How to Save for a Vacation
By: Tricia Mathis, Extension Educator
May 12, 2021
Do you keep dreaming about that dream vacation? Do you wonder if it is attainable?
Your dream vacation can happen with a little planning and taking a realistic look at your budget.
Here are some steps to attaining your dream vacation or any vacation for that matter.
- Know how much you need to save
The first thing you need to do when considering on taking a vacation is to get a realistic idea of how much the vacation will cost. Take some time and check out the cost of airfare, hotels, activities, meals and any extra cost that will be accrued before or during the trip. Look ahead to get the best price on travel expenses.
- Start saving early
The earlier you can start saving, the better your chances of achieving your vacation goal.
- Create a monthly saving goal
Now that you have an idea of how much the vacation will cost, divide that amount by the number of months you have to save. Look at your monthly budget and ask yourself if that amount is reasonable. Look for ways to cut costs in some areas of your monthly budget, such as eating out, subscriptions, grocery and gym memberships. Put a hold on discretionary spending. The old saying of “a penny saved is a penny earned” will work well in this situation. When you spend less, you can save more.
- Set up an account
Set up a savings account specifically designated for your vacation and then have money automatically transferred to the account each month. This makes our vacation a priority and is a great way to help you keep on track with your goal.
- Utilize cash back or travel rewards on credit cards
Use credit cards that offer incentives such as cash back and vacation rewards. By using these type of cards on your monthly expenses – money you need to spend anyway - you can create extra income or rewards to put towards your vacation.
Consider working extra hours at work, taking on a side job or having a yard sale to bring in some extra income that can be put towards your vacation.
Vacations can become a reality with some planning, dedication and utilizing these tips.