10 Best Ways to Save Money for your Dream Vacation!

Are you dreaming of that perfect vacation for fear that it’s out of reach? Even if you don’t have the money now for it or even if you don’t have any money at all, there is still hope for you. It just takes some planning and smart money habits. Here are 10 easy tips that you can use to maximize your budget and save money, so that you can plan your dream vacation!

I use all these tips I’m about to share, and as a young adult with bills and a basic 9-5 job. That trip is far more attainable than you may think.

1. Open a separate Travel Account

One of the best ways to save for your vacation is to open a separate travel account. This account should be dedicated only to your vacation fund. Every time you get paid, put $50 into it. By keeping it separate from your regular account, you’ll be less tempted to spend it. Plus, it’s great to know exactly what the money is for and something you’ll be excited to add money to!

2. Track Your Expenses

Sometimes, the biggest leaks in your budget are the small things. Write down everything you spend in a week and look at where you can cut back. Maybe it’s that daily coffee run or unnecessary online shopping? Identifying these little expenses and cutting them can add up quickly and get you closer to your vacation fund.

3. Prioritize Experiences over Material Possessions

This is a big one for me. So many people opt to buy a brand new car, TV, clothes, expensive jewelry etc. These possessions might feel great and give a dopamine spike in the moment, however over time become worthless. Prioritizing experiences such as a dream vacation, is something that will pay dividends for a lifetime.

One of the biggest regrets of the elderly is that they wish they had traveled more when they were younger. No one says, ” I wish I had bought that $700 gold chain when I was younger” or “Wish I had bought that new $40K truck.” Your material possessions won’t stay with you forever, however your experiences and memories will.

4. Get a Travel Rewards Credit Card

If you use credit cards, consider getting a travel rewards card. These cards allow you to earn points for every dollar you spend, which you can later redeem for flights, hotel stays, or even upgrades. It’s a simple way to earn perks while spending on the things you already need. Some of the best travel cards are:

Capital One Venture Card
Chase Sapphire Card
American Express
Bilt Mastercard
Delta SkyMiles

5. Start Saying “NO” to expensive Plans

Spontaneous nights out with family or friends can add up quick. I’m someone that nearly always said yes to plans because I didn’t want to feel left out. However after learning to say no a few times to plans that I knew would hurt the wallet, I started seeing my savings increase.

Sure having a night out with friends is always good and needed, however if you’re really trying to save up, perhaps say no sometimes or instead offer up some free or cheaper entertainment like a walk in the park or hanging at someone’s house instead of going out.

6. Opt to Stay in Airbnb’s Over Hotels

When it comes to accommodation, Airbnb can often be a cheaper option than staying in a hotel. Not only can you find more affordable places to stay, but you might also get the added bonus of cooking your own meals, which will save you even more money. Compare prices and make sure you’re getting the best deal! For more info on why i prefer Airbnb’s over hotels, check out my article on that here.

7. Set a Trip Budget

Before you even start booking your dream vacation, make sure you plan and budget everything out. That includes logging the cost of the flight, accommodation, transportation such as buses, Ubers or a rental car, food, excursions, souvenirs…everything! Set a budget and stick to it so there won’t be any unexpected expenses popping up. You’ll know exactly how much you will need to save up.

8. Use Your PTO wisely

Your Paid Time Off (PTO) is valuable, so don’t waste it. For example, take a night flight so you can work that day and don’t have to burn a PTO day just to fly out. Or book a flight on a Saturday or Sunday. It’s a great feeling to know that while you’re hiking up that mountain or relaxing beach side, that you’re getting paid to be there.

Make sure you’re using your vacation days strategically to maximize your time off while also reducing your costs. You might want to combine a long weekend with your vacation days to create a longer trip without using up too many hours. Time off is precious—use it wisely!

9. Limit Alcohol & Expensive Coffee’s

We all enjoy a good latte or an occasional drink after a hard day’s work, and there is nothing wrong with that. I still grab a beer after work on a Thursday with some buddies to watch Thursday night football, and I also grab myself a mocha latte on Friday’s to reward myself for getting through another week of work. However when you start doing these things everyday, this is where it gets excessive.

Cutting these expenses out and limiting your consumption on these key things will really benefit you when it comes to saving for that dream vacation. You can easily save over $50 a week on these things and put that towards your trip. Easy peasy, you just have to do it!

10. Delay Gratification

Saving for your dream vacation can feel like a sacrifice, but don’t forget the real reason as to why you’re saving and cutting back on expenses.

Whenever you think about spending money on something small (like a $12 cocktail at dinner), ask yourself, “Would I rather have this now, or would I rather put this $12 towards a cocktail while lying on a beach in Aruba?” Knowing that every dollar you save goes directly toward your dream vacation will make it easier to resist those little temptations.

Learning to delay gratification is truly one of the hardest things to do, but it is also extremely necessary if you’re needing to save money for something far more valuable.

Saving for your dream vacation doesn’t have to be hard. By adopting a few small lifestyle changes and money habits, you will start saving money very quickly and effortlessly. These 10 tips are very simple to do, but garner very effective results.

So, get started today and soon you will be on your way to enjoying the trip of a lifetime.

For more money saving tips, check out my older blog article on that topic here

For tips on how to build wealth while working a 9-5 job and ALSO wanting to travel, check out that article here