How to Save Money Now for Your Vacation Next Year

by Financial Methods

summer vacation cruiseAlthough it can be difficult to look into the distant future, if you want to go on vacation next summer, there is no better time than now to start the planning and saving process.

However, there is a big difference between saying you are going to save money and actually doing it. Here are several tips to follow as you begin to save today for next year’s vacation:

1. Set a Travel Date
It is important to know how many months you have to save. With a set date in mind, you may find it simpler to set a goal based on the trip you are hoping to take.

Let’s say you have 12 months to save $5,000. These are round numbers that are easy to work toward. This means you need to save roughly $416 per month to reach your goal. And the more time you give yourself for saving, the less money you need to put away each month.

2. Make Sacrifices
Taking a vacation is not nearly as affordable as it once was. While some trips are more affordable than others (such as destinations within driving distance), many people are attracted to faraway places that require a lot of money.

You may have to make sacrifices for an extended period of time if you plan on being able to afford your dream vacation. For example, you could eliminate eating out from your budget. You may find that this frees up a couple hundred dollars per month, or several thousand over the course of a year.

When you cut something out of your budget, make sure you take that money and stock it away in your vacation fund. This way you will have access to it when you need it.

3. Setup a Separate Vacation Savings Account
By setting up a separate vacation savings account, you can see exactly how much you have saved and how much more you need in order to reach your goal. Furthermore, you never have to worry about the money getting mixed with funds that you need for other expenses in your life.

Anytime I am saving for something, such as a vacation, I prefer to use an online account. While the money is still liquid, it is more difficult to access since I don’t have a debit card, and it takes several business days for a bank transfer to go through.

Final Thoughts
Taking a spontaneous trip can be a lot of fun – however, this may not be the best idea in terms of your personal finances. Do yourself a favor and begin saving for your next vacation as far in advance as possible. Not only will this put you in a better financial position, but it will help build anticipation towards your trip.

What other tips can you offer to help save money for vacation?

{ 7 comments… read them below or add one }

Olivia August 23, 2012 at 10:14 am

Fantastic content must say….I would like to give a short suggestion. Budgeting is the 1st priority according to me before planning for a trip. To help save the proper amount, determine your vacation costs now. This way you will be able to focus on a target so you won’t be short on funds when you need them. You’ll also avoid saving more than necessary and depriving yourself of money that could be put towards other things. A good read.
Olivia

Tony September 23, 2012 at 7:00 am

I think the big one is “setting a travel date”. You can save a lot of money by planning and preordering airlines tickets 6 months in advance, although that’s not feasible for a lot of 9 – 5er’s

Paulette Noonan March 11, 2013 at 8:54 am

I would like to add on a point in here which my father has been following since the time he has come up with a tour planning. If you wanna plan a profuse vacation, you will have to go for a separate vacation savings account. Because if we think practically, It’s almost impossible not to spend money. During a tour, If you see that you have ample amount of resource, you will most likely spend it. However, if you make some of your money unavailable for spending, it will simply be that…unavailable. An easy way to do this is to create a separate savings account just for your vacation fund. I can assure you that’s it’s going to be thoroughly beneficial to you.

Financial Planner Norfolk VA May 3, 2013 at 1:01 am

Now a day’s setting goal for future is a best option whether it will be for vacation or for anything.

Gerry July 25, 2013 at 11:06 am

I always start a holiday spreadsheet, helps me plan and work out costs in advance – very useful!

S. B. October 17, 2013 at 2:35 pm

Keep a picture of your vacation destination handy in order to keep your day to day spending under control. Remember why you are making small sacrifices throughout the year.

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