Return to site

How to (Responsibly) Save for Your Dream Vacation

· vacation,money coach,live debt free,financial freedom,financial wellness

With summer time in full swing, I think we all have that dream vacation in mind. But here’s the thing: you don’t want to blow all of your hard-earned savings on a trip. So how do you save up while still paying the bills and preparing for the future?

 

Here are some tips to make your dream vacation a reality.

Budget

I recommend setting up what’s called the 50/30/20 budget. 50% of your earnings (after tax) go to necessities like bills, rent/mortgage, etc. 30% is fun money. 20% is savings, including your retirement and emergency fund. This budget helps to ensure that your bills are paid, your savings and retirement are still growing, and you still get to have fun.

Estimate the Costs

Go ahead and look at how much this dream vacation may cost you. Be sure to include travel, food, hotel fees, and more. Websites like Expedia, Kayak, and Travelocity can be super helpful to give you an idea on the costs as well as some sweet deals.

Create a Vacation Fund

You will need to make sacrifices to make your dream vacation a reality. Once you have created your budget and know how much this vacation should cost, look at where you are spending your “fun” money and figure out where you can cut expenses. Do you eat out every week? Get coffee every day? Allocate a certain amount of that budget specifically to your vacation fund.

Map Out a Plan

Plan how long it will take you to save up what you need. Do you need to save a dollar a day? $100 a month? Stick to your plan, and you will be on your way to your dream vacation in no time!

Need help saving for your dream vacation? Contact Coremoney Coaching today to work with a personal finance counselor who can help.

All Posts
×

Almost done…

We just sent you an email. Please click the link in the email to confirm your subscription!

OK