Saving for vacation is one of the essential things you can ever do if you plan to tour the world without getting stuck on the roadside because you don’t have gas money. We all sometimes want to enjoy camping or simply skiing on the sandy beaches of Oahu.
Vacation requires funds which needs prior planning before the actual date. How do you save for vacation?
1. A budget for the vacation
Before anything else, you need to budget for the holiday. How long do you plan to go on vacation? Are you going solo or with someone? Research on the hotel prices as well. Sites such as Airbnb are a great option as you can get pretty awesome deals there depending on what you prefer.
If you are planning to travel abroad, factor in the cost of exchanging currencies to avoid unforeseen expenses.
Narrow down to where you’ll stay and the places to tour and come up with an estimated budget on how much you’ll spend. Remember to add some caution money for unexpected expenses.
2. Open a targeted vacation bank account
After budgeting, saving is the ultimate way of ensuring you have vacation money. If for example, your budget is 12,000 and you plan to go on vacation in a year, a monthly deposit of $1,000 will facilitate the trip.
You’ll find that improper planning for the trip could lead you to look for personal loans which may end up putting you into a sea of debt ultimately destroying your credit rating. In as much as there are direct lenders who offer bad credit loans, a saving culture helps you work on your credit score.
Have a savings account that is specifically for your vacation. You can even set automatic payments every two weeks or a month.
Online banks work well as they help you get the discipline of not wanting to withdraw the money. The first step is the challenging part, but once you start, it’s easier.
3. Cut down your expenses
For most people, food and household are what takes up the most substantial chunks of money. From utility bills to grocery shopping and eating out, if not well budgeted, you’d end up spending almost 80% of your income on them.
Analyze your monthly expenses and see if there are ways you can cut down. Do you eat out often with friends? How about hosting them more to cut down on dinner and drinks? Remember, your ultimate prize is going for that much-needed vacation in Bali.
Save the extra cash in your travel savings account. You’ll be surprised at how much you can cut down; it could even be $500 a month!
4. Sell stuff you don’t need any more
Decluttering is probably one of the best things you can ever do to create space in your house. It also helps you categorize stuff you don’t need anymore. Some are reusable, while others need to be discarded.
Part of getting funds for traveling is selling stuff you don’t need anymore. There are plenty of online sites that facilitate this, and you’ll be surprised at how many people need what you have. You could get even $300 on your items depending on what you have.
Another option is hosting a garage sale. This is only possible if you have plenty of stuff to sale. It will include marketing the sale and perhaps having neighbors join in.
After all this, you end up having additional money to save for the vacation.
5. Look for ways to earn extra income
Apart from your main job, do you have extra hours to spare? If so, you can look for ways to make more money. For example, the online world is full of opportunities. If you are a tech expert, you could help businesses come up with their websites at a fee. You may end up even quitting your full-time job and become a freelancer after experiencing the perks that come with it.
Apart from online, you can offer to babysit your neighbor’s kids when they are away. Such measures enable you to earn more money that allows you to have a stress-free holiday.
Hiring out your car is also a way to get you extra cash. Most of the times, we use the car when it’s unnecessary. Let the car work for you. Consider carpooling to work. Here, you get to share your ride with other people sharing the same route as you are and get perks for this.
Depending on where you live, there are different carpool incentives. Sites such as eRideShare and Craigslist have such services. Just type ‘carpool’ in Craigslist and find thousands of people in your route.
How you save is what determines if you will go on vacation or not. Come up with ways to save even when you travel. You will be surprised at how much extra cash you will have. The tips above should get you started on your saving journey.