With the weather warming up you may start daydreaming about upcoming vacations. No matter your destination here are some tips we think are most helpful for saving up for future getaways.
Plan Ahead
Planning a trip takes work, especially if you want to maximize how far your money will take you. One of the foundations of a successful trip is to plan ahead no matter where you are going.
Travel pricing rises and falls with demand, meaning that your best chance at a good price starts farther out than you may think. A good rule of thumb to follow is to start planning several months in advance regardless of where you plan to travel.
This time also presents an opportunity to get out in front of the rest of your vacation planning. What activities do you want to do? Are there any restaurants you want to eat at? Will you need a rental car? Take this time to research and plan the rest of your expenses.
Saving
According to Fidelity Investments, the best place to start saving for a trip is by evaluating your current expenses and see what you can trim.
Stable costs like housing and debt payments should remain untouched because those are necessary expenses. Places you can look for savings include; dining out, subscription services, and utilities.
Making small lifestyle adjustments can impact your day-to-day relatively little but can lead to big savings down the road. Take groceries for example, according to Nasdaq, “the difference between store-brand versus name-brand groceries averages out to about 40% in total savings”. So, if you are starting to save for a big trip one place you can look is the grocery aisles.
Interested in saving for an upcoming trip? We can help! Click to learn more about our Vacation Savers Account.
Make Your Vacation as Budget-Friendly as Possible
Unless you are looking to spring for a luxury vacation, one way to stretch your money further is by taking a budget-friendly trip. This extends to your choice of destination, accommodations, and activities.
Look to book the trip to your destination early as that is when pricing tends to be the best, according to Chase. Additionally, look into any free tourist attractions or events that you can attend during your trip.
Make Your Savings Hard to Reach
Have you ever hidden the rest of your Halloween or Valentine’s candy just so you aren’t tempted by it? That trick actually may be able to help you save for a vacation.
Placing your vacation savings in a separate account from your other finances may be a good idea. By doing this you are separating the funds between accounts, marking their separate use. Additionally, placing them in an account without access to a debit card can work to dissuade you from trying to access them before your trip.
Make Saving the New Normal
Apart from saving for a planned trip; make saving a way of life. Consistently putting money away creates a healthy relationship between yourself and your finances and will pay off dramatically at a later date.
Saving money is essential for financial security and peace of mind. It provides a safety net in times of emergency, helps achieve long-term goals like buying a home or retiring comfortably, and protects against unexpected expenses. By regularly setting aside money, you can reduce financial stress, gain more control over your future, and avoid relying on credit.
