How to Save For Your Next Vacation

Going on vacation is a part of the American dream. Who doesn’t want to go away once or twice a year and escape everyday responsibilities? Whether you want to go backpacking or enjoy a beachside resort, your vacation does not need to be a luxury that is out of reach. Follow these tips on how to save for your next vacation and make your traveling dreams a reality.

Decide Where You Want To Go

Having a clear idea of where you are traveling to is the first step in saving for a vacation. Picking a destination will make the idea of a vacation much more concrete. You can start researching how much it costs to travel to this location and how much it will cost to have the experience you desire. Having a destination picked out will also motivate you to save money for the trip.

Set Up a Timeline

Once you know where you want to go and about how much it will cost, you need to set up a timeline. Look into the ideal season to travel to your desired destination. Find out how much time you have until then and how much you’ll need to save each month.

Open a Separate Savings Account

In order to save properly for your vacation you should set up a separate savings account. Many financial institutions allow you to have more than one savings account. You may even be able to name your additional savings account “Vacation.” Having the money in a separate account will protect it from life’s little emergencies dipping into your vacation savings.

Automatically Deduct From Your Paycheck

Many employers have the option to have your paycheck directly deposited into multiple accounts. If this is available to you, consider taking advantage of it. Figure out how much you can afford to directly transfer into savings. Having your money go straight into savings protects you from the temptation of spending it. If you cannot have it automatically deducted from your paycheck consider setting up automatic transfers from your checking account each payday.

Take Advantage of Credit Card Rewards

There are many credit cards that can help you to cover costs of traveling. Many accumulate points that can be applied toward air travel or lodging stays. Do your research before committing to a card. Find out if your desired location is included in these rewards. Find out if there are any blackout dates that would conflict with your travel plans. Be sure that the amount of spending you do will gain you the rewards you need, and that you can pay off your balances monthly to avoid interest. You don’t want to accumulate extra debt just to take advantage of rewards.

Find Ways to Make Extra Money

If you need to save more for a vacation than what fits into your budget, find ways to make that extra money. If you are $200 short each month for how much you need to save, there are many ways you can bridge that gap.

Some ways to save extra money:

• Find ways to cut back on living expenses such as groceries, eating out, gym membership, etc.

• Explore a few ways to make some extra money such as doing some freelance work, putting in some overtime, pet sitting or dog walking.

• Sell some things- you’d be surprised how much money may be laying around you house by selling some things you no longer use or need.

Following these strategies for saving for your next vacation will make the trip even more enjoyable. You won’t be stressed before the trip about how you’ll pay for everything. You’ll have money set aside to take part in experiences and won’t feel held back. Best of all, you’ll return home feeling rested and rejuvenated without the looming bills of traveling hanging over your head. You won’t worry about paying this vacation off; instead you can start planning your next trip. Email Carolina Money Minders today and we can discuss how to facilitate your vacation savings goals.