Balancing the cost of cruising with cost of life...

[littlemoonrabbit]

Hi guys,

 

We board the Legend in 29 days, and I am as psyched as could be. That being said... hubby and I are already looking ahead to a possible Mediterranean cruise in 2011.

 

However, I am torn. Hubby and I are 24 and 27. We live in a beautiful apartment. No kids, and no plans to have them anytime soon (I am not even sure yet if we want them at all). We both have nice jobs that we enjoy... but we aren't making a million bucks, by any means. With our current spending habits, we are left with a little surplus, and it goes mostly to retirement and our "cushion fund". The cushion fund is where the cruise costs come out of. It also covers us for a couple months in case one of us loses our job.

 

That being said... in the two years we have been married, we haven't saved a darn thing for a house. Not a darn thing. We have the beginnings of a down payment, which he brought to the table. But, we have never added to it, other than the interest it is making in a high yield savings.

 

What is more important? Saving for a house? Or going on the trip of a lifetime? We estimate that the Med. cruise will cost us about $6500.

 

I have two fears:

 

a. That we will go on this trip, and again we won't put any money towards a house, so it will take us 10 years to actually afford one

 

and

 

b. That we will not go on the trip, we will buy a house, and then the cost of the house will prevent us from ever taking this trip ( I wouldn't want to cruise the med. with kids either) and we will miss out on memories and experiences that could last us a lifetime

 

In your mind, what is more important? Making memories and seeing far away places, or the pride of being a homeowner?

 

And for all those who cruise often (I want to be like you someday!)... how do you do it? Are there things that you sacrifice, to be able to cruise often?

[unatheo]

My wife and I took a Dave Ramsey class at our church. Really helped correct our spending habits but we both made a lot of good choices like no debt. Take one of his classes our buy his book. It's all about discipline.

[Kap Jack]

My wife and I took a Dave Ramsey class at our church. Really helped correct our spending habits but we both made a lot of good choices like no debt. Take one of his classes our buy his book. It's all about discipline.

 

I agree!!

[riffatsea]

I agree that you need a little financial education.

You might also consider that you guys could go to Europe withOUT a cruise and pick one country at a time to explore. When my children were your age they did a lot of traveling so perhaps don't think of " a trip of a lifetime" at your young age. Just plan a vacation you can easily manage.

[steveaaaaa]

Hi guys,

 

We board the Legend in 29 days, and I am as psyched as could be. That being said... hubby and I are already looking ahead to a possible Mediterranean cruise in 2011.

 

However, I am torn. Hubby and I are 24 and 27. We live in a beautiful apartment. No kids, and no plans to have them anytime soon (I am not even sure yet if we want them at all). We both have nice jobs that we enjoy... but we aren't making a million bucks, by any means. With our current spending habits, we are left with a little surplus, and it goes mostly to retirement and our "cushion fund". The cushion fund is where the cruise costs come out of. It also covers us for a couple months in case one of us loses our job.

 

That being said... in the two years we have been married, we haven't saved a darn thing for a house. Not a darn thing. We have the beginnings of a down payment, which he brought to the table. But, we have never added to it, other than the interest it is making in a high yield savings.

 

What is more important? Saving for a house? Or going on the trip of a lifetime? We estimate that the Med. cruise will cost us about $6500.

 

I have two fears:

 

a. That we will go on this trip, and again we won't put any money towards a house, so it will take us 10 years to actually afford one

 

and

 

b. That we will not go on the trip, we will buy a house, and then the cost of the house will prevent us from ever taking this trip ( I wouldn't want to cruise the med. with kids either) and we will miss out on memories and experiences that could last us a lifetime

 

In your mind, what is more important? Making memories and seeing far away places, or the pride of being a homeowner?

 

And for all those who cruise often (I want to be like you someday!)... how do you do it? Are there things that you sacrifice, to be able to cruise often?

 

 

Wow

 

You come on a public cruise message board and want to know if you should go on a cruise.:)

You can't save any real money so you want to blow it on cruise instead of a house.Houses are at historic lows right now.Buy a house!

 

If you invest wisely at a young age,you can afford to do many things when you get older.So invest now and do the things yopu want later.

 

Steve

[okgirl]

This is just me, but I would go on the cruise.

My mom and dad spent their entire lives waiting for dad to retire so they could travel. Mom always wanted to go to Hawaii.......she never got there, she got cancer at 47, died when she was 53 and dad retired 6 months later........

I don't wait to live life. I may have to tighten the belt in a lot of ways to afford it but I live it.

[MamaParrotHead]

IMHO, I personally wouldn't spend that much on anything that isn't a necessity, but I don't necessarily think it's bad that you're not homeowners yet. I am a homeowner, and I waffle back and forth wishing that I rented some days. Unless you have the cash to fix all the things that could crap the bed in a house, it's a stressful way to live at times.

 

I am a big believer in LIVING life, and agree with the "you never know" philosophy. I think it's fine to spend your money as you see fit, as long as you're willing to accept whatever consequences that may bring. We do own our home, but choose not to drive the newest vehicles or have all the extra toys (RV's, motorcycles, boats, etc) because of our love for travel. Since we do have kids, I see a big benefit in expanding their world and providing them opportunities to see amazings things and meet amazing people.

 

It's all about setting your own priorities. Figure out what those are and you're gold.

[brooklynfc]

I'm not sure how helpful I can be, but I'll answer anyway.

 

I'm not married. I'm single (26) and live at home right now. My parents couldn't send me to grad school, but they offered to let me stay at home until I finished, found and job and saved some money to move out.

 

I've just recently found a job and I've been there for 1 yr and 6 mnths. I'm weary of losing my job b/c I was with a company before for 2 years and they abruptly laid me off and it took me almost a year to find my current job.

 

I do pay almost $1,000 a month in bills for my student loans, car, insurance, etc., but b/c I live at home I do have some extra income that would normally be spent on rent, utilities, etc.

 

Last year I took a cruise with my friend for probably a total (air, hotel, spending, cruise) of about $1,500 and trust me I thought about it twice, thinking, "I could put $1,500 towards a savings account for getting an apt. so I won't be 30 something and still living at home."

 

But you know what I thought (other than I had almost a week of vacay I had to use before I lost it) was that I have the time, I have the freedom, I have a little extra to burn, why not?

 

I have plenty of time to be "responsible." Someday I'll get married and then have kids and a mortgage etc. but while I don't, why not enjoy it, so that I don't regret it later.

 

I think the question you should ask yourself is: "Are we okay with staying in an apt for a few more years?" "Is it imperative that b/c we are married and society tell us that our next step is to buy a house, so then we can properly start a family, to do so?"

 

Are you paying your bills? Are you in extreme debt? Do you have the money?

 

I guess I'm young and maybe some more experienced life people may say I'm stupid, but I say do it while you can enjoy it!

[littlemoonrabbit]

Thanks.

 

I think I just needed to hear this. Thanks for the straight talk.

 

We do need more financial discipline... hubby and I were actually going to sit down this weekend to talk about budgeting and saving, so we recognize it's something we need to change. I have never heard of Dave Ramsey... maybe it's something we should look into.

 

I guess I am just afraid of going the way of my parents... my parents spent all their money on buying a house and raising us kids. They NEVER did anything for themselves. Now that we are out of the house, they say they are "too old" to travel. I feel guilty about this... and I think that guilt has turned into a fear that if I don't do my traveling NOW, then I never will.

 

His parents are the same way. They talk every year about going on a vacation... and they never do. Again... I don't want to be that way when I am their age.

 

Irrational... I am sure it is. But, I am least being honest about how I feel. And I recognize the root of my problem.

 

I just need some assurance that if we go ahead and spend the next 5-10 years getting financially stable, that we can still travel and have a life outside of being a homeowner and (possibly) parent.

[littlemoonrabbit]

I'm not sure how helpful I can be, but I'll answer anyway.

 

I'm not married. I'm single (26) and live at home right now. My parents couldn't send me to grad school, but they offered to let me stay at home until I finished, found and job and saved some money to move out.

 

I've just recently found a job and I've been there for 1 yr and 6 mnths. I'm weary of losing my job b/c I was with a company before for 2 years and they abruptly laid me off and it took me almost a year to find my current job.

 

I do pay almost $1,000 a month in bills for my student loans, car, insurance, etc., but b/c I live at home I do have some extra income that would normally be spent on rent, utilities, etc.

 

Last year I took a cruise with my friend for probably a total (air, hotel, spending, cruise) of about $1,500 and trust me I thought about it twice, thinking, "I could put $1,500 towards a savings account for getting an apt. so I won't be 30 something and still living at home."

 

But you know what I thought (other than I had almost a week of vacay I had to use before I lost it) was that I have the time, I have the freedom, I have a little extra to burn, why not?

 

I have plenty of time to be "responsible." Someday I'll get married and then have kids and a mortgage etc. but while I don't, why not enjoy it, so that I don't regret it later.

 

I think the question you should ask yourself is: "Are we okay with staying in an apt for a few more years?" "Is it imperative that b/c we are married and society tell us that our next step is to buy a house, so then we can properly start a family, to do so?"

 

Are you paying your bills? Are you in extreme debt? Do you have the money?

 

I guess I'm young and maybe some more experienced life people may say I'm stupid, but I say do it while you can enjoy it!

 

You are basically on the same side of the coin as I am. I have been telling myself "right now is not the time to worry about being responsible".

 

However, I am worried if I don't become responsible soon, 10 years from now I will kick myself.

 

It's hard. My mom is pushing us to travel... hubby's dad is pushing us to buy a house. Both are basically in the same position. And I understand both points of view.

 

Thank you for being honest and in voicing the same concerns/feelings that I have

[Soon2BCrusin]

My wife and I took a Dave Ramsey class at our church. Really helped correct our spending habits but we both made a lot of good choices like no debt. Take one of his classes our buy his book. It's all about discipline.

 

Great advice. FPU is an amazing class (I'm a coordinator @ my church for it, with my brother and my father). DW and I will be completely debt free this year, and this cruise won't "follow me home" as it's paid for with cash, and the S&S is covered with saved money.

 

I can sympathize with the OP though. In today's day and age, people justify their paycheck to paycheck lifestyle with "never know when you're gonna go, so just do it". Problem is, statistically, you're going to live quite awhile... Not planning for the future is planning to wind up on a broken and broke SSI paycheck which won't cover your monthly food.

 

I would take a really long hard look at your budget, and see what spending you can cut back. Maybe not so many nights out, or dinners out etc... My wife and I survive very well in San Diego (maybe not as bad as NY) on less than 60k gross income. Mainly because we budget every month, and we don't have any more credit cards, and only 1 car payment (and never will again once her SUV is paid off).

[littlemoonrabbit]

This is just me, but I would go on the cruise.

 

My mom and dad spent their entire lives waiting for dad to retire so they could travel. Mom always wanted to go to Hawaii.......she never got there, she got cancer at 47, died when she was 53 and dad retired 6 months later........

 

I don't wait to live life. I may have to tighten the belt in a lot of ways to afford it but I live it.

 

I am sorry to hear about your Mom. Again... this is a fear of mine too. You never know what could happen tomorrow, or 5 or 10 years from now.

[littlemoonrabbit]

We are not in debt, other than student loans and car payments. No CC debt or anything of the sort. We always have extra at the end of each month. My concern is, should that extra go towards house or cruise?

[luving2cruise]

I agree if you are not taking money that should be put to bills or going is going to put you in debt dont do it, I have a friend that does the DR plan to but seems she goes without things alot cause she didnt budget for. We are young to and have children but i feel if somthing happens to you how will that money save you...Live in the day and the moment cause 2marrow is never promised!

[MamaParrotHead]

 

It's hard. My mom is pushing us to travel... hubby's dad is pushing us to buy a house. Both are basically in the same position. And I understand both points of view.

 

 

As far as THIS goes, that a whole other "can of worms". The only advice I want to give you is to set boundaries NOW as far as unsolicited advice from parents. It only gets WORSE if you don't nip this in the bud, TRUST me. ;)

[Soon2BCrusin]

We are not in debt, other than student loans and car payments. No CC debt or anything of the sort. We always have extra at the end of each month. My concern is, should that extra go towards house or cruise?

 

Both? Money has a cost. If you use money to do one thing, by definition that money can't be used for something else. You have to decide what to do with the money... How long does it take you to accumulate 6500? Are you happy where you're at (as far as living)? If so, then take the cruise, and just rework the budget for further cruises. If not, put the cruise off for a year or 2 and buy a house then cruise...

 

The decision is yours though. YOu have to make it and live with it. We still live in an apartment, but hope to change that "soonish" too lol. We have 2 kids (well one is due in May) btw.

[halos]

 

And for all those who cruise often (I want to be like you someday!)... how do you do it? Are there things that you sacrifice, to be able to cruise often?

 

I'm sure you'll get loads of comments here. I'd like to add mine as well.

 

Yes, I do get to cruise pretty often now. The reason I can is that back when I was in the stage of life you are currently in, I just didn't cruise.

 

If you were my daughter, I would be suggesting to you that a house is far more important than an expensive vacation. The Mediterranean is not going anywhere (:eek: I hope). Why don't you save that trip for a time when you can really enjoy it, when it is not being funded by your savings for a house.

 

Yes, this sucks but believe me, in the long run it is the smartest thing to do. Be patient. People making irresponsible choices are what contributed to our economy crumbling. We need to get back to the days when folks only bought what they could afford. If you do want a house some day, if that is your priority do not let a cruise stand in the way. There are cheaper vacations to take.

 

As far as your parents becomign too old now, after years of putting vacationing off...all I can say is that if you really want something, you'll do it. My parents were like yours. I feel they missed out on a lot, and then my Dad wound up dying at the age of 53....even knowing this, I still think a Mediterranean cruise is not the right choice. You can chose to not save and have fun now. I know people who made that choice...they'll be working until the day they die. We like the way our choices worked for us....it's not good for everyone, but I stopped working long ago and my DH will be able to retire at the age of 58 (if all stays on track). Our plan is to spend the last part of our lives doing the fun stuff. You have to do the work at one point or the other...This is where your choices lie.

Do you want to have fun now, or later? It's up to you. personally, I would not want to have my firts 30 year mortgage BEGIN at age 35 or older :eek: that would suck.

 

If you invest wisely at a young age,you can afford to do many things when you get older.So invest now and do the things yopu want later.

 

Steve

 

BINGO! :D

[alreadypacked]

What is more important? Saving for a house? Or going on the trip of a lifetime? We estimate that the Med. cruise will cost us about $6500.

 

I have two fears:

 

a. That we will go on this trip, and again we won't put any money towards a house, so it will take us 10 years to actually afford one

 

and

 

b. That we will not go on the trip, we will buy a house, and then the cost of the house will prevent us from ever taking this trip ( I wouldn't want to cruise the med. with kids either) and we will miss out on memories and experiences that could last us a lifetime

 

In your mind, what is more important? Making memories and seeing far away places, or the pride of being a homeowner?

 

And for all those who cruise often (I want to be like you someday!)... how do you do it? Are there things that you sacrifice, to be able to cruise often?

 

I'm no financial planner, but I'd like to pass this on to you.

 

My husband and I bought our first home a little over a year ago. We bought a home that we could well afford on considerably less than our current income.

 

We did this 1) so that we could still spend money on other things we enjoy in life and not be working just to pay for the house, and 2) So we have a better chance of still being able to afford the house, should our incomes be reduced.

 

Our solution is basically to have the house and still be able to travel. We take several vacations every year, but never spend $6500 on one trip.

 

Best of luck to you in your decision. :)

[x98bjv]

I'm kind of in the same boat as the OP. I'm married, we're relatively young (30 years old), I have a good paying job, my husband is in school to become a doctor, we have no kids but plan on starting a family in 2-4 years when he's done school. We have a lovely apartment and no plans to buy a house. However, we do save monthly for a downpayment and for retirement. I, too, think of my parents when faced with these decisions. My parents had their kids early - Mom was 21 when they started their family. All of their money went to their kids - sports, piano lessons, clothes etc. We went on small family vacations growing up, but they were always geared toward the kids, not the adults. While I will always appreciate what they did for us as kids, I want to take the time now to enjoy life with just myself and my husband and create memories. We could be saving $4000-5000 every year to help pay for school instead of taking an annual cruise, but you know what? School ends. In a couple of years, we'll have two good salaries again but no time to take vacations because of medical residency and/or starting a family. So, I say enjoy life. Don't put yourself under financially to do it, but if you have the means, go for it.

[jbarr55]

You are both so young, if you can do it now, I say go for it. There will be plenty of time for the responsibilities of a house, kids (?), etc. Spend your money wisely, look for deals and ways to travel economically, and make those memories!

There are plenty of ways to travel without spending like crazy...watch what you spend on the ship, things such as alcohol, excursions, etc can run a huge tab.

We plan for every trip, saving money monthly specifically for vacations. We also research the ports in advance and seldom book excursions through the cruise line. I know there will probably be controversy about that, but the prices are in some cases DOUBLE for what you pay in-port.

Enjoy your trip, then live on those memories and save aggressively for a starter home.!

[SkyMaster]

Well, I'll give you my honest opinion on this. Since you're DINKS, (double income, no kids) I think you should GO NOW, while you can afford it, and while you have minimum responsibility at home. As you grow older, the obligations at home grow, and grow and grow, and eventually you get to the point where it's next to impossible to get away. You have 30+ years to pay off that home, so make your reservations and do it now.

I do, however, think you can make this once in a lifetime trip for a bit less money than you've quoted. A good friend of mine just booked the new Carnival "Magic" for a Med cruise, balcony in July of 2011 for $1500 per person. Inside cabins for $909. Do a bit of shopping, but I don't blame you at all for going while you're young!

Have a GREAT time!

 

"SKY"

[mlzangel78]

Im 31 ,ive been on both sides of the coin.. I owned a house with my ex.. owning the house ate up all our money we never went anywhere together.. we always tooke seperate vacations bc it was more cost effective for only one of us to go away.. i now rent with my BF in long island NY.. we pay 1600 a month for a beautiful 2 bedroom lower level of a house, with a full yard and all utilities included. On long island this is now the norm bc no one can afford to live here! LOL... His best friend owns the house, we all grew up together so it works out well.. that being said even if we werent renting from his best friend, we would still be renting.. its a FIXED amount eveymonth and most rentals here on long island are all utilities included..were probably a good 2 years away from getting married and another 5 away from having kids..

 

its cheaper to rent than own for us, and we split the Extra money left over at the end of the month between a saving account and a vacation account...as for paying for vacations.. we limit each one to 2500.00 ( 7 day cruises have never been more than 1200.00 for balcony cabins and then airfaire and drinks and excursions eats up the rest) we only use bonus checks for vacation. and for some of us who get paid bi weekly... there are two months out of the year that we have an EXTRA check,, meaning 3 checks instead of 2 in a month.. with the one that we get in april, we use that for vacation, the one we get in october is xmas money...this way we arent touching anything else.. the vacation jar is just change and dollar bills left over from the week or day, and we use that for drinks on the ship..

 

we get two weeks of vacation every year.. one is spent staying home and relaxing doing stuff around the house or inexspensive day trips to the zoo or the beach,bbq's and then the other week is used for the big vacation..we like to space them every 6 months or id go crazy LOL, April is the stay at home vaca and NOvember has proved to be the best month for us schedule wise to do the big vacation...its also a less exspensive month to cruise to the carib..

 

we want to ENJOY all that we can before we have kids and before its a long time we can go on vacation again.. being in the same age bracket as you guys i would say enjoy the vacations, but maybe hold off on the more exspensive ones till its saved for seperately..start the savings account this year for the meditteranean cruise, and go in 2012 instead of 2011..this way you have money set aside for a house, and vacations.. you never know where you are going to be in 2 years,, you may decide in 2 years that medit vaca isnt a priority and now you have a whole extra account for whatever you choose.. everything in moderation as my parents have always said.. good luck :)

[alreadypacked]

This is just me, but I would go on the cruise.

 

My mom and dad spent their entire lives waiting for dad to retire so they could travel. Mom always wanted to go to Hawaii.......she never got there, she got cancer at 47, died when she was 53 and dad retired 6 months later........

 

I don't wait to live life. I may have to tighten the belt in a lot of ways to afford it but I live it.

 

IMHO, I personally wouldn't spend that much on anything that isn't a necessity, but I don't necessarily think it's bad that you're not homeowners yet. I am a homeowner, and I waffle back and forth wishing that I rented some days. Unless you have the cash to fix all the things that could crap the bed in a house, it's a stressful way to live at times.

 

I am a big believer in LIVING life, and agree with the "you never know" philosophy. I think it's fine to spend your money as you see fit, as long as you're willing to accept whatever consequences that may bring. We do own our home, but choose not to drive the newest vehicles or have all the extra toys (RV's, motorcycles, boats, etc) because of our love for travel. Since we do have kids, I see a big benefit in expanding their world and providing them opportunities to see amazings things and meet amazing people.

 

It's all about setting your own priorities. Figure out what those are and you're gold.

 

 

I agree with both these statements wholeheartedly.

 

Tomorrow isn't promised, so to some degree you have to live each day like it's your last. But, it may NOT be your last, so you also have to plan for the future.

 

Just find the right balance for you.

 

I also choose not to drive the newest or fanciest vehicle or have the fancy cell phone (I phone or whatever it's called), or the latest electronics etc. in lieu of my love of travel and not being in debt. I pay cash for all my trips.

[halos]

I'm no financial planner, but I'd like to pass this on to you.

 

My husband and I bought our first home a little over a year ago. We bought a home that we could well afford on considerably less than our current income.

 

We did this 1) so that we could still spend money on other things we enjoy in life and not be working just to pay for the house, and 2) So we have a better chance of still being able to afford the house, should our incomes be reduced.

 

Our solution is basically to have the house and still be able to travel. We take several vacations every year, but never spend $6500 on one trip.

 

Best of luck to you in your decision. :)

That is excellent advice!! Being 'mortgage poor' is not a good thing.

[rvalent2]

I agree with the other Dave Ramsey followers, you should take the classes, it will help you now and in the future.

 

So you can "Live like no one else so later you can live like no one else"

 

www.daveramsey.com