Top 6 Tips to Save for Vacation
The summer season is drawing to a close, but it’s not too early to start planning for your next vacation. Whether you’re thinking of a winter vacation or next summer, it’s not too early to start dreaming and thinking and planning because you know that next time off will be here before you know it. I love to travel!! I have been to 50+ countries and I always seem to have a vacation plan in the works. You can enjoy your vacation without worrying about how you’ll pay for it after you get home. Here are my top 6 tips to make your dream vacation happen without stress.
1. Destination, Dream Big!
Dreams small! Pick a destination. Start planning where would you like go. What would you like to do? What brings you the most joy? Where are you happiest? Who would you travel with? There’s probably something in the back of your mind…some place that you would like to go? Where is that place? Pick more than one place so that you can comparison shop. Maybe one near and one far.
2. Price, Know Your Numbers.
Go to a travel agent or look online. What will it cost to take that dream vacation? Is there a deposit? When does it need to be made? Are there transportation costs? Accommodation costs? What activities will you do when you’re there? Will you need to provide meals? Get a feel for how much your vacation will cost?
Example: Destination Disney World in Orlando
I searched on Expedia.com and came up with several prices for flights and accommodations ranging from $1500 to $3650. Add to the budget theme park entrance fees of $50/day (x2 = $100) and some meals at $30/day. There are lots of choices when planning a trip to Orlando depending on your interests and lifestyle, but you get the idea. Lets’ say the two options are $2500 for a week or $5000.
3. Work Backwards.
Now that you know how much your vacation will cost. How many weeks until you depart? How much do you need to save each month so that you will have enough saved to be able to pay for that magical vacation before you head to the airport. Or even before you pack your bags?
Let’s make it easy and say you are planning this vacation for 10 months from now so for option 1 you will need to save $250 each month and for option 2 you will need to save $500 each month.
4. Be Realistic.
Do your numbers work with your budget? Is that dream vacation within your means? Are there other options? What were the elements of your dream vacation that you could use to plan a vacation that’s within your budget? Maybe Disneyland in California or a local theme park will be less expensive? Plan the vacation that fits you and what’s affordable.
5. Automate It.
When you know how much you need to save, open a “vacation” savings account at your local bank. Arrange to have that monthly budgeted amount automatically transferred to your special vacation account each month at payday. Make it a little bit difficult to access that money so that you can only use it for that special occasion…don’t carry your debit card for that account or arrange to only be able to access it by going into the bank branch. Once the direct deposit is set up you will know that the money will be there when you need it.
6. Get started.
Make a plan and set it in motion. Start saving soon! You will be lounging on the beach, swishing down the slopes or enjoying time with family over the holidays. Your dream vacation can happen. Use these six steps as a guideline to have your vacation dreams come true.
If you would like help planning your dream holiday, get in touch and I’d be happy to help. My email is Julie@JulieTheMoneyCoach.com.
Julie Feuerborn, CFP© is Julie The Money Coach . Clarifying the financial world for her clients is her passion and she founded her business to empower women to take control of their financial destiny. She coaches her clients about what they need to know to make the best financial decisions for them. She teaches them how to have financial peace of mind and ultimately financial freedom.
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