It’s almost summer and that means it’s time to plan a vacation!
Vacation: it’s all you’ve ever wanted. After all, you have to get away! But saving for a summer vacation isn’t necessarily a straightforward thing if you’ve never done it before. Here are five steps that will ensure you have plenty of cash to spend on your dream vacation.
Set a Destination and a Vacation-Specific Budget
Where you’re going is going to make an enormous impact on how much you can spend. Once you know your destination, build your budget around that: consider expenses like food, lodging, transportation, and maybe even gifts to bring back for friends and family.
Make this budget separate from your usual budget and don’t forget to err on the higher side to give yourself flexibility on your trip.
Devise a Plan for Savings
Your next step should be to figure out how you’re going to meet your budgeting requirements. Calculate how much to save each month in advance of your vacation. So if your trip costs $1,200 and you’re planning to go in six months, you’ll need to save $200 a month.
It’s good to have a separate savings account for your vacation fund, or use a dedicated app to keep track of it, so your vacation money isn’t mixed in with your regular spending.
You can also download this awesome Vacation Savings Tracker to keep track easily!
Cut Out Unnecessary Expenses
How are you going to save that money? There are technically two ways, and one of them is to cut back on certain expenses like dining out or subscription services. Consider using the “50/30/20 rule” as a guideline: allocate 50% of your income to needs, 30% to wants, and 20% to savings.
This is an approach that works well beyond saving for a vacation, so you may want to adopt it for the every day. Even small changes, like forgoing that morning coffee and making it at home instead, can add up and make a big difference in your final vacation.
Look For Other Sources of Income
The second way is to supercharge your savings with an alternative source of income. This could be anything from dog walking to freelancing for a site live Fiverr or Upwork. If you don’t have the time or energy to add more work to your plate, that’s completely understandable, and you can still do something as simple as having a yard sale or selling things on Etsy or eBay.
Get creative — you’d be surprised what you can make when you put your mind to it!
Turn It Into a Fun Challenge!
Saving for a vacation doesn’t have to feel like a chore. The vacation itself is the big reward, but it’s also a good idea to reward yourself as you make progress toward your goal amount. Every time you reach a small savings milestone, treat yourself to a mini celebration—maybe a movie night at home or a picnic in the park.
You could even involve friends or family by creating a group challenge to see who can save the most in a month. The camaraderie will make the process enjoyable and keep everyone motivated.
