How To Save Money For A Vacation

Tips on saving for a vacation

Saving for a vacation requires a plan, since traveling is expensive and unexpected situations often arise during the course of your journey. Your vacation savings should include not only money for your travel and accommodations, but also realistic allotments for dining, entertainment and emergencies. If you're wondering how to save money for a vacation, there are a few simple and creative strategies you can use to ensure you make steady progress towards taking your dream trip.

Vacation Savings Tips

Here are some tools and tips that can boost your vacation savings plan:

  • Use a travel budget calculator. These online tools can help you figure out how much your trip will cost and how much you'll need to save each month in order to pay for it.
  • Save your change. This trusty and time-honored method is an excellent way to generate a few extra bucks each week. Every time you break a bill, throw the change into a jar, then deposit it into your bank account.
  • Set up an automatic savings account. Today, you can create savings accounts that are automatically set up for monthly deposits. If your paycheck is deposited into a checking account, you can specify a monthly allotment to be routed into your savings account instead. Treat this account like it's not even there and forget about the money that's going into it -- come the end of the year, you'll be surprised to see how much you've saved for your vacation.
  • Start a travel fund. Many people have excess, unused or unnecessary items sitting around the house, and in the age of digital transactions, it's easier than ever to parlay these into extra cash. If you have items you're not using that may be of value to someone else, then you can sell them and fund the money directly into your travel savings account. It's not a good idea to take out a line of credit or a loan to finance a vacation if you can avoid it.

Alternative Vacations

Of course, you can also take a cheap vacation. In the age of frugality, more and more people are opting for so-called "stay-cations," in which they take time off and go on a trip that's close to home. This is inherently a more affordable vacation because you reduce travel expenses, and it helps boost your local economy, too.

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