How To Save For a Vacation In 2024

I am a major admirer of travel and highly encourage seeing the globe if you can afford it.

However, here’s a disclaimer: going on vacation is pricey. It’s much too simple to spend and get yourself into debt.

When you think about it, this fundamentally undermines the point of coming on vacation in the first place. Is it worth it to work and save for months merely to go on a trip, only to return with large credit card bills?

The good news is that with proper preparation, you can budget for all of your trip expenditures in advance. Continue reading to learn how to save for a trip and see the world without breaking the bank.


1. Determine whether a vacation makes sense.


Not everyone will want to read this, but going on vacation may not be the greatest option right now. Before you begin your road trip or summer vacation, ensure that the following essentials are in order:

Your debts are under control.
Most people have some level of debt. Before you go on vacation, make sure your debt is under control to prevent adding to it.

This includes avoiding having any floating credit card balances or high-interest loans. Adding hundreds of dollars in vacation expenditures will only make issues worse.

In addition to having little debt, it’s a good idea to have at least six months’ worth of emergency funds in the bank.

Consider what would happen if you were on vacation and had an unanticipated medical emergency. Or maybe you miss your return flight and have to rebook, only to discover that the new price is four times the original.

These are regular circumstances that may easily cost thousands of dollars, so be prepared to deal with anything life throws at you.

You’re not struggling financially.
There is a significant difference between taking time off work to rejuvenate and going on an expensive vacation.

If you’re struggling to put food on the table or pay your rent, taking a trip may not be a wise option. In this case, prioritizing your necessities before your wants makes sense.


2. Get out the calendar


Once you’ve decided on your next trip, get out your calendar and choose a date – ideally six months to a year in ahead.

This may seem like a long time to arrange trip plans, but you’ll need it if you want to nail down the financial aspect of vacation savings.

Planning ahead of time will result in lower overall costs, including airfare fares, hotel rooms, and rental automobiles. It also allows you more time to save money.

When you have plenty of time to prepare ahead, you may determine what your travel expenditures will be during the off-season vs peak season. There is usually a big difference.


3. Set your trip budget


Setting a travel budget might help you avoid overpaying and meet a specific financial target to cover your vacation expenses.

Begin with a total trip cost (e.g., $3,000), and then fill in your itemized costs from there.

Here are some of the essential vacation expenditures you’ll need to budget for:

Food, transportation, accommodations (e.g., Airbnb), entertainment, shopping, and sightseeing.
The amount you need to budget for is mostly determined on where you go, when you travel, and how long your stay.

If you remain close to home and avoid flights and pricey accommodations, you may pay between $500 and $1,000. However, if you take a long-haul ticket to Hawaii or Bali, you may easily spend $5,000 or more on your trip.

Begin with the expenditures that cannot be avoided, such as airfare and lodging, then work your way up. It’s fairly unusual to change your holiday destination due to financial constraints.


4. Choose a destination.


Disney World may sound like a lot of fun, but it can be very expensive.

Be realistic about where you want to go. If you want to save money, avoid theme parks with high admission costs (e.g., Disney World) and heavily visited tourist destinations (e.g., New York City).

Thinking through these financial questions ahead of time increases your chances of finding real enjoyment and relaxation on vacation since you will be traveling within your means.


5. Begin saving money


To prevent getting into debt for vacation, save aside money each month in a savings account prior to your trip.

Consider creating a second bank account just for your vacation savings. Alternatively, many online banks provide savings envelopes, which allow you to deposit cash into a designated account bucket for a specified purpose.

Suppose your vacation will cost $5,000 in total. You can save that much in ten months at $500 per month, six months at $833 per month, or three months at $1666 per month.

The primary purpose for establishing a special savings account (or envelope) is to avoid depleting your vacation cash for daily spending.


6. Take up a secondary hustle.


Taking up a side hustle is the most effective strategy to increase your finances and capacity to travel. For example, you may get in your car and drive for Uber and Lyft, walk dogs, or work on TaskRabbit to earn a few hundred dollars or more each month.

Consider this: the more you work in advance, the more money you’ll have to meet your vacation expenses. This also means less stress because you won’t have to worry about repaying your credit card balances when you return from your ideal trip.

Use credit card points.
Using a travel rewards card is a simple method to offset vacation spending. Not only can you earn extra points and cash back when paying for necessities on your vacation, but you can also use your accrued points to pay for flights and hotel accommodations in advance.

If you are responsible with your credit, travel rewards cards are the way to go. It is that easy.

Create local relationships.
Once you get to your location, have an open mind. Do not be scared to strike up a discussion with a local and ask for some advice. If you follow the natives’ lead, you’ll save money and have more fun.

Check your personal social network to determine whether you or any of your friends have any links to your holiday spot.

Find the cheapest travel.
If you have to travel, use sites like Expedia, Kayak, and Skyscanner to discover cheap tickets.

Consider traveling at unusual hours to save money. Traveling on Sunday evenings or catching a red-eye flight may sometimes result in cheaper fares.

Consider having a staycation.
You do not have to travel far to have a nice time. Taking a staycation might be an excellent method to reduce stress. You’ll save money and be able to make the most of shortened commute times.

Frequently Asked Questions.
Should you invest in a vacation?
The quick response is: this is a dangerous approach. First and foremost, you will have to pay taxes on any capital gains earned in a brokerage fund, which will reduce your earnings. Furthermore, even skilled investors face risks and difficulties while day trading. The market is volatile, and you might lose money quickly.

Consider investing for long-term growth. If you treat the stock or cryptocurrency markets like a casino, you’ll lose more than you win, ruining your holiday plans in the process.

How can I earn additional money for my vacation?
There are several methods to make additional money for vacation. It is mostly determined by your interests and the level of effort you are willing to exert.

Some options include bartending or waiting tables, freelancing, managing social media, working as a virtual assistant, or renting out your automobile through a service like Turo.

You may even consider renting out your home on Airbnb to earn additional money while you’re away.

How much does going on vacation cost?
According to recent estimates, the average vacation expense is roughly $1,200 per person, or approximately $4,800 for a family of four.

On average, 40 to 50 percent of the expense will be spent on flight, with the rest going toward lodging, food, and entertainment.


In Conclusion


Vacations are expensive, whether you’re traveling with your family or by yourself. Plan ahead, create a vacation budget, and avoid overspending on items you would not typically purchase. If you follow these steps, your next trip will be more economical and pleasurable.

Happy travels!