The survey says 51 percent of the American participants say they are cutting down on dining and social outings to budget for vacation time. When does the spending stop? As Americans drive up credit card debt, will they sacrifice today to live for their long-term retirement?
Lone Star Economist Professor, Hank Lewis, goes back to the Cold War Era (1947 -1991), he says the attitude was: “eat, drink and be merry” a message to “live in the moment”. He says the attitude can encourage people to be “sloppy” with their finances.
“We have lots of baby boomers who cannot afford to retire because they spent all their money on all kinds of other things and now, they’re having to work into their 70’s.” Lewis said.
He says it’s best to take a sensible approach and be mindful of your debt. “If you continue to allow your debt to get so high, it’s going to take up so much of your paycheck, it's going to be hard to deal with normal, basic living expenses.” He said.
Lewis says, when the urge arises to make a big purchase, give it 2 weeks. Most of the time, the urge will go away. He says if you decide you want to take a vacation, make sure you save for it and don’t rack up debt. If you have a little nest egg set aside for travel, then you can set the alert for your destination and book during an off season or when you can get a good deal, especially with the all-inclusive packages. If you end up using a credit card, at least, use a card you can get travel points on.
He says what may be fun in the moment, could cost you down the road. Lewis says delaying gratification is key.