Putting enough money together to take you on your dream getaway may seem almost impossible at times, especially with rising costs.
However, if you have the willpower and desire to make things work, it is possible to make your dream vacation happen. You can pad out your travel fund several ways, so you are on the plan before you know it.
Look to Additional Sources of Income
When you think of additional income sources, you may think of second jobs or draining side hustles. While a side hustle or second job can increase your income, you don’t have to spread yourself thin to bring in some more income.
Investing the money you do have can lead to a lucrative form of passive income. Real estate investing can be one of the best ways of making money from a second home.
Many automatically think of long-term rentals, but that isn't the only way to put that home to use. Short-term rentals are becoming more popular too, especially with the rise of Airbnb.
Short-term rentals allow you to visit the home if you are in that area, and having one means you can cater to the increasing number of travelers who are less interested in traditional hotels. Whether you are considering getting a second home or just want to rent out a second bedroom in your home, buying vacation properties can be a great way to add another source of income.
Look for Ways to Save on Spending
Whether you are shopping for something fun for yourself or an item you need, there are plenty of coupon apps and browser extensions that will help you save a little on each item. If you like shopping online, you can get cash back and coupons from different attachments.
There are travel apps that will help you save on airport expenses, like parking and tickets. With others, you can register your credit card and receive cash back on every purchase.
Stash Any Extra Money
If you get any money that you did not anticipate or make part of your regular budget, you are free to do it as you wish without affecting other areas of your budget. If you work overtime and your paycheck is a little larger than normal, that extra money can go towards budgeting for the trip of a lifetime, or really any travel plans you may have.
It might be tempting to treat yourself to a meal or a new item but putting it in your dedicated savings account and then forgetting it is the best way to go. The same is true of any windfalls that come your way. Whether it’s birthday money, lottery winnings, or tax refunds, try to put away any additional money you come into. A tax estimator can be used to help determine how much your tax refund might be. The money should go straight into your dedicated savings account because you may be tempted to spend it otherwise. If it is hard for you to do this, ask yourself whether you would prefer going on your dream getaway or a single meal out.
Don’t Spend Beyond Your Budget
While you may have negative feelings associated with budgeting, it is one of the best ways to understand how you are using your money and where it is going. If you create a dedicated vacation fund, you can save a consistent amount each month and see exactly how many months there are until you can take that vacation.
Consider linking your credit cards or bank accounts to budgeting apps, which can break down your spending into visuals. Seeing how you are spending your money in a visual format may help you stick to your budget. There are also apps that help you log expenses, which will send notifications if you exceed your daily or weekly spending limits.
Go with an Old-School Piggy Bank
While there are plenty of apps and online savings accounts today, sometimes old-school methods work best. You’ve likely heard that every penny you save is a penny you earned, but those pennies can really add up over time. Stashing spare change in a piggy bank, jar, or other container is unlikely to pay for your entire trip, but it might pay for a couple of meals while you are on your trip.