Many people have at least one dream destination that they would love to experience. It might be backpacking around South-east Asia, going on an African safari, or seeing the Northern Lights. Unfortunately, for many people, these dreams never actually become a reality. If you have decided to take the plunge and work towards turning your ideal trip into reality, the first obstacle you might face is the cost. To help you out, here are some tips for how to save for your dream trip.
Set a savings goal
Firstly, have an idea of how much money you will have to save in order to achieve your dream holiday. This may involve carrying out preliminary research and planning into what you want to do during your trip. For instance, research the average cost of a safari tour, flights to and from your destination, and hotel rooms. Remember to factor in spending money into your budget, as well as an additional amount to be used in case of emergencies. Once you know roughly how much your dream trip will cost, you have a tangible saving goal to work towards.
Set up a checking account
Setting up a separate account in which to deposit your vacation savings is ideal for monitoring your savings goal and ensuring that your hard-earned holiday cash is not unwittingly being frittered away in your main account. A free checking account allows you to do this, starting with an initial deposit of only $25. You are then provided with free eStatements and online access to enable you to manage your daily transactions conveniently. This enables you to monitor your finances easily and keep on track of your vacation savings goal.
Cut unnecessary expenses
Any long-term savings goal is likely to involve making sacrifices in order to make your dream a reality. Analyze your monthly expenses to see what could be cut – for instance, a seldom-used streaming service or your daily Starbucks habit. Money saved here can then be deposited into your vacation savings account. Furthermore, acquire the habit of questioning yourself whenever you come across the possibility of making an impulse buy. Do you really want that new pair of shoes, or would you rather the money be put towards your safari vacation? Instead of an expensive evening at a bar, could you invite your friends to a cocktail party at your house instead? Cutting unnecessary expenses will all add up to providing the finances to make your dream trip a reality.
Look for alternative sources of income
You could set up a side hustle with the sole purpose of channeling any income into your vacation savings. For instance, clean out your home, sell any unwanted items, place more valuable items on online auction sites and with private dealers, and sell general bric-a-brac at a yard sale. If you are a talented crafter or thriftier, you could set up an Etsy store on which to sell your wares.