Thursday, January 01, 2009

Taking an Expensive Vacation in a Tough Economy

My company has been shut down for the holidays since December 23, and I have been trying to make the most of that time. Last week the family and I went to Disneyland and later this week we will be going up to Tahoe for a couple of days of skiing. All this traveling costs quite a bit of cash, probably in the neighborhood of $2,000 when all is said and done, but the final tally will only be available when we return.

This is a fair amount of change to be spending in this type of economic climate, but I think this is money well spent. First of all, we are a family of 5 so the cost per person is pretty modest when you think about. While visiting Disney we stayed at a reasonably priced Holiday Inn, and the kids got only $25 each for souvenirs. At Tahoe, we are renting a vacation house, with my wife's entire family. Since our vacation is all in California, we are driving everywhere and have no expensive air travel to deal with.

I think that my wife is bit more concerned about spending all this money on a vacation, but I am not terribly concerned. First, now that my company has completed its second round of fund raising, we have enough cash for over a year of operations, and I believe that my position within the company is very stable (unless I somehow cause a major blunder - which I am not currently planning to do...). Second, our emergency cash reserves are fully funded. We have over one year of living expenses in cash and equivalents. So, while I am nervous about the economic situation (who isn't), I don't intend to hide under the covers until the sun comes out. We'll be reasonable, prudent and frugal, but we are not going to stop living. The holidays are a good time to relax and enjoy life, and that's what we intend to do.

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Anonymous said...

If your spending money on family stuff you couldn't make a better choice. We have done this with our kids, two trips aound Australia and various other side trips. Money well spent. Now they are too old to travel with us for long periods of time we are clearing our only debt, a smallish mortgage. Sometimes you have to buy time especially with children.

Perth WA

Middle Way said...

No, you cannot stop living. Personally I view money as energy.

Just saving and not spending on value things creates an imbalance.

Shadox said...

I agree with you both. I have always been an advocate of balancing your spending and saving - I am all for living your life and spending your money, as long as you don't rob your future self to pay for your current wants.

Millioniare Maker said...

There are fantastic idea for vacation in tough economy.