8 Techniques to Save for the Perfect Vacation

We all had thoughts of traveling again during the pandemic, whether it be for work or pleasure. Maybe you had to postpone a bucket list trip in 2020?

Your bucket list could include a guided kayak trip in the Florida Keys, sailing throughout the Caribbean for a week, seeing northern lights while in Iceland, or eating your way across Italy. Someday, we will strive to make it happen. But that is just it. Your vacation fantasies will stay daydreams until you finally take action to make them realistic. You have selected the destination; now, paying for it is the next step. Read on for eight sensible techniques to build savings for the vacation you dream of.

The amount you intend to sock away should be realistic, considering your annual income and monthly expenses. If you are carefully squirreling money away every month but do not feel like you are making headway, you likely will give up saving altogether. First, we should work on the order of things. We all map out our ideal vacation, and only after think about the cost. It is much more effective to determine a reasonable dollar amount first and then carve it away when planning a vacation. Set your monetary goal, then divide the total amount by the number of months you have until your desired trip date, then create another expense to your monthly budget for that amount.

It happens to all of us once monthly bills hit our inboxes and mailboxes. It can be challenging to find anything left over to apply to your vacation fund after all your bills are paid. Trust us; the money is there if you create a method to secure it. Consider setting up an auto-transfer from your checking account to your savings account each time you receive your payroll deposits. If possible, open an account specifically for your vacation fund. When separating funds from your savings account, you will be hardpressed to use them for other expenses. Interest rates are currently low right now, so research where your money is going. Search for savings accounts with the highest possible interest rate. The money you earn from interest rates could cover dinner at that restaurant in your dream destination.

Several apps can build your trip fund with almost no effort. For example, the Acorns app rounds up your expenses to the nearest dollar and invests the funds into a custom portfolio built with your input. You will not notice the rounds up as they are withdrawn from your account, and before you know it, you will have hundreds of dollars saved.

We have all been there – after a great dinner with friends, family, and laughs; you are ready to leave, only to sit around waiting for a server to split checks and run several cards. Mistakes happen, and of course, you could be overcharged. Offering to place the dinner check on your credit card can help pay for your vacation and help to create a smoother dining experience for all. Make sure you have a rewards credit card that gives you bonus points. Have your friends give you cash or pay you back right away with a payment app, such as Venmo.

Have you ever asked for a discount on your cable or phone bill? How about car insurance rates? If you have not done so for a few years, reach out to those companies. Many people will use the method of letting your current service provider know you are thinking of switching to another company. Nine times out of ten, they will give you a more favorable rate plan. When discussing these options with customer service representatives, be kind but firm. If you are looking for a different resolution, reach out again a few days later. Taking fifteen minutes of your time could result in finding another twenty-five dollars to add per month to your vacation fund.

Enjoying a new, favorite restaurant and good times with friends and family are important and cherished. Of course, we all do it – times when we spend money on expensive take-out, especially after a trying workday. Then there are the Starbucks visits, oh the Starbucks visits! Senseless spending deters us from saving up for the items we truly seek – like booking a few nights at a resort for the family to getaway. If you have saved a respectable amount of money or paid off a daunting amount of debt, you likely did so by sensible grocery shopping, cooking yourself, and eating at home. It can take time to break the habit of dining out but organizing yourself before grocery runs to determine what you will eat throughout the week will save you significantly over time. Think about the exceptional cuisine you will be experiencing while on vacation.

Lodging is always one of the most significant expenses we incur when taking a vacation. Instead of dropping a credit card on resort lodging, consider coordinating a house swap that will save you tremendously. A house swap can be a positive experience if you are willing to dedicate time to finding the right family to trade with. HomeLink and Home Exchange companies can help save folks around 80% of annual travel expenses by using their services. Or, while on your vacation, renting out your home by using Airbnb, VRBO, or HomeAway to make additional cash for your trip.

At some point, there are only so many ways to cut your expenses. Increasing your income may be the next best way to increase your trip fund. We all love a good side hustle (if your employer allows you to do so). Do you have a particular skill that you enjoy and can create additional income? Maybe you are an artist and have an avenue to sell your artwork. We have a sports commission director that cuts neighbors’ lawns on the weekends for extra cash. Dog walking, babysitting, whatever works, and does not stress you, can be an excellent source of cash to add to your vacation fund. Setting a grand revenue goal with a side hustle can be daunting. Start small and work to make a few hundred dollars a month. Be sure to select a side hustle that you thoroughly enjoy. The last thing you need is more stress from creating a scenario that provides you with less free time. Creating a vacation fund will provide you with the cash you are looking for to take your bucket list trip that you will never forget.