Warmer weather means more travel, more time with friends, more time out living life, and yes, more spending. My hands down favorite trip was when my husband and I went to Mexico a few years ago.
My first comment about that trip is… Please take me back!!! After all of the time spent indoors and unable travel due to COVID has me feeling a bit stir crazy. At this point, I’m ready to hop on a plane to just about anywhere. I’m sure you can relate.
My second comment about that trip is… Boy did things add up! I’ll get to that in a bit, but let’s first set the scene.
Newlyweds, only hours into our blissful journey, with a lifetime to go. We embark on our first trip as a married couple, headed to beautiful Cozumel, Mexico. From the food, to the night life, to the gorgeous coral reefs, there was no shortage of things to experience. And experience we did!!!
We participated in all sorts of activities: mini submarine ride along the coral reef, parasailing, ATV riding, etc. We definitely made an effort to live it up. Although the activities were different, they all had one thing in common… There was a price tag attached.
As you can imagine, things began to add up quickly. Be that as it may, we still had the time of our lives. Why were we unbothered by the rapidly rising tab? Four words… We Budgeted For It.
The word budget often has a negative connotation. It’s linked to restrictions, being boring, being cheap, and simply not allowing for fun at all. In the case of our honeymoon, that couldn’t be further from the truth. In fact, it was BECAUSE of our budget that we were able to enjoy our trip to the fullest.
In a nutshell, a budget is simply a set of instructions that tells your money where to go, and what to do. Our budget instructed our money to go to Cozumel, Mexico and fund all of the amazing experiences that I mentioned.
How does that happen, one might ask? We simply created what’s called a sinking fund for our trip. A sinking fund is a type of short-term savings method for allocating money to be spent on something specific. Once you’ve reached the desired amount, you can proceed to spending. The beauty of it all is that the money is separate from your other resources.
Sinking funds allow you to blow money, without blowing your overall budget. In essence, you give yourself permission and the means to indulge without the guilt or uncertainty of being unable to take care of necessities after the money is spent.
We used the money in our sinking fund to have an amazing honeymoon. When the money was gone, we returned home. All the while, our other assets remained intact.
Now that the world is opening back up, we’re starting to consider our next adventure. We’ll definitely be using the sinking fund savings method again. Want to learn how to give yourself permission to spend? Click the link below to schedule a free consultation. https://lanahinds.com/apply