Travel or Save?

[GreyedOut]

Mid-twenties. Recently graduated. Making some decent money and my career is progressing nicely. I'm investing in what the company offers in terms of matching (share purchase plan and pension contributions). I've been getting regular raises of about 10-15% every 6 months.

Problem is I graduated with a decent sized student loan. I keep thinking about repaying the loan aggressively and I can be debt free in about 3-4 years. But to do so would mean my life would become extremely boring and simple.

Instead, I've been traveling like crazy. Any opportunity I get I've been accepting simply because I think as I get older there will be fewer chances. It's actually been fantastic. Not only am I doing the things I love, but I've always got amazing stories to tell. I feel like I have one of the most exciting lives of anyone I know. This has been paying off well in all the expected areas: social life and girls, but even the unexpected areas like my career. It seems Executives love a guy who travels and does exciting things.

Everyone older seems to reaffirm my current choice. I was hoping to get some perspective from others on this forum. Time is flying faster than any other period in my life. I feel like I'm going to wake up, be 30 and regret not paying off my debt faster.

Can anyone offer perspective or suggestions?

 

[Julius_Seizeher]

The insistent nagging of your gut is telling you the right thing to do.

You did some traveling, had some fun? That's great. Now you should put your head down and invest your money while paying off that debt. If it takes 5 years, so what? Those who are willing to live as others won't, will soon be able to live as others can't.

Pay off that debt, and the next time you go on vacation, you will truly be free to enjoy it. Debt is the biggest buzzkill of them all.

 

[backbreaker]

pay the damn loan son. What you have been doing is in true a facade. spending money that is supposed to be spent on something else. In reality it's no different than the woman who is having trouble paying her mortgage yet has no problem going clubbing 3 nights a week, or the drug addict who has trouble paying bills yet is always high. Just that you do it with a suit on.

The truth is, the money that you are spending, you really don't have becuase it is owed to the loan people. All is fine now, but you don't want to be under anyone's thumb one second than you need to be.

 

[f283000]

2012 is right around the corner and so is the pole shift.

Go travel, have some fun while you can.

 

[runner83]

Interesting choice.

For me, I finished uni with little debt and have focused on building my career for the last 5 years.

I've not yet been outside the country.

But I've now achieved Registered Professional Status in my field, and (despite the hit my share investments took in the GFC) saved / invested enough money that I could live without working for 3 - 5 years (I review my finances regularly, so know this for a fact).

The way I look at it, better to travel in your early 30's when you are mature enough to truly appreciate it, still youthful enough to do it all, and finances are under control.

 

[PDubb75]

Tough one for me. My schooling background in finance screams "pay off the debt!". However, I absolutely love traveling, and hate the fact that I can't afford to (time or money). Now is your best chance to travel, aside from after retiring. If you can get a realistic goal together that allows you to travel a little and pay off your loans in a decent timeframe, I think that's easily your best bet.

 

[backbreaker]

Tough one for me. My schooling background in finance screams "pay off the debt!". However, I absolutely love traveling, and hate the fact that I can't afford to (time or money). Now is your best chance to travel, aside from after retiring. If you can get a realistic goal together that allows you to travel a little and pay off your loans in a decent timeframe, I think that's easily your best bet.

I ****ing love Porsche 911 Twin Turbos lol, doesn't mean that I should go by one just because I can scrape together 400k. Stop thinking like a woman.

 

[PDubb75]

I ****ing love Porsche 911 Twin Turbos lol, doesn't mean that I should go by one just because I can scrape together 400k. Stop thinking like a woman.

Your example here and in your first response are both assuming he is using ALL of his money to travel. He sounds like he is doing fairly well. Not sure how you can compare a couple hundred dollar vacation to "scraping together $400k".

I don't see how it's so ridiculous to say I think he should enjoy the time he has now and pay off his loans in 5 years, rather than do nothing and pay it off in 4.

But then again, I'm "thinking like a woman".

 

[backbreaker]

2012 is right around the corner and so is the pole shift.

Go travel, have some fun while you can.

actually it's April 13th, 2036

http://www.huffingtonpost.com/2011/02/09/apophis-asteroid-2036-video_n_820800.html

 

[backbreaker]

Your example here and in your first response are both assuming he is using ALL of his money to travel. He sounds like he is doing fairly well. Not sure how you can compare a couple hundred dollar vacation to "scraping together $400k".

I don't see how it's so ridiculous to say I think he should enjoy the time he has now and pay off his loans in 5 years, rather than do nothing and pay it off in 4.

But then again, I'm "thinking like a woman".

glad you said it so I don't have to

 

[sodbuster]

Go get a financial book with the tables of interest in it, see what those vacations are costing you over the 45 years you have left to work...or the 65 years you have left to live.I don't plan on eating dog food when I'm retired.

You can have anything you want in life....just not everything you want in life... Your call

 

[SharinganUser]

You can work and travel at the same time. If you are interested you can get a job teaching English overseas. The job itself won't pay that much(unless you work in an international school), but you can make connections and suplicate your income by doing private tutoring or working at(or opening)another business such as a restaurant or bar. (unless you are cook you should probably go for the bar.) Not to mention the cost of living in some countries is extremely low compared to your income.

 

[L B]

I am for travelling and seeing the world but make sure your finances are taken care of as well.

How secure is your job? Student loan cannot be wiped out via bankruptcy, so pay it off asap. If laid off or fired, how long can you live off your savings and still pay the student loan before getting another job? Once that's answered, you can calculate how much travelling you can do and still pay off the student loan in a reasonable time.

At your age and assuming your single, this is probably the best time to go travel and live the bachelor life. No family or huge expense to worry about. You can pack up and leave to Asia or Europe for a week or a month. No one has a say in where you go or what you do.

 

[grayclif]

Those who are willing to live as others won't, will soon be able to live as others can't.

I Dig it.

 

[allbeef]

You can work and travel at the same time. If you are interested you can get a job teaching English overseas. The job itself won't pay that much(unless you work in an international school), but you can make connections and suplicate your income by doing private tutoring or working at(or opening)another business such as a restaurant or bar. (unless you are cook you should probably go for the bar.) Not to mention the cost of living in some countries is extremely low compared to your income.

What jerk off didn't think about going to Prague to teach English? Few try it. The ones who do last a month before coming back home.

 

[backbreaker]

Prauge might be the most overrated city on the face of the earth.

 

[EA Gold]

Play some monopoly online and you will see how quick your money goes when you spend spend spend. Except with monopoly what you spend on is going to give you a return then what you started with. To some people here on this forum what your doing is throwing away your money.

If I were you, I would definitely take a real look in the mirror and see what I really want in life. If your traveling just to get away from your problems, then its no different then someone getting drunk or getting high so they can keep their mind off their problems.

I'd set some goals up and shoot for those, traveling is definitely nice and something I'd be doing but if people you see are suffering and you just ignoring them and only concerned about yourself, then there is an issue here.

 

[romangod]

My 2 cents:

I would do both and I have. It is true that travel expands the mind. Of course, it depends on what kind of travel you are doing. If you're going to some "all-inclusive" resort where it is unsafe to leave the property, I wouldn't bother. You can save money and do that at home while paying off your debt.

If you want to explore other cultures or areas of interest, then I say "Go for it!" If planned properly, it can be done for a reasonable expense and the memories and experiences are priceless.


I would budget for both. Put some money towards your debt and some towards travel. Life is too short to be looking back and thinking you've done nothing.


The world is a book, and those who do not travel, read only a page.
– Saint Augustine


Cheers!

 

[Mr.Positive]

I would budget for both. Put some money towards your debt and some towards travel. Life is too short to be looking back and thinking you've done nothing.

My vote goes for both as well. Learn how to travel cheap. www.travelpunk.com is a good source of info on cheap travel. Grab a backpack and be a free man!

Also, I like Espi's idea. Set goals for yourself, then reward yourself for achieving them.

You can do both, save and travel. That is two rewarding and healthy goals to have.

 

[Nygard]

Give yourself a nice trip to Cancun on spring break. BINGO!