Vacations are expensive—there’s no way around it. Between hotel stays, dining out, rental cars, excursions, and admission fees, every part of a trip tends to cost significantly more than what you’d pay at home. A hotel might run you $150 a night, while your rent or mortgage averages out to just $50 a night. Eating out on vacation? Easily $100 a day. At home, your food budget might only be $40.
But here’s the real kicker: you’re paying for both lives at once.
The Cost of Being Away
When you're on vacation, your home expenses don’t stop. You still owe rent or mortgage payments, and you’re still paying for your car—even if it’s just sitting unused in the driveway. You're double-paying: once for the essentials you already own, and again for temporary versions while you’re away.
It’s like paying for two lives:
- A hotel and a home.
- A rental car and your parked vehicle.
- Travel insurance and your regular car insurance.
How to Minimize the Overlap
While not always easy or convenient, here are some ideas to reduce these "ghost expenses":
- Sublet your place or list it on Airbnb if you’re gone for an extended period.
- Pause your insurance if your car is parked in a safe spot and not being driven.
- Rent out your vehicle on platforms like Turo to turn an idle car into income.
- Ask a friend to stay at your place and borrow your car while you're gone. You get peace of mind, and your assets are being used.
These solutions come with time, coordination, and risk—but if executed well, they can offset a chunk of your vacation cost.
The Time-Cost Premium: Every Minute Counts
In Interstellar, time on the water planet near the black hole passes much slower—1 hour there equals 7 years on Earth. It’s a perfect metaphor for vacation economics: time gets exponentially more expensive the moment you leave home.
YouTuber Jenny Nicholson reviewed Disney’s Star Wars Galactic Starcruiser Hotel and broke down the cost:
$2 per minute per person—or $4 per minute total.
That kind of breakdown is jarring. It forces you to view your vacation time with a heightened awareness:
- Sleeping in? That’s $300 gone.
- Waiting in line? That’s $100 an hour you’re burning.
- A leisurely lunch? It might be the most expensive meal of your year.
Vacation time feels like time under pressure. Every moment is inflated in cost, which can create stress—even when you’re supposed to be relaxing.
The Tourist Price Mark Up
Let’s face it—tourist destinations are designed to extract money. Prices are inflated across the board:
- Souvenirs you wouldn’t buy at home become "special" just because of the location.
- Theme parks charge $18 for a burger because they know you have no other option.
- Tips are expected everywhere—even for counter service. (All Inclusive Resorts)
Businesses know you're already spending freely, and they adjust pricing accordingly. You're on vacation, so your wallet is wide open—and they know it.
Opportunity Costs
Vacations don’t just cost money—they cost opportunity. If you’re a freelancer, gig worker, or small business owner, you may not get paid time off. That means every day you’re not working is income lost.
Let’s say you usually earn $200 a day. A five-day trip doesn’t just cost you $2,000 in travel—it also costs $1,000 in lost wages. Suddenly, your modest getaway is now a major expense.
Passive Income
The internet is full of people promoting “passive income” as the solution to this problem—make money while you sleep or vacation. But most so-called passive income sources still require:
Time (setting up rental properties, building a blog)
Effort (maintaining assets, managing guests or vehicles)
Risk (bad tenants, no traffic, or damage to your property)
True passive income is rare. The closest example is investing. While it still comes with risk, a well-balanced portfolio of ETFs or mutual funds can generate returns with very little daily effort. It's not flashy, but it's effective. If you want to go on vacation and not lose your shirt with opportunity costs then passive income through investing is your best bet. Its quick and easy now with apps like Wealthsimple where you can create multiple accounts and even label them "vacation" or "retirement" or just "fun money". This can help with the stresses an anxiety of being on vacation without making any money, since behind the scenes you are passively still building income.
Vacations are more than just a luxury—they're an investment in your mental health and overall well-being. Yes, the costs can add up, but the price of burnout, stress, and missed memories can be even greater. When you're healthy and able, don’t overlook the value of fun, rest, and adventure. It’s okay for a vacation to feel expensive—that just means it’s worth planning for. With a little foresight and budgeting, you can enjoy your time away without financial guilt hanging over your head. Give yourself permission to recharge—you’ve earned it.
If you found this helpful and would like help budgeting or investing please email me at BudgettoWealthTM@Gmail.com
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