I can't afford to do that! Is a feeling shared by millions of Americans who have decided to cancel vacation plans due to the rising costs associated with inflation. Unfortunately, this is not a new trend. According to research released by the U.S. Travel Association, in 2018 Americans did not use 768 million days of paid time off. “I see 768 million missed opportunities to recharge, experience something new, and connect with family and friends,” said U.S. Travel Association President and CEO Roger Dow.
Ever notice how you feel better when you're on vacation? Taking time off can help prevent burnout and chronic high-stress levels at work that lead to fatigue, disengagement, and low performance.
Choosing to ignore those vacation days will eventually take a physical, mental, and emotional toll. Rising costs can make it difficult to afford a vacation, but it's not a good enough reason to ignore your mental health needs. Prioritize your health and get serious about budgeting for your next vacation.
Make a Plan and Start a Vacation Fund
Determining where your next trip will be is the first step. Once you've established what you're saving for and how much you'll need, you can set a budget and a timeframe to achieve your goal.
Make sure you have an account to put your savings into. If you only have a checking account at a bank, it's a great idea to add a separate savings account.
Once you've set up your savings account, automate your savings and set up a recurring monthly transfer from your checking account into your savings account. For example, you could transfer $100 on the 5th of every month from checking to savings.
Having scheduled transfers to your savings account takes the work out of savings and can help you meet important deadlines for airfare and lodging.
Curb Discretionary Spending
If you ever ask yourself, “Where did all my money go?” It's time to take a closer look at your discretionary spending. Discretionary spending is money used outside of food, housing, and utilities. Repurposing your discretionary spending could help you quickly save for your next excursion.
On average, 65% of Americans have no idea how much they spend in a month. Per Bankrate's findings, one-third of Americans regret how much they spent. Be more intentional about your money and make decisions with self-awareness. Review your monthly statement to identify excess spending in the categories listed below.
- Late Fees
- Grocery Store
- Monthly Subscriptions and Smartphone
- Electricity Use
Discretionary spending is the easiest to control if you're trying to save money. By implementing small changes, you can start diverting money towards what is essential.
Planning Your Next Trip
You don't have to be rich to travel in style; you must be creative. Vacations are easy to enjoy when you have ample money set aside, which is why it is crucial to start planning early and comparison shop for plane tickets, lodging, and activities. Use the tips below to get started.
- Use a credit card with travel rewards or cash back
- Travel in a group and pool your resources
- Travel in the low season
- Consider staying at a short-term rental where you can cook your meals.
Finding it difficult to get away from work? Consider taking a few days off. Short vacations can be just as rejuvenating as longer getaways, and may even cost less.
If work is overwhelming and your work-life balance feels out of whack, it is time to take a vacation.
Vacations strengthen the human spirit, improve your morale and increase your levels of productivity.
By cultivating a habit of saving, you can prioritize your well-being and do more of the things you love.
Don't miss out on life; use the tips above to start your savings plan today and turn your dream escape into a reality, and join us on IG @_dearmoney_ for more tips on how to save money.
