If you’re dreaming of the perfect vacation, you aren’t alone. It’s something most of us would like to do more often—travel. There’s one big issue, however. It’s expensive, particularly if you have children and a family you’ll be taking along.
There are so many destinations you might be dreaming of. Maybe it’s a multi-generational family trip to Branson, an excitement-filled getaway to Las Vegas, or you want to relax on the beaches of the Caribbean.
Regardless of the exact type of trip that appeals to you, it can be attainable no matter your budget. The following are some realistic tips to help you save money for the trip of a lifetime.
Set a Budget
Setting a budget sounds so simple, but it’s something that a lot of people don’t do when they’re creating financial goals, including going on a vacation.
It doesn’t matter how much your vacation is going to cost, whether it’s on the high or low end. What matters is that you have a clear budget that works for you.
Your budget will help you know how much to save, so you’ll have a particular goal. Your budget will also help you avoid spending too much when you’re actually at your destination.
Some of the costs you need to consider include transportation, lodging, food, and the activities you’ll do. You should also think about unexpected fees and expenses, security deposits you might be responsible for and things like rental car insurance.
Once you have your budget, you can commit to an official savings plan.
A simple way to come up with a plan is to create a targeted date for your vacation if you haven’t booked anything yet. Then, you can divide the amount of your budget by the number of months until you’ll leave. That will give you a target for how much to save every month.
When planning a vacation, even though it is a luxury item, you still need to be realistic. You don’t want ever to spend more than what’s feasible for you on vacation. You can find ways to trim some of the costs. Perhaps you drive instead of flying, or maybe you plan to cook some of your meals rather than eating all of them out. You can also go for a shorter vacation.
Create a Specific Savings Account
If you plan to save up for a vacation, that probably means your goal is to avoid using any type of credit cards to pay for things, so you’ll want to have a supply of cash set aside. Create a savings account that will be only for your vacation funds.
When you’re creating a savings account, if you can find one that earns a little interest, that’s best. There are high-yield savings accounts that will help you maximize the amount of cash you’re able to set aside.
Automate the Money You Set Aside
Any time you have a goal to save money, you want to make it as easy on yourself as possible. That might mean automating what you save. Then, you aren’t even thinking about it, and money will go into your vacation fund over time.
Most banks will let you set up recurring transfers.
There are also apps like Acorns that let you round up money you spend on all your transactions and invest that money.
If you don’t have a separate account for your vacation, then you’ll be tempted to spend what you save. It needs to be entirely on its own.
Cut Expenses and Add Income
As with anything you’re trying to save for, it’s a good idea to trim some of your budgetary expenses and add some money to your income. It doesn’t have to be anything major.
For example, maybe you go through and cut out all the subscriptions that you don’t need. That can save you a hundred dollars or more a month, depending on what you’re currently paying for. Then, you can put that money into your vacation fund.
You can add income by selling items, having a yard sale, or maybe working a gig job for a few hours every week. For example, delivery drivers are in high demand right now, so you could work on the weekends or evenings and then put all of your earnings into your vacation fund.
If You Can Manage It, Use Cash Back Credit Cards
If you have the willpower to use a credit card and then pay it back immediately, there are some great travel rewards and cashback options. You can put your purchases on the card, accrue the cashback, and then pay off your balance every month. When you’re ready to pay for your vacation, use the cash as part of that.
You can also earn reward points for things like airline tickets and hotels.
Plan Early
As part of your overall goal to take a vacation, begin planning the logistics of the trip itself early. Planning last minute will leave you with fewer options, and you might end up spending more than you should.
As you take your time in the planning of your trip, you can comparison shop and make sure you’re finding the best deals. You can also figure out where you’ll splurge and where you’ll save.
You might consider using a travel agent. There are some benefits, even in the modern world of digital bookings. Travel agents first understand your destination and will know things that you might not even be able to figure out online. Travel agents can also have access to some pretty significant discounts on booking costs.
Stop Eating Out
Finally, we talked generally about cutting expenses above, but one of the best ways to save more money that you can then set aside is to stop eating out. When you’re saving for a vacation, commit to eating out no more than once a week.
You can also get a coffee maker and travel mug so you can stop going to the coffee shop.
Those sacrifices will feel well worth it when you’re enjoying your vacation with your family or loved ones.
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