When do you reach the 'enough' point of your savings and actually use them?

Question

I've saved diligently for years with the idea of maybe taking 6 months to a year off for travel, to work on a business idea/creative idea, but never feel like it's a good idea to just use up my savings (I'm the type with multiple emergency funds because I don't have family $ to fall back on and am a little paranoid). Anyone actually use their savings and feel good about it??

R.E. Gast · Answer

If you dedicate a specific account to a goal, then you don't feel  as guilty when the time comes to spend it.  I have an account that is explicitly for my next international trip to visit family. I intend to use the money in that account in 2020. At the end of my vacation,  one of two things will be true:

1) I'll feel happy that I saved a bit more than I needed, and can put whatever's leftover at the end of my vacation towards a future vacation
2) Something will not go as planned and I'll use up the entire savings in that account. I'll be glad that I was able to save more than I thought I'd need, so I was prepared to handle the unexpected

Crunch the numbers and use your budget as reassurance that you can afford what you want to do. If your budget shows you're financially secure place and you should feel less guilty about spending money on things you want, try designating an account as a vacation / gift to yourself account. Make a rule that you have to spend it by a specific date (within the next 1-2.5 years )

Anonymous · Answer

I spent my savings chasing 'my dream' and it set me back 5 years in my career. Word of warning!

Francesca Vanderwall · Answer

Assuming you have a sufficient emergency fund and are fully contributing to retirement, there is nothing wrong with spending your vacation fund. I'd try to negotiate a sabbatical at work though; to the previous point, you don't want to risk your existing career if the new business venture doesn't pan out.

Head Bookworm · Answer

Based on your note, it seems like you either don't know what you want or are not passionate enough about the travel or the business idea to do it, which is why you are having doubts. When I need to use savings for things I saved up for it, I do not feel guilty about it. I feel like you need to dive deeper into why you are not ready to do this....are you not confident in what you think you want to do? are you worried about what others will think? are you worried about how you will go back to work when you're done with your gap year?

When do you reach the "enough" point of your savings and actually use them?

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