Building A Vacation Fund Made Easy
Vacations are a great way to relax, reconnect, and build life-long memories with your friends and loved ones. It can be hard to enjoy your vacation when you’re stressing over how to afford your vacation, though. Luckily, there are some ways that you can save money for your next vacation.
In this article, we will look at the 4 best ways to build a vacation fund for your next trip. With these tips, you will be able to pay for most of your vacation, if not all of it, before the vacation starts. As a result, you will rest-easier on your well-deserved vacation to the Virgin Islands.
Create A Savings Goal
The most important part of building a vacation fund is creating a savings goal. Creating a savings goal will allow you to better know your financial limitations and budget when it comes to your vacation. If you do not have a savings goal, you could quickly find that you have spent more than you can afford.
Research costs related to airfare, transportation, food, lodging, excursions, events, and more. After totaling the costs, you’ll have a ball-park estimate of how much you will spend on that vacation.
Once you have your ball-park estimate, work backward to reach your savings goals. Do this by dividing the vacation cost by the number of months you will be saving for your vacation. This number will tell you how much you need to save each month.
For example, pretend that your vacation costs $2,400 and you have 6 months to save for the trip. Divide 2,400 by 6, and you’ll find that you need to save $400 a month to fund the trip.
If you don’t know when your vacation is yet, determine how much money you can set aside for your monthly vacation fun and divide that number by the total estimated cost. The result will tell you how many months you need to save for your trip, allowing you to better set the date for your vacation.
Open A Savings Account For Your Vacation Fund
Once you know how much money you want to spend on your vacation, open up a high-yield savings account dedicated to your vacation fund. By creating a separate savings account, you are less likely to spend your vacation fund on other items and trips all while the amount is growing.
When you open up your vacation fund account, set up automatic payments. Doing so will ensure that you are setting aside money for your trip. Once the money has been deposited into the vacation fund account, leave it there until your trip.
Use Money-Saving Apps
To ensure that you are properly saving money for your vacation, take advantage of money-saving apps. Because of the modern era, there are countless tools and apps you can use to help you stick to and reach your savings goals for your vacation.
Qapitalis a great app for making the most of your money and spending it wisely. It connects to your checking account and ensures that you are sticking to your budget. How it works is that you set goals and apply rules that automatically send money to your goals. You can even set up multiple saving options to build up your vacation fund faster.
Cut Back On Your Monthly Food Bill
If you need to spare extra pennies here and there, one of the best methods is cutting back on your monthly food bill. For many households, thousands of dollars are spent on food – grocery bills, eating out, coffee runs, etc. Put some of that money towards your vacation fund instead.
To save money on your groceries, consider buying items in bulk, such as at Sam’s Club or Costco. Additionally, you could try shopping at farmer’s markets, joining a community supported agriculture, or starting your own garden to save even more money on food.
More so, try cutting out items you don’t need – like that daily Starbucks run. Instead of getting Starbucks every weekday, only treat yourself twice a week and automatically place the money from the other three days in your vacation fund account.
For example, assume your Starbucks order costs $3.43. If you drink Starbucks every weekday, you spend $17.15 in total. To save money for your vacation, only drink Starbucks twice a week, and immediately set $10.29 (the cost from the other three days) into your vacation fund. If you do this for 24 weeks (6 months), you will have put $246.96 towards your vacation.