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A vacation is one of the best ways to disconnect and recharge your batteries. But whether you dream of a 7-night Mediterranean cruise or a simple weekend getaway, saving up for your trip can seem like an impossible feat. When your ideal vacation doesn't match your bank account balance, use these six tips to power-up your savings.
1. Create a Vacation Budget
Estimate travel, food, entertainment, and lodging expenses for you can set a reasonable vacation budget. Limiting the dollars you'll spend gives you the freedom to truly enjoy your time away while ensuring a regret-free return trip. Establish the maximum amount you're willing to spend so as not to interfere with your other financial goals.
2. Start Saving Now
Even if you haven't decided on your destination, don't wait another day to start stashing money into a vacation fund. Include "Vacation" as a new category in your monthly budget and regularly contribute to it. Deposit funds into a Vermont Federal Special Savings Account which you can rename at any time to match your savings goal, e.g. Trip to Spain.
3. Schedule Automatic Transfer
Utilize Vermont Federal's Online Banking money management tools to your advantage. Beginning with your next paycheck, arrange for an auto-transfer from your checking account to a designated vacation savings account. This will help prioritize saving for a vacation over other non-essential expenses, like entertainment and dining out. The amount you transfer should be based on your vacation budget and timeline.
4. Increase Your Income
One of the fastest ways to save up for a vacation is by increasing your income. While this method of saving doesn't require you to cut expenses, it does require you to give up more of your free time. But the amount you can add to your bank account by taking on freelance work or picking up an extra shift or two at work might be worth it.
5. Travel During the Shoulder Season
The summer and winter months are popular travel times, which means prices are higher. Instead of traveling during peak season, try planning your trip in March, April, September, or October. The weather may not be favorable, but you'll have more options when choosing your destination, accommodations, and method of travel.
6. Redeem Rewards Points
If you've accumulated reward points on your credit card, redeem them to cover a variety of vacation costs. For example, points earned using a Vermont Federal Visa® Platinum Reward Credit Card could pay for airline flights, hotel stays, and event tickets. If you don't have enough points to pay for a larger travel expense, consider redeeming them for gift cards which can cover some or all your vacation meals.
While saving for your next vacation might seem impossible, it's easier than you think. Spend more time relaxing and less time stressing about money when you start earning points toward your next vacation when you use a Visa® Platinum Reward Credit Card. Apply today!