You can find cheap flights and budget accommodation to just about anywhere in the world, but if you want to land your dream vacation – the one that features enriching activities, luxury accommodation, and incredible sights to behold – you’re most probably going to need to save up for a while.
Saving money can be tough, but with a few simple steps, you could find yourself realistically looking to book time on one of those fancy wellness retreats, or a resort taken straight out of a Hollywood movie, like the St Regis Bora Bora. Discipline is key to any money-saving strategy, which makes it tough for some people, but hopefully, this plan will help you to lessen that burden somewhat.
Build your budget spreadsheet
It sounds like an all-too tedious task, but the only way to start saving money properly is to work out your income and outgoings. When constructing the spreadsheet, you’ll need to account for your income and existing savings against your expenses, such as your mobile and utility bills, the monthly cost of food, what is most likely your biggest expense, rent or mortgage, and all of the other little expenses that you see money leave your account each month to pay for.
Once you have a grasp on this, you’ll know how much ‘spare’ money you have each month, and can then deliberate how much of it you can feasibly put to one side to save for your dream vacation. From there, simply work out how much you need to save in total for your dream vacation and then divide that amount by how much you can save each month. Establishing this timeframe will work as a major incentive to your efforts, with an all-important final date giving you a light at the end of the tunnel.
Try to cut your most significant expense
Having run your budgetary calculations, you’ll most likely be looking at a fairly long time before you have amassed the cash necessary to go on your dream vacation. So, the best way to speed up proceedings is to cut down on your largest expenses. Saving on food and utility bills often requires major lifestyle changes, which no one wants to endure, but you could cut the cost of your mortgage with no impact on your day-to-day life.
Due to the painstaking process of getting a mortgage in the first place, many people just accept the terms for its longevity, but this means playing into the lender’s standard variable rate. So, mortgage comparison brokers have established a remortgage calculator to allow people to compare mortgages using services like Trussle and quickly see if they can save money by remortgaging. Given how much can be saved by remortgaging to a cheaper deal, this simple switch can be a game-changer for those looking to save for their dream vacation.
One small change to your daily routine
Not only can changing the way that you pay your biggest monthly expenditure result in you saving more each month, but so can changing one of your smallest expenditures. Millions of people all over the world frequent coffee shops daily, either before work or at lunch, to get a cup of coffee. As the average cost of a cup of coffee is $2.99, and it gives you a welcomed boost, many don’t even factor it in as an expense.
However, that $2.99 adds up. Assuming a work year of 48 weeks and a workweek of five days, you’re looking at an annual outgoing of $717.60 on coffee shop coffee. As such, investing in a travel mug or a thermos and making your own coffee in the morning can allow you to put hundreds of dollars towards your vacation fund.
By calculating your budget, trimming your biggest expenditure, and even culling one of your smaller expenditures, you can begin to save for your dream vacation.