The best way to finance your vacation is to save in advance. However, not everyone can do it. We often have unexpected expenses, urgent purchases, or an uncontrollable desire to arrange a holiday for ourselves. We will tell you how to still save up for a vacation and not put yourself in a rigid framework.
Calculate The Budget
First, you need to understand how much of your earnings you spend justifiably and what is going on with entertainment and expenses that can be avoided. To do this, create a spreadsheet in Excel, an application for finance, or a simple notebook where you describe in detail the expenses for the month: rent, Internet and telephone, groceries, hobbies, shopping, etc. Now, based on the balance of income and expenses, form three scenarios:
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how much money do you need to live in a big way;
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how much money it will take not to squeeze yourself too much and not to show off;
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what is the minimum amount you can live on without starving and without going into debt?
The optimal strategy is somewhere between the second and third. You need to find a balance between restrictions and comfortable life in order to save up for the vacation you want but not break loose in the process. Of course, much depends on the amount of the planned trip. But for this, we need home bookkeeping - to realistically plan a vacation.
Spend Wisely
This includes the whole range of measures for reasonable savings: do not use a car where you can walk; sell things lying around through a flea market; keep track of promotions and sales; takeaway and delivery meals together more often to cook at home. Yes, by themselves, such habits do not seem significant, but in the aggregate, they save a lot - check for yourself after a couple of months.
Create A Separate Account
And not just to avoid the temptation to spend. If you choose a successful banking offer, then interest will also be added to the accumulated. Be sure to choose a deposit with the possibility of replenishment in order to act according to the scheme: they allocate money from the salary and transfer it to the deposit.
A significant disadvantage of deposits is that they cannot be closed ahead of schedule without loss of interest. Therefore, if you plan to take a last-minute tour or go on vacation suddenly, prefer a savings account or a simple account. You can withdraw part of the money and close it without loss of profitability at any time.
Make The Most Of Your Cards
It is unlikely that it will be news to anyone that many bank cards have a cashback function - this is when a certain percentage of a purchase is returned to your account. The amount of such a return is fixed and often amounts to 1 - 2%. But usually, you can choose your "favorite" category of spending - travel, sporting goods, medicine, clothing, and so on. Then an even higher percentage will be returned for using the card.
Also, keep in mind that cashback is not always implemented in the form of real money. Banks often return bonus points that can be exchanged for a discount from partners. By the way, there are promotions and sales within the affiliate network - in this case, you can buy a product or pay for a service with a cashback of up to 10%.
Trick Yourself
Financial advisers say that fears prevent us from increasing savings. Hence - the promises to start saving from next month, which we ourselves break, and the choice in favor of momentary pleasures. To break the cycle of financial procrastination, try to outsmart yourself. For example, did you finish paying off a loan not so long ago? Pretend that the debt is still not closed, but now you pay not to the bank but to yourself - this is how you use the already formed habit for the benefit of your own budget.