Try this recipe for va­ca­tion sav­ings

Metro Canada (Toronto) - - Money - Cash­flow Cook­book is avail­able at Cash­flow­cook­ and ama­

Toronto au­thor Gor­don Stein com­bined his me­chan­i­cal engi­neer­ing de­gree, his ex­pe­ri­ence work­ing in sales, mar­ket­ing and op­er­a­tions, and a love of help­ing oth­ers to write the new book Cash­flow Cook­book.

Stein calls it “sim­ple, fun and very ap­proach­able” — 60 fi­nan­cial “recipes” that, he says, can add up to $2 mil­lion in wealth if ap­plied to­gether over 10 years. But “you can skip parts of it — let’s say you don’t own a car, so you can just skip that section,” he says. “It’s like a cook­book as in you don’t have to read it cover to cover.”

In hon­our of the start of Spring Break, Stein gave us his recipe for va­ca­tion sav­ings.

If you are in the habit of en­joy­ing a nice an­nual va­ca­tion that adds to your debt load and sinks you deeper in the hole, you may want to do some “stay­ca­tions” for a year or two while get­ting your fi­nances in or­der, free up some cash flow and clear out some debt.

If you can en­joy a reg­u­lar va­ca­tion while con­tin­u­ing to grow your net worth each year, then by all means con­tinue to do so. But let’s see if we can plate up some ways to do it more eco­nom­i­cally, with­out tak­ing away any of the fun.


Points: Use one travel re­ward card for all work and per­sonal spend­ing. Ho­tels: Look at Airbnb, Tri­pad­vi­sor and Tri­vago for in­de­pen­dent ho­tels; and ho­, Price­line and Hotwire for best deals on the ma­jors.

Air­fare: Fly mid­week vs. week­ends, book well in ad­vance.

Tim­ing: Travel just out­side peak sea­sons for that area; if you are flex­i­ble, look at last-minute travel sites like last­

Shut­tles: Check for free shut­tles from air­port to ho­tels, city cen­tre vs. pay­ing for cabs.

Food: Buy some ba­sic gro­ceries for the ho­tel fridge to save on eat­ing out for ev­ery meal and snack, or con­sider rent­ing a condo or ho­tel with a kitchen so you can make most of your own meals.

Hearty Serv­ing (ad­vice for a larger fam­ily)

Fam­ily of five, an­nual va­ca­tion

Fly mid­week to bring air tick­ets from $7,500 to $6,300 Book Airbnb apart­ment, tak­ing lodg­ing from $2,800 to $1,600

Re­duce to­tal cost by $600 by sav­ing travel re­ward points Original air and lodg­ing $10,300; new cost $7,300 An­nual sav­ings $3,000; monthly sav­ings $250

Light Serv­ing (ad­vice for a smaller fam­ily or sin­gle)

Sin­gle per­son Original one-week all-in­clu­sive pack­age $3,100 Move trip just out­side prime sea­son, pay only $2,500 Re­duce to­tal cost by $300 by sav­ing travel re­ward points Original trip $3,100, new cost $2,200

An­nual sav­ings $900, monthly sav­ings $75

Yield (what the sav­ings would mean over time, if they were in­vested with a 7 per cent re­turn)

Hearty: $43,250 over 10 years, $130,250 over 20 years Light: $12,975 over 10 years, $39,075 over 20 years

The Cana­dian Press file

One in­gre­di­ent for va­ca­tion sav­ings is be­ing smart with air­fare: Fly mid­week vs. week­ends, and book well in ad­vance, Gor­don Stein sug­gests.


Gor­don stein is the au­thor of Cash­flow Cook­book.

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