With inflation and a high unemployment rate, some people can’t afford a luxurious or expensive vacation. Instead, they plan shorter getaways and trips close to home. Shorter trips allow some people to travel more often. But if they took another approach, they might be able to swing a larger, dream vacation.
If you’re currently saving for a trip, consider the possibility of prolonging this trip and giving yourself time to increase your personal savings. With extra money in the bank, you can perhaps afford a longer vacation or choose a completely different destination.
If you’re not completely sold on your upcoming vacation spot, here are three tips to save for your dream vacation.
1. Create a designated savings account. You likely have a personal savings account with your bank, and this account may hold your vacation money. But in all likelihood, your bank interest rate is much of nothing. Several banks and credit card companies offer online savings accounts. online savings account interest rates are much higher than bank interest rates. Open a savings account with a credit card company or online bank, transfer your existing savings into this account, and watch your money grow. Some online banks have rates as high as 1.00%. Plus, you’ll earn interest on your interest.
2. Setup automatic transfers. If you’re not a good saver, talk to your employer about setting up automatic transfers. Several online banks offer this feature, in which a certain amount from your paycheck is directly deposited into your online savings account. This is a convenient and effective way to save for a better vacation. And since the money is taken directly from your check, you’re not tempted to spend this money.
3. Liquidate items you don’t need. Extra work can provide cash for a nicer vacation. But if you’re not in a position to take on additional work, consider selling your personal belongings. Walk around your house and look for items that you no longer use. Perhaps a few electronics, furniture pieces, designer handbags, outdoor equipment and so forth. Have a yard sale, list items on eBay or sell via Craigslist. Get ideas from successful entrepreneurs about saving. Even if you don’t earn a lot, the proceeds may be enough to afford two or three extra nights in a hotel. Deposit this money into your special travel account and you’ll earn interest until you’re ready to leave.
It’s important to keep your vacations affordable. Thus, you can avoid debt and overspending. But this doesn’t suggest settling on a vacation or limiting yourself. With a little patience and extra saving, you can make your dream vacation a reality. – Travel Feeder, the ultimate travel photo blog.