Many people dream of taking a big vacation. If you are one of them, you are not alone. Statistics show that 74% of people feel that taking an annual trip is important to them.
Saving for that dream trip can be a challenge, though. With ever-rising prices, how can you put back some money toward your big vacation? It may be challenging, but it’s not impossible. Here are five ways to save for that trip of your dreams.
Open a Dedicated Savings Account
It is easier to avoid spending money that you don’t see. Set up a savings account specifically for your vacation. See if you can arrange automatic direct deposits from your checking account or paycheck. If you can get the money straight into the vacation account, you will be less tempted to spend it on something else.
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Some banks have accounts designed for goal-setting. The requirements for withdrawal may depend on whether you’ve reached a dollar amount you set ahead of time. You may also have to make a withdrawal in person. These requirements make it harder for you to impulsively spend your savings instead of leaving them to build toward your vacation goal.
Even small deposits add up. If you can only afford to deposit a few dollars at a time, that’s all right. Every dollar brings you closer to that tropical island or Alaska cruise you’ve been dreaming of.
Get a Side Hustle
Maybe your budget is already strained, and you don’t have the funds to divert into a vacation fund. If this is the case, consider taking on an additional job to earn extra cash. Consider the following ideas:
- Drive for a ride-hailing service
- Work for a food-delivery service
- Offer to house-sit for people on vacation
- Take care of pets while their owners are away
- Tutor students
- Take photos at weddings, special parties or children’s sporting events
You can often adjust the hours you work in these side hustles, making them fit your schedule. Taking on a part-time job is another idea, but you may have to sacrifice some flexibility.
Cut Unnecessary Expenses
You may be surprised at the number of subscriptions or memberships you have. How many can you live without, even temporarily? Evaluate these and other expenses that you can do away with. When you meet your vacation budget, you can always rejoin — for now, though, you may be able to live without a streaming service or club membership to put more money toward your dream trip.
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Some expenses to consider reducing include the following:
- Gym memberships
- Movie and television streaming services
- Food delivery subscriptions
- Full-priced items
- Monthly delivery clubs
Use Credit Card Rewards
If you can use your credit card wisely and avoid racking up debt, your card can help you save money. Read about the rewards policy your company offers. Do they let you save points toward flights or hotels? Do they offer discounts on travel services? Can you turn your rewards into cash back that you can deposit in your vacation fund? You may be surprised at the options your credit card company offers if you’ve never researched it before.
Plan an Off-Season Vacation
If you plan to take a trip to a popular tourist destination, you may be able to save some money by traveling out of season. If you’re going to a theme park, for example, you will probably save money by traveling during the school year. Many families go to theme parks when their children are out of school, during the summer and on holiday breaks. Crowds are heavy at these times, and prices tend to rise. Planning to go when crowds are lighter may lead to cheaper flights, hotels and ticket prices — not to mention lighter crowds.
Your dream trip isn’t out of reach. Do the math, save your money and make changes where you can, and you’ll soon be packing your bags.