How To Save Or Pay Monthly for A Holiday

Monday, 3 June 2019

How To Save Or Pay Monthly for A Holiday

Posted by Madhu Gupta
Everyone has dreams of jetting around the world to an exotic destination to sip on margaritas on beautiful sandy beaches. But the reality is that you need money if you are to take that well-deserved vacation. However, money is hard to come by, especially if you want to have a great holiday without stressing about the cost of everything while on the road.

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The best thing you can ever do when you intend to take a holiday is to plan everything. By committing to a budget and squirreling away money every chance you get, you can have enough to have that fabulous getaway you always wanted finally. Here is how to do it.

Set Up a Budget

The first crucial step when you are saving for a vacation is to set up a budget. You need to have a list of what you want to do, where you want to go and what things you intend to buy before you start saving. Do proper research so that you know what everything costs. 
Some of the most important things to take into account include food, accommodations, airfare, and activities. After you have a vague idea of your itinerary, you can then estimate how much you need to set aside for each item on your list.

Open a Dedicated Vacation Bank Account

One of the most effective ways of saving for a trip is by having a dedicated vacation savings account. If you start early enough, you get the option of putting the money in a high yield savings account where it can grow over the weeks or months before the trip. 

Once you have opened the account, have the bank set up automatic payments so that you can conveniently save without having to see the money. You can always increase the amount in your savings account by depositing an extra $5 or $10 bills in the change you get from everyday shopping. You can also funnel some extra income, such as birthday cash or work bonuses into the vacation account.

Create a Savings Goal

Since you have an estimate of your itinerary and the things you need to pay for, you can work backward to create a savings goal. Take your vacation cost and add in auxiliary expenses (typically about 10%) and then divide it by the number of weeks before the day of the trip. 

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For instance, if you have calculated and found that you need about $2,400 for your vacation that is a year away, you will need to stow away $200 every month to reach your goal. If you do not have a set date of your vacation, you should still have a set amount of money to set aside for your getaway. For instance, if you need $2,400, you can decide to save $300 a month and take the vacation in eight months.

Earn Extra Money and Reduce Expenses

Coming up with a savings strategy for your vacation is only half the battle. Finding smart ways to free up some cash or make extra money can help you reach your goal sooner. The following are some of the ways to help you get there.

1. Earn Money with Airbnb

If you have extra room in your house, you can make some money by listing your home on Airbnb. Even if you do not have any additional place, you can still make some extra room by having campers in the backyard or on the couch for $10 or $20 a night, which can add up over the long term. 
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You can also rent out the entire home and visit with friends and relatives that you have not seen for a long time. Alternatively, you could split the profits of hosting with them. You can also save money when you go on vacation by staying in an Airbnb rather than a hotel, which could save you quite a bit of money.

2. Earn Money with Uber or Lyft or Carpool

Instead of heading straight home after work or spending your weekends watching movies, register to drive for Uber or Lyft. A few trips in the evening and on the weekend can make you some good money that can help fund your vacation. You could also carpool and charge coworkers for rides to and from work. 
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Another alternative is to rent out your car to TravelCar when you are going out of town. This will save you some money that you would have paid for airport parking, and also earn you some money that you can use when you get back from vacation.

3. Book Vacations that Allow For a Payment Plan

While they are not that much, a little bit of research can unearth several vacation companies that allow you to spread the cost over time until you cover the entire cost. One such company is Choice Holidays, which allows one to pay a deposit and then pay fixed or variable amount overtime to cover the cost of the vacation. 

Choice Holidays, who specialize in travel to Malta have easy payment plans that you can afford, particularly if you take the approach of funding your vacation using either Uber or Airbnb. If you are listing your house on Airbnb or driving for Uber, you can be sending cash to the vacation company every week or every month until you pay it all.

4. Cut Out Unnecessary Conveniences

Those little purchases such as the Starbucks coffee in the middle of the day or the packet of chips you have gotten used to over dinner can be costing you a pretty penny over time. Coffee can cost up to $5 a cup, and if you spend that every workday, it would come to more than $100 a month

If you can make your coffee and get reusable cups, it will cost you no more than $15 a month for a similar value. If you have been spending a lot on cable TV or Netflix, cut it out and watch regular TV and put the money towards your vacation account. 

Vacations are supposed to be a time for relaxation, though it can be hard to relax when you are stressed about you will pay for it all. Whether you are going for a cruise, road trip, or any other much-needed getaway, it is critical to start planning and saving up early. 

By taking a systematic approach to budgeting and saving, you can have enough money to get the vacation of your dream without having to resort to credit cards or draining your emergency savings. With a little creativity or taking advantage of services such as vacation companies that allow you to spread the cost, you should be able to go to the beach or hit the road in style.

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