With spring and summer in full swing, chances are there’s a vacation for you or your family on the horizon. As you know, your budget plays a big role in keeping your finances on track. If you’re like many families, you already have vacation savings tucked away for the coming holiday. But, if you’re worried that holiday spending habits might throw a wrench in your savings, here are some tips to keep in mind before, during, and after your summer escapades.
Plan How You’ll Spend…and Save Accordingly
When it comes to preparing for travel—and traveling expenses—it’s important to know how much you can afford to spend. That’s why it’s best to decide how much you’ll spend on vacation before you make any kind of expenditure. While deciding how much to save for vacation, you have to figure out how much you can afford to spend first.
The devil is in the details: the nitty gritty about vacation savings
Don’t be afraid to get specific either; make sure you know how much you’ll be spending on plane tickets, hotel prices, admission to any shows or parks you may be attending, in addition to the estimated costs of meals during your trip. Get all of these costs on paper and add them up. If you feel yourself getting sticker shock, revise your lists until the cost of your vacation is something you can afford.
Keep in mind here that the “dream vacation” you’ve been hoping for may not be financially possible and that’s okay. Instead of going all out on one big vacation, try planning a couple of long weekends instead. This will not only help keep you on financial track to afford that dream vacation later on down the road, it will also ensure you still get the much needed break you deserve this summer.
Less Now Is More Later
Remember that gym membership you bought at the beginning of January but have yet to use? One great way to free up extra cash is to cut back on the silent service siphons that are attached to most people’s credit and debit cards. By cutting back on nonessentials you probably won’t miss, you’ll make sure every cent is going where it needs to go.
This philosophy applies to eating out as well. Did you know the average family with kids spends almost $250 every month on restaurant meals? Try sticking to homemade meals for a few months before a vacation. You’ll be surprised how much you save and how much healthier you feel! Add the saved funds to your vacation savings, and it won’t be long before that weekend trip turns into a weeklong stay.
Bankroll Your Own Vacation Fund with Infinite Banking
If you’re interested in learning how to free up more cash while increasing your buying power and personal wealth, consider talking to one of financial advisors before you book your vacation destination. As experienced professional entrepreneurs and personal bankers in our own right, we never recommend products that aren’t a proven success. Schedule your free consultation today!