Why This $1,000 Annual 'Luxury' Expense Is Always Worth It for Me

Americans are notoriously bad at taking their vacation time. The latest data from the Pew Research Center shows that 46% of workers don't use all their available paid time off (PTO).

Not only are vacations hard to fit into busy schedules, but they're also expensive. Travel demand is up -- as is inflation -- pushing airfare prices up 52% from last year for domestic flights and 29% for international travel, according to Kayak.

Everyone has varying travel budgets, and my annual getaway to the beach costs about $1,000. And while it sometimes feels like a sacrifice to pay for it, there are a few good reasons why it's a non-negotiable expense for my family.

Time away and time with family

I enjoy my job as a freelance writer, but like anyone else, I also very much enjoy taking time away from it. It's been proven that taking time away from work, whether over the weekend or for extended time for a vacation, is good for mental and physical health. It also lends to increased productivity at work.

I don't have to spend $1,000 to get a break from work, but committing the money to a beach vacation helps me physically disconnect from my work. Being out of town helps me get out of my normal routine and forces me out of my regular work-minded focus.

More importantly, the annual beach trip allows my family to hang out with other family members, some of whom we don't get to see often. My wife and I try to make it a point for our kids to get as much time as possible with out-of-town family, and that's helped establish this expense as not just a vacation but an investment in relationships as well.

Some financial decisions are personal

You may have other reasons to spend money on your vacations, but we're all doing them for generally the same reason: They're good for us.

I am a natural saver, which means it's easy for me to question whether small and large expenses are worth it -- and mostly lean toward the idea that they're not. But I've also learned that some financial decisions are personal and shouldn't only be weighed by how much they'll take out of your bank account.

If you're naturally inclined not to want to spend money, you may find it harder to justify the time and expense to get away. I get it. Even if you don't take a week off, or a long vacation isn't in the budget, taking short breaks from work is well worth your time.

Dr. Bryce Hruska said in the Pew Research Center study, "A vacation could consist of a few days spent off work taking time to do something that you enjoy." So a vacation doesn't need to be long, or break the bank, to be beneficial.

How to plan for large expenses

If you're budgeting for a vacation, there are some practical ways to plan for a large annual expense. Automating your savings through an app can be a great way to slowly but steadily set aside money each month so that you're financially prepared for the cost when the bill comes due.

I keep my vacation expenses in mind when I consider going on shorter weekend trips throughout the year. If I want to get away for a weekend, I think first of how much I have or haven't saved for our beach trip and whether it's the right time to spend that money.

I've also used the cash back from my rewards credit card to help offset my vacation expense. My card offers cash back that accumulates throughout the year, while other cards, like travel credit cards, have points that can be redeemed for hotels or flights.

No matter how you plan your vacation, automating deposits into a vacation savings account and setting up a vacation budget will make it more likely you'll actually use up all of that PTO this year.