How to Save Money for Your Vacation

How to Save Money for Your Vacation

how-to-save-money-for-your-vacation

The internet world is full of stories of people going to extreme ends to save money for their dream trips. Others skimp even on non-negotiable expenses like accommodation and food. The truth is that saving money for a vacation is far easier. The first step is to research your destination well, and figure out the amount you need to save.
A lot of people do not know that short vacations can be funded by borrowing money from a licensed moneylender. Read on to know how you can save money for your dream vacation.

Build a good savings plan

Start off by assessing your finances. With the time-frame you have, it is important to have a realistic plan in mind. Record your income and expenses on a spreadsheet for a fair assessment. Set a strict spending budget, cut out any unnecessary expenditure, and consider adding to your income by working extra. Scrutinize your savings plan regularly.

Make commitments to your vacation

Put up pictures of the destination, maps of the route you will be charting, and posters etc. to constantly remind yourself. Committing yourself to the vacation will need reducing your expenditures, or seeking cost-effective solutions. Put up old items or gadgets you don’t use anymore, to sell. Make frugality a part of your life.

Evaluate your expenditure

Begin by listing out all your expenses on a spreadsheet. Now, classify them into needs and wants. Accommodation, food and water, basic healthcare and clothing classify as needs. On the other hand, a bigger house than you need and branded and expensive clothes are unnecessary wants. Take public transport instead of renting cars or buying gas.

Cut down on eating out

Imagine eating an exotic meal in another part of the world for half of what you spend on a coffee. You may not realize it, but a big portion of your income goes towards eating out. It is time to stop splurging money on overpriced coffee.

Instead, get a coffee-maker and start cooking your own meals. Eating healthy, home-cooked food will mean less healthcare expenses as well. Over a year, it would add up into a significant amount.

Start a dedicated fund

Create an account dedicated specially to your travel fund. Feed it weekly or monthly with whatever savings you have in that period. It is a good idea to make it a fun activity. Every time you visit the bank, make sure to transfer a small amount to the fund. Deposit cash backs, prize money, any benefits in this account. Work overtime, or part-time, and direct the income into this fund.

If you are young and free of any debts, start a travel fund with the help of a licensed moneylender. This is useful if you don’t have a lot of time to save. You will have a small amount of money to start with, and a flexible repayment routine.

Consolidate your debts

On the other hand, those with debts from various sources would do well to consolidate their debts. Paying different bills throughout the month can make saving money for your vacation difficult. Instead, get a personal loan or a payday loan from a licensed moneylender, and pay off all of them at once. Once you’re clear with your finances, you are in a better position to direct money into your travel fund.

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