Imagine your dream vacation. Perhaps you picture yourself relaxing in a hammock on a beach in the Caribbean, hiking Manoa Falls trail in Hawaii or taking a boat tour to the iconic Table Mountain in Cape Town. But your dream vacation will remain a pipe dream unless you start saving for it.
Here are the best ways to save money for your dream vacation.
Estimate travel costs
Now you are ready to begin planning your dream tour. Start with travel websites like Kayak, Travelocity, or Expedia to get rough estimates for accommodation and transportation costs. Then, write down must-do activities and must-see places and add up those expenses. For instance, if you are planning a trip to Tanzania and the Serengeti National Park is a priority, find out the cost of getting to and from the park as well as the price of admission.
You will also need to set spending limits on things like food and souvenirs – including tips if necessary. Once you have done the research and figured out when you want to take your trip, determine how much money you want to save each month.
Open a vacation savings account
It is always easier to save if your money is in a place you will not be tempted to borrow from for an emergency. You can open savings account dedicated to your vacation and leave that money there until it is time for your trip. You can open a savings account online or at your local brick-and-mortar bank. Choosing to keep your vacation money separate from your other accounts lessen the chance of the fund getting spent.
Walk or cycle to work
You probably have car or train commutes, but 10km is still doable on a bike. If you are a little lazy or not good at climbing hills, you may want to invest in an electric bike. Ditching the car or train for a bike is a money saver. And, you are getting fitter at the same time.
Cut back on your housing costs
Housing is likely the most significant living expense. Whether you live in a family home, apartment, cabin or recreational vehicle, there is a monthly expense for housing. Because housing costs account for a considerable percentage of your monthly income, find ways to cut your housing costs. If you stay in a one bedroom apartment, for instance, consider downsizing to a cheaper or smaller house. Move the little extra money to your vacation account.
Get paid to travel
Can you really get paid to travel? Absolutely! Don’t overlook your strengths. If you are really good with writing, photography or teaching foreign languages, capitalize on your strengths. Travel writing, for example, is a fun and exciting career that can help you see the world while getting paid for it. It is a great way of earning while you are on the road.
Closing words
Saving up for your next trip is not easy. However, setting money aside for your next vacation cannot be stressed enough. If your vacation is covered financially, you will probably have peace of mind knowing that you will not come back from your trip with loads of credit card debts – which could prevent you from reaching your other vital financial goals.
