Planning a getaway this summer? Whether you’re planning a trip around the world, a weekend staycation or something in between, it’s important to start saving and budgeting for your trip ahead of time. Your summer vacation may feel like it’s a long way away, but costs such as airfare, hotel fare, and passport and travel document fees will start to creep up on you even before the trip starts. If you create an accurate budget and savings plan, you will be much more relaxed once your vacation finally comes.
The first step in saving for your summer vacation is to figure out how much it will cost exactly. Sure, you might have a rough idea of the hotel and airfare, but have you factored in things like car rentals, meals, or currency exchange and bank fees? Use ACCC’s Travel Budgeting Calculator to help you plan your exact spending.
Now that you know exactly how much you will spend, it’s time to create a savings plan. Start by using ACCC’s Saving for a Goal Calculator to determine how much to set aside on an ongoing basis for your trip.
Next, choose the method(s) best suited to your lifestyle to help you save that amount:
- Open a separate savings account. Having a separate account for your vacation savings will help you better track your money and watch it grow. If you open an account at a bank you don’t normally use or one that is slightly inconvenient, it will discourage you from making withdrawals.
- Track your daily spending. You can use ACCC’s Budget in Your Pocket tool for help.
- Save by cutting back. ACCC’s How to Build Savings by Cutting Back guide offers tips on how to make small changes to your spending on housing and utilities, personal insurance and retirement , food, transportation, health care, and clothing and services.
- Consider unique saving plans such as a fiscal fast, keep the change saving, or the envelope system.
- Do some spring cleaning. Sell any items creating clutter in your home and deposit the money earned directly into your vacation savings account.
Lastly, don’t forget to always look for discounts and ways to save money when it comes to actually planning the details of your trip. Check out this post for some helpful ideas.