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Taking Your Dream Vacation
talessi@ariesfoundation.org
5 STEPS TO GET YOU TO YOUR DREAM VACATION
Let's face it, everybody has some place that they dream of going. Right now it may be nothing more than a spot on your bucket list (if you have one). And we know that for some of us the thought of being able to afford to travel to whatever exotic place you want to go, seems very, very far away (financially though it could be in actual miles as well). But have no fear, here are some steps and strategies to get you started and on your way.
#1 - DECIDE WHAT YOUR DREAM VACATION LOOKS LIKE
This starts with where you want to go, of course. But also, how you want to travel and what your priorities are. If you plan to stay in hotels and eat all your meals out, then you will have to account for a higher budget than if you rent apartments and take advantage of the local markets to cook your meals.
r African safaris for example offer a wider range of pricing than you might expect, depending on which country you choose, how many days you go, and what level of comfort you can deal with (or without). Also consider things like, will you travel on your own or with a tour group? Should you pay someone to help you plan it?
#2 -GET A HANDLE ON WHAT IT'S GOING TO COST
Once you’ve created a plan, do some calculations. A few simple searches online will give you ballpark numbers for the main expenses of your dream trip. You are trying to get a handle on the range of prices for flights, hotels, vacation homes, activities and rental cars. Then factor in food, ground transportation and incidentals. Of course you should always add-in a cushion for unexpected costs as well.
One you have a solid ballpark figure for the total cost of this dream vacation, you can determine how much you’ll need to save per month to get there.
he amount you can reasonably put aside each month will most likely determine the target date for your trip. Also consider how disciplined you are and how long you can cut back on other things for this one trip.
Here’s a breakdown of calculations you for the same $5,000 trip spread over one, two and three years:
1 year: $5,000 / 12 = you need to save $416.67 per month
2 years: $5,000 / 24 = you need to save $208.33 per month
3 years: $5,000 / 36 = you need to save $138.89 per month
Once you see how much you’ll need to set aside and how long it will take, you might decide to move up your departure date by saving more aggressively or rethinking parts of the trip.
#3- NOW LOOK TO TRIM SOME OF THE EXPENSES
As stated above, being flexible about when you go on your dream vacation can help with your savings, but also being creative and seeking some variations could open up increased cost reduction while offering up some incredible places you’ve never even considered.
For example, in Europe, London is a sought after and more expensive tourist destination. VRBO lists two-bedroom apartments two to ten miles from the center of London for less than $150/night. Other, smaller cities in Europe may offer equally beautiful and historic attractions with a much lower price tag. You can cut down on your costs by, say visiting pricey major cities for a few days and then moving on to smaller, less crowded cities where the sites are great but food and lodging are cheaper.
#4- HOW YOU GOING TO BE SAVING
Yes, ARIES Foundation is always going to come back to savings strategies. It is after all in our DNA. But it is important no matter what savings goal you are trying to achieve. Because until you know what you are spending, you really can't be saving. And if you are trying to save for this dream vacation, then it means you have to take a look at waht youa re spending your money on now. And if you need to make changes...where will you cut back?
It’s best to tackle this as a family so you’re all on board and can keep each other on track.
- Some of the more obvious expenses to cut out or cut back on include
- Cell phone service (live with less data)
- Cable or streaming services (maybe you don’t need Netflix and Prime.
- Dining out (once a month instead of once a week)
- Buying instead of bringing lunch to work and school
- Clothing
- Magazine and other subscriptions
- Gym memberships
- Interim vacations
- Kids’ afterschool and summer activities
#5- THINK ABOUT TRAVEL REWARDS
OK, so we here at ARIES Foundation are no fans of using plastic, but it is a reality that we all live with, so in this case, let's look for a travel-rewards card that helps you along with extras like bonus points at sign-up, double points for everyday purchases like groceries and gas and maybe even travel discounts. Many cards allow you to stretch your rewards further when you book hotels and airfare through their websites or agents.
There are also destination or travel specific cards; airlines, hotels, Disney, etc. Before choosing one, make sure the airline has an ample choice of flights or the hotel family has brands you like for your destination.
If you’re getting geared up for a dream vacation, it might make sense to go all-in, using the travel rewards card for all your charged expenses for awhile.Sometimes, multiple adults in the family can take out their own travel cards, earning the sweet sign-up bonus points; just make sure you’ll be able to pool them when the time comes.
Red Flag Warning - Don’t just be buying stuff to get more points; you’re defeating the purpose if you are making purchases that you cannot afford to pay off immediately, you'd be better off simply saving the money instead.
GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!
The ARIES Foundation for Financial Education, inc is a nonprofit dedicated to helping everyone have a better relationship with their money. Visit our webiste: www,ariesfoundation..org
to learn more and see how we can be of help to you and your family.
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