Planning your dream vacation is one of the best ways of motivating yourself to save more money. There are several ways to speed up the process and help you stay organized as you do so.
Cut Your Monthly Expenditures
Student loan repayments can really eat into your budget when you are trying to save for travel, especially with recent rate hikes that may have increased your payments. Refinancing your student debt is one way of taking control of your finances. You can get ahead of these rate hikes by refinancing the loans now. When you refinance student loans with NaviRefi, you will be able to set aside more money for your trip.
Create a Separate Account for Your Vacation
Having dedicated savings account for your trip allows you to keep the funds separate from your other spending money. You can even get high-yield savings accounts, which can help your funds grow while you await your trip date.
You can choose a local or online bank, depending on which options give you the best interest rates. If you receive a paycheck directly deposited into your accounts, you can usually choose to send a portion to the new account you opened. If you receive extra money, such as birthday gifts, work bonuses, or other gifts, put this into the vacation fund too.
If you already have a side hustle, you may consider putting part of that into your vacation fund. If you do not already have a side hustle, you might consider working a few weekends to bulk up the funds even faster. You might look into freelance writing, website testing, dog walking. On the other hand, depending on your hourly earnings at your current job, you may find working overtime is more lucrative.
Set a Specific Goal
If you are budgeting ahead of time, you can start researching estimated costs of expenses like hotels, rental cars, meals, trips, and special events. Once you have totaled the costs, you have an estimate of the amount you expect to spend. The next step is to work backward to figure out how much you need to save each month. So, if your trip will cost $3,000 in about 10 months, you will need to set aside an additional $300 a month.
If you do not have a vacation date yet, you can reverse the calculation to determine when you can go on your trip. It’s not like you are becoming a digital nomad, this is only one trip, so If you are going on that same $3,000 vacation but can only set aside $200 a month, your trip would need to be in about 15 months. This also gives you enough time to book accommodations and flights early, which could cut down the amount you will end up spending.
Try to Save Money on the Trip
There are many ways to save money on your upcoming vacation. If you served in the military, you may be able to get special veteran discounts. You can also use third-party websites to book your trips, as they may offer specific discounts. There are also cashback sites for vacation rentals, so make sure you do your research.