JAPAN, JAPAN, going to JAPAN 🗾
Pinch me, I am going to Japan? (I must be dreaming right?!). It's a surreal feeling when it's the day before a trip that's been planned a long time ago. International travel is a luxury, I feel guilty for the extravagance of an overseas vacation, this was not something I did growing up (other than visiting family in Egypt). While my focus is always retirement planning and saving, my husband needs these family trips and experiences.
I finally understood what he was saying during our trip to Egypt, because my husband is a little over a decade older than me, and due to his chronic pain, I noticed the change in his body. He couldn't go inside many of the pyramids (they are quite physical, requiring crouching, climbing and crawling into ones stomach at times). This gave me an understanding of his need to prioritize these experiences now, since it will be unlikely that he will be able to do these things at age 60.
Similarly, we only have a narrow window to travel with our son and give him these wounderful experiences. In a blink of an eye he will be too busy with school, work and his own life.
What is truly increadible is that for the first time in over 10 years, we reached a point in where we can afford to make these trips happen. Visiting Japan has been my husband's dream for fourty years! and tomorrow it is happening for real, we leave at 5:00 am. This was unimaginable just a few years ago.
What has changed is out income has increased dramatically and our housing costs are low relative to our income (below 15%). This gives us the runway to save, invest regularly while also setting aside money for travel.
To plan for this, I work backwards. First, I set aside half of my annual tax refund from RRSP contributions to cover the costs of the flights. My husband knows how to optimize Amex credit card points to reduce the cost and get 'perks' and cancellation protection. (P.S. Americans have access to far better credit card travel rewards than Canadians do)
Next, I considered the costs of the hotel bookings, restaurants, transportation, outings and gifts. I tally everything up than I increase the number by 20% because travel ALWAYS goes over budget. From here I divide by the number of months and I work out how much I need to aside every paycheck into a separate 'travel' high yield savings account.
Now is a great time to visit Japan because the Japanese Yen recently dropped to decades low, making everything surprisingly 'cheap' relative to our currency.
The fact I can travel is a huge privellage, one that I don't take lightly, I can access many countries visa free without hassle due to my Canadian passport. My family in Egypt don't have that same freedom of movement.
Finally the real MVPs here are my coworkers who will need to cover for me for the over 3 weeks+ I am away! They are all excited for me 😊. Just like last time, there will be no more days off the rest of the year.
The dress below is a gift my husband surprised me with to wear on our trip, I was glad to see that he bought it on sale! 😉
P.S My husband diligently saved in his watch fund TFSA for this trip (using blossom growth recommendations), unfortunately he is down 30%.
