Tips for Saving for a Big Vacation

tips on saving for a big vacation

Do you dream of visiting Rome’s Colosseum or hiking Machu Picchu in Peru? Maybe you want to see the Great Wall in person. Perhaps you just got an invitation to your cousin’s wedding across the country. Whatever your situation is, saving for a big vacation is usually easier said than done… until now. After you’ve determined how much you need to save for your getaway, here are some tips to help you.

1. Pay Bills on Time

tips on saving for a vacation

One of the easiest ways to save money you can use toward your vacation is to make sure you’re paying all of your bills on time. Paying bills late can mean you’re paying late fees that you can avoid. If you have trouble making payments on time, consider setting up automatic payments so it’s done for you. For flexibility, you can schedule reminders a few days before due dates, so you get a notification that it’s coming up.

2. Download an App

Did you know some apps will put money in savings for you? It’s true! Apps like Acorn, Mint, and Chime have been designed to make saving money a passive experience. After downloading, you’ll link your checking and savings account to the app. 

As you make purchases, these apps will round your total up to the next dollar and deposit those cents into your savings account. Some even allow you to link a credit card. The next time you buy lunch for $5.79, that’s 21 cents deposited to your savings account. The small savings can add up quickly!

3. Open a Vacation Account

savings account to save for  vacation

If you’re into active saving, open a separate account for vacation money to see exactly how much you’ve saved quickly. Make a plan to set aside a certain percentage or amount of each paycheck in this account. Your savings plan can be based on how many months you have before the trip. Look for an account that pays you interest each month, that will add a few pennies here and there. 

4. Create Small Savings Goals

Instead of having a large amount of money as your end goal, make a list of smaller savings goals. Your first goal can be saving enough for your transportation and accommodations. Smaller goals can be for activities you want to do while you’re away, like entrance for a museum or Segway tour of your destination. Setting small goals like this allows you to prioritize what is most important to save for.

5. Prepay if Possible

paying for a vacation

Prepaying for excursions and food vouchers can save you quite a bit on your vacation, which makes the bottom line of your trip that much lower. Search for deals on sites like Groupon and LivingSocial that will save you money off the regular general admission. Having certain activities, meals, and experiences paid for in advance will also keep you from being tempted to add-on any extras. Remember to print out your voucher or receipt to bring with you.

6. Ask for Discounts

saving for a big vacation

As you’re researching prices, be sure to check if there are any discounts you can take advantage of to save money. Common discount options are available for military service members, AAA members, and students. It is always worth it to ask.

7. Consider Trip Insurance

An emergency may come up that means you need to stay home when you were planning to be away. The way to avoid losing most or all of the money you’ve put toward your trip is getting trip insurance. This insurance will reimburse you for some expenses if a qualifying reason keeps you from your travels. If this happens, you can stick that money right back in your vacation account for your rescheduled or next trip.

Learn More About Renter’s Insurance 

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