We all have a habit of saving money. Saving is inevitable; as we need our hard earned money for a rainy day. But money itself has its value if we spend it to attain what matters most to us. You might have always wanted to stay in your dream house or would have wanted an exotic vacation to Europe. You can always spend your money to satiate your life time desires. While saving for a house hints at the need for stability, saving for trip to Europe indicates about a need for euphoria in life. Both have their pros and cons and here are some of them:
Saving for a house: The Pros and cons
- Stability – You don’t have to worry about your first week rentals. You are your boss. There are no landlords to trouble you. Owning a house is an investment in itself as real estate prices are booming.
- Freedom and Privacy– It is your house and your choice. You can choose your designs, floor patterns and interiors. You can let your creative juices flow.
- Pay for yourself – Rather than paying inflating rental charges to a property does not belong to you, you can pay the EMIs and own your piece of home.
- Tax benefit –Home loans provide a tax benefit. You can take several deductions on your income tax.
- Rising real estate prices – Real estate prices are booming. The real estate prices might fast overtake your saving potential. This would make the whole process of saving tedious and never ending.
- Paying EMIs – EMIs eat away a lot of your salary. Your disposable income reduces making it difficult to lead a lifestyle that you dream of. You also need to arrange for extra emergency fund to deal with your job insecurities. By the time you pay your last EMI, you would have ended up paying a lot more than you had planned for.
- Other factors – Responsibilities of ownership, maintenance, having to sell the property at the wrong time or making long term commitments add on to your list of responsibilities.
Saving for a Europe trip: The pros and cons
- You don’t get to Europe every other day – Quite simply, there aren’t enough chances you would get to visit Europe in your lifetime easily. So the investment is absolutely worth it.
- Moments make memories – Spending a vacation with your loved ones and realizing a collective dream of visiting foreign shores will definitely cast lifetime memories. Your family bonding increases when you spend those precious moments together.
- Learning curve- Travelling is not about good times only. The life-altering experience that you get will transcend your outlook about life.
- Budget – Spending a fortune on your trip could disrupt your other vital plans. You always need to plan well in advance for these exotic trips. Transportation costs add up quickly. If you want to travel to another country, you may discover that travel costs use up a large portion of your budget.
- Safety – Safety is still a top concern. You might have to be aware of the high crime rate areas and be on your guards. Also safe guarding your valuables in the hotel rooms and during travel could be quite a task.
- Language Difficulties – You might have to learn a few new words. Memorizing the words for food you hate to eat, while an essential part of travel preparation, might prove difficult and time-consuming.