Q:

How do you finance a vacation?

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Quick Answer

To finance a vacation, first come up with a viable spending plan by estimating the cost of transportation, hotel, meals, entertainment admissions and souvenirs, reports Bankrate. Find ways to save on everyday expenses and divert the money into a vacation fund, using a chart to track your progress. Make vacation savings a team effort for the family, adds Fox News.

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Full Answer

Cut back on nonessential monthly expenses such as cable television subscriptions, health club memberships and recreational lessons, keeping in mind that you are saving for a greater experience in the future, advises Bankrate. Substitute frozen dinners or supermarket deli items for cooking breaks at expensive restaurants. Put together meals sometimes from pantry leftovers. Hold a garage sale to get rid of unneeded items around the house, and save the profits for vacation souvenir shopping.

Put aside your tax refund in the spring towards your vacation, suggests Bankrate. Set up monthly transfers from paychecks directly into a vacation savings account, states Fox News. If you accrue a certain number of annual paid vacation days, count the salary you earn during those days as part of your vacation fund. If despite your best efforts you come up short and have to put some vacation expenses on a credit card, set up a way to pay off the balance within six months of your return home.

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