7 Ways to Save Money for a Dream Vacation

Is a dream vacation one of your goals? A lot of people want to go somewhere special, such as Japan, Italy or the Caribbean. But for some, that type of vacation feels like it will remain a dream. From a fiscal standpoint, it doesn't seem like the timing will ever work out to where you can make it happen.

Believe it or not, you can make this dream vacation! The first step is to sit down and figure out exactly how much money you'll need for your trip.

Remember to include such things as:

  • Airfare and transportation 
  • Hotel
  • Restaurants and meals on the go
  • Activities and entertainment
  • Souvenirs
  • Things you may want to bring on the vacation (such as a new camera or getting a passport) 
  • A bit of extra money for unexpected expenses

Set a 6 to 18 Month Goal to Get the Money for Your Trip

Why 6 to 18 months? If you set a goal you can keep in sight, this will help motivate you. So instead of saying you'll go "sometime." Then you know you are taking this vacation in 1 or 2 years, depending on how much it will cost you. This also will encourage you to stick with your goal, so you continue to save and earn the money. Soon you'll be on a plane and then enjoying the vacation of a lifetime!

Before You Start - Figure Out Exactly What You'll Need

Keep in mind that your total amount will not always be perfect, telling you exactly what you need. That the amounts can change a bit as time goes on. So if it takes you 6 to 18 months to save the money, prices could have gone up or down. Especially if there is an exchange rate, if you are making an international trip, then there is how much your funds are worth in another country especially for things such as meals and activities. But doing this research now can help you plan what you'd like to do on this vacation and get a good estimate of how much it will cost.

Come Up with a Monthly Payment for Your Vacation

Once you have that amount, then start to look for ways you can set aside a bit each month for your vacation fund. You could put this money in your savings account or even open up a free checking account and keep the money in there. Try to create a regular, monthly amount that you will put towards your vacation fund. See what will work with your budget now.

Cut Back on Expenses

You may want to try to do a bit of both of these. If you look at where your money goes, there may be an expense where you don't mind as much cutting it so you can have the trip you want. Perhaps you can switch to a cheaper gym, saving yourself $30 every month. Or you remove premium TV channels from your cable package that you don't seem to watch.

The best tip to cutting back on expenses is to choose what is important to you, and keep those things. Realize that to have your vacation, you are going to need to make some cuts but you are the one who gets to choose what they are.

Earn More Money

Earning more money is an excellent option. You may find getting a part time job is a good choice to help save for your trip. You might even be able to pick up more hours at your job or do other types of work at the office. There are jobs that are seasonal, such as working in a store during the winter holiday season or with a package delivery service. You could hold a tag sale or sell items online that you no longer wear or actually have never worn.

Keep Yourself Motivated by Realizing What Each Monthly Payment Does for Your Vacation

As you make your monthly payments, look at your estimated expenses and see how you've paid off your airfare or hotel bill. Maybe your payment will end up equaling the value of your meals. Slowly but surely, your dream is coming true. Get excited!

The best part about this is that successfully saving for this trip will give you the best way to go about saving for the next dream vacation. It's all about remaining persistent, and making sure you constantly remind yourself of what will be the time of your life. Before you know it, that dream becomes a reality.

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