Comprehensive Guide to Saving Money for Your Vacation

Vacation planning is always exciting, but it can also be a bit stressful when you think about the costs involved. If you dream of a tropical vacation or a road trip, a good savings plan can help.

These practical tips can help you start saving for your trip and make the most of your dream vacation without breaking the bank.

Set a Clear Savings Goal for Travel

Once you have chosen your destination and activities, the first step to save for your vacation is to set a vacation budget.

Outline the likely costs for each element of your vacation in the following categories:

• Flights: Include any fees the airline may charge, like fees for checked bags or seat reservations.
• Ground transportation: Includes airport transfers, car rentals, train and tram tickets, ride-share or taxi costs, rental car expenses and gas.
• Lodging/Hotel Rooms: Include all aspects of lodging costs, such as cleaning fees for house rentals and resort fees at hotels.
• Food and dining: Include everything from breakfast and coffee to dining out and remember that wine and cocktails can substantially boost this category’s cost.
• Entertainment and exploration: Include admission fees to museums and other sites, as well as the cost of any shows, excursions, activities and events you plan to attend.
• Shopping: Include any more significant purchases you plan to make and smaller items like souvenirs and local specialty items.
• Other costs: Include any other expenses you may have to pay, such as tips, laundry and other incidentals.

Once you have a total amount in mind, break it down into manageable monthly or weekly savings targets. This approach makes the goal less daunting and helps you stay on track. For example, if your trip will cost $2,400 and you have six months to save, aim to save $400 per month or about $100 per week.

To help you stay on track with your savings goals, consider using our Savings Goal Calculator to estimate how much you need to save each month for your dream vacation.

Create a Dedicated Vacation Fund

Open a separate savings account specifically for your vacation costs. This will help you keep track of your progress and avoid the temptation to dip into your savings for other expenses.

Think about setting up automatic transfers from your checking account to your vacation fund. This can make saving easier and more regular.

Consider Seacoast’s Sail Into Savings, an automatic savings account. It helps you save money by rounding up your debit transactions to the nearest dollar. It can also transfer $1 each time you use your debit card.

If you have a long time to save for your vacation, consider putting the funds in a money market account or a certificate of deposit (CD). These options typically earn you higher interest than a savings account, but they have some limitations and restrictions. Transferring money to and from a money market account takes longer than from a savings account. To save in a CD, you must commit your money for a given time, such as 3, 7 or 11 months.

Cut Back on Non-Essential Expenses

Take a close look at your current spending habits and identify areas where you can cut back. This might include dining out less often, canceling unused subscriptions or finding more affordable alternatives for your daily expenses. Redirect the money you save from these cutbacks into your vacation fund.

Many opportunities exist to save money in unexpected ways. Look to your mobile banking app, which likely includes money management tools that categorize spending and give you transparency into where your money is going. This includes gifts, dry cleaning, coffee shops, eating out, streaming services, salon visits and impulse buys.

Take Advantage of Discounts and Deals

Keep an eye out for discounts, deals, and promotions that can help with your travel expenses. Sign up for travel deal newsletters, follow travel blogs and use comparison websites to find the best prices on flights, hotels and activities. Booking in advance or being flexible with your travel dates can also help you snag better deals.

Consider seasonality when budgeting for travel, as this can significantly impact prices. For example, a beach vacation in the winter may be chilly but can result in huge savings if swimming is not on your agenda.

Did you know that Wednesdays and Thursdays are the cheapest international flight days? To spend a week abroad, consider a Wednesday-to-Wednesday vacation instead of the typical Saturday-to-Saturday plan. This can cut 10-20% on airfare from your travel budget.

Lodging can be just as expensive – or more – than airfare, so it pays to know when you can save the most money on hotel stays. While many factors impact a hotel rate, Tuesday is usually the best day to book a hotel internationally, with Monday holding the distinction for domestic travel.

Earn Extra Income

If you're looking to boost your vacation fund, consider finding ways to earn extra income. This could be through freelance work, part-time jobs or selling items you no longer need.

Even small amounts of extra cash can add over time and make a significant difference in your savings. Platforms like Etsy, eBay or local marketplaces can be great for selling handmade or second-hand items.

You can also think about gig economy jobs or a side hustle. Driving for a ride-share service or delivering food are good options. These jobs offer flexible ways to earn extra money.

Review Your Household Budget

One way to get extra money for your vacation is to look at your household budget. Find ways to save money wherever you can. You don’t have to be a finance expert to improve your budget. Small changes can help you build a healthy vacation fund.

Check if you can switch to lower insurance rates. You can also cancel subscriptions or memberships. Consider cutting energy costs by winterizing your home or turning down the thermostat. Minimize your food spending with savvy meal planning, buying generic instead of brand-name and packing your lunch more.

Use a 50/30/20 Budgeting Calculator

If you’re not sure where to start, try Seacoast’s Budgeting Calculator. One way to encourage your savings is to adhere to the 50-30-20 rule, which directs you to split your money in the following way: Put 50% to your daily needs, 30% to your wants and 20% to your savings. If you have a regular salary, you can calculate 20% of your earnings and have it transferred into your vacation savings account automatically each payday.

Plan Affordable Activities

You don't have to spend a fortune to have an amazing vacation. Look for affordable or free activities at your destination, such as hiking, visiting local markets and exploring historical sites.

Planning a mix of paid and free activities can help you stay within your budget while still enjoying your trip. Many destinations offer free walking tours, which can be a great way to explore and learn about the area. Additionally, consider attending local festivals or events, which can provide unique and budget-friendly experiences.

Utilize Credit and Debit Card Rewards

Maximize your savings by using credit and debit cards that offer rewards. Many credit cards provide cashback, travel points or other perks for everyday purchases. Debit cards can also offer rewards, such as cashback on specific categories.

Choose cards that align with your spending habits and use them strategically to earn rewards that can offset your travel costs. Some cards also offer travel insurance and other benefits that can save you money and provide peace of mind. For instance, using a travel rewards credit card for your daily expenses can accumulate points that you can redeem for flights or hotel stays.

Meet with Your Local Banker

For personalized advice and additional savings strategies, consider meeting with your local banker. They can help you create a tailored savings plan, suggest the best accounts for your needs and provide insights on how to maximize your savings.

Schedule an appointment today to start your journey toward a stress-free and financially sound vacation. Your banker can give you details about special promotions or accounts. These may offer higher interest rates or other benefits for your vacation fund.

Remember, the key to successful saving is consistency and planning. Happy travels!