How To Save For A Vacation

Vacations are fun and a great thing to look forward to, but many people end up getting stressed about money during their vacation. Making a financial plan and saving money for a vacation ahead of time can take some of the tension out of traveling and allow you to enjoy your hard-earned time off. Setting aside a savings plan for your vacation means you won’t have to worry about what you’re spending while you’re on the trip – you can just sit back and relax knowing you’ve already taken care of it.

There are a lot of different ways you can save for a vacation, and you can choose the savings option that works best for your goals. Arkansas Federal Credit Union offers a variety of savings account options that can help you save for a vacation. 

Ready to start dreaming up your dream vacation? You can open a savings account or vacation loan with Arkansas Federal Credit Union today. 

Saving For a Trip

When you’re ready to start planning your vacation, you can choose from several different options in regards to how you want to save. It’s important to consider your financial situation, your vacation plan, and what saving option works best for you.

Budget Early

When saving for a trip, one of the most important things you can do is budget early. If you know where you’re planning on going, start determining how much you think the vacation will cost and how you can start saving for it.

Making an itinerary of the different activities you’d like to do, outlining how much you’ll spend on food and lodging, and calculating other travel expenses can help you create a budget for your trip. With your budget in hand, you can start working on saving up to that amount.

Reduce Expenses

You can budget for your vacation by auditing your recurring monthly expenses and identifying things you can do without. If you free up money in your monthly budget, you can allocate it towards your savings goal.

Redirecting this money to your vacation budget can help you reach your vacation goals faster while also establishing new money management habits in your everyday life. Once you’re back from vacation, you can choose to reintegrate these expenses or use the extra money to start saving toward other financial goals.

Setup a Sinking Fund

If your trip is a few months to a year out, you can create a sinking fund to save for your vacation. For example, if you’re planning a trip for a year from now that you think will cost you $3,000 and you save $250 per month, in a year, you’ll have the whole cost of the trip saved.

Setting up a savings account specifically for your sinking fund can help you keep the money separate and track it more easily. 

Use Direct Deposit Splits

You can automate your savings account to help you stay on goal. Elect to have your direct deposits split into savings accounts each period or set up recurring automated transfers from your checking to your savings account.

Plan Early

Planning for your vacation early can help you save money on your vacation. The earlier you start planning, the more time you have to hunt for better prices. You can track flight pricing to get the best deal on your trip, look for accommodation deals, or learn more about the best times of year to travel to your dream location.

Cash Back Rewards

Cash back rewards credit cards can be a great way to make travel more affordable. Some credit cards offer cash back rewards, extra airline miles or travel points that you can cash out to help pay for your travel. Arkansas Federal’s Cash Back Credit Card offers 2% cash back for every $1 spent.¹ Apply online today to start saving for your vacation.

Earn Extra Money

There are several different ways you can earn extra money to help pay for your vacation. You could plan to rent out your home while you’re away to help offset the cost of your trip, get a part-time job to earn more while you plan, or have a yard sale to help you get rid of extra things around the house while earning some extra money.

Budget Expenses

Budgeting non-vacation-related expenses can help you free up money to put towards saving for a trip. Comparison shopping online or in-person for big purchases can help you save a lot of money. Using coupons at stores you regularly shop at can add up quickly and help your vacation fund grow. 

Paying bills on time is an important part of budgeting and saving money. With on-time payments, you avoid late fees and can put that money straight into your vacation savings.

Look for Money

You could have a lot of money sitting around, not being used or adding to your savings. If you’re trying to save money for a vacation, depositing money out of payment accounts like Venmo and PayPal is a great way to start. Making returns you have sitting around your house is a great way to get money back into your account.

If you have credit card points you can convert to cash, you can use that cash to add more funds to your vacation savings account. Using any gift cards you have lying around can help you underspend on your budget and have more funds to save for your vacation. 

Spend Strategically

When planning a vacation, you can be strategic about how you spend your money. Use cashback portals to book flights, hotels, rental cars, or other important vacation items.

Through a cashback portal, you can take advantage of rewards, and you might even get deals on certain bookings.

Use a Travel Agent

Travel agents have connections with hotels and rental car agencies that they can use to help you find discounts when booking your vacation. Some travel agents earn a commission from hotels and other vacation bookings, meaning they aren’t paid by you. 

Working with a travel agent can help you get discounts on your trip, sometimes without adding any extra cost.

Travel Off-Peak Time

Traveling off-peak vacation times can be cheaper than a vacation during the peak travel times. If you can take a vacation between November and March, your savings could take you a lot farther.

Peak travel times may differ depending on where you’re planning to travel. Researching prices in advance can help you plan your trip for an off-peak time. Planning your trip 6-12 months in advance gives you time to track prices and book when prices are cheaper.

Plan Flights Strategically

The way you plan your flights can go a long way in making your vacation cheaper. Flying out of an airport hub rather than a smaller local airport can save you a lot of money.

Airport hubs have a sizable number of different airlines and flight options, and tend to have more competitive pricing than smaller airports. Flying out of a hub could also help shorten your travel day by removing connecting flights.

Plan Your Currency Exchange

Currency changes are a must when you’re traveling internationally, as credit cards aren’t accepted everywhere, but the process can be difficult and expensive. It’s a good idea to have a plan in advance for your currency exchange so you can avoid high currency exchange rates and other fees.

Planning for your currency exchange can help you stay on budget for your vacation. If currency exchange isn’t a good option for you, you may be able to find a travel credit card that can be used internationally with little to no additional charges.

Get a Vacation Loan

If saving for your vacation isn’t an option, taking out a vacation loan could be a good alternative to finance a trip. Vacation loans are personal loans used to pay for vacation expenses.

Arkansas Federal offers vacation loans, and you can apply online today and get approved for your vacation loan as soon as the same day.

Start Saving For a Vacation Today

Saving up can help make taking a vacation more manageable and less stressful. Starting the planning process early gives you time to work out the best savings option for you. Giving yourself time and options to save is the best way to plan.

Get in touch with Arkansas Federal to open a savings account for your vacation or talk to a financial expert. Visit a local branch today to start saving for your next vacation.