Spring Break or Spring Broke: Moves That Make or Break Millennial Wealth

Spring is in the air, and for many millennials, that means one thing: Spring Break. Whether it’s a weekend getaway, an international adventure, or a simple staycation, spring is often a time for relaxation and fun. But as financial advisors, we know that the choices you make today can have a lasting impact on your long-term financial success.

So, how do you enjoy spring without sabotaging your financial future? Let’s take a look at some key financial moves that can either make or break millennial wealth.

Break: Overspending on Travel Without a Plan

The excitement of booking a trip can sometimes overshadow the reality of how much it will cost. Flights, accommodations, dining out, and activities can add up quickly—especially if everything goes on a credit card without a solid plan to pay it off.

Make: Travel Within Your Means

Instead of overspending, set a travel budget and stick to it. Look for deals, use travel rewards or points, and consider alternative destinations that offer similar experiences at a lower cost. If you do put travel expenses on a credit card, make sure you have a plan to pay off the balance quickly to avoid high-interest charges.

Break: Draining Your Emergency Fund

It might be tempting to dip into savings to fund a spontaneous trip, but your emergency fund should be just that—reserved for unexpected expenses like car repairs, medical bills, or job loss.

Make: Prioritize Savings Before Spending

Before planning a trip, ensure that your emergency fund is in a healthy place—ideally with at least three to six months' worth of living expenses. If travel is important to you, set up a separate savings account specifically for trips. Automating small, consistent contributions can make a big difference over time.

Break: Ignoring Retirement Contributions

It’s easy to think, “I’ll start saving for retirement later,” but the longer you wait, the harder it becomes to catch up. Millennials have the advantage of time, and compound interest rewards those who start early. Skipping contributions for a few months to afford a vacation might feel harmless, but in the long run, it could cost you thousands of dollars in potential investment growth.

Make: Keep Retirement a Priority

Even if you’re enjoying a well-deserved vacation, don’t pause your long-term savings. If your employer offers a 401(k) match, make sure you're contributing enough to take full advantage of it. If you're self-employed or don’t have a workplace plan, consider an IRA to stay on track with retirement savings.

Break: Falling Into Lifestyle Inflation

Maybe you started out in your career living modestly, but now that your income has increased, so have your spending habits. Upgrading vacations, dining out more often, and indulging in luxuries can feel like a well-earned reward, but without financial discipline, lifestyle inflation can keep you from building real wealth.

Make: Balance Fun with Financial Growth

Enjoying your money isn’t a bad thing—it’s all about balance. Set financial goals and allocate money toward experiences while still prioritizing savings and investments. Consider the 50/30/20 rule: 50% of your income goes to needs, 30% to wants, and 20% to savings and debt repayment.

Break: Relying on "Buy Now, Pay Later" for Experiences

The rise of "Buy Now, Pay Later" (BNPL) services makes it easy to book trips and pay in installments. While convenient, these services can encourage overspending and lead to financial strain down the road.

Make: Pay Upfront Whenever Possible

If you can’t afford to pay for a trip in full, consider whether it’s truly within your means. Instead of financing vacations with BNPL or credit cards, plan ahead and save for your next trip so you can enjoy it without the stress of post-vacation debt.

Break: Missing Out on Investment Opportunities

Many millennials hesitate to invest because they feel like they don’t have enough money or knowledge. But waiting too long to invest means missing out on valuable time in the market.

Make: Start Investing Now, Even in Small Amounts

Investing isn’t just for the wealthy—it’s for anyone looking to grow their money over time. Even small, consistent contributions to a diversified portfolio can add up. Consider using a Roth IRA, brokerage account, or employer-sponsored retirement plan to start putting your money to work.

Final Thoughts: Balance Today with Tomorrow

Spring Break (or any vacation) should be a time to relax and recharge, but it doesn’t have to come at the cost of your financial future. By making smart money moves—sticking to a budget, prioritizing savings, and investing consistently—you can enjoy life today while building wealth for tomorrow.

If you’re looking for guidance on how to balance short-term enjoyment with long-term financial growth, Sequoia Advisor Group is here to help. Our team of financial professionals can help you create a personalized plan that allows you to enjoy your hard-earned money while staying on track toward your goals.

Want to learn more? Contact us today at www.sequoiaadvisorgroup.com.