Five effective ways to finance your dream vacation

Who doesn’t love a vacation? An escape from every day life, and a chance to experience adventures in new places. But how can you afford to pay for it?

While holidays may be an escape from every day life, we can’t escape the fact that it’s our every day life that needs to pay for them. And when you have so many other competing expenses, funding your travel can fall down the list.

So what’s the answer? How can you afford to go on holiday without breaking the bank? To help you, here are five practical tips that can shave hundreds off the cost of your vacation, and ensure those exotic beaches and snowy peaks are much closer than you think.

1) Find a destination you can afford

Not all destinations and resorts are equal – or cost the same. And by finding a destination where you money will go further, you can increase your vacation options, and even stay longer.

So your first task should be to research places that have everything on your holiday tick list – at a price you can afford. It’s also wise to find a country where the exchange rates work in your favor; every dollar counts when you’re spending a few hundred or thousand on your dream vacation.

2) Save a week’s salary from your monthly pay 

Okay, so saving a week’s salary every month might not be achievable for everyone, but you get the idea. Work out how much you can put aside every month, and set up a standing order to move it to a savings account as soon as you are paid.

You’ll quickly get used to living on less money – so much so that you might not even notice the money gone. And over the months it can add up to a nice pot you can use for your vacation. Start working out your budget now to see how much you can afford to save regularly.

3) Watch out for the best flight deals 

One of the areas you can save a considerable amount of money on is flights. So, if you know where you want to go, set up price alerts to notify you of special airline deals.

You can get notifications for both domestic and international flights, and get multiple destinations. The more flexible you are on travel dates and times, the more you can potentially save. Often red-eye flights (late night or overnight flights) are the cheapest.

Travel saving tips from Billry gives advice on how you can travel off-season and take advantage of the significant price drops on flights. You can get better deals and also save on other travel needs such as accommodation, tours, and attractions. 

4) Choose cheaper accommodation 

When planning your holiday, think about how much time you’re planning to spend in your hotel room. If, for example, you’re an active person and plan to spend most of your time during, shopping, exploring and eating out, then it may be a waste paying a premium for a five star hotel room that you rarely see – especially if your funds are tight.

In this case you might take decision that you’re happier with budget accommodation, and spending your savings on activities.

On the other hand, if your idea of the perfect holiday is lying in late and spending sun-drenched afternoons by the pool or on your balcony, you may want to spend more on your accommodation.

5) Take advantage of credit card points 

If you’re planing to get a new credit card, now is the chance find one with connections to airlines. This way you can earn air miles on your every day spending – so each shop gets you close to your holiday. BUT there is a caveat: if you already have a high credit card balance, this method isn’t recommended.

Photo by Oziel Gómez