Getaway Trips: 3 Tips on How to Save for Your Next Vacation

Saving for Your Next Vacation
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In all honesty, getting away on vacation is expensive. According to a survey done by American Express, the average expense a typical American would spend on vacation is $1,145. Of course, that figure includes the long weekends in outdoor destinations, the accommodations, international hotspots, honeymoon resorts, etc. 

That said, whatever you have in your mind for your getaway vacation, you need to have a budget that can accommodate all of that. With that in mind, here are three tips on how to Saving for Your Next Vacation.

Set a Firm Budget

When you want to travel, the first thing you should establish on the get-go is your budget. This means that you’ll be able to plan how much money you want to spend on your vacation, where you can cut costs, and where you can spend most of your money. Or, if you’re with your spouse or significant other, you can do couples budget planning. 

When establishing your budget, one of the first things you should research is your destination. Look how the average costs for travel, food, accommodations, excursions, etc. There are a lot of sites on the internet that can help you with this, too, especially if you haven’t been to that place before. 

Next on your list should be your accommodation. Where you’ll stay is one of the most important things you should consider because it’s also one of the things that you’ll spend most of your money on.

Of course, hotels can vary according to the type of accommodations you want to stay in. For most people, different types of accommodations mean different hotels. Still, nowadays, established hotels already have different accommodations that they can offer their clients. So, you don’t have to worry about saving money on a back alley shady hotel down the street.

After getting your accommodations, your activities should be next. This part is the most exciting because you get to finally decide what you want to do for fun when you get there. However, what kills the fun is the costs the activities will have. Thankfully, there are travel blogs on the Internet that can give you an idea of how a specific activity will cost you. There are even instructionals on the activities you should avoid when saving money.

And lastly, extra money. Most of the time, vacations go without a hitch, but it’s always a good idea to prepare for one. That’s why when you’re establishing a budget, you need to accommodate for extra money in case of emergencies like delayed flights, full booking on a hotel, etc.

Set up a Travel Savings Account

If you want to start saving money, you need to create a dedicated savings account separate from your personal one. This is to avoid being tempted into dipping your hands into your vacation savings whenever you’re in a pinch. 

Some banks allow you to have multiple accounts with them. Or you can find a bank that offers a travel savings account. Travel savings accounts often have perks like having no international transaction fees, withdrawing money anywhere in the world, and giving off an extra $100 when opening an account.

After that, you can choose to automate your savings. You can do this to grow your savings funds quickly. Also, you can have your direct deposit set up at work to deposit a percentage of your paycheck into your savings account while the rest go to your personal checking account. 

It eliminates the need to manually put some of your paychecks into your savings account, which can cost you some fees. Or, if you’re constantly getting extra money from other sources, you can throw them in your savings account rather than spending it. This could be from income tax returns, bonuses, side gigs, etc.

Set up a Travel Credit Card

Travel-specific credit cards work like your regular rewards credit cards. That is, when you make a purchase using your credit card, you’ll earn a form of currency that you can exchange for rewards. 

Currencies vary per card, but they are often called points or miles. For example, most airline rewards cards pay miles for the loyalty program. The gist here is that both currencies can be exchanged for rewards in some form or another.

Typically, you can earn these currencies whenever you purchase something. For example, an airline credit card can offer you two points whenever you spend a dollar on an airline purchase. They can even give you points on your everyday non-travel purchases like groceries and stuff. 

Some of the rewards you can get in exchange for these currencies are hotel accommodations, free flights, groceries, etc. They are pretty nifty and convenient if you handle credit cards properly. And they are commonly offered from an easy personal loans lender along with other types of credit cards.

Final Thoughts

Saving for a vacation can be quite challenging, especially if you go for a big one like going overseas. However, it doesn’t have to be expensive all the time. With a little hard work and creativity, you can alleviate some of these expenses.

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