Going on vacation is a goal and like any goal it can be attained using a series of small steps/disciplines daily, weekly and monthly that all add up. Most people know how to save money and how to budget, but they don’t do it because it’s a long and boring process. Going through your statements and figuring out where all of your money goes at the end of every month so you can scale back your spending and increase your saving sounds good on paper but it’s far from a “fun” endeavour. If you’re not willing to do this, you can stop reading. If any of this is going to work you need to know where your money goes. There is no secret, we are going to simplify a few things here for you but we can’t make money appear out of nowhere.
What are the variables?
Logic is king here so we need to assess what it is that we are paying for, so a few examples are
- Visa’s, Luggage costs, Medication/Vaccinations
These are the big ones, there could be a few more based on the trip you are going on, get a legal pad and right out every variable associated with the trip (within reason) so you have a good idea on what you are going to need to save.
How are you going to save?
When you are saving it is recommended that you take 10% off the top of your paycheck right away. Well the same thing can be done with a “vacation account” once you know what the overall cost is you can assess how much you will be able to set aside each month. You can increase this amount by figuring out where your money is going each month and cutting unnecessary expenses (We are pushing that one for a reason, you’ll be surprised.) this is key.
How long will it take based on the variables and the cost of the trip?
For example if my trip costs $1500.00 and I put away $250.00 a paycheck (assuming I’m paid biweekly) then it will take me three months to be able to go on my trip. Now all you have to do is book the time off well in advance and smile about the security you have just created for yourself by using the power of logic! Voila. There really is no secret.