This was originally published on Monday, May 15, 2017, in the Pacific Daily News. Click here to subscribe to the PDN.
Another summer is just around the corner. Vacations should be fun and memorable. You wait all year for it to come around.
But going on vacation, especially if you plan to travel to far off locations, can put a good dent on your wallet. You may not be ready to fly off to your dream location this summer, but by saving a little here and there you can start getting closer to it.
Here are some tips on how to save money for that dream vacation.
- Create a vacation account. This is just for vacation purposes. Just like buying a car or any other high-end purchase, you should always start saving money. The account should be separate from the account that you use regularly. Consider opening the account at a different financial institution from your regular checking account so it isn’t easily accessible or tempting to use.
Read terms carefully. You wouldn’t want to spend vacation money paying fees. If possible, have an allotment or payment directly from your paycheck to the vacation account. That way you aren’t tempted to use that money for anything else. Your vacation account can also be used during your trip as an easy way to track your spending while traveling.
- Examine your budget. Is there something you can cut out or reduce? Maybe you can reduce your cable bill by removing premium packages, or cut your entertainment expenses. Create a special category in your budget just for your vacation.
- The spare-change jar. This may sound a little old fashioned, but you will be surprised how much money you can save. How much change do you have around the house? After you purchase something, what do you do with your change? If you put just $2 in change in the jar every day, you will have $730 by the end of the year. Imagine what your total will be if everyone in the family participated.
- Liquidate. We all have things we no longer need — an old game console, desktop computer or VHS player collecting dust. It can be earning you money instead. Place them on eBay or Craig’s List. There are even websites that will offer you money for your old cellphones. You can have a yard sale or take your stuff to a flea market. Get the kids involved by having them collect their outgrown clothes or toys to sell. Make it a game to see who can sell the most.
- Pantry meals. One of our biggest expenses is food. How much do you spend on groceries in a week? Most of us never completely empty our pantry of canned or boxed goods. To help save some money, take a week out of the month and use only what is in pantry and fridge. This could save you hundreds of dollars and clean out old cans and food you may have forgotten about.