CB and I got our Galapagos Fund (or Account #1234567) set up. Joint accounts don’t appear to offer the option of nicknames. Though we couldn’t name it something fun like “Going to Galapagos,” “Swim with Turtles,” or “Date with Darwin,” a fund by any other name is just as money!
It truly is great motivation to have a specific “home” for each of our dollars designated toward Galapagos. The total amount of what we have to save, however, is quite daunting. This trip costs over $10,000 for the both of us in today’s dollars. Our savings won’t be earning an interest rate that matches inflation, so we will need to save even more because we’re losing a bit of real purchasing power every day as we save. (And we’d have to set aside money for things other than this trip – say, retirement!).
- Assuming a 3% per-year increase in the price of travel to the Galapagos, we will need $11,000 by 2014.
- A 5% increase means $11,500.
- In 4 or 5 years, the Galapagos trip will likely cost $12,000-$13,000.
Right now, we have $500 in the fund, or less than 5% of our eventual goal.
There’s a popular saying: “a journey of a thousand miles begins with a single step.” Inspiring and true, to be sure, but I wonder if the poor soul staring down those thousand miles ever thought, “I’m going to 80 by the time I cross the finish line.”
Related posts:
Hi WH – Have you looked into less expensive, non-tour-operator options? I'm not sure what kind of travelers you are, but if you're willing to be a little flexible and roll with the punches if something goes wrong, I'm sure you could do the Galapagos for less than even $3000 per person. Check out some budget travel guides like Shoestring or Lonely Planet.
I've seen tours for as low as $1,500 per person to Galapagos.. but I'm really want to do this trip right (I think with Galapagos you have to go with a tour… have to check on this more though). The companies I am considering all provide small tour groups with exceptional biologists / tour guides, which I think would add immeasurably to the experience for a vacation like the Galapagos. We figured we'd save for the bigger target first, and if our thinking changes we can always get a cheaper option. But it doesn't work the other way around.
Have you looked into CD's as a use for this fund? Since you have a set timeline of 4-5 years, putting some of these savings funds into a 2 year CD may help you beat inflation, especially when you're planning on not touching these funds in the interim.
Hmmm.. that's a great idea. Once we get up in the $2K-$5K stage, we'll look into CD options. Thanks for the suggestion.
Yay!! One step closer! I've been wanting to save for a trip to Greece, which is in the same range as your trip to the Galapagos. But since it may not be realized until a couple years off, and I still want to travel in the mean time, I find it hard to focus on saving for it. Like, should I save for regular vacations and also save for Greece? Or should I just save for Greece and forgo other international cheaper trips?
I'd definitely try to save for both. If I couldn't travel at all for the next 4-5 years, I'd probably go a little nutty. It helps me to have a dedicated fund for the big goals (i.e. Galapagos), and just take money for smaller trips out of my operating funds (i.e. regular monthly cash flows).
I agree with you that traveling with an expert will add immeasurably to your trip – the most memorable trips I have taken all have included learning about the history or biology of the area I visited. This trip sounds amazing!!
If you are not thinking of going for several years, you might want to consider saving your money in a money market account or a short term bond fund if you are looking to get a higher interest rate than a savings account can provide.
~Shoes (long time reader, first time blogger and commenter!)
I love the title of your post. When we set big goals, we think it's too hard or it takes too much work because it is such a big goal. But, when you focus on the little steps you can take, then you're that much closer to achieving it. Thanks for reminding us that it doesn't have to be hard. We only make it that way.
Most our dream goals (ie seeing the Great Wall) are still just thoughts in my head so take solace you are at least ahead of many:) I never thought about the need to save based off inflation, great point. I'm hoping by 2013 we will be debt free and THEN the "Dreams Fund" can really get bulked up.
The Great Wall is one of my top choices too. Good luck on your Dreams Fund!
This is so awesome! We need to do this. We really want to go to Scotland next year to visit some of my husband's family. It will help that we will be staying with family for part of the trip, but…
Great idea!
If you're eligible to join a credit union, check to see if they offer CDs with a lower minimum deposit. Our credit union (State Employees' Credit Union – NC) offers CDs with a minimum deposit of $250, and the rate for 4 years is currently 2.75%. We are going to start using these for college savings since we're only 4 years out from our first child's college years. If rates go up significantly over the next few years, the penalty to cash them out will be more than offset by the higher interest on the new CD/MMA. Having the money spread over CDs isn't as much fun as seeing a big balance in one account, but a spreadsheet or a savings wallchart graphic can overcome this issue.
Another thought is to open a high interest checking account for the fund. I just opened an account at Crescent State Bank ( again in NC) to earn 5% on $25000 of the college fund. That's an extra $70/month over a high interest MMA, and better than a 4- or 5-year CD.
Ooh, one last thing–if you can keep up with multiple accounts, go for account opening bonuses to speed up the savings. I'm doing this for a trip for my daughter next year, and so far I've earned $546 from ING, Suntrust, BB&T, Chase & Bank of America. Some of the bonuses are no longer available, but there are always new ones popping up.
Good luck!
Jeez, just get married and register for the Galapagos trip as your honeymoon!
Seriously though, I've been seeing this more and more, where instead of a traditional registry, couples will register for a honeymoon, and guests can donate to the honeymoon fund in lieu of a gift. Especially if you don't need a bunch of typical registry stuff (towels, toasters, etc), this could be a way to go (if you're planning on getting married that is). Just a thought – very exciting stuff though!