If you’re thinking about planning a vacation, now is the time to start saving. The good news is that the sooner you get started, the easier it can be to plan the type of experience you want to have. The key is to have a plan and consistently save to reach your goal. Consider these tips to get the ball rolling on your dream vacation:
- Create a Budget. One of the first things you’ll need is a budget. Within your budget, include a line for your vacation savings. That way, you’re making savings a priority, and it becomes a financial investment you plan for from the start. An estimated budget for your trip will also be helpful to give you an idea of how much to save. An itinerary planner can help you with this process. Get an idea of what it costs for flights, accommodation, and the main activities in the area.
- Use a Savings Calculator. A savings calculator can be one of the easiest tools to help you determine how much you need to save each month in order to reach the amount for the vacation you’re dreaming of. It might give you a better understanding of how long it could take to reach your desired amount.
- Open a High-Yield Savings Account. Your next priority should be to open a savings account that allows you to put aside money for your vacation where it will be accessible if you need it. A high-yield savings account is the perfect choice for this. You can easily withdraw when you’re ready to book the hotel or airline tickets, but it will still earn interest for you to maximize your funds in the long run.
- Schedule Transfers. Once a dedicated account is open, your next step is to fund it. There are a few key ways to do this to ensure you are consistently saving money to reach your financial goal:
• Set up recurring transfers. You can set up recurring transfers from your existing account into your vacation savings account. This allows the financial institution to move a set amount of money each week, month, or frequency that you choose. That way, you don’t forget about it and spend the funds elsewhere.
• Set up direct deposit. Another option is to set up a direct deposit. You can have a portion of your paycheck deposited each month or pay period right into your savings account. Again, this way, your savings remains a priority without too much effort.
• Make extra deposits when you can. If you get any extras along the way, make sure to deposit them into your savings account. For example, if you receive a bonus from your employer, you may want to put that into your account so it can earn a significant amount of interest for you.
- Monitor for Deals and Discounts. With plenty of time ahead, start watching for special offers and discounts as they arrive. You may want to bank extra points on your cash-back credit cards or travel rewards credit cards, too, to help you qualify for those savings options. When you find the perfect offer, it’s time to book. Since you already have the money you need in savings, you’re able to book that special price without scrambling.
- Find Ways to Trim Back. To really amp up your savings options, determine where you can cut back on expenses so you can put more towards this goal. For example, now may be a good time to pack lunch for work or make coffee at home. Consider all those subscription services you’re currently using so you can get rid of any that you don’t really need. Review your financial priorities and what you may be able to go without if it means a dream vacation instead.
What’s most important while saving is staying consistent. No matter what kind of trip you are saving for, by putting money aside and working to build up your savings account for it, you’ll be able to achieve your vacation goal. More so, this can help you to build stronger savings habits to fund other goals and dreams you have down the road as well. Bank5 Connect’s high-interest savings accounts can help you reach your vacation goals. Visit our Savings page to learn more about our high-yield savings options or to open an account online.