Everyone dreams of having the ultimate vacation, but for most people, it remains a dream due to financial restrictions. But you don’t have to be rich and wealthy to turn your bucket-list adventure into reality. Saving and being consistent about it can help you achieve that fantasy. Here are a few tips to help you through the saving process.
Have a Realistic Goal
Your dream vacation needs to be in the confines of your income and expenses. If you are saving some money every month, but feel like it will take forever to achieve the amount you need for the vacation, or have to go beyond your means to get that amount, you are more likely to give up on saving for the trip.
More often than not, individuals plan for a vacation and then attach money to it. However, it’s usually best to do it the other way round. Come up with a reasonable and achievable amount, and then plan your holiday trip, with sites like Going Luxury, around that budget. The reality is that you can only have so much money.
Once you’ve set your goal, divide the amount by the number of months you have until the trip and you’ll have a reasonable amount to save each month.
First, Pay Yourself
It’s usually hard to find any money left over to put in your savings account when the bills come your way. To negate this, set up automatic transfers to your account every time you get paid. You should also have a keen eye on where you are putting your money. If you do your homework, you’ll come across various online banks that offer about 2% interest on savings accounts, which is way higher than the standard 0.9% in conventional banks. This is money that you can use to make your vacation even fancier.
Avoid Impulsive Purchases
We are all guilty of impulsive buying. You are just strolling in the city and come across a handbag or a jacket that you really like and just can’t resist the temptation.
It’s hard for some to resist impulsive buys and so, when you successfully avoid it, consider putting some of the money you could have spent on your vacation savings. This reward system is not only motivational but will help you reach your goal even faster.
Save on a Smartphone
There’s a slew of applications that can turn your phone into your best pal in regards to saving for something substantial. Apps like Digital take a small amount from your account on a daily basis and deposit it into your savings account. They ideally notify you every day how close you are to your goal. Soon enough, you will forget about the money until you need it.
Other apps like Acorns even round up your bills to the nearest Euro and transfer the difference into your savings account. It might be a small amount, but it adds up as time goes by.
Offer to Pay For Dinner
Splitting the check on a slew of credit cards is one of the worst experiences when dining with friends. Instead of taking this route, offer to put the total on your credit card. This not only makes the experience seamless but ideally helps you fund your trip.
If you have a rewards credit that gives bonuses at restaurants, you can volunteer to pay and get the points in return. Of course, you’ll have to convince your friends to pay you back.
Ask For Discounts
Let us be honest, when was the last time you asked for a discount on your insurance premiums, internet or cell phone bill? Chances are it’s been years, or have even never considered it. If this is you, then it is high time you gave your service providers a call.
Be firm, but kind when bargaining for rates and do not hesitate to call back another time if you think the offer isn’t much or fair. Doing this might just save you several euros which you can put in your savings account every month.
So there you have it, a few simple tips for saving towards that vacation you have always wanted.