Budgeting for Vacation

So, you know that you’re going to be going on a trip at some point in time, but you aren’t completely sure what you’re doing or how you want to take the time to get to that point. How do you make sure that you’re getting the best results? Here are some budgeting tips for your vacation.

Make a separate account for vacation costs. Many banks and credit unions have vacation club accounts that work similarly to holiday club accounts; you put money into it and the money gets released to a specified account in April or May. Warning: These accounts have an early withdraw fee, so if you think there’s any possibility of you having to withdraw your vacation money before the time, then you should just make a separate savings account or split vacation money between a vacation club and a savings account.

Plan ahead. Always work couple months in advance when creating a budget. If you know that several people have birthdays one month, or that you’re going to an amusement park, you can already work it into your budget for those things to happen. Like when you were budgeting your bills, you can follow your trends over several months and calculate an average, or you can restrict yourself to a certain dollar amount a month.

Use cash. Most people dislike carrying around cash, but honestly, it’s way too easy to lose track of what you’re spending if you don’t physically have it; the allure of the credit/debit card is that it causes us to risk overdrawing a bank account or to max out the card. I’m not saying don’t ever use a card; I always use it for certain things (gas, sometimes groceries, etc). I’m saying use a healthy mix of both in order to keep track of how much you’re spending on leisure activities.