Tips for Budgeting and Saving Money for Your Next Vacation

Are you tired of coming back from vacation with a huge credit card bill? Do you want to learn how to save money and budget for your next trip? Look no further! We have compiled some easy budgeting tips to help you start saving money for your next vacation.

According to an Ipsos poll for Allianz Partners USA, the average American household is expected to spend $2,830 on summer vacation this year, which is nearly 40% more than in 2019. With 1 in 5 Americans planning to increase leisure travel spending over the next three months, it’s important to start budgeting for your trips to avoid going into debt.

Certified financial planner Marguerita Cheng suggests breaking down your travel expenses and setting aside a monthly amount to cover them. For example, if you’re planning a $2,830 vacation, you would need to save roughly $236 each month or $118 each biweekly pay period.

Cheng also emphasizes the importance of saving throughout the year by managing your cash flow and prioritizing essential expenses over lifestyle variable expenses. By making small adjustments like delaying car upgrades or reallocating conference funds, you can save more for travel.

When it comes to paying for your vacation, Cheng recommends using credit cards for the perks and rewards but advises having a plan to pay off the balance to avoid high interest rates. Additionally, consider traveling off-season to save on airfare and accommodations.

So, if you want to enjoy your next vacation without breaking the bank, start implementing these budgeting tips today. Remember, a little planning now can lead to a stress-free and debt-free vacation later.