Saving Money for Summer Travel
As the flowers bloom and the days grow longer, it’s clear that springtime is here, but many of us are already looking forward to summer. Whether you dream of a relaxing beach getaway, a thrilling outdoor adventure, or exploring a new city, now is the perfect time to start planning and saving for your summer travels.
Let’s explore some practical ways to start saving for your summer adventures during the springtime.
1. Budgeting:
Setting a realistic budget is the first step in saving for your summer travel. Determine how much you can spend on your trip and break it down into transportation, accommodation, meals, activities, and souvenirs.
Ask yourself: Are you prepared to fly 6 of your family members to Hawaii? Or is a road trip to Vermont more in your budget? The earlier you set your travel goals, the better your chance of getting something within budget. Having a clear budget will help you stay on track and avoid overspending.
2. Dedicated Savings Accounts:
When all your assets are stored in one place, keeping mental notes of how much you’ll be putting aside specifically for summer travel may be complicated.
Consider opening a dedicated savings account specifically for your summer travel fund. Having a separate account will make it easier to track your progress and resist the temptation to dip into your travel savings for other expenses.
Look for accounts with competitive interest rates to help your money grow faster.
3. Other Expenses:
We can’t forget that vacations drain resources for other financial needs. If you’re wondering whether a vacation will affect your ability to make a mortgage payment, it’s possible the vacation isn’t for you.
Take a close look at your monthly expenses and identify areas where you can cut back to free up more money for your travel fund. This could reduce discretionary spending on dining out, entertainment, or shopping. However, suppose you are severely affecting your quality of life to make a vacation possible. In that case, consider delaying the trip until you can spend money without stressing yourself out.
New Orleans City Business estimates that 20% of families go into debt for their vacations; trips come and go, but debt can have a lasting impact that will make you even more stressed than before the vacation started!
4. Automate:
By automating your savings, you open up passive savings opportunities. Set up regular automatic transfers from your checking account to your travel savings account so that whenever you get a paycheck, you immediately save for your trip.
As noted by CBS News, automation helps us bypass the work of manual transfers, which many may be less inclined to do. Once the funds are in a savings account, you are more likely to keep them there.
Treating your travel savings like a recurring bill will help ensure you consistently contribute to your fund.
5. Take Advantage of Rewards Programs:
To stretch your travel budget further, make the most of rewards programs. Check if your credit card has a rewards program, or use airlines and hotels that help you collect points towards future purchases. Specific credit card loyalty programs offer points for everyday use.
Be mindful, though; if you cannot make your credit card payments, you may be setting yourself up for a mountain of debt, outweighing any of the benefits of a credit card reward program!
With careful planning and disciplined saving, you can make your summer travel dreams a reality. By taking these steps during the springtime, you'll be well on your way to enjoying an unforgettable summer adventure without breaking the bank.
Need additional guidance on your financial journey? Talk to your LPSC Financial Advisor today.