said Klecka.
He suggested saving money by cutting unnecessary expenses--like going out to eat or to the movies.