Bon Voyage! Investing for Your Ultimate Vacation

Several years ago, I went on a vacation of a lifetime. It wasn't the usual getaway I try to manage every year, like summer long weekends at friends' cottages or a week in Europe when I can find a great seat sale. This was different. I spent four months travelling through Southeast Asia, spending a month in each of Thailand, Cambodia, Vietnam and Laos. I came face to face with a leopard shark while snorkeling over a beautiful rainbow reef. I walked down narrow city alleys to discover marvelous, fragrant noodle soups. And I cycled down country roads as young children in school uniforms excitedly called out to me.

Taking that ultimate vacation took a lot of organizing and saving, but made me realize that reaping the rewards of my travels was well worth the effort I put in to get there. Making my plans a reality required a combination of soul-searching (what was I looking for?) and good habits. Here are some of the key approaches that helped me get where I wanted to go:

Explore: Ask Lots of Questions

I started by asking myself key questions about what I wanted to get out of the experience. Like with anything, you need to know where you're going in order to get there. I was itchy to see the world, so I started by nailing down where I wanted to go. I looked for a region that was new to me, where my dollars would go far and where the food was enticing. Southeast Asia, with its budget accommodations and fabulous street food, was the perfect fit. Knowing the destination meant I could start figuring out just how much I'd need to save to be able to sit back on those beautiful beaches, away from the harsh Canadian winter. Once I had the basics figured out, I could start asking others about their experience doing what I wanted to do. First-hand experiences were crucial to building a clearer picture of what I wanted.

Just like with investing and building any savings plan, really knowing yourself is key. Are you the adventurous type or more of a low-key, poolside traveller? How much risk do you want to take on? What's your time horizon? From there, once you've answered some of these questions, you can start to set goals and create your investing (or travel!) plan.

Make it a Reality: Set Goals

Like most people, I wasn't in a position to immediately leave on a four-month vacation. I knew I would have to save enough money to cover the trip and account for my lost earnings. That meant that I needed to set some obtainable goals and create a path to reach them. I made a budget for my trip and determined the additional cushion I would need to make up for my lack of paycheques while travelling. Setting goals and staying on top of your progress is key with investing, too. Of course all goals aren't as short-term as saving for something like a vacation, so choosing the right account type can also be key depending on your timelines.

Choose a Tactic: Savvy Saving

In order to achieve my travel saving goals, I picked the "pay myself first" model. I chose to automatically route a percentage of each of my paycheques into a savings account, which meant I was saving without even really thinking about it. Yes, I sometimes missed spending those extra dollars, but I tried to stay focused on how far that money would stretch when I was feasting on delicious mango sticky rice and spicy green curries, or shopping the markets for beautiful, bright textiles.

Pre-authorized contributions mean you can pay into your future goals before you get carried away with those impulse purchases or even monthly bills. And because it's automated, there's no skipping payments easily.

Bon Voyage!

That trip through Southeast Asia was one of the best experiences of my life, and the discipline it took to plan and save was well worth it. While another four-month sabbatical isn't in my immediate future as I focus on longer-term goals, I know I can put a plan into action to invest in my travel dreams.