If you have the travel bug but don't have a hefty amount of disposable income, you don't have to give up on your dream of sitting on the beach, taking a road trip across the state or traveling abroad with your family. The key is to consistently be putting money aside as a vacation fund, although this can be easier said than done. Whether it takes you a few months to save up for your desired vacation or you need to invest a couple years of dedicated savings, here are some tips that can help you put your money aside.
Set Up A Separate Savings Account
One of the benefits of online personal banking is that you can easily set up different accounts within your banking dashboard in a matter of minutes. Create a new account that you'll use for your trip savings -- this is better than just trying to put extra money in your normal savings account, as you'll always have an idea of how much you've saved for your vacation and you won't be as likely to transfer funds out of this dedicated account for other expenses.
Establish A Weekly Deposit Goal
Figure out how much you need to save for your trip and how long you want to save up -- this will give you an idea of how much money you have to put aside every week. Set an alert on your smartphone to make this transfer once per week -- for example, every Friday when you get home from work as a small reward for getting through the workweek. Remember, even small transfers will add up -- just $20 per week turns into more than $1,000 in a year.
Cut Down On Bills/Expenses For Extra Savings
It can be a fun challenge to look at your regular expenses or bills, change them and use the money to put in your travel savings account. For example, if you find that you don't watch TV very often, consider canceling your package and putting the equivalent of the monthly TV bill into your travel account. You'll see the account climb dramatically with this approach.
Deposit Unexpected Money Into The Account
Whenever you get an unexpected source of money -- you find $5 on the sidewalk, get a check for your birthday or get a rebate in the mail after buying a certain product at the store -- put this money directly into the vacation savings account. These bonus deposits will help the sum grow even quicker.