Everyone’s priorities are different. You’re going to end up regretting one choice over the other anyway, so what will you actually do with your savings? Even though early retirement is an attractive option, it’s not always for everyone. If you’ve shaken off the carpe diem spell, or if you’re just a strict saver, you must be collecting a sizable nest egg. Will it be used to fund your journey towards personal growth abroad? Or will you use it to further increase your assets?
Net Worth or Enrichment Abroad?
If you’ve got a good nest egg that’s enough to fund a relaxing dream trip abroad or a down payment for your future home, you’ve already got a solid net worth. The thing is, do you want to increase your net worth, or are you planning to drain it on relaxing trips abroad?
Using your savings to make a down payment on a home and starting to make good on your mortgages, you’re going to have a tangible asset that will help you save money in the future. It will also open up opportunities for you later on because you’ll be saving money on rent when you finally own the place.
On the other hand, traveling abroad can give an experience of a lifetime. It would be rewarding, and you’ll have lots of stories and pictures to share. You’ll also be giving other countries the money you’ve earned — spending money on souvenirs, food, lodging, tours, and transport. Your experience will become your wealth as your savings dwindle.
At the same time, you won’t be worrying about the adventure you could have had if you hadn’t decided to spend the money in your own country. The unfortunate thing is that when you come back, you’re still going to face charges on your rent, or (if you’ve ended your lease) you’ll have to go apartment hunting again. That is if you can still afford it.
Although it is enticing to travel abroad instead of buying a home, just be warned that millennials tend to go into debt right after. People experience a fear of missing out and that whole idea of living once, allowing them to justify splurging their savings on a trip.
Thinking Ahead of the Trend
Whether you’re living by yourself or with a family or a partner, it’s important to think ahead. Will your savings be enough for that trip and your other expenses? Is it worth going into debt for? What if someone gets sick and the hospital bills are huge? It is crucial to consider the other ways that that money can be spent.
For example, if you’ve decided to become a homeowner, that can provide you with something you can take out a loan on in the future. If all of a sudden you want to start your own business, at least you have an asset that the bank can look at. You won’t be able to get a loan if all you’ll have to offer are those vacation pictures.
It also really depends on whether you want stability in the future or if you’re willing to live like a gypsy. Being a gypsy isn’t a bad thing — you’ll still be rife with experience that other people can only imagine when they see your pictures on Instagram. Becoming a world traveler on your own terms has so many advantages, and it will come with a lot of growth, just in a different direction compared to investing in that nest egg.
But You Want It All
At the end of the day, there is a desire by most people to travel, see, and experience the world. But there is also an equal desire to have a lovely home to call your own. Unfortunately, not everyone can have both, and sacrifices have to be made on both ends. To accomplish either of those goals well means that you won’t be able to make a compromise and spend half of the savings on a mediocre trip and the other half on what isn’t your dream home.
There is a way to get both without being extensively rich. The biggest sacrifice you’ll have to make is time. You’re going to have to look forward to tactics that aim for frequently delayed gratification. You can start with a down payment on your home and then work on saving towards a memorable vacation trip abroad. It will take a lot of time to achieve both, but won’t it be worth it in the end?