Vacation is a magical word. It means that you get out into the world, seeing all that it has to offer. It also means getting away from the office for a little bit to decompress and unwind, leaving the stresses of your daily work schedule back at the office.
But there is one ugly reality of vacationing: it can be expensive depending on where you are traveling. Saving for a vacation, at least for most of the middle-class working world, requires planning ahead substantially and taking the time to save money.
Thankfully, there are tips for getting yourself financially prepared for your next big foray into the world.
Create a Goal
If you know going into your vacation what you plan to spend, you don’t have to spend time on vacation stressing about money. Know what costs you are looking at in terms of airfare, a rental car, hotel stays, any meals, souvenirs or gifts, tickets to attractions or shows, etc. that you will be partaking in on your stay. This will allow you to set an exact total for what you will need to save for your vacation.
Once you have set your budget, you can figure out how many months until your vacation and find out the average number of dollars that you will need to save each month. So if you need $3,600 for a vacation a year out, you’ll need to save $300 per month to do so.
Maximize Your Rewards
There are a number of credit cards on the market that offer rewards related to travel. These can be cash-back rewards or mileage points that go towards the redemption of airline tickets. Even if you are only able to save on your airfare, that is a huge expensive that is taken care of.
Open a Vacation-Dedicated Bank Account
One of the hardest things for some of us can be setting aside money and not touching it. That is why a dedicated bank account for vacation is a great idea. You can set that money aside and make it less convenient to access it immediately. Because the greater access that you have to it, the more likely you are to spend it.
Saving for vacation can be done in so many different ways. It is up to you to find the preference that works best for you and to stick to that method, ensuring you have money for your next vacation.