Traveling to far off destinations are opportunities that should not be ignored. Getting the chance to visit new and exciting places is often an once-in-a-lifetime opportunity; however, for most people, the prospect of travel is squelched by the realities life.
Although being financially responsible is an admirable trait, there are ways to adequately pay for travel without going bankrupt. Here are five ways to fund your next vacation while maintaining fiscal responsibility:
1. Travel Fund
Similarly to a retirement account, consider setting up a travel account. This type of fund can help you set-aside money in a sensible manner. When it comes to setting aside a proper amount, most travel experts agree that typically saving one week’s salary is a good starting place.
Starting a travel fund can be as simple as a jar on your nightstand to a legitimate bank account you deposit part of your salary into. For the jar method, consider setting a fixed list of rules to accompany it in order to actually save an adequate amount of money. On the other hand, if you decide to set up a real account, find one that will generate interest. The money will grow as it accumulates in interest, which is an easy and painless way to increase your travel fund.
2. Vacation Layaway
Jet setters now have the option to participate in a vacation layaway, meaning travelers make monthly payments to a tour operator or financial service company prior to the trip. This allows you to book a trip in advance without having to pay the full price immediately. For many, paying installments for the trip is in fact easier than financing it in one lump sum.
3. “Found” Money
For many, one of the most creative ways to save for vacation is to squirrel away any “found” money. This could mean anything from finding a $10 bill stuck between your couch cushions to a tax return check to a Christmas bonus is stashed away for your vacation fund. While this method can take a bit more time, this type of savings is budget-friendly.
4. Credit Card
Look at rewards credit cards that offer frequent flyer miles that are redeemable for airline tickets or hotel stays. These types of credit cards are a great tool to saving travel money, for if you use the card frequently, racking up travel points to cut the cost of your trip is as easy as swiping the card. For many, since they already use a credit card on a daily basis, getting a reward from the card is ideal, especially since there are plenty of rewards credit cards available.
5. Other Loans
Another option is to use a different type of loan, such as a title loan offered from companies like InstaLoan. These loans can provide a nice sum of money if needed.
Funding a travel getaway does not mean throwing caution to the wind. Use these five tips to maintain financial stability while responsibly planning your next vacation.