How To Pay Cash for a Vacation
1. Set A Goal and Break It Down Into Bite-Sized Pieces
A lot of people want to go on paid-for vacations, but few actually sit down and make a plan to make it happen without debt. Do you want to go on a three-day road trip in six months from now or a week-long cruise in three years from now?
Either way, you need to sit down and figure out how much it is approximately going to cost (I recommend rounding up the amount you think it will cost in order to give you some wiggle room in case it ends up costing more than you’ve planned on.). Once you have a set figure for how much you plan to spend on your vacation, break that down into monthly and weekly savings goals.
Let’s say you want to go on a three-day road trip as a family in December. If you calculate that it will cost you $500 ($250 for hotel, $100 for gas, $150 for food + attractions) and you have around six months to save, than you’ll need to come up with an extra $84 each month or $21 each week.
2. Make a Plan of Action
Once you’ve figured out where you want to go, how much it is going to cost and how much you need to save each week, you can devise a plan of action. What specific actions are you going to take to save the money for your vacation?
If you don’t have extra money in your budget to divert to a special vacation savings, think of things you could cut from your budget to free up the necessary money. To take our previous example, if you have a goal to save $21 each week for your three-day December road trip, that could mean giving up dinner out each week or shaving that money off your grocery budget by using coupons or playing the Drugstore Game.
3. Put On Your Thinking Cap
If you feel like there’s no way you can squeeze any extra out of your budget or lower an of your expenses, there are still ways to save money for a vacation, if it’s something that’s really important to you. You could have a garage sale, sell some items you no longer need on Craigslist or eBay, mow lawns, babysit, take on a small cleaning job, start a side freelance business, teach classes… the possibilities are endless. Think about things you are good at or love to do and consider how you could earn extra income by investing a few hours each week into them.
When you set a goal, work hard and finally reach it, it’s very rewarding and fulfilling. And you can enjoy your vacation without having to feel guilty or worry about how you are going to afford to pay for it later!
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