Post is sponsored by M&T Bank.
Getting away on a vacation is an important thing for a lot of people. But, with a slow economy and many struggling financially, it often gets pushed to the bottom of the priority list. However, with some careful planning and smart saving, a vacation can easily become an attainable goal. Take a look at these simple suggestions on saving money for a vacation.
Choose a destination
First and foremost, figure out exactly where you want to go. The budget for a three-week trip overseas will obviously differ greatly from a weekend getaway closer to home. Deciding on a destination will give you a clear savings goal as well as help you gauge how long it will take you save the amount you need.
Create a budget
Once you’ve settled on a destination, start researching all the costs associated with traveling there. For the major expenses like flights and lodging, compare prices online to get a ballpark figure for how much you’ll need. Then, figure out what kind of activities you’ll want to do when you’re there and get information on how much those will cost. From sightseeing and tours to shopping and restaurants, there are a lot of expenses to cover no matter where you travel, so you’ll want to make sure you plan accordingly and have enough money to do all the things you want to.
Open a vacation-specific savings account
In order to ensure you’re putting away the money you need to, it’s a good idea to consider opening a savings account just for your vacation fund. Setting aside money in a vacation-specific bank savings account will keep it clearly separated from the money you have in your other everyday checking or savings accounts and prevent you from accidentally dipping into it for other expenses. It will also make it easier to track exactly how much money you’ve saved so you can keep your timeline clear and well established. It may also be helpful to set up direct deposit or use an automatic transfer tool provided by many banks so a portion of your pay is automatically deposited into your vacation fund.
Open an interest-bearing checking account
Now that you’ve decided on a destination, created a budget and opened a savings account, you’ve laid some solid groundwork toward reaching your vacation goal. In addition to those steps, another thing to consider is opening a checking account with interest. You can use this for all your everyday transactions as you would a regular personal checking account, but since it earns interest, you may accrue additional money over time.
No matter what kind of vacation you’re planning, the key to bringing it within reach financially is to stick to your budget and stay dedicated to saving. It’s also never a bad idea to take a look at your spending habits and see what you can cut back on. The more ways you find to hold onto the money you earn, the closer you’ll be to having enough for a much-needed getaway.