Funding Your Family Vacation (..without using credit cards..)

by Teresa Kuhn, JD, RFC, CSA

President, Living Wealthy Financial

One of the keys to achieving a sound financial future is to learn the the art of living well while avoiding the kind of debt that will destroy your retirement plans.

It's understandable that parents want to give their children experiences they will remember and treasure the rest of their lives.  That's why places such as Disneyland 

Park in California and Walt Disney World Resort in Florida are continuing to draw record crowds despite an iffy economy.

Unfortunately, the costs of these adventures have increased dramatically.  For example, a typical 7 day Disney resort package for a family of four runs right around $4,000, not including transportation and the obligatory souvenirs and snacks once inside the park.  You could easily drop over $8,000 on that one trip.

That's why the temptation to use plastic to finance vacations is so seductive.  After all, it's hard to save that much money and the kids are growing up fast, so....

I encourage my clients to think twice about putting any big ticket items on a credit card, even vacations.

Instead,I tell those who are managing their cash flow using the power of Bank On Yourself to consider financing their vacations themselves, provided they have enough money saved in their policies, of course.

What's at stake is big in terms of both unnecessary interest and lost opportunity costs.  Many credit card companies charge 18% or more in interest.   Look at the chart below and see how much a "budget"  $4,000 vacation really costs when you put it on credit and pay it off in 3 years.  As you can see, you've wound up paying over $1,200 in interest alone!

Imagine, then, loaning yourself the money from your specially-designed whole life policy, setting your own interest and repayment terms, and paying yourself the interest instead of the credit card company.

Wouldn't you enjoy your vacation more if it didn't include the stress of having a large debt hanging over your head?

Plus, by paying yourself back with interest, you are helping your BOY policy grow... and that's always a good thing for you and your entire family.

If you want to learn 

To learn more about becoming your own source of financing, call our office M-F at 

(800) 382-0830

Bank on Yourself for Fabulous Vacations

                         photo courtesy of Tammy de Leeuw

by Teresa Kuhn

www.livingwealthyfinancial.com

As someone who values experiences over “stuff,” I can certainly appreciate it when my clients want to use their Bank on Yourself policies to create unforgettable memories for their families and friends.

Whether it’s a Caribbean cruise or a trip to Disney World, once in a lifetime vacations can be less expensive and stressful when you plan ahead, research your destination,  then add the power and flexibility of your Bank on Yourself plan to the mix.

When you use BOY to finance your vacation instead of credit cards, you accomplish some very important things:

• You avoid paying tons of extra fees and interest charges by not relying on plastic.
• You arrange repayment on your own terms.  
• If you have to miss a payment due to unforeseen circumstances, your credit report won’t get dinged.
•  Using BOY makes you more aware of your spending so you don’t caught up in mindless transactions that sap your cash.
• Using BOY means you won’t have to tap into your emergency fund, college fund, or retirement savings to finance your dream vacation.

5.       Financing your dream vacation with a Bank On Yourself policy helps you accumulate more cash in your account…faster.

Bank On Yourself is hands-down the most creative way I know to finance memorable family adventures without adding more debt (and more stress) to your life.

If you’d like to find out more about how you can use the Bank on Yourself system to finance vacations, cars, houses, and other major purchases, visit our website at www.livingwealthyfinancial.com.

Or call toll free: (800) 382-0830

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