I’m the first to speak up when it comes to discussing the therapeutic qualities of travel. There are numerous benefits to taking flight and leaving behind your troubles for a short time. Who wouldn’t want to experience different cultures, spend quality time with loved ones and get away from phones, email, bills, etc for a while. As I said in a previous post, there is no substitute for experiences gained through travel during normal times.
However, with all due respect to my esteemed colleague Melanie Nayer, these are not normal times.
Americans have been thrust into one of the worst economic climates in recent history, if not since the 1930s. Billions of dollars in stock market value have been lost. Millions of jobs have vanished. Many of the country’s biggest corporations have gone to the government seeking financial help.
Savings have shrunk. According to a recent report on msn.com, about 43 percent of American families spend more than they earn each year, the average household carries some $8,000 in credit card debt and personal bankruptcies have doubled in the past decade. The chart below highlights the rising credit card debt (courtesy of the Center for American Progress):
Further, Moody’s reports that credit card charge-offs advanced decisively in February to almost 9%, representing an all-time high in the 20-year history of the Moody’s Credit Card Index. (This is the debt companies deem uncollectable because the cardholder cannot pay the amount). Times are tough. If you lost your job, you have even more to consider.
I am married and have three kids under 9. My personal situation calls for a more conservative approach to cash management in the event of a layoff. However, if you are in a different phase of life, traveling while you have the time could help you learn, grow, and maybe even get clarity on a new career. I won’t argue that. Heck, I might even envy it a little. But, what I am not prepared to do is offer a blanket statement telling people that spending more is the best option for them during tough economic times.
Sure I can throw more stats and government data in here, but what it really comes down to is only you know what your own personal situation calls for. Yes, there are amazing travel deals out there. (Just check out Cheapflights.com or subscribe to our newsletter and you will see what I mean.) Last summer when we were paying $4 per gallon for gas, many news reports sent the message that you couldn’t afford to travel. They were wrong. Now the news story is everyone can afford to travel. Also not true. Travel is affordable…but only if you personally can afford it.
The best advice I can offer is the same advice I like to tell people when they travel…choose your own path.
Clearly we are at odds here. We need your help.
What are your thoughts? How would you vote?
Fiscal responsibility (he said) vs. travel while you have the time (she said). What’s your stand?
© Cheapflights Ltd Carl Schwartz
