Going on vacation is a dream for many people, but saving for this goal can be daunting. However, there are several ways to save money that will have you saying “bon voyage” faster than you may think!
Set Up a Dedicated Savings Account
Set up a savings account just for your trip. This will keep the money separate from your spending money and from your emergency fund, making it easier to track. Watching this account grow can be highly motivating as you work.
If you’re a PSECU member, you can open a Vacation Savings Share to make it even easier to save for a special trip. PSECU’s Vacation Savings Share has a slightly higher interest rate than a Regular Savings Share and prohibits you from accessing the funds with your debit card, making it easier to keep the money earmarked for savings. Another benefit is that you can make deposits and withdrawals any time you’d like.
Make Your Vacation Savings Automatic
Decide how much you can afford to put aside for your trip each month, and then set up automatic transfers to your dedicated vacation savings account. When you can’t see the money, you’re less likely to miss it, and it will be free to earn interest, getting you closer to your goal.
Track Your Progress or Make It a Group Project
To help your family stay dedicated to saving money for a trip, create a big chart in your home to track progress toward your goal. Watching your savings grow can help encourage you to keep putting money away. You can even put pictures of your dream destination near your graph to inspire you more.
When everyone is involved, you may be more likely to motivate each other to save. Even if you’re traveling alone, consider asking friends to act as accountability partners. If they encourage you to save up for your dream, you may find it easier to reach your goal!
Sign Up for Travel Grants
If you will be volunteering, researching or doing work on your vacation, you may be able to apply for a travel grant. Check for opportunities with your workplace, volunteer organization or other association and research travel grants online. In general, these can defray your costs by hundreds or even thousands of dollars.
Focus on Supplemental Income
Get a second job, freelance or take on seasonal work to save more money just for your trip. Keep this income separate from your job wages by having it go to a completely different account that’s not available through your debit card.
Appreciate the Power of the Vacation Jar
If you still use mostly cash, you can add change or one-dollar bills from your wallet into a jar and deposit your accumulated money each month into your vacation savings account. A handful of change each day can add up to hundreds of dollars every year.
Funnel Unexpected Money into Savings
If you get a bonus at work or a tax return, put this money directly into your vacation savings account. If you don’t plan to spend this money on other items, you’ll be unlikely to miss it.
Create a Budget to Squeeze Extra Money into Travel
Create a budget with your monthly expenses, outlining where your money goes. Go through your budget line by line, looking for places you can save. Consider giving up splurges, like your typical morning specialty drink, and instead put that money toward your vacation account.
If you are saving money for a family vacation, consider giving something up as a family, such as dessert or meals out.
Save Money on Vacation
Sometimes the best way to make your vacation dreams a reality is to build savings into your vacation itself. Planning a vacation that’s within your means will make it possible to get on the road sooner. For example, if a long trip is way out of reach, consider limiting your travel to four days instead of seven to save on hotel and food costs.
Using these tips together can have you exploring the world sooner. For more tips on saving and money management, visit our WalletWorks page.