Smart Ways to Save for Your Next Vacation

by Royal Holiday

Budgeting and saving up for a vacation may not be much fun, but it’s an important part of ensuring that you’re able to go on the trip you want without breaking the bank in the process. Following are some helpful strategies to get you started on the path toward saving for your next trip:

Create two budgets

You may find it helpful to create two budgets or spending plans for your trip: an “ideal” budget and an “acceptable” budget. For example, an ideal budget could consist of staying in a beachfront hotel, eating three meals a day at a hotel restaurant, and renting a car for a week, while an acceptable budget could include the cost of a hotel a short walk away from the beach, some restaurant and do-it-yourself meals, and a two-day car rental for a specific trip. Setting out two benchmark options like this will provide you with a certain amount of flexibility in setting your savings targets and reassuring you that you’re still able to afford a vacation you’re happy with, even if you can’t quite reach your ideal budget level.

Set up a separate savings account just for your vacation

If you’re serious about saving for vacation, a separate account is one of the most important and effective tools you can use. When your money is together in one account, it can be much harder to keep track of which amounts should go where, and it’s also more tempting to dip into your vacation funds when unexpected costs arise in your daily life. A separate account will help to keep your travel funds out of sight and out of mind until you’re actually ready to go on vacation, and it will be much easier to track your progress toward achieving your vacation savings goals.

Set up an automatic transfer option

Another benefit of having a separate vacation savings account is that you can set up an automatic bank transfer option that will allow you to place your money into a travel fund at regular intervals without you having to lift a finger. The transfer option can be a great way to trick yourself into saving, especially if you often discover that you’re not quite sure where your last paycheck went at the end of the month.

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