Saving for Vacation

May 6, 2022

Categories: Budgets, Credit Cards, Credit Score, Debit Card, Debt Management, Financial Goals, Financial Planning, Financial Security, Future Planning, Kids and Money, Tips, Youth

By Dawn Kellogg

The past two years have changed the way that we travel, or even plan for travelling.  Restrictions and new rules give us much more to think about and prepare for.  Throughout the pandemic, many of us chose to stay closer to home for vacations, rather than travel long-distance. Where we once used to travel to visit family and friends, Zoom and Skype are now used regularly to keep us connected.

But now, things globally seem to be opening up and we are travelling once again.  Ideally, over the past few years, you have saved up what you would have spent on bigger vacations and can easily finance your next getaway. But what to do if you haven’t been able to save?

Here are some great tips for financing your next trip of a lifetime:

Set a budget.

It’s so easy to go overboard when you are planning for, or are on, a vacation, but it’s important to live within your means, wherever you are. Create a trip that fits your budget. Pin down the costs of airfare, hotels, and other costs, and identify potential splurges ahead of time so that you are prepared. There are so many ways to save when you travel, especially on lodging. Options like VRBO, Airbnb, and others, give you more choice and more flexibility beyond hotel walls.

Divide your projected vacation budget by the number of months you have until your vacation.

This is a great way to realistically break your vacation expenditure down so that you can save what you need. Say you are travelling to Italy in November and the cost of airfare and hotel with spending money is going to be about $3,000. There are 7 months between now and when you plan to leave, so you can set aside $430 each month to cover the costs of your trip.

Set up a special savings account.

Setting up a special vacation savings account is a great way to plan financially. You can even have money automatically deposited into this account on a weekly or monthly basis.

Cut back on some of your everyday expenses

It’s tempting to want to go and grab a coffee every morning on the way to work, but lattes can add up to big $$ that can be put toward your vacation. The price of everything seems to be rising these days. Consider using shopping portals or cash-back apps to make the most of your regular budget.

Look for ways to earn some more $$ in the run up to your vacation.

This could mean taking a part-time job or grabbing some more hours at a job you currently have. There are so many businesses looking for workers. Now is a great time to take on a fun, part time job and save for that epic vacation!

Happy travels!