As you begin the process of budgeting and saving money, it’s important to spend some time evaluating whether your timeshare is helping you or hurting you. Timeshares are an expensive proposition, and they tend to drain the wallets of their owners over time. If you have a timeshare, chances are you’re spending far more money on it than you should. It’s typically far less expensive to save up for a vacation in cash, in advance, than it is to continue to pay for a timeshare year after year, just to have it available. In fact, some years you may not even use your timeshare, and then that money is completely wasted
Let’s examine some timeshare basics so that you can decide if you’re actually saving money after all:
What Are Maintenance Fees?
Timeshares typically charge you a maintenance fee each year. These fees are listed as a fee to help the timeshare company cover the costs to maintain their units, and are supposed to go for things like carpeting, furnaces, tree removal, and other big-ticket items. However, furnaces are designed to last for around 15-20 years. Does it really make sense for you to be paying a high fee for maintaining the furnace, yearly, for a property that you only have access to periodically? Instead, spend some time planning ahead for travel and set aside the same money you’re paying for maintenance fees — you’ll find that your money will go farther, as well, since you can also purchase travel deals on flights, hotels, and more.
Why Are They a Bad Thing?
In 2019, the average maintenance fee for timeshares averaged $1,112 per month. If you were able to put that money aside into your own savings account, to spend as you like, you’d be able to travel for around 12 weeks a year at various luxury resorts. Instead, if you own a timeshare, that money is tied up in maintenance fees, and you don’t have access to how it’s spent. This can be very frustrating, especially once you’ve done the math. A financial manager may be able to help you do even more calculations so that you can determine where this money could go if you invested it, for example. Either way, it’s better to have this money in an account that you have control over, where it can grow, instead of in the hands of a timeshare company, where they’re only using it to profit.
It’s Not Too Late to Get Your Money Back
The money that you may be spending on timeshare maintenance fees becomes even more frustrating when you compare it to what you’re likely paying for your children’s schools. Private schools account for 25% of schools in the U.S, and they carry 10% of students from PK-12 on their rosters. Imagine what the money that you’re paying for your maintenance fees could do when applied to your private school bills. You’d quickly find them dramatically reduced, and you might even have money to spare. This money could then be used for family trips to expand your children’s horizons, extra educational materials, or to save for college. Just making one small change can give you money to save for the future, as well as money to handle current expenses.
When you take the time to do the math, it’s easy to see that getting out of your timeshare may be the best financial plan for your future. Speak to a skilled professional to learn more about how you may be able to do so. Eliminating this expensive monthly bill can be a great way to free up funds that your family can use for travel, private school bills, and make improvements to your own property.
