Saving for a vacation and planning for it often takes longer than going on the actual vacation. But all the time you sink into planning is usually well worth it.
If you’re looking for ways to save and plan for a vacation and don’t want to take out loans to go, here are some strategies you may want to try.
Budget First
If you’re planning a trip that’s more than a year or so out, you could create what’s often called a sinking fund. If you think your vacation will cost $5,000, you’d put away $416 every month in an account; after a year, you’d be close to your target.
Kelly Johnson, who has been to more than 40 countries and runs the travel blog Snap Travel Magic, suggests taking advantage of high-yield savings accounts.
“Put 5% of each paycheck directly into the account,” Johnson says. Or whatever amount you can afford to consistently contribute.
Use Cash Back Rewards Credit Cards
“Many credit cards offer sign-up bonuses that enable you to earn free cash back, extra airline miles and travel points for spending a certain amount of money within the first few months of account opening which you can use to cover a big portion of your travel expenses,” says Andrea Woroch, a U.S. News contributor and shopping consultant based in Bakersfield, California.
The Disney Premier Visa Card from Chase is worth checking out. It offers a $400 statement credit when you spend $1,000 within the first three months of opening the account. That’s money that you could potentially use toward a trip to Disney.
Or, look for a flat rate cash back card that offers a percentage of money back on every purchase and watch your rewards stack up.
[Related:Back From Summer Vacation With Debt: Delete It Before the Winter Holidays]
Go on a Money Hunt
Ana Salazar, U.S. Bank’s goals coach program manager, says looking for money that you already have but have forgotten about could lead to raising some extra cash for a vacation. It won’t likely pay for much, but every penny counts.
“Money hides in places outside your bank account,” Salazar says, and suggests searching for money in the following areas:
— Payment sites like PayPal or Venmo: You may just have some money sitting in your Venmo account.
— Return items you have been meaning to take back: Suddenly you’ll have $30 in your pocket now that you’ve returned that shirt that was too small.
— Consider credit card points you can convert to cash: Your points may be just sitting there, waiting to be used.
— You’ve probably got some gift cards or store cards at the bottom of a drawer or purse. You could sell them or use them toward the vacation fund.
— Visit unclaimed.org to find your state’s website that can uncover unclaimed insurance money, fundsfrom abandoned bank accounts and other money.
[READ: Gift Card Do’s and Don’ts]
Spend Strategically
You may save more money and spend less on vacation necessities if you’re strategic about how you purchase some of the big-ticket items for your vacation.
Woroch suggests using cash-back portals when making vacation purchases.
“Any time you’re booking a flight, car rental or hotel online, earn more cash back by clicking through a cash-back portal like CouponCabin.com,” Woroch says.
“Since your various travel expenses can amount to hundreds or possibly thousands of dollars, any cash back percent can add up quickly and give your travel budget a nice little boost,” she adds.
She also suggests shopping through your warehouse club travel portal if you belong to one. If you aren’t a member, Woroch says that signing up can be worth it.
“Through a Sam’s Club and Costco membership, you can access exclusive savings on vacation packages, rental cars, hotel stays and even theme park passes,” Woroch says.
“While the savings will vary from day to day, you can find 20% to 30% off car rentals, hotels and more. I recently booked a hotel in Kauai and we got approximately $300 off the room rate, resort fee of $35 per day waived, a bundled car for $30 per day — the going rate for the brand was $140 per day — and a $230 Costco cash card that we used on the island to buy groceries and sunscreen,” she adds.
[READ: How to Save $1,000 for Your Summer Vacation]
Plan Early
Starting your search early gives you more time to hunt for the best price for hotels, airfare, rental cars and so on. Plus, keep an open mind, says Sahara Rose De Vore, a travel coach and consultant based in Milwaukee.
“There are numerous ways to travel on a minimal budget, even with a family,” De Vore says.
“What areas can you splurge in and where can you save money? Do you need the fanciest and most expensive hotel room, or can you stay at low-cost accommodation that you find on sites like Booking.com, Agoda or Hostelworld?” she adds.
Or, she says that you might want to go cheap on the transportation to get to your destination but then spend freely once you’re there. “Ask yourself, do you need to take a flight somewhere or can you spend $20 or less on a bus ride there?”
And if you can swing a vacation in the off season, you’ll likely save quite a bit more and deal with fewer crowds.
More from U.S. News
How to Save Money: 10 Expert-Backed Ways
How the 30-Day Savings Rule Can Help You Stop Overspending
5 Ways to Save for Vacation originally appeared on usnews.com
Update 10/08/24: This story was published at an earlier date and has been updated with new information.
