Ramit Sethi breaks down how to save for a dream vacation without stress. Estimate your total cost, add 50% for hidden expenses, then automate monthly savings. A $1,200 trip takes $100 a month for a year.
50% (to account for phantom/hidden costs).
$1,200.
$100 per month (for 12 months).
Here's how you can finally take that dream vacation of yours. I don't want you to shrink your dreams down. I actually want you to dream big and then use your money to live that rich life. Alright, first off, I want you to take a ballpark guess of how much your dream vacation would cost. Get specific. Think about where are you going to go, what time of year, how much do the flights cost, what type of seat do you want to sit on, all of the details, how many times a day are you going to eat out, etc. Okay, once you have a ballpark, this should take you no longer than 15 minutes, you're quickly googling prices, etc. I want you to add 50% to that number to account for all kinds of phantom costs that you did not include. For example, 38% taxes on hotels, tipping meals, the taxi that you got to take because you missed the train. Be conservative in your projections and then set up your automatic savings every month towards that goal. Easy math. Let's say your trip is going to cost you $1,200. You want to take it a year from now, you. You automatically set $100 a month to go into a savings account that you call my dream vacation. That's how you save for dream vacations so that when you go, you never have to feel guilty about buying an extra drink. Alright. If you want to know how to actually make this happen in your life, use my conscious spending plan. It will help you see the numbers and help you decide how to redirect your money where you want it to go. If you like this video, share it with a friend and make sure to bookmark it.
