How to Set Aside Money for Vacations

It’s exciting to plan for the family vacation you’ve always dreamed about! But how are you going to pay for all of the associated expenses that come with the trip? Not only do you need to budget for flights, hotels, and activities, but the costs of restaurants, souvenirs, and miscellaneous things can really start to add up over time.

The best approach is to put together a savings plan to ensure your vacation budget is ready to go! With a little bit of planning, you don’t have to worry about financial constraints when it’s time to build memories with your loved ones. The reality is that you can save for a vacation without needing to sacrifice daily life.

Write Down Your Vacation Goals

In order to ensure that you are going to have enough money set aside, it’s important to start by identifying your goals for the trip. Where do you want to go? How much money are you going to need to spend on the different spending categories during the vacation? Estimate everything that you will be spending money on during the vacation, including:

• Transportation (flights, car rental, trains, gas)
• Accommodations (hotels, Airbnb, resorts)
• Excursions and activities
• Food and drinks
• Shopping and souvenirs
• Tips for tour guides, housekeeping, etc.

Get clear about these details. Do a bit of research, write down the numbers, and estimate how much you think you’ll be spending. It’s often a good idea to add in a little more to cover any incidentals that might come up.

Once you have clarity about how much you will need to save for the trip, then you can start putting together your savings strategy and timeline.

Create a Budget & Make Sure It’s Realistic

When you are designing your savings plan, make sure that you are choosing a budget that is going to work with your real-world bills and spending. You need to be realistic about the amount of money you will be spending on the trip, as well as the extra money that you have each month that can be set aside without impacting your current way of living.

Of course, if you want to save faster, you can cut back on your spending a bit. For example, you might skip local activities such as concerts and movies for a few months and put that extra cash into your vacation fund instead.

Smart Savings Strategies

Without a specific plan in place, it’s likely that your vacation spending will fall lower on your priority list. You can stay consistent with your savings by automating the process. For example, set up a special vacation savings account with your bank, then create an automatic transfer to move a specific amount of money into that fund each month. Also, be proactive about cutting back on any unnecessary expenses that might be getting in the way of saving for your trip.

Consider any extra income sources that might be able to bring in a little extra cash, such as side hustles, freelance work, or even selling unused items that are sitting around the house.

With a little bit of creativity and consistency, you can build up your vacation fund and plan the trip for your family.

– Written by Becki Andrus