Tips To Help You Save For A Vacation When Your Budget Is Tight:
- Automate your savings get the money into your vacation savings account as soon as you are paid
- Prioritize your vacation above other non-essential items
- Cut back on your grocery budget
- Track your spending so you know where your money is going
- Use the cash envelope system to make your spending more real
Ive written a whole post on tactics and ideas on how to save for a vacation focusing on those on a tight budget.
Why not check it out for more help in achieving your savings goal?
Last Updated on 7th June 2021 by Emma
Need To Cut Spending Now
Housing is the biggest expense for most people, but it’s one spending area that is difficult to cut once you’ve signed a lease or bought a house. In order to increase the amount you can save in the short term, you may need to reduce spending in other areas.
Here are a few ideas for cutting spending in order to save:
- Shop for cheaper car insurance.
- Look for deals at the grocery store and create meal plans from what’s on sale.
- Eat out less frequently.
- Review subscriptions and memberships.
- Cut your utility billkeep your home a little cooler in the winter or a little warmer in the summer. Consider switching to LED or CFL bulbs. For long-term energy savings, shop for energy-efficient appliances when replacing items like a refrigerator, dishwasher, washer and dryer, television, or computer.
- When replacing your car, consider your needs and budget. Consider buying a used car to take advantage of the steep price drops that usually occur in the first year or two of a car’s life.
How Much Will Your Trip Cost
Okay so this is a little harder because theres so many factors involved. Youll need to consider what time of year youre traveling, if you can find cheap flights, how many people are traveling, and so many other factors.
This article isnt necessarily about planning your trip, but you do need some basic info to start your vacation savings plan. So just use an estimate for now.
After youre done reading this article and downloading the vacation savings plan checklist, go out and search google to find a very basic idea on how much money it will take to travel to your dream destination.
Right now youre in planning phase so dont get overwhelmed by the details. Simplify!
Be sure to check out these budget travel tips to help you save money on your vacation.
And if youre stressed about money but really want to go on vacation, it might be time to consult an expert. Working with a financial coach can help you crush your money goals fast! Find out more here.
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Bonus Tips To Make Your Money Stretch Further On A Vacation
Following the steps above will have you set up with a healthy vacation fund in no time. But before you go, here are a few bonus tips for stretching your money even farther completely free of charge!
- If possible, put some of your tax refund towards your vacation fund.
- Set price alerts for flights and other deals.
- Use credit card points to help pay for parts of your vacation.
- Once on vacation, keep those deal-hunting skills sharp by using coupons and looking for sales and other good deals like prix-fixe menus, happy hours, and discounted tickets.
I hope this guide on how to save money for a vacation helps you to have the vacation of your dreams! Tell me, where are you planning to travel next, and what are your favorite tips for saving up for vacay? Drop a comment or send me a !
Set Aside Money Every Month
Cutting your spending and putting savings toward a vacation fund is a great start. But you can take things a step further by setting aside a small amount of every paycheck you get. This of course will depend on how strict your budget is and how much you have left over once you cover the essentials. But if you can afford to set aside even a small percentage of your earnings, that money can accrue over time.
Consider setting up a savings account just for your vacation. This way, you could be earning interest in addition to the money you save.
However you decide to save, consistency is key. Maybe $50 wonât cover the cost of a vacation. But $50 every month for a year is an extra $600 you can put toward your vacation.
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How To Save For A Vacation: 17 Ways To Fill Your Travel Fund Fast
by Saeed – Last Updated May 9, 2016
Going on vacation is awesome.
You can get away from your day to day routine and obligations and experience new sights, sounds, and, often, better weather.
But, its also pretty costly.
According to American Express, the average cost of a vacation for an individual in the United States is $1,145, or $4,580 for a family of four.
Transportation, luggage, travel insurance and accommodation costs all add up. And when you dont have much cash to begin with, going on vacation can seem like a bit of a pipe dream.
But, there are actually many things you can do to get the cash you need for your trip.
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And, these things are pretty simple too.
Whether its a Cruise, beach, Los Vegas, Disney, or any other vacation, there are a few simple steps you can take to save enough money for your next vacation much sooner than you think!
So, here are our best tips for saving up for your vacation.
Benefits Of A Vacation Savings Account
Saving for bigger purchases takes time, patience, and dedication, but a designated vacation savings account benefits you beyond simply helping you save for vacation. It allows you to maximize the benefits of a getaway.
“Theres nothing more relaxing than taking a vacation you can actually afford,” Kendall Philbrick of Babe on a Budget said in an email to The Balance. “Thats why I love using a designated account just to save for vacations.”
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The Trusty Change Jar
We finally filled up a large pretzel jar of spare change recently, and took it to a local bank with a change machine . We discovered that we had accumulated more than $500 of spare changeyeah! Seem impossible? Not at allit only takes $1.37/day to get to $500 in a year. If most families have two adults emptying their pockets into a bucket every day, the silver adds up fast. Our son has his own change jar as well.
Work To Make Your Vacation Savings Fund Grow
Youve got a plan. So lets make it happen! Grow that fund bigger and stronger than Bruce Banner when he gets angry. But, unlike the Hulk, youre totally in control of your green.
How many months do you have until your trip? Divide the total amount you need by the months until you travel. This is how much you should budget to save each month.
Again, tactically speaking, as you add money to your fund throughout the month, type it into the Planned section. Every time you add money to the Planned section of your Sinking Fund, it immediately adds that amount to your fund. As you watch the fund grow, the trip becomes more and more real.
And where does that extra money come from? You can tighten spending in other budget categories, sell some stuff, pick up a side hustle, or take on overtime for a few months to make a higher income.
What you dont doat all everis put any of this on a credit card. And dont be tempted to take out a credit card for points or miles. In the end, its not worth it. You dont want to still be paying off the trip months after its over.
When you save cash and pay cash for your vacations, you bring home memoriesnot debt.
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Start Budgeting For Your Vacation
Its time to get down to business. The business of budgeting. This is the literal saving-for-your-vacation step. And its way easier if you set up a fund in your EveryDollar budgeting app.
Tactically speaking, this is how you do it:
- First, pick a budget category. We decided on Lifestyle.
- Then click Add Item and label your fundwe called ours D.C. Vacay. And we even added in a patriotic American flag emoji.
- Youll see a piggy bank pop up next to the words Make this a fund. Click this and the next button with the same words.
- Scroll down and put the total you need for this big expense as the Savings Goal. Thats the screen shot you see below.
Find Ways To Save On Household Expenses
Another way to save for your next trip involves those everyday purchases you make. After all, if you need an item, why not get it for less money?
One way to do this is via online shopping portals. If you have never utilized these sites before, you could have missed out on bonus cash for your online purchases. By beginning at one of these portals, rather than going directly to a merchants website, you could earn an added bonus when shopping at select stores. This could be as low as 1%, but weve seen examples of 10% or even more especially around the holidays.
Another option is to utilize subscription options for those household staples you need on a regular basis. Many online retailers offer a discount if you sign up for recurring shipments of select items. Again, if these are things you need to order anyway, it makes sense to save on them though be sure to cancel future unwanted deliveries before they ship.
Once youve pursued these money-saving avenues, you could take those savings and funnel them right into that high-yield savings account thus earmarking them for your trip.
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Make Extra Money On The Side
Everyone wants to earn more money, right? Well, it doesnt grow on trees, but there are opportunities to earn extra money even if you already have a full-time job.
Find a side-hustle that you can work part-time. Maybe as a waiter, bartender, supermarket cashier, etc.
For example, I worked as a nightclub photographer 4 nights a week, putting up with drunk entitled douchebags in Miami Beach.
I also built up a small online business selling ebooks about nightclub photography while working from home.
It doesnt need to be an amazing job! Just something to boost your income a bit. Do some research, and figure out what kinds of part-time positions match your skillset & talents.
Selling arts & crafts on Etsy. Stalking garage sales & re-selling on eBay. Watching peoples pets on Rover.com. Tutoring English students online. Babysitting. Video transcription. Selling blood plasma.
The only limit is your imagination!
USEFUL TIP: Check out my complete guide for learning how to make extra money from home.
Reduce Your Utility Bills
Put a sweatshirt on and keep the heat on low. Open the windows to catch a breeze instead of using the air conditioner. Turn off the lights when you leave a room. Shorten your showers. Some areas of the country have more moderate temperatures than others, but even a few bucks a month pile up in your travel savings account. The average utility bill in the US ranges from $90 to $140 a month. If you can trim 15% off by being more efficient, doing fewer loads of laundry, and conserving energy, you could add around $225 to your savings, annually.
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Cit Bank Savings Builder
CIT Bank is a unique savings account that is specifically designed to help people who are saving towards their goals.
It offers a reasonable rate of interest by default but offers a if you can meet its requirements.
To earn the increased rate, you must either:
- maintain a $25,000 balance
- make $100 deposits each month
The second option is the interest one — and it is the method that is most likely to encourage you to make progress towards your vacation goals.
As a bonus, there is no monthly fee.
Saving Money For Travel In 2021
First, a little background. before I was earning a living as a blogger like I am now, I had to save up on my own so I could afford to travel. It didnt come naturally either. In fact I used to be horrible at saving money.
When I quit my job in 2010 to embark on a year long adventure in Central America, I wasnt rich. I was living in South Florida earning $28,000 a year working as a photographer for used car dealerships and nightclubs in Miami.
Incredibly glamorous, I know!
Even with my very average income, and living in a pretty expensive area of the country, I managed to save about $7000 in 12 months by transforming my lifestyle and living below my means.
I learned how to spend less, save more, and earned extra cash on the side.
It wasnt easy, and required plenty of hard work and sacrifice, but if I could do it, Im confident you can too. It doesnt matter if you want to travel for two weeks or two years, the process is the same.
Heres my simple formula that will help you save money for your next trip.
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Cut Back On Nonessentials
Most people spend money every month, or even every day, on things that they dont really need.
Do you really need to go to Starbucks every morning for a coffee before work, or could you have a cup at home?
Do you really need both cable TV and Netflix, or could you just stick with streaming?
Think about what you really need in your life, and cut out the non-essentials. Then, put whatever cash youve saved into your new savings account. Youll be surprised by how much cash you can save, just by cutting back a bit.
Compare Account Fees And Features
Whether you’re opening an account with a new bank or your current one, check the fees, services, and interest rate on the account. Some savings accounts require a minimum deposit or may require you to maintain a minimum balance to avoid paying a monthly fee.
Some savings accounts have features like goal settings or the ability to name your account that can add more enthusiasm and motivation to saving.
A high-yield savings account allows you to earn more interest on your savings than you’d earn with a traditional savings account.
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Cancel Your Nonessential Subscriptions
My household is a sucker for subscriptions.
My wifes beloved Birchbox membership eats away at our monthly budget, $10 at a time. I have a couple leftover print magazine subscriptions that collectively account for another $100 or so per year. Our Hulu subscription is a comparable drain. We can do without them all, but the insidious combination of habit and inertia keep us bound.
Learn from our example. If your budget is hostage to nonessential subscriptions, cancel them. Sure, youll miss having the option to try all those personal care products or discover yet another mediocre show, but your life will go on much as before. Look into a service like Trim because they will go through your finance and find subscriptions you might not even know you had. They will also help by negotiating different things like cable and internet.
How To Save Money For Travel: Your Vacation Savings Plan
What trip are you dreaming of taking today? Like if you could go anywhere, where would it be? Heres the thing: wherever the place, it is possible to go on your dream trip. Yes, money is an obstacle. But it will always be if you let it. You just gotta follow a vacation savings plan!
Want to grab your man and head to a dreamy island for a week-long vacation? You know, the kind of place where every drink comes with a fancy umbrella.
The kind of vacation where you forget about all your responsibilities back home because youre too busy laying on a beach, listening to the waves.
Its possible to get there, if you intentionally save money to travel!
Maybe you dream of taking your family to a national park you know the one with epic views and even better memories? The kind where you get to see wildlife actually in the wild!
A trip where you drive winding roads with hiking trails and none of your kids are complaining.
You can make it happen by following a vacation savings plan.
Saving money is important in all areas of your life, but saving money for vacation is my favoritereason to save! Read on to find out the exact steps youll need to start and fund your vacation savings plan.
Lets get started.
Read on for my exact strategy to save money to travel, including a printable at the end of the article!
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The Final Word Remember To Include The Closing Costs
Receiving approval for your mortgage is an exciting experience. Most people are so overwhelmed by the deal that they forget about the other costs involved with real estate transactions.
When you sign the paperwork for your vacation home, the lender requires you to cover the closing costs. These expenses could cost you anywhere between two and five percent of the value of the deal.
Make sure that you save up enough money to cover the down payment and the closing costs on your vacation home. It may take you a few months longer to reach your financial goal, but you wont have to make a compromise.
Settling for a cheaper home because you dont have the money to cover the closing costs could crush your dreams.