Emily and I love going on vacations. It’s our time to get away from the rate race and enjoy some alone time. As well as explore new places. Our favorite vacations always involve islands. Our next big trip is Hawaii! We are super excited.
Here’s what we do to plan our budget for big trips:
We decide how much we want to spend on a trip.
Most people decide where they want to go and then decide how much it’s going to cost. We like to work backwards by first asking how much do we want to spend on our next vacation. This helps us choose a location that will fit in our budget. For example if our budget was $2,000 we wouldn’t put Hawaii on our list. I say this with a caveat, you can always find great deals anywhere you travel, but in general you know certain destinations will be more expensive than others. A $2,000 budget would be a great trip for Mexico.
Start saving in a separate savings account.
We start saving at least eight months in advance. I like to put the money in a separate savings account because I know I won’t touch it for anything else. The earlier you start saving for the vacation the better. Since we plan our vacation almost always a year in advance we have ample time to save. In the above illustration you can see how saving $58 dollars a week can add up to some serious cash, but planning a head is critical.
Find all the DEALS you can!
Now that you have you your destination planned and there is money in the bank it’s time to start your purchases. If you have planned your vacation a year in advance you have plenty of time to search for the best value hotel, flights, rental car, and excursion. We like using Kayak.com for flights. And we always checkout Groupon deals.
We love paying for everything in advance. By having everything paid for upfront the vacation is more enjoyable. I have had a few vacations where we were paying for them a year after we went, this does nothing but make you regret ever going on the trip. I don’t want that for you.
Start saving today for your next vacation. This way you can pay cash!