Do you roll forward your unused Travel Budget each year?

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CenTexan
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Do you roll forward your unused Travel Budget each year?

Post by CenTexan »

With the pandemic crushing our travel plans for two years now, we have used but a tiny amount of our budgeted travel allowance for 2020 and 2021.

Now that 2022 is starting, I wonder whether I should treble our travel budget for this year as a means of using those "unspent" funds.

Or should I maintain the "spend it or lose it" regimen?

If we triple it for this year, will we get spoiled by the more luxurious experience??
runner3081
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Re: Do you roll forward your unused Travel Budget each year?

Post by runner3081 »

Yes, we do.

We track all expenses versus a "budget" each year. We had a 2020 trip cancelled to Disneyland and a 2021 trip cancelled for a "forest" getaway due to a fire.

The refunds from both of those are still on the spending tracker as a "negative" amount (in 2022). Future vacations will be booked against those amounts. They will continue to carry forward until spent.

Yes, silly and not needed (because it all works out in the end to be the same amount of money, no matter how tracked or when spent), but that is how my brain works and I like doing it this way :)
sailaway
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Re: Do you roll forward your unused Travel Budget each year?

Post by sailaway »

I wouldn't do it just for the sake of spending more, but if there is something you have been meaning to try, like adding in a helicopter tour or staying at a fancier hotel, then you have the means.

As for getting spoiled, it depends on what you add. I suppose you could get spoiled with better airline seats or a fancier hotel, but a special dinner or tour is easier to view as a once in a lifetime thing.

You could also spend somewhat more, then agree to reset for 2023, even if there was some left.
Marseille07
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Re: Do you roll forward your unused Travel Budget each year?

Post by Marseille07 »

I wouldn't roll forward. How are you setting the travel budget to begin with? The principle should not change.
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GerryL
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Re: Do you roll forward your unused Travel Budget each year?

Post by GerryL »

I roll forward ALL of my unspent allowance each year, sort of.
I keep a log of how much I have spent (excl. of income tax) each year -- actual -- and of my inflation-adjusted allowance. A running total keeps track of how much I am "underspending" since the start of retirement. This figure lets me know that if I should bust my budget in a given year, I am just catching up on my spending.

I have an estimated travel budget in mind, but it's very fluid based on other expenses in my life.
HappyPappy
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Re: Do you roll forward your unused Travel Budget each year?

Post by HappyPappy »

GerryL wrote: Mon Jan 17, 2022 2:16 pm I roll forward ALL of my unspent allowance each year, sort of.
I keep a log of how much I have spent (excl. of income tax) each year -- actual -- and of my inflation-adjusted allowance. A running total keeps track of how much I am "underspending" since the start of retirement. This figure lets me know that if I should bust my budget in a given year, I am just catching up on my spending.

I have an estimated travel budget in mind, but it's very fluid based on other expenses in my life.
You could rollover half or a third. So you feel like you’re getting a little extra this year but still saving up what you didn’t spend. On the other hand, if you don’t really need the extra savings you’d get by NOT rolling over, heck why not spend it? You already determined you didn’t need that money.
Sic Vis Pacem
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Re: Do you roll forward your unused Travel Budget each year?

Post by Sic Vis Pacem »

Absolutely. I use a sinking fund for travel. $X amount goes in twice a month. When it can support whatever travel we want to do, we travel. With COVID and a new baby last year, our travel fund is quite healthy.

I leave it to your personality if that creates other behavioral risks. We may well have a bonanza vacation, and consider it well earned after deferring travel for so long. (For us, that just means more exotic local, not upgrading from coach to business. but your mileage may vary). Or we'll just take an extra trip or two. Or we'll slightly increase the spend on our regular travel, as I'm sure we'll need to do with one more traveler.

But that money has been earmarked for a specific hobby of ours, and that's where it will be spent. Goal is to hit all continents by 50.
MathWizard
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Re: Do you roll forward your unused Travel Budget each year?

Post by MathWizard »

What else would you do with it?

If you are sacrificing to do the travel,then cut the travel budget,
otherwise it is already planned spending.
THY4373
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Re: Do you roll forward your unused Travel Budget each year?

Post by THY4373 »

I didn't yet but that is only because my travel budget in 2020 went to pay off a large vet bill and a used car for my son. In 2021 I actually managed to get two international trips in and one was pretty pricey so 2021 budget got spent. Just cancelled my first trip of 2022 next month sadly though so maybe this will be a thing for me in 2022 and in that case I would roll it over assuming it didn't get allocated elsewhere.
flyingaway
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Re: Do you roll forward your unused Travel Budget each year?

Post by flyingaway »

We never have a budget for anything. We just spend money on anything we feel worth the money. We did a few trips in 2021, Ls Vegas, Mexico, Southeast, etc., but certainly did not spend as much money on travel as we hoped.
I don't think we will intentionally spend (waste) any money we do not spend on travel or anything. I hope this year, we will be able to do some serious travels.
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GerryL
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Re: Do you roll forward your unused Travel Budget each year?

Post by GerryL »

HappyPappy wrote: Mon Jan 17, 2022 2:33 pm
GerryL wrote: Mon Jan 17, 2022 2:16 pm I roll forward ALL of my unspent allowance each year, sort of.
I keep a log of how much I have spent (excl. of income tax) each year -- actual -- and of my inflation-adjusted allowance. A running total keeps track of how much I am "underspending" since the start of retirement. This figure lets me know that if I should bust my budget in a given year, I am just catching up on my spending.

I have an estimated travel budget in mind, but it's very fluid based on other expenses in my life.
You could rollover half or a third. So you feel like you’re getting a little extra this year but still saving up what you didn’t spend. On the other hand, if you don’t really need the extra savings you’d get by NOT rolling over, heck why not spend it? You already determined you didn’t need that money.
So far in 7 years of retirement I've never spent all of my annual allowance, not even in years when I've blown through my imaginary travel budget. I don't hit my limit because I don't spend just for the sake of spending.
huzen
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Re: Do you roll forward your unused Travel Budget each year?

Post by huzen »

I would think of all the things I could spend the extra money on and choose the one I liked the best. Maybe it would be another, or more expensive travel experience. Or maybe it would be a hot tub, or a donation to a cause I cared about, or extra college savings, or season tickets to the symphony or sports team.
invest4
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Re: Do you roll forward your unused Travel Budget each year?

Post by invest4 »

flyingaway wrote: Tue Jan 18, 2022 12:07 am We never have a budget for anything. We just spend money on anything we feel worth the money. We did a few trips in 2021, Ls Vegas, Mexico, Southeast, etc., but certainly did not spend as much money on travel as we hoped.
I don't think we will intentionally spend (waste) any money we do not spend on travel or anything. I hope this year, we will be able to do some serious travels.
We are somewhat similar. We have not had a proper vacation since the pandemic began. While I could see we might be somewhat more generous on our next full vacation, we will also not intentionally spend / waste money because we spent less in prior years.
dcabler
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Re: Do you roll forward your unused Travel Budget each year?

Post by dcabler »

CenTexan wrote: Mon Jan 17, 2022 9:32 am With the pandemic crushing our travel plans for two years now, we have used but a tiny amount of our budgeted travel allowance for 2020 and 2021.

Now that 2022 is starting, I wonder whether I should treble our travel budget for this year as a means of using those "unspent" funds.

Or should I maintain the "spend it or lose it" regimen?

If we triple it for this year, will we get spoiled by the more luxurious experience??
None of the above. If we wish to travel and we have the money to do so, then we do it. We don't really budget, but even if we did, we wouldn't consider it an "essential spend".

cheers.
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JoeRetire
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Re: Do you roll forward your unused Travel Budget each year?

Post by JoeRetire »

CenTexan wrote: Mon Jan 17, 2022 9:32 am With the pandemic crushing our travel plans for two years now, we have used but a tiny amount of our budgeted travel allowance for 2020 and 2021.

Now that 2022 is starting, I wonder whether I should treble our travel budget for this year as a means of using those "unspent" funds.

Or should I maintain the "spend it or lose it" regimen?

If we triple it for this year, will we get spoiled by the more luxurious experience??
You are asking if we intentionally spend more in the years after spending less?
No, we don't do that. I see no rational reason for doing so.
This isn't just my wallet. It's an organizer, a memory and an old friend.
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