By: GetSmarterAboutMoney
Saving just $20 a week can add up over a year to a nice vacation fund.
Three tips to create your vacation budget
Many people pay for vacations using a credit card. But if you don’t pay off those bills quickly, you’ll end up paying a lot more for your fun. A trip that might cost $1,000 at the start could end up costing you a whole lot more if you add on interest charges. You could end up paying the cost of two trips but only get to enjoy one!
Here are three tips to help you save and plan ahead:
Save money throughout the year. If you have a monthly budget – and hopefully you do – you can set a target savings goal. That way you’ll have a really good idea of how much you can afford to spend when it’s time to book your vacation.
As you start to dream about your vacation, set up a budget. Make categories for each of the different costs you’ll have to pay. This includes travel, accommodation, food and entertainment. Estimate the amount you’ll spend on each.
Now go over your vacation budget and look for ways to trim costs. For example, you may be able to save on airfare and hotels if you book early. But sometimes the best deals are available last minute. Also look for ways to reduce the cost of your accommodation. This includes rentals and timeshares. Learn more now about cost-saving ideas when you travel.
A word of caution: be wary of special offers that come to you from a person or company you don’t know. Or, where there is a lot of pressure on you to decide on the spot – without time for proper research. It could be a vacation scam. Learn more now about how to spot a vacation scam.
Remember: Don’t use your credit card to pay for your vacation – unless you know you have the money to pay it off. If you don’t save up the cash before the trip, how likely are you to save it after?
Sourced from: http://www.getsmarteraboutmoney.ca/en/managing-your-money/planning/budgeting/Pages/how-do-I-budget-and-save-for-a-vacation.aspx#.U5B8qBaWt94