After the difficult year that 2020 has been so far, we could all use a vacation. While the global pandemic may have forced you to delay your big plans for the summer, we think it’s important to look forward. We’ve put together our top four financial planning tips for future vacations. (We won’t judge if you plan with a Mai Tai in hand).
Start planning early
The amount of time you should spend on vacation planning depends on where you’re going, nationally or internationally (when borders open again). In general, you should start financial planning and booking at least six months in advance. When you start early, you can set a realistic financial goal for the trip. It also gives you time to open a separate savings account dedicated to your trip.
This initial phase is where you need to do destination research. How much will flights be? Are your accommodations all-inclusive or will there be extra charges? Will your phone plan charge extra?
Create a budget (and stick to it)
After doing your initial research, create a realistic budget for the trip and your current finances. For your trip, decide what you’ll need to set aside for food, lodging, airfare, activities, and extras like souvenirs. Budget planning your current finances makes it so your separate savings account is decently filled before you take off.
Pay attention to the details
Generally, the further away you travel, the more you should pay attention to travel details. This includes everything from special discounts (like AAA and military), exchange rates, transportation availability and costs, and city lodging taxes on top of your lodging fees. Another detail you don’t want to miss? Credit card travel rewards like you get with the DEXSTA Visa Platinum Rewards card.
Get creative with saving
If you’re taking a family vacation, involve the entire family in your savings goals and make it fun. Do this by having at-home pizza nights instead of ordering out or having everyone collect their change and tips for extra spending money. Teach your kids about the importance of financial planning, and the reward of enjoying a vacation debt-free.
Another way to get creative is to go on a “spending diet” in the months before leaving and substitute costly activities for free ones like libraries, park picnic dates, and museums to save money. When in doubt, you can always pursue a side hustle like selling unused items.
DEXSTA makes planning easy
At DEXSTA, we know that your vacation plans might be further off than you hoped because of the pandemic. But, if you start now, you can have the financial planning out of the way so you can truly enjoy your vacation—this time on a beach with that Mai Tai.