How not to go broke traveling

Tired? Stressed out? Need a break but short on funds? For many boomers, the solution is to charge a vacation now and worry about paying for it later. But that desire for instant gratification can threaten financial security in your golden years, says financial planner Diane McCurdy, author of "How Much Is Enough: Balancing Today's Needs With Tomorrow's Retirement Goals."

"As summer gets into full swing and people around you start talking about their plans and their trips, it's easy to start thinking you have a right to a vacation, no matter what your financial situation is," McCurdy said. "That's when the temptation to pull out the plastic starts to seem reasonable. But the reality is that while everyone deserves a break, it's never a good idea to go into debt unnecessarily, and an expensive vacation is not a necessity."

Convincing the Forever Young generation of that might be a challenge. According to AARP, the country's 78 million baby boomers (born between 1946 and 1964) are the first generation to experience mass-market travel and deregulation. The breakup of airline monopolies and influx of low-cost airlines increased boomers' opportunities and appetite for travel and adventure. A 2005 AARP study showed that boomers spend $157 billion annually on leisure travel, more than any other age group.

A report by the Association of Travel Marketing Executives, "The Top Ten Truths of Boomer Travel," states that boomers consider travel a necessity, not a luxury; engage in it no matter how scarce their time or money; and don't put off taking the trips they want, even if it means using credit cards to finance their plans.

"They rationalize, 'Well, I really work hard, and I need a break for my own mental health, so I'll just charge the trip and deal with it later,'" says McCurdy. "Then they're away from home, away from the bill. When they get home, they discover they've spent thousands of dollars and have to work for months to pay it off. The credit card company gets money you could have been saving for retirement."

McCurdy's suggestions for low-cost ways to recharge without breaking the bank include planning several long weekends instead of an extended sojourn and staying at a budget hotel or a bed-and-breakfast rather than expensive resorts. Consider house swapping, camping or vacationing "at home" by visiting nearby tourist destinations. To help save for next year, assess your "latte factor," a phrase coined and trademarked by investment guru David Bach to describe small daily expenses that add up to big spending.

"When I sit down with people, and we take a look at how they're spending their money, I see some folks who are spending $300 a month, $3,600 a year, just on coffee, says McCurdy. "That's the price tag on a pretty great vacation and a much better use of your money."

Once you do set out on vacation, McCurdy offers the following tips for staying within a budget: Use traveler's checks instead of your credit cards. Limiting yourself to cash-in-hand helps make you think twice before buying. If you're flying, check baggage allowances before you. Limit yourself to one souvenir per person traveling, and cut down on the number of keepsakes you bring home to friends and relatives. Avoid the pricey restaurants and attractions. Don't order room service, don't eat or drink anything from the mini-bar and don't make phone calls from the hotel room. Most important, don't over-schedule. Allow some down time to stroll around and sightsee, or lounge around the hotel pool. Not only will you save money, you'll actually be able to relax -- which is the whole point of the vacation.