When you go on vacation, do you spend more money than you normally do at home? I’m not talking about simply spending more because you’re out more. I mean do you spend more on specific things (such as a dinner) than you would if you got the same thing at home? Most people do. Why is this?

A main reason that people will pay more when they’re on vacation is that they feel free to spend money. They already know that the trip is going to cut into their usual budget so they just get loose with their spending. They chalk it up to the expense of taking a trip.

Another reason people pay more on vacation is because they feel like it’s a good time to treat themselves to upgrades. At home, you might get your facial at an inexpensive day spa. On vacation in Fiji, you would go to a fancy Fiji spa at your Fiji resort. The treatment may be the same but you pay more because you want the upgraded environment.

Finally, people spend more because they don’t know their vacation destination well enough to easily find smart bargains. You know which grocery store in your area carries what you want for less. You don’t know that when you’re on vacation. So you spend more. Most people are okay with that fact. Are you?

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