Are you dreaming of the beach or amusement parks? You do not want to feel financially stressed when you want to relax on vacation. Saving for a summer vacation ahead of time is important so you don’t have the regret of debt when you come home from your trip. Here are some tips to help you save for your summer adventures:
- Set a firm vacation budget – include what your vacation plans are (will you be flying or driving, lodging, meals, and activities) and calculate the associated costs. Don’t forget the costs of taking care of things at home while you are away such as pet care/boarding.
- Open a designated savings account – To keep you focused on saving for a vacation, it is helpful to open a separate savings account specifically for your trip. Doing so will help you track your progress and reduce the temptation to spend your hard-earned savings on other things.
- Make saving for a vacation automatic – consider setting up automatic transfers of money each time you get paid – weekly or monthly. This approach minimizes the temptation to use your money in other ways.
- Challenge yourself to no-spend months – only spend money on necessities. Unsubscribe and say no to marketing emails and turn off sales notifications to avoid any unnecessary temptations. You can also challenge family members to get involved with savings and have a change jar for kids to their extra change in.
- Leverage your credit card rewards – If you use a credit card that offers cash back or travel rewards on transactions, consider using them to your advantage when saving for a vacation. Deposit any cash back in your vacation savings account and use travel rewards to potentially reduce travel or lodging expenses. Just make sure you pay off your credit card balance on time and in full to avoid interest charges.
- Reduce expenses – explore grocery clearance items, make cleaning supplies, look at growing produce, and make your lunch/coffee.
- Sell unused items – do you have clothing, furniture, or electronics you no longer use? Identify items you no longer need and sell them at a yard sale or online. You’ll have less clutter and more money to add to your vacation savings.
- Increase your income – consider picking up extra hours at work or working a side hustle. Try bartering if you have a skill that other people could benefit from, you could trade it for cost reductions on services you need (if you are a hairstylist, you may be able to trade a haircut for a night’s worth of babysitting).
While you can fund some trips with your everyday budget and savings, some trips require a little more money. Using your Home Equity Line of Credit (HELOC) can be a lifesaver when it comes to making your dream vacation a reality. No need to pull out the credit card or overextend your budget. Equity is one of the many benefits of homeownership and can play a big role in helping you achieve financial wellness. Learn how to make the most of your home today.
Remember to speak with a banker or call our Customer Support team at 402.333.9100 and let us know when and where you are traveling. We monitor Core Bank debit card transactions and look for those that are outside your normal activity for security purposes.
Don’t think of having to save as a sacrifice, but use these tips as little, incremental actions between now and summer can add up to a big trip and big fun. Saving for a vacation doesn’t need to be overwhelming. You can find a safe and efficient savings account to meet your needs – open your account online or stop by a Core Bank branch location today!