Save Money for the Next Vacation

Planning ahead is key to a successful, affordable vacation. Once you decide where you’d like to go and what it will cost (check online sources for bargains and travel tips), you can begin saving weeks, months, or even years ahead. With a realistic budget and a commitment to save, you can take that vacation you thought you could not afford.

Here are a few tips to help get you started:

* Save your coins

It is amazing how fast loose change accumulates when it isn’t spent. Decide that you are not going to spend coins of any type when you pay for something with cash, and pay only with paper money (if something costs $3.50, give the clerk $4 even if you already have change jingling in your pocket). Designate a large, sturdy container that is hard to access (such as a plastic water-cooler jug with a narrow top that won’t accommodate a pilfering hand), and toss in your daily loose change.

When it comes time to cash in, take the coins to your bank ? most banks will put your change through a coin rolling machine for no fee if you have an account with them.

* Develop and/or review your family budget

You need to see numbers on paper to get a grip on expenditures and income, and to see tangible ways to glean savings. Review unnecessary expenses and see where you can cut back ? if you order pizza once a week, make pizza at home instead; if you eat lunch out during your workday, take your lunch several times a week and put the money you save toward your vacation. Think of the meals you will enjoy on your vacation because you abstain from eating out now.

The entertainment budget is another area where cutbacks are feasible ? consider cutting back on computer games, cable TV, or movie attendance. After all, you are saving toward a vacation that will provide memorable entertainment and enjoyment ? for each movie you decline to attend now, for example, you are “attending” a show at your vacation destination.

* Over-save by approximately 10%

It’s good to be prepared, and unforeseen circumstances and unexpected fees can take a bite out of the vacation budget and may end up as credit card debt. While it’s impossible to foresee every possible glitch, over-saving by around 10% will provide a cushion. And if no unexpected expenses pop up, you’ll have some extra spending money.

* Turn off the air conditioner and turn on the fans

When it’s not too hot during the spring, summer and early fall months, a significant amount of money can be saved by turning off the central air conditioning (not just raising the thermostat), opening the windows and turning on fans. Electric fans and even electric window air conditioners use far less energy than central air conditioning, resulting in significant monthly savings you can put toward a comfortably air-conditioned hotel room on your vacation.

* Sell your excess items

Whether it’s via eBay or yard sales, selling unused clothing or household items is a way to make money where everybody wins. You get rid of excess clutter and save money toward your vacation, and someone else gets a needed item at a great price.

Once you calculate how much your vacation will cost and how much you can realistically save each month, you’ll know how much time you need to save up for your vacation. You may be surprised at how quickly you can save.