Would You Spend $28,000 for a One Week Vacation?

The following post is by MPFJ staff writer, Marie. You can read more of Marie’s articles over at her own blog, Family Money Values. Enjoy! 

Home and Garden TV has a show called Island Hunters. This past week, they featured a couple (business owners and spouses celebrating a 15 year wedding anniversary) with a budget of $28,000 for a one week vacation. I watched in absolute disbelief as they surveyed 3 ultra luxurious private island retreats and chose the one that $6000 over their budget.

Could you (would you) spend as much for your one week vacation?

How do the ultra rich spend their vacation time and money?

While we are not part of the billionaire club, we have spent thousands of dollars on vacations. Our most expensive one was to Hawaii. We took (and paid all expenses for) one of our adult sons. But even staying in ocean side vacation homes and indulging every activity whim, we parted with $5000 a week for our 2 week trip. That amount put me in shock for quite awhile prior to committing to my years long dream of visiting the island states.

Billionaires sometimes build their own vacation dreams.

According to How to Vacation Like An Eccentric Billionaire some of the wealthiest folks build themselves a dream vacation home and then decide to make it available to others – for a hefty fee of course.

One of the most mentioned is Sir Richard Branson (Virgin Group). He built his private getaway on an entire island – Neckar Island and later opened it up to anyone who wants to spend From $80,000 per night for up to 34 guests ($2,353 per person per night) to book the entire island. At certain times of the year, you can get just a room instead of the entire island for around a mere $4000 a night.

A couple of other billionaires with similar retreats for rent include:
• Nick Troubetzkoy – Jade Mountain – which can be rented for the night for around $2200 to around $3000 but this might not be all inclusive.
• Thurston Twigg-Smith – Twin Farms – an all inclusive in Vermont – starting at $1500 a night for 2.

The ultra rich don’t want mundane luxury travel.

While I was thrilled to sleep to the roar of the ocean waves and breakfast on the deck watching the sun rise over the sea, some aren’t quite so satisfied with typical vacation experiences

According to Adventures in Affluence: How the Billionaire Vacations they seek out extraordinary adventures like diving with the sharks or having a world famous chef cook them dinner in the chef’s home or being safely escorted to or through digs they would never consider visiting while at home. They might want to visit a dive bar or walk through a funky neighborhood with their guide.

Still other vacation pursuits of the affluent might include a hunt your own dinner, where they stay at a luxury cabin, get shooting lessons, go on a hunt and (assuming they actually catch something) have the chef prep it for dinner – hairy deer pelt to yummy venison steak.

Of course, there are still folks who enjoy activities at luxury all inclusive resorts – such as taking a snow sleigh ride or helicopter ride over beautiful scenery.

Who spends like this?

I believe there are three categories of travelers that might consider spending huge amounts on vacations.

People so rich that money is no object.

These folks are already used to a luxury lifestyle and don’t usually want to down grade it for a vacation experience. Similar to what Donald Trump had to do to become the US President and downgrade his living style to camp out in the White House. He has already designated Mara-a-Lago in Florida as his winter white house.

People who can write off the cost as a business expense.

Our HGTV couple wanting to spend a week on a private island probably fits this profile. They own a pool design company together and were checking out the way the different resort pools were designed and executed, even while touring them.

On our Hawaii trip, my spouse met someone who fessed up to traveling on the company expense account quite a lot. Heck, I even expense out my trips to our lake condo when ever I can. If you pay US taxes, expensing trips to a business reduces your bottom line profit and hence the taxes you own on income for that business.

People who have saved up for a special occasion.

Our HGTVcouple may also fit this category, as they were celebrating their 15th wedding anniversary.

This category fits me best. My spouse and I worked hard for years to achieve our degree of financial freedom. A Hawaii trip has been one of my suppressed desires since the 1970’s when my brother was stationed there in the Army and the rest of my family got to visit him there.

This category also may fit engaged couples seeking an alternative to an expensive church wedding and reception. Spending $5000 or $10,000 on a destination wedding/honey moon could end up being a whole lot cheaper than a traditional ceremony/reception.

Most of us, even the high net worth folks, don’t spend nearly this much.

What do the high net worth folks spend?

In 2015, Business Insider reported on a BMO Private Bank study that claimed affluent Americans (these folks have over a million in investable assets) spend around $13,000 a year on leisure travel.

What do average North Americans spend?

Until recently, we vacationed only every 2nd or 3rd year. Each year we would take just one trip. On that trip we typically spent around $3000 total for the two of us – including all travel, meal, lodging, activity and souvenir expenses.

Value Penguin Value Penguin reports that the average cost of mainland trips is $144 a day. So for our typical 10 day trip that would total up to $1440.

That seems low to me, how about you?

How about you all? Do you vacation? How much do you usually spend?

Share your experiences by commenting below!

****Photo courtesy https://www.flickr.com/photos/hotelinternazionaleischia/33066776756/

7 Things Wealthy People Never Do

The following post is by MPFJ staff writer,Laurie Blank.  Laurie is a wife, mother to 4 and homesteader who blogs about personal finance, self-sufficiency and life in general over at The Frugal Farmer. Part witty, part introspective and part silly, her goal in blogging is to help others find their way to financial freedom and to a simpler, more peaceful life.

If you’ve ever read Tom Corley’s Rich Habits or Thomas Stanley’s The Millionaire Next Door, you probably know that there are things wealthy people never do. The rich have a habit of behaving differently than the non-rich and in learning, studying and working to emulate their habits I’ve learned that the results of living the way the wealthy live affect both life and finances.

Here are seven things the rich never do. If you can learn to follow their lead, I’d be willing to bet your money would grow.

 

Fall for Advertising Gimmicks

If you ever take the time to view commercials and advertisements with a skeptical eye, you’d find that the goal of advertisers is to make you think you cannot live a full life without their product. Product users are always smiling, usually look phenomenal and give off the illusion that they have a perfect-beyond-perfect life.

The wealthy don’t fall for that lie. They have a clear understanding of what truly makes them happy and they know “stuff” isn’t part of the answer.

 

Neglect Their Savings Account

This report shows us that the Average American saves 5.7% of their income. And you know that since that is the average, it means that many people aren’t saving at all. In fact, this report shows that 62% of Americans have less than $1,000 in savings.

Adversely, the wealthy save as much as 51 percent of their income. While you might say “Well, yeah, they can afford to save that much of their income – duh!” there is another factor to their wealth and their plush savings accounts – they started saving early (usually as teenagers) and they formed a habit of putting money in savings every month – no matter what.

The study linked in the last paragraph found that one of the key factors in their willingness to save was that their parents taught them the importance of building a savings habit from an early age. Ironically, many of these young teen savers also starting investing a portion of their savings in the stock market while very young.

 

Stop Learning

Eighty-eight percent of wealthy people read non-fiction books every day for at least thirty minutes. They have a love for learning and then using what they’ve learned to reach goals that they’ve set. They spend very little time in front of the TV, opting instead for bettering their lives and increasing their knowledge via learning.

 

Make Impulse Purchases

The wealthy make it a habit to avoid impulse purchases. They think through any purchases, determining what – if any – value the purchase will truly bring to their lives before they buy.

 

Ignore Their Health

Seventy-six percent of the wealthy get some type of aerobic (cardiovascular) exercise such as running or biking four days a week or more. The thing about good health is that it helps you to think more clearly, and to have more energy to work toward the goals you’ve set.

 

Live Without a Plan

Seventy percent of the wealthy set at least one goal per year – and then make a plan with actionable steps that will help them reach that goal.

 

Act with Mediocrity

Speaking of goals, that’s another thing the rich never do: they never act with mediocrity. In other words, when they choose to do something, they commit to doing it well. Go big or go home is their theory.

Successful people – whether it’s being successful at growing wealth, gaining health or whatever avenue of success they choose – reach their level of success because they do things differently than those who aren’t successful. If you’re looking to bring more success into your life, consider doing what the successful do and dropping the habits like those mentioned above, as those habits will most certainly lead to unrealized dreams.

How about you all? What are things you are currently doing – and not doing – in order to reach your goals?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/togawanderings/5899676716/in/