Saving for a Vacation: 10 Easy Tips

Saving for a Vacation: 10 Easy Tips

Everybody deserves a little time away to rest, relax, and recharge. However, the cost of going on vacation can have the opposite effect on your emotional and financial well-being. That’s why saving for a vacation ahead of time is so important. By doing so, you can enjoy your time away without coming home to a mountain of debt. Here are 10 easy tips to help you save for your next vacation.

1. Set a firm vacation budget.
   First things first, plan what your next vacation will include and then calculate the associated costs. Things to consider include: your destination; when you will travel; lodging; transportation costs such as gas or airfare; car rental; the activities you want to participate in; meals; souvenirs; as well as the costs to take care of things at home while you are away like pets, plants, etc. Then set a firm budget and start saving.
   
   
2. Open a designated savings account.
   To keep you focused on saving for a vacation, it is helpful to open a separate savings account specifically for your trip. Doing so will help you clearly track your progress and reduce temptation to spend your hard-earned savings on other things.
   
   
3. Make saving for a vacation automatic.
   Consider setting up automatic transfers to your vacation savings account on a regular basis. Examples include making transfers each time you get paid, weekly, or monthly. This set-it-and-forget-it approach saves you time and minimizes the temptation to use your money in other ways.
   
   
4. Pay off debt.
   One good way to help increase your cash flow so you can save more is to pay off your debt. When you reduce or eliminate your monthly debt obligation you could have more money to set aside for your vacation.
   
   
5. Take advantage of financial windfalls.
   If you receive a windfall such as a tax refund, bonus, or birthday check, put some or all of it in your vacation savings account. While it may be tempting to spend these windfalls foolishly, imagine yourself enjoying that money while on vacation.
   
   
6. Challenge yourself to no-spend months.
   Practice delayed gratification by participating in no-spend months where you only spend money on the necessities like shelter, food, utilities, etc. At the end of the month, move all the money you saved into your vacation savings account.
   
   
7. Leverage your credit card rewards.
   If you use a credit card that offers cash back or travel rewards on transactions, consider using them to your advantage when saving for a vacation. Deposit any cash back in your vacation savings account and use travel rewards to potentially reduce travel or lodging expenses. Just be sure you’re paying your credit card balances on time and in full each month to avoid interest charges or late fees.
   
   
8. Reduce unnecessary expenses.
   Take a good look at your monthly expenses and see what you can cut out to increase your savings. Things to consider include eliminating unnecessary subscriptions or streaming services, eating out less, and buying generic vs. name brand items at the grocery store.
   
   
9. Sell unused items.
   One man’s trash in another man’s treasure. Look around your home and identify items you no longer need or use and sell them at a yard sale or online. You will reap the double reward of less clutter around your home and more money to add to your vacation savings account.
   
   
10. Increase your income.
    One sure way to save more is to earn more. Consider picking up extra hours at work, asking for a raise (the worst your boss can say is no), or working a side hustle.

Saving for a vacation doesn’t have to be overwhelming. Implementing just a few of these tips will help your savings add up over time. If you are looking for a safe place to store that extra cash, a Personal Banker from FNBO can set you up with an account that meets your needs.  Call or stop by a branch location today.