Going on a dream vacation is something all of us love. Unfortunately, the greatest hurdle in going on a dream vacation- meaning, the place we always wanted to visit- is money. Dream vacations usually mean dream destinations. And by any yardstick, dream destinations, being popular among tourists, are very pricey.
So, what does dream vacation usually imply? It often represents an ideal escape that blends relaxation, adventure, and once-in-a-lifetime experiences.
Unless you’ve acquired financial freedom and could spend a lot without missing the amount, a dream vacation is often out of the reach. It needn’t be. As a matter of fact, there’s a superb way to enjoy your dream vacation while ensuring that your finances don’t suffer a body blow.
How’s that possible?
By saving for your dream vacation, of course. Unless you’re the top brass of some large corporation where a vacation and its expenses are included in the perks, the best way to have one is by saving enough money, well in advance.
Therefore, I will guide you on the eight best ways to save for a dream vacation.
Save Money for Your Dream Vacation
Saving for a dream vacation isn’t as simple as it might appear. In fact, you would have to consider several things even before you arrive at a targeted amount to save. Therefore, follow these simple steps and save money for that vacation you’ve always wanted to have, either alone, with spouse or partner or the entire family.
1. Finalize a Destination
The first step towards saving for any dream vacation begins by finalizing your holiday destination. It could be Hawaii or Montana or a cruise or theme parks of Orlando, a sightseeing and cultural tour of Europe, adventure in Africa, sights and sounds of Asia or exploration of the land down under- Australia.
I mention these specific places because outside the US and its territories, you’ll be spending in foreign currency. At times, the currency exchange rate might work to your favor but at times, it wouldn’t be as wished. This simply means, you’ll have to find the average cost of a vacation the destination you wish to travel.
Travel costs vary in different countries. Therefore, get an estimate of the expenses for your dream vacation. This includes cost of transportation to and from home to destination, local travel, food and accommodation, sightseeing and shopping as well as other incidental expenses for laundry, liquor, tobacco and other needs.
2. Timing of Dream Vacation
Another crucial factor while saving for that dream vacation is the timing. Most tourist destinations have high and low seasons. That means, the amount of money you need to save will depend directly on the time of your travel. Therefore, finalize the season for your vacation.
A dream vacation during peak season will prove quite expensive since food, accommodation and transport costs are higher as businesses rush to capitalize on tourists. The off-peak or low season means you might spend much lesser but risk missing out on some of the tourist attractions that’re open only seasonally or paying more for certain facilities at the destination.
3. Create a Vacation Fund
The third step is creating your very own vacation fund. That means, stashing away some money from your income every week or every month, as your case may merit, in a separate savings account. Here, I would suggest keeping the money in any high-yield savings account offered by some of the topmost digital banks in the US.
Should your spouse or partner also be having an income, encourage them to contribute some money towards the vacation fund. After all, they would also be enjoying the holidays with you. You could either save the money in a single high-yield account or even term deposits, depending on whatever fetches highest interest.
The point to remember here is that the vacation fund should be at least 50 percent more than the amount of money you expect to spend. That allows for any last-minute increases in air fares or transportation costs, accommodation and food expenses. At the same time, it’s not necessary to expend the entire saved amount on your vacation.
4. Book-Now-Pay-Later Plans
Some travel companies in the US offer book-now-pay-later plans for dream vacations. Contrary to popular belief, these aren’t buy-now-pay-later plans. Instead, these travel companies allow you to book a dream vacation at a particular price. You’ve to deposit money in the account for the vacation. Upon reaching that specific level, you can take the money or travel on your booked vacation.
While there’re opponents and proponents to these plans, I’ll reserve my personal opinion. Proponents claim that such plans guarantee a vacation at the cover price, even if airfares, cost of accommodation and other elements rise. This means, you won’t pay more. However, opponents claim that often, such plans cover only airfare and accommodation but other expenses at destinations turn out higher.
Whichever way, it’s best to judge yourself whether or not such book-now-pay-later vacation plans offer what they claim and if you’ll get full value for the money. Remember to check each detail in advance and ensure you book through highly reputed travel companies only to avoid falling prey to scams.
5. Find Side Gigs
There’re thousands of Americans that claim, they got their dream vacation merely by doing some side gigs during spare time. Yes, that’s indeed possible if you’re willing to work for a few hours extra, outside the routine job timings. You can easily find a side gig that suits both your skills and the extra working hours.
A side gig can give you enough money to save for a dream vacation, without having to rely solely on your main income. If possible, get your spouse to also do some side gigs so that you’ve a bigger vacation fund for longer stays or even expensive destinations. That way, you needn’t worry about spending too much from your income on a vacation and nor be short of cash upon returning home.
Wrap Up
The best ways to save for that dream vacation start with proper planning. If you’re one of those Do-It-Yourself (DIY) vacationers, the costs might be higher at times compared to holiday packages from airlines or travel companies. That’s because airlines and travel firms enjoy bulk rates for fares and hotels, which you might not be able to get as individual or family. Buying air tickets in advance, when fares are lower, booking hotels much before arrival date and bargaining over tariffs are some of the ways to save money on your vacations. These simple steps should definitely help you to enjoy that dream vacation your family and you deserve.
Olivia Carter is a versatile freelancer with expertise in finance-related writing, content creation, and consulting. With a Bachelor's degree in Business Administration and a focus on Finance, Olivia brings a fresh perspective. Her adaptable writing style blends professionalism with approachability, engaging diverse audiences. Olivia explores personal finance, fintech trends, and enjoys literature and mindfulness.
