Start Saving in Summer For a Winter Vacation
Use these tips to start saving for a winter vacation in summer.
Not looking forward to the snow, cold temperatures and short days of winter? You're not the only one. For those that live in parts of the country that experience the full brunt of the season, going away on a winter vacation sounds like a dream come true.
But as most consumers know, vacations can be costly. However, that doesn't mean a getaway from the winter blues is impossible. Saving money for vacation will take some time and effort; so if you're looking to travel in winter, it's best to start saving in summer. Here's how:
1. Do some research
You don't know how much you'll need to save without knowing how much the vacation stands to cost. Though you might not have a definitive idea of where you're going quite yet, it's essential to lay down some basic groundwork for the vacation. This means figuring out how many people are going, what transportation costs will be involved and what lodging will be needed. Run these costs through different scenarios based on where you're going to establish a range — and a more solid picture of what savings you need.
2. Trim the budget
Setting out those cost expectations will help you plan for how to save. While there are parts of your budget that you can't touch, such as fixed expenses like mortgage or lease payments, utility bills and debt obligations, take a look at your discretionary spending.
Summer is a time where spending on dining out, movies and other recreation can spike. And while nobody's telling you not to have fun in summer, it's in the best interests of a winter vacation that you try to tamp down that spending as much as possible. One delivery meal can cost between $20 and $40. If you get takeout more than once a week, those costs really add up. Limit your spending on entertainment and dining and put away all those dollars saved.
3. Open a dedicated savings account
Even though you might be spending less, there's still a temptation to use that money if it's just sitting in your checking account. In order to earmark those funds for vacation and nothing else, it may be wise to open up a dedicated savings account for you winter getaway. It's a good idea to make sure you get a good interest rate offer so you can pump up those savings incrementally. Every penny will help.
This doesn't have to be a one-time thing either. In fact, when you start an account, you can keep it around for future vacations. You might not even use all the money you set aside, which will continue to accrue interest in time for your next vacation.
Saving up for a vacation doesn't have to be a challenge. With enough foresight, planning and concerted effort, those mid-winter sandy beaches and cool tropical drinks are that much closer to becoming a reality. Need help planning your budget, or want advice on personal finances and the best savings account for you? Talk to a local representative at Vectra Bank today.