Setting Goals and Having a Realistic Budget
First up: Define your ideal vacation. Do you want to travel within the country or abroad? How about when and how you should travel, or where you’d like to stay? Be sensible about what your income and financial commitments (such as debt or regular contributions to savings) enable you to do. Sure, you want to have a great time, but you also don’t want to take a month-long trip you’ll be paying for indefinitely.
Figuring out vacation details can help you start to visualize costs, which can inform how much you’ll need to save. When preparing for your trip, do your research so you can start to ballpark what the following may cost you:
- Airfare, if flying to your destination
- Car rental and other travel expenses
- Living arrangements, such as whether you’ll stay in a hotel, motel, Airbnb, with friends or other
- Groceries and eating out
- Planned activities and events
- Shopping
As you generate ideas, the potential cost of your vacation may start to worry you. That’s a natural reaction! But instead of getting stressed or worried, follow the tips in the next section that will put you on the path to saving.
A Budget That Works for You
As you go through bank statements and recent credit card bills to start planning your vacation and budget, you’ll quickly see what’s a necessary expense versus where you can cut costs. As you analyze expenses, consider the following:
- Trim unnecessary expenses: Eat out less frequently. Avoid impulse shopping. Cancel any subscriptions you aren’t using. If it’s not something you need, this is the time and excuse you were looking for to make cuts. If you need to buy it, shop around to find the best value and plan ahead for big sales. If you struggle with impulse shopping, don’t let yourself make any unplanned purchases without first waiting at least a couple days. The waiting period will help you determine what’s necessary versus what’s an impulse buy.
- Cheaper alternatives: Skip the name brand products at the grocery store or pharmacy. Buying generic is a terrific way to save on food, cosmetics and even over-the-counter drugs.
- Embrace a do-it-yourself attitude: Paying someone else to mow your lawn or shovel you out from snowstorms? It may not sound fun, but mowing your own lawn or snow-blowing your driveway can keep a lot of money in your pocket. Maybe you can do some DIY fixes and routine maintenance around the house too, instead of hiring a professional.
- Increase your income: If you’re in a position to do so, maybe it’s a great time for you to start a side gig, get a part-time job, or if you’re hourly, pick up some overtime.
Whether it’s skipping the daily cup of coffee at the local cafe or buying generic products at the store, you’ll be surprised at how quickly you can put money away.
Money Saving Tips for Family Vacations
While it’s great to cut back on unnecessary spending to help fund your upcoming vacation, there are also steps you can follow while on vacation that will prevent you from spending more than what’s necessary. If you’re on a tight budget, consider the following:
- Take your vacation when it’s not the peak season. For example, if you want to go to a major theme park like Disney World, it’s most expensive in the summer months and when school’s not in session. If you don’t have kids, or they aren’t school-aged, you can go to Disney World whenever it’s convenient for you and your budget.
- Plan thoroughly, shop early. Leverage everything that’s at your disposal — travel agents, credit card rewards, Groupon discounts, how you plan to travel, prepaying for events and experiences that offer big savings — you name it.
Leverage Savings Accounts to Your Advantage
Put your money to work for you with one of the best savings accounts for travel. With a high-yield savings account from DCU, earn dividends that adds up quickly without having to pay a monthly fee. Our members are paid among the highest rates in the country. You can even send automatic deposits to your account on a recurring basis to ensure you’re consistently saving.
Curious to see what you can save over time with DCU? Use the calculator to find out.
Keep Your Focus and Stay Motivated
Keep your vacation plans moving forward and stay motivated by doing what works for you. If visual reminders are helpful, change your phone or tablet screen’s background to a photo or painting of your destination – or bookmark activities and restaurants from your vacation destination that interest you. These simple motivational strategies can help you prepare, budget, and reach your savings goals faster.
DCU makes it easy to save for your vacation with Goals Based Banking. Set savings goals, track their progress, and celebrate your achievements – so you can plan a date night, or an evening with family, at one of your favorite restaurants as a reward.
Already a member? Log in to your DCU account to get started.
Get There Sooner With DCU
As you prepare your savings plan to travel, consider how your credit union or bank can serve you. Unlike big banks, DCU is a not-for-profit credit union that’s member-owned and operated. This means we’re able to pass on great rates and deals to our members.
In addition to high-yield savings accounts with competitive rates and friendly terms, DCU offers certificate accounts for those planning a vacation further out. By putting your money into a certificate account, you could boost your savings in as little as three months.
Please note, membership is required to open any account or loan with DCU. Visit our membership eligibility page for more information.
This article is for informational purposes only. It is not intended to serve as legal, financial, investment or tax advice or indicate that a specific DCU product or service is right for you. For specific advice about your unique circumstances, you may wish to consult a financial professional.
