Unless you are fabulously wealthy and can spring for the cost of a trip any time you feel a flight of fancy, you will probably have to plan and save up for your travels. Thankfully, there are many simple ways to do so.
Rewards Cards
One very easy way to save money for a trip is to start buying more things with credit cards that pay you rewards.
If you pay for everyday things such as gas, groceries, utility bills and other necessities, you can greatly boost the amount of rewards you get, which you can save up and put toward your trip.
Make sure to always pay off your credit card bill in full and on time every month though, because, if you don’t, finance charges and fees will more than wipe out your rewards. And if you pay late, you could eventually hurt your credit so much that you have to resort to using credit cards for bad credit.
Saving Extra Income
Another easy way to save for a vacation is to put away at least some of any extra money you get throughout the year.
For example, if you get a bonus or a big raise at work, divert some of the money to a special savings account for your trip.
If you have the opportunity to work overtime at your job, save some of the extra money you earn for your trip.
If you receive an inheritance or win at gambling, earmark some of that money for your trip.
While diverting extra money to a savings account for your trip is a good idea, it may not get you enough money, which means that you may have to make some spending cuts.
Cut Your Spending
Cutting spending doesn’t have to be painful. You can likely find lots of little things on which to save money.
For example, if you eat out for lunch every day at work, pack a lunch instead. Over the course of a year, you could easily save $1,500 to $2,000, depending on how much you spend, to put toward your vacation.
You may be able to save even more money by cutting out a few family trips to restaurants every month.
Another way to cut spending is to limit or restrict your entertainment activities. If the whole family goes out for a movie once a week, stay home and rent one instead.
Rather than going to an amusement park, stay home and play games in the backyard. If your kids balk at the idea, convince them that the money you are saving can be put toward more fun activities while on your trip.
Once you have saved up the money you need for your vacation and are ready to pay for it, consider putting the whole thing on a credit card.
This can earn you big rewards and may also offer some protection if something goes wrong.
[box type=”tick”]This could be a particularly good idea if you are trying to rebuild your credit with credit cards for bad credit, because making a large purchase and then paying the whole thing off on time can help boost your credit score.[/box]
