Do you feel like your dream vacation is out of reach? With a little strategic planning and a healthy dose of cutting back, it doesn’t have to be. Here are five tips to start saving money for your dream vacation.
(Thank you to TradingAcademy.com for our featured image.)
Plan your vacation
Before you can start saving for your dream vacation, you need to figure out how much it’s going to cost. Plan out every detail, from airline tickets to your dream resort to every excursion and expensive fine dining experience you’d like to have. How much is it going to cost? Once you have a solid figure, you can determine how much you need to save and how much time you’re going to need to do it. For example, if your dream vacation is about $3,000 and you want to go in one year, then you can divide the $3,000 by 52 weeks to see that you’ll need to save about $58 a week. If the figure is too high for you to realistically achieve, either push your vacation back a bit or determine which expenses can be cut.
Get a high-yield savings account
You’ll need a separate account that’s expressly considered your vacation fund. Skip checking accounts or savings accounts at your local bank, which will likely have very low interest rates, and opt for an online savings account. Websites like Bankrate.com keep tabs on the best options for finding a high-yield savings account.
Cut unnecessary expenses
Do you really need to spend $100 a month on your cable bill? How about the $5-a-day latte habit or the daily fast food visits? Look at where you are spending your money and what you can truly live without. Start cutting these unnecessary expenses and putting the money toward your vacation fund. If you hit Starbucks for a venti latte every day, you could save $150 a month just by putting that money toward your dream vacation instead.
Have a yard sale
You can pad the dream vacation fund by going through your things and selling items you no longer need or want. Have a yard sale and put all the earnings into your vacation fund. If you have particularly collectible or high-value items, you can also sell them online on sites like eBay or Craigslist.
Be a savvy shopper
While you can’t stop shopping all together in the name of your dream vacation, you can be a more savvy shopper. Start using coupons every time you hit the grocery store and put the money you saved into that vacation fund. Before you buy things at a store, check online prices to see if you can save a few bucks, and remind yourself not to buy things if you don’t really need them. All of these savings can help send you on your dream vacation.
Have you successfully saved money for a big trip? Share your tips below!
