Create a Vacation Fund, So Taking a Trip Doesn’t Break the Bank

Everyone needs a break. What better way to unwind than to take a vacation? Vacations can be fun but can also be a source of stress. Many find that the cost of vacations can be overwhelming or a reason to not vacation at all. Planning and preparation can decrease the financial burden, avoid debt, and put the fun back into your vacation. 

Make a Plan

Deciding where and when you want to go is the first step. You need to know how much money it will cost to get you there and how much to save. Also, having your expenses laid out will prevent overspending. It’s good to create a budget for your trip, even if it will need adjusting as you get closer to the actual trip. 

Questions to consider: 

1. When are you traveling? Certain times of year and days of the week are cheaper to travel than others. 
2. How many people will be traveling?
3. How will you be getting there? Flying, driving, train, rental car, Uber, etc.
4. Where will you stay when you get there?
5. What will you be doing when you get there? Sightseeing, visiting family or friends, entertainment, shopping.
6. How long will you be there?
7. How often will you need to eat, and what does that look like? Cooking, take out, dining, cocktails, etc. 

All of these will affect how much you need to save. You can also find ways to cut costs by looking ahead at expenses. 

Set Your Goal

Once you’ve mapped out what your time will look like, you should have an idea of the overall cost. It is good to add a buffer to each expense to make sure you have extra in case something unexpected occurs. 

Now set your goal. With an overall estimated cost, you can determine how much to set aside to reach that goal. How long do you have before your trip? Ideally, you’ll want several months to save. Start saving and be consistent! Determine how much to save weekly, biweekly, or monthly to reach your goal.  

Ways to Save

Saving money can be challenging, especially if it stretches your budget. Just think of how great your vacation is going to be! Here are some ways to make saving less of a chore: 

1. Open An Account – The first and most important step is to open a separate savings or vacation club to keep your savings. This will help you save more and remove the risk of spending it. 
2. Automatic Savings – With a savings account specifically for vacations, you can deduct the money immediately from your finances and eliminate the risk of not tucking it away. 
3. Cut Back, Save More – Find other ways to cut costs and save extra money for your trip such as fewer trips out to eat, not spending on daily coffees, canceling monthly subscriptions, reducing unnecessary spending, etc. 
4. Found Money – Put bonus money, tax returns, or unexpected money into your vacation account. Resist the urge to spend it, or at least part of it, on other expenses and add it to your trip.  
5. Extra Income – Picking up overtime, a side gig, or a part-time job can help you reach that goal faster. You may also consider selling items you no longer use through a yard sale or other selling options. 

Helpful tips: 

Avoid using credit. Ultimately, this is the goal. Using credit costs more and is harder to pay off, resulting in more stress. Plus, it can delay your next vacation. Why risk it? Creating a savings plan can eliminate extra fees and get you relaxing again sooner. 

Track spending during your trip. While that doesn’t sound fun, it can keep you from overspending. 

Make it a group thing. Asking others to join you on your trip can help cut costs. 

When it’s time to get away, you just want to relax and have fun. Don’t let money be a source of stress on your vacation. Creating a vacation fund can reduce stress, increase your cash flow, and make your trip easier. Spend a little more time saving and stick to your budget so you can spend more time enjoying your hard-earned, well-deserved vacation!

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