Wanderlust & Wealth
“The world is a book and those who do not travel read only a page.”
My wife and I recently returned from an unforgettable journey through the vibrant landscapes and rich histories of Spain and Portugal. From the architectural marvels of Barcelona and Lisbon to the sun-drenched beaches of Malaga and Marbella, every moment was a discovery. But beyond the delicious tapas and stunning vistas, this trip offered some valuable lessons, both cultural and financial.
Rosa and I at the marina in Barcelona, Spain
Like many of you, I believe that life is about more than just numbers on a balance sheet. It's about experiences, personal growth, and creating memories that enrich our lives. Traveling to other countries provides a unique opportunity for all of this. It broadens our horizons, exposes us to different ways of living, and deepens our appreciation for diverse cultures. There’s a mental and cultural benefit that is truly invaluable, offering a fresh perspective that you simply can't get from reading a book or watching a documentary.
The beautiful beaches in Marbella, Spain
But, as a financial planner, I also know that these experiences don't happen by chance. They require careful planning and smart money habits. Here’s a look at how we approached our trip and some strategies you can use to make your own travel dreams a reality.
The spectacular Alhambra in Granada, Spain
The Allure of Europe: Mental and Cultural Benefits
There's something truly transformative about stepping outside your comfort zone and immersing yourself in a new culture. For us, Spain and Portugal offered a feast for the senses and the soul:
Broadened Perspectives: Witnessing different ways of life, from the late-night dinners in Barcelona to the siestas in small Portuguese towns, helps to challenge assumptions and open your mind to new possibilities.
Historical Immersion: Walking through ancient Roman ruins, Moorish palaces, and cathedrals that have stood for centuries provides a tangible connection to history that no textbook can replicate. It grounds you and offers a deeper understanding of our shared human story.
Sensory Exploration: The flavors of paella and bacalhau, the sounds of flamenco and fado, the sight of intricate tilework, and the feeling of cobbled streets underfoot—these experiences create vivid memories that enrich your life long after you've returned home.
Reduced Stress & Increased Creativity: Taking a break from the daily grind and engaging in novel experiences can significantly reduce stress and spark creativity. The change of scenery and routine often leads to fresh ideas and renewed energy.
Personal Growth: Navigating unfamiliar languages, public transportation, and local customs can be challenging, but it builds resilience, problem-solving skills, and confidence.
Catching the sunset in Malaga, Spain
The Art of Saving for an Annual Trip
Saving for a large, expensive trip—especially on an annual basis—is a lesson in consistent, intentional financial behavior. Just as I advocate for saving for retirement or a down payment on a home, a travel fund should be a dedicated part of our budget.
Here’s how to do it:
Set a Realistic Budget: Before anything else, you need to know how much your trip will cost. Research flights, accommodations, food, activities, and a buffer for unexpected costs. For our trip to Spain and Portugal, we knew we’d be spending in Euros, and we factored in the current exchange rate.
Create a Dedicated Savings Account: This is one of the simplest yet most effective steps. Rosa and I opened up a separate high-yield savings account specifically for our travel fund. This keeps the money "out of sight and out of mind" from your regular spending account, reducing the temptation to dip into it for daily expenses.
Automate Your Savings: Pay yourself first. We set up an automatic transfer from our checking accounts directly into our travel fund every month. Even a small amount, like $100 or $200 per paycheck, can add up to a significant sum over the course of a year.
Prioritize Spending: We consciously make choices throughout the year to prioritize our travel goals. This might mean fewer impulse purchases, cooking at home more often, or opting for less expensive entertainment.
Utilize Windfalls Wisely: Bonuses, tax refunds, or unexpected gifts are often directed towards our travel fund, significantly accelerating our savings.
Leverage Rewards Programs: Don't let those points and miles go to waste! We strategically used credit cards that offer generous travel rewards, accumulating points from everyday spending, and then redeemed them for flights and hotel stays. Many airlines and hotel chains also have loyalty programs that can significantly reduce costs. This can make a big difference in offsetting the price of airfare or accommodation.
Jerónimos Monastery in Lisbon, Portugal
Navigating Currency Fluctuations
One of the key financial factors we considered for our trip was the fluctuation of currency. The value of your home currency can significantly impact your purchasing power abroad. For us, the US Dollar had weakened against the Euro since the beginning of 2025, which meant our money didn't stretch as far as it might have a year ago, when we first started planning for this trip. This is a crucial point many people overlook when planning international travel.
A stronger local currency (in this case, the Euro) means your dollars buy fewer goods and services. Accommodations, meals, and activities can become more expensive. Conversely, if your currency is strong, your money goes further, making a destination more affordable.
Here are a few ways to manage this:
Plan and Budget with the Current Rate: Don't use a historical exchange rate to create your budget. Use the current or projected rate to get a realistic picture of your costs.
Use a Credit Card with No Foreign Transaction Fees: Most credit cards offer a better exchange rate than you'd get from a currency exchange booth or even an ATM. Using a card with no foreign transaction fees ensures you get the best possible rate without being hit with hidden costs.
Build a Buffer: We always include a 10-15% buffer in our travel budget for unexpected expenses and currency shifts. This helps absorb the impact of a less favorable exchange rate without derailing the entire trip.
The Douro River in Pinhão, Portugal
Unplugging While the World Keeps Turning
One of the great joys of international travel is the ability to unplug and immerse yourself in a new culture. It's a chance to truly disconnect from the daily grind, but as a financial professional, I know that the world of finance never stops. Even while we were enjoying the incredible food and historical sites, the US financial landscape was in motion, with the Fed lowering rates and the potential for a government shutdown.
These events, while happening thousands of miles away, have real and tangible effects on our economy and personal finances. The impacts of these changes on everything from your investments to your mortgage rates are topics we'll be diving into more deeply in my next newsletter. So, be sure to keep an eye on your inbox!
The gorgeous view of Porto, Portugal at night
Action Items
Our journey through Spain and Portugal was a powerful reminder that financial planning isn't just about accumulating wealth—it's about using that wealth to build a life full of meaningful experiences. This trip was also a testament to the power of saving, thoughtful planning, and the immeasurable benefits of exploring our incredible world.
It's also a reminder that experiences often outweigh possessions, and that with a bit of financial savvy, those dream trips can absolutely become a reality.
Rosa and I are already dreaming of our next adventure, and the travel fund is slowly but surely growing once again!
What’s your next big adventure?
~Alex
Whenever you’re ready, there are 3 ways I can help you!
Join the Academy : Ready to take control of your money, but not sure where to start? Lake Avenue Academy offers expert guidance, online courses, a supportive community, practical financial tools, and live workshops – all designed by Alex Chalekian, to empower your financial journey.
Book a 1-on-1 Meeting: Whether you're just getting started or further along on your financial journey and have a few questions, let’s talk.
Lake Avenue Financial: If you’re looking for financial planners who can simplify, educate and relieve the stress caused by money decisions, we’re here to help!
Be Inspired to take Action
Join over 8,000 readers of the Inspire Action newsletter for tips, uplifting stories and actionable steps to guide you through your financial journey.