You’re ready for a vacation, but is your bank account?
Rising inflation, increased travel demand and worker shortages have contributed to eye-popping prices for flights, accommodations, meals and more. You may be left wondering how you can possibly save for a vacation.
Below, we offer instructions on how to find additional funds to pay for your travel desires, and how to save those funds specifically for travel rather than spending them while at home.
3 Strategies to Save for Your Next Vacation
If you’re saving for a large expense like a trip, it is imperative that you put that money somewhere that it can earn additional cash or be safe from your spending binges. A dream vacation is a solid motivation to create a savings system.
These three money-saving strategies will help you fund that dream vacation in no time.
1. Open a Dedicated Vacation Bank Account
One easy way to save for a special trip is to open a dedicated vacation savings account. If you choose a high-yield savings account, your money might even grow a bit while you’re looking forward to your trip.
You can open a savings account at your local bank, but if you go with an online bank, you’ll be less likely to withdraw the money.
Set up automatic deposits into the account, and, with a little restraint, leave that money there until it’s time for your trip. Bulk up your account balance by depositing any $1 bills or $5 bills that you receive as change from everyday purchases. Funnel any extra money — like a work bonus or birthday cash — into your vacation fund as well.