Why You Should Start Saving for a Vacation This Year

Written by: Cora Gold

You can expect to spend money every day when traveling. Running out of funds is the worst thing that can happen when you’re on the road. Learn why savings early for a trip this year can make your dream vacation less stressful.

Why Save in Advance?

A vacation falls under a want category — not a need — but it's undeniably beneficial to health. Unless you're financially secure enough to afford a spontaneous getaway, saving money months before your intended travel date is the best way to remove the financial stress of added expenses. Here are other equally crucial reasons why planning your travel budget early pays off. 

1. Partially Prepare for the Trip

You’re half-ready for a vacation if you have a sufficient budget for the trip. Traveling entails burning cash, from food to tours to accommodations. Building up a solid savings account months early can save you from the worries of running out of money, especially when your destination is out of the country. Your finances comprise half the travel plan, so saving enough helps with preparations.

2. Compound Your Travel Funds

You can take advantage of a high-yield savings account to park your holiday dollars and watch them multiply. Instead of putting money in a traditional account with low interest, you can earn up to 10 to 12 times more than the national average. If you start saving in January and plan the trip in December, you have a few months to grow your money.

3. Snag Early Travel Deals

One way to make a vacation more affordable is by snagging travel deals on flights, accommodations and tours. Many travel companies run amazing promotions at certain times of the year, so subscribe to their email list or follow their social media to get first dibs on these deals. You'd want accessible funds to pay for flights or hotels once they go on sale, which is possible if you save early.

4. Plan a Little Splurge

While most aim to travel on a budget, having extra dollars to indulge in an exclusive hotel room and a fancy meal at a Michelin-star restaurant is part of the magic of traveling. By saving months before the trip, you’ll accumulate more and have room in your budget to do things that aren’t in your itinerary.

5. Build Excitement

The fact you’re saving to make your dream vacation a reality soon can be inspirational. You’ll feel the excitement as your ultimate getaway draws near. Sometimes, it’s the saving and planning that others find more memorable than the trip. 

Traveling can be expensive. Saving and being smart about your finances are the most practical ways to make a vacation affordable and stress-free. Access to cash whenever needed can avoid any hassles while on a holiday.

6. Upgrade Your Travel Essentials

Having high-quality gear makes your travel experience so much better. You won’t regret investing in nicer travel essentials that will hold up for years to come. If you buy cheaper items, you’ll likely need to spend more money replacing them when they wear out.

Here are some ideas for upgrades that will make traveling smoother: 

• Sturdy suitcases with 360-degree wheels

• Suitcase organizers and zipper bags for toiletries 

• Protective sunglasses with 100% UV protection (a must-have for sunny destinations) with a hard shell case 

• A carry-on backpack 

• Durable walking shoes 

• Portable phone charger

• Refillable TSA-approved toiletry bottles 

• Crossbody bag with pickpocket-proof closure

Benefits of Taking a Vacation

Going on a trip has several health benefits. 

1. Reduces Stress

People are subjected to various daily stressors that build up and morph into burnout if not managed. Traveling has therapeutic power and can help bust stress. Even a short vacation can allow you ample time to recover from distress and physical strain and renew your optimism.

2. Good for Mental Health

Going on a fun getaway also has incredible merits for your psychological health. It can reduce the symptoms of anxiety and depression that result from the overwhelming stress of your existing environment. By detaching yourself from the source of tension, you can initiate mental healing and life reset and return rejuvenated.

3. It’s Educational

Traveling, especially outside your home country, teaches you life lessons you can pass on to your children and loved ones. You adapt to the new environment, people, and culture. You learn the local ways to show respect to others. More importantly, you rediscover yourself by being more aware of your strengths and weaknesses, which is crucial in surviving today's world. 

4. You Create Memories

Traveling is essential because the adventures you create outside your responsibilities will matter more as you age. When you're wrinkly and sitting on a rocking chair, you'll find sharing your escapades around the globe with your grandchildren more enjoyable. Traveling allows you to create meaningful memories worth sharing through stories with your future family. 

Save for a Vacation to Avoid Financial Stress

A solid and sufficient travel fund account can make vacation less stressful. Although a trip to Europe or any tropical destination may sound fun, it can be distressing if you run out of cash while on the road. 

Saving early is essential as it removes financial stress from a holiday. You can enjoy a vacation once or twice a year by sticking to a budget and cutting unnecessary expenses. Make your vacation fun by securing enough funds.