Whether you’re planning a weekend getaway or hoping to take that dream trip to Paris, vacations are extremely expensive. Between flights, hotels, souvenirs, and shopping, a trip can cost thousands of dollars, especially if you’re taking the whole family. Fortunately, with some careful planning and a dedicated savings account, you can handle the expense without going into debt.

How to Build Your Vacation Fund

1. Open Another Savings Account

When you have a specific goal, it’s always best to open a savings account dedicated solely for that purpose. Keeping your vacation fund separate from your checking account and emergency funds will keep you from dipping into it on impulse.

2. Set Up an Automatic Transfer

Once you decide how much you’ll need to save out of each paycheck, set up an automatic transfer to your new savings account. Automating the process will ensure you don’t forget and won’t let other expenses get in the way of achieving your dream vacation.

3. Track Your Spending

Every dollar you save is money you can put toward your vacation, so start tracking your spending for a couple of weeks. Some apps will even do it for you, potentially identifying corners you can cut and other ways to adjust your budget.

4. Save Your Change

A variety of apps can track your account activity, round up every purchase, and transfer it to a savings account. While saving up your spare change may not be enough to pay for the entire vacation, it might cover the costs of sightseeing, souvenirs, and other incidentals on your trip.
 

Whether you’re saving for a loan or buying a home, Spirit of America Federal Credit Union offers the services you need and the personal attention you deserve. As a member-owned nonprofit credit union, they’re committed to helping military members, postal employees, federal workers, and their families throughout Lincoln, NE, achieve their financial dreams. Visit their website for an overview of their savings accounts, follow their Twitter for more financial tips, or call (402) 467-1102 to speak with a representative today.