I Never Feel Guilty About Spending Money on Vacations. Here's Why

I'm usually pretty reasonable with my spending. While I don't watch every dollar, I try to keep my fixed expenses below 50% of my income, and I diligently save at least 20% of what I make in either a brokerage account or my savings account.

There is, however, one area where I regularly splurge. I spend a small fortune every year on vacations and I do not feel a single moment of guilt about having that cash come out of my savings account. Here's why.

I have a vacation fund I save in all year long

The biggest reason why I am happy to splurge on vacations and will almost always say yes to a trip is because I know I can do this without jeopardizing any of my other financial goals.

Since taking vacations is really important to me, I set aside money every single month in a special savings account that is just for travel spending. This is money I can use to pay for plane tickets, hotel reservations or Airbnb stays, or splurges while I am on vacation.

I keep costs down in other areas that don't matter as much to me (for instance, spending almost nothing on clothing), and I contribute a good portion of my discretionary income to my special fund for vacations. This means my vacation fund always has a lot of cash in it -- and I can spend it completely guilt free since that is what the money is there for. If I want to take a spur-of-the-moment trip, or buy a special drink on vacation, or splurge on a box full of cookies that cost $7 each while I'm away, I just do it without thinking about where the money will come from or whether it will set me back on big goals. I know the cash is there and ready just for that purpose.

Vacations are worth it to make family memories

While I could use my discretionary spending for anything, I've chosen to create my vacation fund and enable my guilt-free travel spending because taking trips provides me with more personal joy than most other things I could use my money for. I really value the memories I make on these vacations, so I'd rather give up other things to be able to make them happen.

My kids right now are at a really fun age where they want to travel with us and are excited about everything and I know that won't always be the case. I also know someday they will have school commitments and sports and other things that interfere with our ability to go on vacation so often. While I have the time to make precious family memories, and while they still react to things with unbridled joy, I want to take them to as many places as I possibly can.

The thing is, there's absolutely nothing wrong with guilt-free spending and splurging -- as long as you don't splurge in every area of your life and you make a plan to do it wisely. While vacations are my thing, something else may be yours -- but whatever it is, find a way to set aside the funds to enjoy it without worry by sacrificing other things that don't spark joy.