How to save for vacation
Maybe you're one of the lucky ones who can count on a sizable tax refund. It's possible to put it in your travel fund and use it guilt-free. If you aren't lucky, it's a good idea to start reviewing your monthly budget to determine what you can afford to save for a vacation. Planning your vacation spending carefully helps you avoid having to pay credit-card bills when you get home.
If your budget feels too tight to fit anything extra in, start tracking where your money is going. We can control impulsive or unnecessary expenses better when we pay more attention to our daily spending. It may not seem like much at the time, but a daily stop for coffee or lunch adds up. Spending $10 per working day on lunch out adds up to about $200 a month. That amount can go a long way toward paying for a week at an all-inclusive beach resort over the course of a year. What if you reviewed your budget and you are barely making ends meet, with the increase in living costs? The next step would be to review what the costs are and if they can be cut back. Two-car families have found that they no longer need a second vehicle and associated expenses since COVID 19 and the transition to working from home at least part of the time. It may take some schedule coordination to work with just one vehicle, so focus on why you are jumping through those hoops. The savings you have created by having only one car could be used to balance your budget or cover a tropical getaway.
If the cost of fuel is hurting your budget, consider trading in your vehicle for something more fuel efficient or to improve driving habits to save more money at the pump. If that is not feasible, consider other ways to reduce transportation costs. Maybe a co-worker lives nearby and is willing to carpool. Public transportation may not be as convenient, but it is much cheaper than operating a vehicle. It is never hurt to review your cable, cellphone and internet bills to make sure you are not paying for features you don't use. Streaming services can be much cheaper than cable, but subscribing to several at a time adds up. If you have multiple cell users in your household, consider changing to a family plan that has lower costs and allows you to share data. Inform your kids about the cost of using data when Wi-Fi is not available to save on your phone bill.
If you've done all these things and still find that a vacation is financially out of reach, don't automatically turn to credit to make your dream come true. You can make room in your budget by taking a side job, staycations or home swaps with friends or family. For some great ideas on how to make extra money on the side, check out 65 Side Hustles, one of many free educational webinars on the mymoneycoach.ca website. If your goal is to save $200 per month for a vacation over the course of a year, break it down to earning an extra $46 per week. Small steps can add up to help you take a big step away from your day-to- day routine. Sandra Fry is a Winnipeg-based credit counsellor at the Credit Counselling Society, a non-profit organization that has helped Canadians manage debt for more than 25 years.