5 Easy steps for saving towards a vacation
Small steps can make big savings when planning to travel.
Planning a vacation and need to save money for travel?
Do you need an escape? Is it time to leave all your troubles behind for a little while? Perhaps you need a vacation. Get away from the hustle and bustle of the city or flee that freezing ungodly temperature of the North. Take a break from the dreadful rainfall and dark skies. Stop and ask yourself "where should I go on vacation". Visit the outback or frolic on the sandy beaches of the Caribbean.
How easy is saving for your dream vacation
The number one answer to the question "what is stopping you from traveling to your dream destination" is I cannot afford it. People often find multiple excuses as to why they cannot have that desirous holiday or why that dream trip keeps eluding them. Be frank and honest with yourself. If you saved up over a period or created a budget could you afford this trip? If you are modest and disciplined, you will get there. It may take a little while but with proper vacation planning and these easy steps, you can start saving towards your dream vacation right away.
How to save for a vacation without breaking the bank
When saving towards your vacation follow these easy steps to get you on your way:
1. PICK A SUITABLE TIME OF THE YEAR
Ask yourself when is the best time for me to go on an vacation? Based on your answer think, does this period give me enough lead time to plan and save? Pick a suitable period for your vacation that allows you ample time to set funds aside and explore the details of the vacation. If you realize that your original period of choice is not feasible, there is no harm in choosing the next available time frame.
Example: A suitable period could be next summer because you are due annual leave and will have a whole year and a half (18 months) to plan and save towards the vacation.
2. DETERMINE THE SPECIFIC DATE AND PLACE
Ask yourself where should I travel that would make me have the best experience and what specific date will I arrive? Determine which travel destination is at the top of your list and start planning the specific details such as your anticipated date of arrival. This arrival date puts everything into perspective and signals that the plan is coming together.
Example: You could travel to the beautiful and warm island of Barbados on the 18th of July.
3. DECIDE ON THE DURATION
Ask yourself how long can I afford to stay on this vacation? Decide on the duration of your vacation. This is important in determining how much money you will need to save to cover your time away. Use our savings calculator to see how much you can save.
Example: Based on your income level and available annual leave, you can decide to stay for one week.
4. CALCULATE THE COSTS
Ask yourself what will be the estimated cost of your vacation? Based on the details of your anticipated vacation, calculate the overall costs. The total costs should include airfare, accommodations, transportation, meals, and entertainment (if not all inclusive) and pocket money.
Example: Total overall costs of your vacation is $3,080 considering these individual amounts [700 (airfare) +1200 (accommodations) +240 (transportation) +140 (meals) +300 (entertainment) +500 (pocket money)].
5. CHOOSE A SAVINGS METHOD
Ask yourself what method of saving will you undertake to fund your holiday? Now that you have calculated the overall costs of your vacation it is time to save towards it. Choose a savings method based on the cycle of your income and put aside a fixed amount towards your vacation at the end of every payment cycle.
Example: Consider the fact that your pay is received every fortnight and the payment for your vacation should be settled two months prior to your arrival. Therefore, you will need to save your vacation money within the next 16 months. As such you will need to put aside $96.25 ($3,080/32*) every two weeks to meet this deadline. * There are 32 fortnights or payment cycles in 16 months. Use our savings calculator to see how much you can save.
Saving towards that dream vacation may take time. Be patient with yourself and practice discipline. To accomplish the funds required for your vacation, it is important to know the specific savings target before starting and working towards it consistently. Detailed planning is necessary such as picking a suitable period for your vacation, determining the specific date and place of your travel, deciding on the duration of your time away, calculating the costs and choosing a savings method. With these easy steps, will you start saving towards your vacation today?