Want to take a vacation while short on cash? Then look at our guide to saving money on vacation and begin planning your trip today.
Most Americans not taking enough time off. If you are ready to get out of the rat race and get some much-needed ‘me time’, go ahead and mark your calendars for the vacations.
Start saving for the holiday well in advance of your travel date to ease your anxiety about indulging in down time. Here’s a guide to creating a vacation savings plan.
Look at Vacation Budgets in Advance
The best way to be realistic when preparing a vacation budget is to look at your spending habits from previous vacations. Are you a tourist who likes to buy everybody a drink at the bar?
Do you have a passion for souvenirs? Your personality determines where you want to spend your time.
Don’t think this new vacation will change you. Instead, make it part of your budget so you can let your hair down while you relax.
Saving Money for Vacation When Bankrupt
A vacation is not when you take your rent money and use it to buy a plane ticket. That’s a recipe for creating more problems than you started with.
Before you decide to save for a vacation, the very first thing you need to know is how much your living expenses will be every month. This budget shouldn’t include shopping or eating out with friends.
Take a look at the minimum household related expenses you must pay every month. Next, add up your debts such as credit cards that you currently carry balances on.
Starting with this budget is an awesome way to determine how much income you should save. It’s unrealistic for many people to save every extra penny, but it gives you a starting point for saving for the vacations.
Where do you want to travel?
Not all holidays are created equal. A trip to Fiji certainly takes less time to plan than a weekend camping trip to a local state park.
Set savings goals based on your location. Include contingencies such as travel insurance and the price of changing airfare in case something goes wrong.
Estimating the upside gives you flexibility when negotiating fees and costs with vendors. You can even choose vacation destinations based on when you want to travel.
In general, if you are planning to travel within 6 months of you starting saving, aim for a domestic destination that you can reach within a few hours of flying. Leave international travel behind when you have more time to plan it best flight ticket and hotel prices.
Certain times of the year have fares that may triple the price of travel during the low season. The difference can be thousands of dollars in savings if you give yourself enough time to plan your trip.
For example, if you consider Al Reem Island, you will want to go during Fall or Spring when the destination is less crowded. Fewer tourists in the area gives you stronger negotiating power.
Set Savings Goals
After knowing the type of vacation you want, it is time to start saving. Open a special savings account for your trip.
This is effective if you have a habit of going into your savings account when your checking account balance is running low. Open an account that you cannot easily withdraw money from such as an online bank account.
Be sure to decline the option of getting a debit card or check for an account so you are not tempted to spend your savings. Make sure your savings goals are realistic for your goals based on how long you plan to travel.
Divide your savings goal by the number of weeks until your travel date. If the amount of savings is not affordable, extend the date of the trip to another time.
The second option is to shorten your vacation. Either way, saving money for a vacation should not be a struggle.
If you only have one set timeframe for your vacation every year, you should estimate the chances based on how much you can save between now and that date.
Sell Your Goods
Start selling things you no longer need to earn extra cash for your trip. Sites like Decluttr buy back old technology and games.
You can host yard sales and sell old furniture, clothes, and nicknames to your neighbors. The money you make will not be enough for retirement, but it will certainly cover the price of ground transportation or snacks while you are out and about.
Use your Tax Return
Large amounts of money are perfect for vacation savings. If you haven’t got a goal yet for your income tax return, use it for your vacation expenses.
Tax returns add hundreds, sometimes thousands, of dollars to your vacation budget. Set up direct deposit so your refund goes directly to your vacation savings account.
The IRS lets you split your direct deposit if you need access to part of your refund to cover other costs.
Don’t Go Shopping When You’re Hungry
Grocery shopping is no small expense particularly if you’re feeding a family. One trick to reducing your grocery bill is to avoid shopping when you are hungry.
You are more likely to pick up food you never prepared. Grocery shopping when you are hungry leads to overspending and distracts you from menu planning that could extend your mealtimes for the week.
Whatever you save in weekly groceries, put that money in your vacation savings account. It’s not enough to know that you’re saving money. You should reward yourself by putting the money you save into your vacation savings.
Where to Start Your Vacation Savings Plan
An interest-bearing account is an awesome place to start saving for a vacation. You will not get rich from the interest you earn, but it’s free money that can cover small expenses like tips during your stay.
Always plan at least 6 months ahead when traveling overseas to offer you flexibility in the price of airfare and hotel stays. This is the biggest expenditure on international holidays.
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