In the past few years, many Americans have skipped out on going on vacation. This is because they simply cannot spare the funds to go due to the unemployment rate and the soaring price of products, such as gasoline. Believe it or not, a vacation is possible without having to use money that’s needed to pay bills on time.
Instead of choosing not to go on a vacation this year, you can adopt and get rid of a few habits that will help you save money. Although many people are turned off by the fact that they have to make slight changes to their lifestyle, they might be willing to do so for a few months if it means saving up enough money for the perfect vacation.
Create a Separate Savings Account
A lot of Americans have a savings account in which they regularly deposit money. A few months before a vacation, many use their savings account to store the funds needed for a vacation. Unfortunately, many people get an unexplainable urge to buy something expensive. When these people finally submit to the urge, money in a savings account is often the first to go.
Instead of putting money for a vacation into your main savings account, you should create a savings account that is solely for vacations. When you put a lot of effort into something and have everything organized, you are more likely to stick to something. With a separate savings account, you’ll be less likely to dip into those funds.
When you’re on the actual vacation, you’ll be less likely to go over budget as well. If you only put what you plan to spend in the savings account, you’ll know what you can afford to purchase and what you can’t. It’s impossible to go over budget if you only give yourself what you’re allowed to spend.
Involve Your Entire Family
A vacation’s cost can quickly exceed $1,000 to $2,000 when you have your spouse and two kids in tow. Instead of paying for the vacation all by yourself, you should encourage everyone who will be vacationing with you to save as well. For example, if you give your children an allowance, tell them to save for any extra stuff that they want to buy. Inform everyone about what they must save for to make the trip a success.
Many people vow to save a certain amount of money each day, week, month, or year. Unfortunately, plenty of these people never get around to actually depositing the money into their savings account. If you can’t trust yourself to remember to save, you should set up an automatic transfer to do this without you having to lift a finger.
An automatic transfer of five dollars each day may not seem like a lot, but it will eventually build up into a large sum of money. Believe it or not, all those five dollar bills will amount to $1,825 by the end of the year.