#8 Ways to Save Money for Your Dream Vacation
Traveling is a great way to clear your mind and catch some much-needed break. But how to save money for your dream vacation when expenses are on the rise constantly?
Let’s be honest, daydreams of laying down on a beach in Bali or roaming the romantic streets of Paris are enough of a motivator to begin saving for a trip. But where do you start and how do you proceed?
Travel itself can be quite expensive and cause you to make some changes to your financial habits. But by taking the time to consider your current budget and the costs required for vacation, you can plan a memorable trip successfully. Let’s see how!
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How Much Should be Budgeted on a Vacation?
Many people set aside about 5% to 10% of their yearly earnings for travel and leisure purposes. This number, however, can vary greatly depending on your financial situation and lifestyle. It would also depend on the type of vacation you want.
A popular budgeting option is the 50/30/20 rule. Here,
- 50% of your total income goes towards things you need
- 30% is spent on things you want
- 20% is put toward savings
How to Save Money for Your Dream Vacation Even on a Tight Budget
1. Create a Spreadsheet of Earnings and Expenses
The simplest way to save money for your dream vacation is a financial spreadsheet!
Create a spreadsheet and divide it into different categories, such as food, bills, hobbies, and another spending. This will help you see where your money is going. Then, you make cuts where possible.
Remember that you don’t always have to cut out an entire hobby or habit to reduce expenses. Sometimes, you can simply limit it and still make great financial progress.
2. Define Your Dream Vacation
Once you have set your budget and differentiated your earnings and expenses, it’s time to figure out what exactly you want out of a vacation.
This is an important step as it will allow you to get a clear picture of where you should allocate your money. It can help you prioritize aspects of the holiday that are important to you and ones that you can compromise on.
3. Venture Off into Lesser-Known Places
Exploring hidden gems and lesser-known spots is a great idea for many reasons. Firstly, you don’t have to deal with crowds of people, which usually dampens the experience.
But more importantly, you can save money and get cheaper deals compared to more touristy spots. Sometimes, you can even explore these spots for free and enjoy scenic panoramic views that don’t cost a pretty penny.
4. Consider Your Travel Options and Deals
One of the best ways of knowing how to save for your dream vacation is by keeping travel deals in mind. A budget-friendly traveler knows to be on the lookout for travel discounts. Even pricier tourist attractions will occasionally have slashed costs.
You can check out previous years to see if any annual discounts are recurring. For instance, some places could have a travel deal for holiday celebrations.
Furthermore, you can check for any specific discounts that may apply to your trip, such as the Veteran’s discount.
Another great tip is to keep an eye out for package deals, such as all-inclusive resorts. These are great because they can significantly cut down on costs by including lodgings, food, and fun activities at a flat price.
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5. Book Early
Planning and booking early can save you a ton of money for your dream vacation. Many times, booking early comes with added deals and discounts. It also ensures that you won’t have to deal with any last-minute surprise expenses.
6. Put Any Extra Money Towards Travel Fund
When figuring out how to save for your dream vacation, think about putting any extra money toward your travel fund.
Things like tax returns, bonuses, refunds, or gifts can go directly into travel savings. This will make your dream holiday a reality quicker than you anticipated.
Further reading: The Best Guide To Building Your Personal Finance
7. Take Up a Part Time Job
If you are reading this, you likely want to know how to save money for your dream vacation in the most effective way possible. The answer is simple: earn more.
You don’t have to take a back-breaking job and put yourself through enormous stress to earn extra money. You can simply pick up a part-time job where you work once or twice a week.
A single shift for an entire year can fund your dream vacation if you stay persistent with your savings as well.
Further reading: 10 Best Top-Secret Side Jobs That Can Make You Rich
8. Set Up Automated Savings
One of the most efficient ways of saving your dream trip is to set up automatic savings transfers. When you are paid each month, you can put money aside and not touch it at all.
If you have a budget, you already know how much you can save and spend. The money that you can save can automatically be set up to go into your account without you having to get it transferred manually.
This makes saving effortless, helping you stick with it.
How Much Money Do You Need for a Week’s Vacation?
The cost of vacation will vary depending on where you decide to go and what you end up doing. In any case, the average person can look to spend about $1,800-$2,500 on a one-week vacation, if they are being conservative.
That’s after estimating $200-$300 a day for hotel and food, and airfare below $400. This amount does not include attraction tickets, tours, and car expenses.
Wrapping It Up – How to Save Money for Your Dream Vacation
Saving for the vacation you have always wanted doesn’t have to be miserable. There are so many ways to go about it while remaining within your budget.
Understand that your lifestyle and earnings are different from others. As such, it may take longer or shorter for you to save up for your dream vacation.
Do not compare your financial journey to others and keep on track. Soon, you will have achieved your holiday goals and be on a plane taking you on the trip of your lifetime!
If you enjoyed this article on #8 Ways to Save Money for Your Dream Vacation, or if you have any questions for me, please feel free to leave them in the comment section below!
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