6 Smart Ways to Save Money for a Vacation
Most people wait until they magically have extra cash before booking a trip, and most people never end up going. A few surprisingly simple shifts in how you handle your money can turn that dream vacation into a ticket you…
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Saving for a much-needed vacation can feel difficult, especially when everyday expenses already take up most of your paycheck. Many people wait to take the trip when they “have extra money,” but this rarely happens spontaneously. If you’ve committed to a vacation or are determined to save the money to fund one, creating a simple plan can be the key to making it happen. The best approach is to come up with a specific number for your vacation goal. These strategies can help you build a travel fund without extreme stress.
1. Pick Your Destination First
One of the easiest ways to stay motivated is to have a clear plan. Instead of simply saying, “I want to save for a vacation,” choose the specific trip you want to take. Research the destination-specific costs of flights, hotels, food, and activities. Having a specific number written down makes it easier to stay focused on your savings goal.
2. Break the Cost into Smaller Goals
Vacations are expensive, so saving for a full trip can be overwhelming. Looking at that total amount can make you want to throw in the towel. Instead of giving up, divide the cost into smaller weekly or monthly savings goals, depending on the timeframe you are working with. For example, a $1,400 trip might best be approached by saving $50 per week for 28 weeks. This can make it feel much more achievable.
3. Create a Separate Vacation Account
Instead of mentally earmarking the money for a vacation, consider keeping your trip money separate from your everyday checking account. Keeping the money in a separate account can make a big difference psychologically. When your vacay savings is mixed in with your regular money, it is easier to accidentally spend it or use it in moments of weakness or stress. Additionally, a dedicated savings account means you get to watch your vacation fund grow, which can be highly motivating and exciting.
4. Automate Your Savings
One of the easiest ways to save is to make it automatic. Set up a recurring transfer from your checking account into your vacation fund. This allows you to save before you have a chance to spend the money. Saving whatever is “left over” at the end of the month just doesn’t usually work.
5. Put Extra Money Toward Your Goal
Make a decision that any unexpected money will go straight to the vacation fund. When your mom gives you $100 for your birthday, put it right in the vacation fund. If you get a small tax refund, put it in the fund. If it’s extra, it automatically goes to the trip savings. If this is too much to commit to, then choose a specific percentage. Maybe 60% of unexpected money goes to the fund, while the other 40% is spent on other things. Whatever percentage you decide, just stick with it. Even if you don’t contribute the entire amount, adding extra money whenever you can will help get you to your goal.
6. Track Your Progress
Seeing your savings grow, even slowly, can keep you motivated. Mark your progress when you reach 25%, 50%, 75%, or 100% of your goal. Watching your vacation fund steadily grow can be exciting. And it can make it easier to picture yourself lying on the beach, piña colada in hand.
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